Why CannaRoyalty Corp (OTCMKTS:ORHOF) Shares Keep Surprising the Bears

Why CannaRoyalty Corp (OTCMKTS:ORHOF) Shares Keep Surprising the Bears


Shares of CannaRoyalty Corp (OTCMKTS:ORHOF) exploded higher to close out last week, with the stock establishing a new all-time closing high on the day. This puts traders of the stock into the position of choosing between a double-top high and a fresh continuing breakout. To help flesh out this dichotomy, the company just announced that its wholly-owned subsidiaries, Kaya Management Inc. and FloraCal Farms, were awarded annual operating licenses from the State of California.

According to the release, “Kaya operates a licensed manufacturing facility in Oakland, California that manufactures edibles, vaporizers and pre-rolls, and was issued an annual Type 6 non-volatile manufacturing license by the California Department of Public Health. Approximately 60 cannabis manufacturing facilities across California have received annual licenses.”

CannaRoyalty Corp (OTCMKTS:ORHOF) trumpets itself as a private equity firm specializing in acquisitions. The firm invests in the legal cannabis sector with a focus on research and intellectual property, consumer brands, and industry infrastructure. It seeks to invest in the United States and Canada. CannaRoyalty Corp. is headquartered in Ottawa, Canada.

The company is doing business as Origin House.

Origin House is a growing cannabis products and brands company operating across key markets in the U.S. and Canada, with a strategic focus on becoming a preeminent global house of cannabis brands.

The Company’s foundation is in California, the world’s largest regulated cannabis market, where it delivers over 130 branded cannabis products to the majority of licensed dispensaries.

Origin House’s brand development platform is operated out of five licensed facilities located across California, and provides distribution, manufacturing, cultivation and marketing services for its brand partners. The Company is actively developing infrastructure to support the proliferation of its brands internationally, initially through its acquisition of Canadian retailer 180 Smoke.

Origin House’s Common Shares currently trade on the Canadian Securities Exchange (CSE) under the symbol “CRZ” and will trade under the symbol “OH” effective October 23, 2018. Origin House is the registered business name of CannaRoyalty Corp.

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As noted above, ORHOF just announced that its wholly owned subsidiaries, Kaya Management Inc. and FloraCal Farms, were awarded annual operating licenses from the State of California. Traders will note 20% piled on for shareholders of the listing during the trailing month.

What’s more, the company has seen a growing influx of trading interest, with the stock’s recent average trading volume running 18% above its longer-run average levels.

According to the release, “FloraCal operates a craft cannabis cultivation facility located in Sonoma County, California and was issued a one-year provisional cultivation license,1 from the California Department of Food and Agriculture. This is the first annual or provisional cultivation license to be issued in Sonoma County. Origin House currently operates five licensed facilities across California. Kaya and FloraCal are the first of those facilities to transition from temporary to annual licensure.”

Now commanding a market cap of $537.88M, ORHOF has a significant war chest ($58.2M) of cash on the books, which stands against about $21M in total current liabilities. One should also note that debt has been growing over recent quarters. ORHOF is pulling in trailing 12-month revenues of $9.1M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 753.4%. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $ORHOF 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 $ORHOF, either long or short, and we have not been compensated for this article.

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