Recent action should make it clear that Medicine Man Technologies Inc (OTCMKTS:MDCL) deserves to be back on the list for cannabis investors. The stock has rocketed 50% higher in the past few days as new data comes across the wires chasing out shorts and beckoning the speculator crowd into the action. Specifically, the main driver comes in the form of new financial results for its first quarter of 2019.
According to the release, “During the three months ended March 31, 2019, the Company generated operating revenues of $2,003,476, an increase of approximately 65%, as compared to revenues of $1,211,037 in the three months ending March 31, 2018. Product sales were exceptionally strong over this period and grew 236%, from $459,335 to $1,544,300.”
Medicine Man Technologies Inc (OTCMKTS:MDCL) bills itself as a company that provides cultivation consulting services for cannabis growing technologies and methodologies.
Established in March 2014, the company secured its first client/licensee in April 2014.
To date, the Company has provided guidance for several clients that have successfully secured licenses to operate cannabis businesses within their state. The Company currently has or has had active clients in California, Iowa, Oregon, Colorado, Nevada, Illinois, Michigan, Arkansas, Pennsylvania, Florida, Ohio, Maryland, New York, Oklahoma, Massachusetts, Puerto Rico, Canada, Australia, Germany, and South Africa.
The Company continues to focus on working with clients to 1) utilize its experience, technology, and training to help secure a license in states with newly emerging regulations, 2) deploy the Company’s highly effective variable capacity constant harvest cultivation practices through its deployment of Cultivation MAX, and eliminate the liability of single grower dependence, 3) avoid the costly mistakes generally made in start-up, 4) stay engaged with an ever expanding team of licensees and partners, all focused on quality and safety that will “share” the ever-improving experience and knowledge of the network, and 5) continuing the expansion of our Brands Warehouse concept through entry into industry based cooperative agreements and pursuing other acquisitions as they prove suitable to our overall business development strategy.
The company also provides licensing and seminar services. In addition, it engages in retail operations of cannabis products. The company was founded in 2014 and is based in Denver, Colorado.
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As noted above, MDCL just announced record financial results for the first quarter.
The chart shows 40% added to share values of the name over the past week of action. Furthermore, the listing has registered increased average transaction volume recently, with the past month seeing 68% above the average volume levels in play in this stock over the longer term. This should not be overlooked with a float in play that’s tight — not even 22M shares.
“With the recent progress of HB19-1090 and the strong overall momentum within the cannabis industry, we came in this quarter with record revenues and strong sales from our products division,” said Mr. Andy Williams, Co-Founder and Chief Executive Officer of Medicine Man Technologies. “Looking ahead, we have several significant events that include our pending acquisitions of Medicine Man Denver and MedPharm Holdings, LLC, which will put us on a major growth trajectory and create compelling value add for our shareholders.”
Now commanding a market cap of $103.54M, MDCL has a reserve ($322K) of cash on the books, which must be weighed relative to about $1.1M in total current liabilities. One should also note that debt has been growing over recent quarters. MDCL is pulling in trailing 12-month revenues of $9.4M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 81.8%. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $MDCL 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 $MDCL, either long or short, and we have not been compensated for this article.