Unquestionably, one of the most interesting stories on the OTC over the past couple of months is that of Discovery Gold Corp (OTCMKTS:DCGD). As we noted in our last piece from a few days ago, this stock is being traded as a reverse merger play with a cannabis theme, and seemingly for good reason. The company recently changed its address to match that of “Cultiva Law, PLLC,” which is Tad Mailander’s famed law firm in charge of the Cannabis Strategic Ventures and American Cannabis accounts.
In addition, a recent 8K pointed to a big purchase of shares of DCGD by GRN Funds, LLC, a Washington limited liability company, and its manager and Chief Executive Officer, Justin Costello. A recent release by MCTC Holdings noted that “Mr. Costello is the President and CEO of Discovery Gold Corporation (OTC PINK: DCGD) of Seattle, Washington, a fast-growing, publicly-traded new entrant into the cannabis marketplace. He also manages and is the CEO of GRN Funds, LLC, a private equity and hedge fund that secures banking resources for small to medium businesses and ancillaries.” That more or less seals the deal.
Discovery Gold Corp (OTCMKTS:DCGD), which is now described as “a fast-growing, publicly-traded new entrant into the cannabis marketplace” would thus seem to be a reverse merger into the cannabis space, and one now guided by experienced hands.
MCTC’s release went on to note that, “We are excited to have Justin Costello join the Cannabis Global Inc. team. His expertise in strategic planning and venture capital will help our growing company to identify potential acquisition partners and the best sources of capital to allow us to meet our aggressive growth plans in not only the industry hemp sector, but also within other areas of the cannabis industry,” commented Arman Tabatabaei, CEO of the Company. “We welcome Justin to Cannabis Global family.”
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As noted above, DCGD continues to appear viable as a reverse merger move into the cannabis patch. As we previously noted, Justin Costello is a graduate of Harvard Business School and CEO of GRN Funds, LLC, a private equity and hedge fund with a range of highly aggressive strategies in play. His involvement here is the driving factor behind the excitement in the tape.
Recent action has seen more than 8900% tacked on to share pricing for the company in the past month. Moreover, the company has seen interest climb, with an increase in recent trading volume of a bit over 550% above the average volume levels in play in this stock over the longer term.
Regarding the appointment to the Advisory Board of MCTC, Mr. Costello said: “I am honored to be part of this dynamic company. I am expecting cannabis industry growth the rest of 2019 and into 2020 to continue, but there are areas of the industry that I believe offer superior returns for investors. The team at Cannabis Global shares my opinions of industry growth and capital placement. I look forward to applying my experience, skill-set, and relationships in order to assist this Board of Directors and management team to build value for all share and stakeholders.”
Earning a current market cap value of $95M, DCGD has virtually no cash on the books, which must be weighed relative to about $171K in total current liabilities. One should also note that debt has been growing over recent quarters. The company is pre-revenue at this point. 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 $DCGD 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 $DCGD, either long or short, and we have not been compensated for this article.