If you haven’t been watching Freedom Leaf Inc (OTCMKTS:FRLF) over the past two days, you may want to start. The stock exploded for monster gains on monster volume this week following the company’s announcement that it has received a significant investment from cannabis private equity firm Merida Capital Partners to further expand its existing US sales channels and accelerate its European hemp cultivation operations.
As noted in the company’s most recent communique, “Freedom Leaf and Merida have also agreed in principal to a strategic partnership by which Merida will provide certain operational resources and support for both Freedom Leaf’s US hemp-based cannabidiol (CBD) sales efforts and their global cultivation operations. In connection with Merida’s investment, Merida Senior Partner David Goldburg will be joining the Freedom Leaf Board of Directors.”
Freedom Leaf Inc (OTCMKTS:FRLF) trumpets itself as a fully reporting and audited, publicly traded company.
The company is a leading go-to resource in the cannabis, medical marijuana, and industrial hemp industry. It is involved in mergers and acquisitions and business consulting in the marijuana industry, including incubation/acceleration and spin-offs of new marijuana/hemp related companies.
Freedom Leaf, Inc.’s flagship publication is Freedom Leaf Magazine “The Good News in Marijuana Reform”. The company produces a portfolio of news, print and digital multi-media verticals, websites, blogs and web advertising, for the ever-changing emerging cannabis, medical marijuana and industrial hemp industry. Freedom Leaf, Inc. does not handle, grow, sell, or dispense marijuana.
It also provides consulting services; advertisement services; offers educational seminars; licensing services; magazine subscriptions; and sells branded products. In addition, the company is involved in contracting to brand, market, and sell their products and/or services; and concerts and musical festivals.
The company was formerly known as Arkadia International, Inc. and changed its name to Freedom Leaf, Inc. in November 2014. Freedom Leaf, Inc. is headquartered in Las Vegas, Nevada.
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The action in the stock has been quite emphatic over recent days in response to the company’s announcement. In all, traders will note more than 180% piled on for shareholders of the stock during the trailing week. Furthermore, the company has seen interest climb, with an increase in recent trading volume of just shy of 630% beyond what we have been seeing over the larger time frame.
Clifford Perry, CEO of Freedom Leaf, commented, “Receiving an investment from a leading cannabis firm like Merida, which already has investments in key supply chain providers like KushCo, GrowGeneration, and Emerald Scientific, should drive our US expansion and ensure we are building our CBD production business efficiently, while also giving us incredible support in our global expansion.”
“Merida’s investment is a validation of Freedom Leaf’s aggressive efforts to build a high-quality family of cannabidiol-based products, but it is also an acknowledgment of the potential for the Valencia, Spain cultivation facility to become a significant supplier of both hemp and cannabis to European markets in the immediate future,” said Mitch Baruchowitz, Managing Partner of Merida Capital Partners.
Added David Goldburg, “I am excited to work closely with the Freedom Leaf team to rapidly expand their US CBD footprint while developing their European operations, including working with recent Merida investee, Italian CBD production company Materia Medica Processing.”
Now commanding a market cap of $90.71M, FRLF has a reserve ($166K) of cash on the books, which compares with about $532K in total current liabilities. FRLF is pulling in trailing 12-month revenues of $318K. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -87.5%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $FRLF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $FRLF, either long or short, and we have not been compensated for this article.