Shares of The Greater Cannabis Company, Inc. (OTCMKTS:GCAN) exploded higher on Monday. Unfortunately, for those sitting long the stock, the lion’s share of gains were gone almost as fast as they appeared, with the stock trading up from $0.15/share to $0.36/share in an hour, and then dropping all the way back to $0.13/share an hour later. We see no clear driver for this roller coaster other than a relatively uninteresting 10-k filing that hit this morning. While that may be part of the equation, the wild ride should likely be attributed more to the remarkable features of collective human action in markets than to a face value digestive process related to this filing.
We do see information from the company disclosing, last week, a letter of agreement (LOI) with leading Brazilian beauty and personal care company Allume Cosmeticos. According to that release, “Under the terms of the agreement, Greater Cannabis Company will customize formulations and incorporate its proprietary technology to infuse pharmaceutical-grade cannabidiol (CBD) into Allume’s new line of CBD-based cosmetic products, empowering Allume to market and distribute CBD-infused beauty and personal care for its retail partners, distributors and millions of customers.”
The Greater Cannabis Company, Inc. (OTCMKTS:GCAN) frames itself as a biotechnology company focused on the development and commercialization of innovative Cannabinoid delivery systems. Greater Cannabis deploys its licensed, patented technology platform for use in the Cannabis industry.
The Company’s conveyance platform can be utilized to deliver Cannabinoids without the harmful side effects found with other routes of Cannabinoid administration.
The technology is versatile in that for the first-time patients can receive lower dosing, enhanced bioavailability, and controlled rapid and delayed release using a fully dissolvable, non-irritant oral eluting patch.
Greater Cannabis’ mission is to bring our technology to the global market through partnerships with leading Cannabis companies for the benefit of patients and consumers.
According to materials relayed by the company, “more information on the Greater Cannabis Company and its technology can be found on the Company’s website, www.gcanrx.com.”
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As noted above, GCAN just announced a letter of agreement (LOI) with leading Brazilian beauty and personal care company Allume Cosmeticos.
The chart shows 77% tacked on to share pricing for the stock in the past week. Furthermore, the listing has registered increased average transaction volume recently, with the past month seeing just under 780% over what the stock has registered over the longer term.
“The Brazilian cosmetics market, the fifth largest in the world, has long been a global leader in beauty and personal care products, with Allume on the forefront of product concept and innovation for over 40 years,” said Aitan Zacharin, Chief Executive Officer of Greater Cannabis Company. “We are honored to have been selected by Allume Cosmeticos to develop its CBD products, which we believe is a testament of the strength and efficacy of our proprietary CBD formulation technology and the industry’s increasing demand for it..”
Currently trading at a market capitalization of $4.59M, GCAN has virtually no cash on the books, which stands against about $885K in total current liabilities. One should also note that debt has been growing over recent quarters. GCAN is pulling in trailing 12-month revenues of $136. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -100%. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $GCAN 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 $GCAN, either long or short, and we have not been compensated for this article.