A name that could certainly emerge as one of the most interesting players in the cannabis patch as we see some sort of re-emergence in the space over coming months is Cannabis Strategic Ventures (OTCMKTS:NUGS). The stock has been outperforming its peers on a relative basis in recent action, and just posted a clear acceleration in sales growth, with revenues jumping over 1,300% on a y/y basis to over $700K in the quarter.
“Q2 ushered in a new standard across all top-line metrics and we expect to continue expanding on this growth through Q3 and beyond,” commented Simon Yu, CEO, Cannabis Strategic Ventures. “Over the last two years, we have secured and invested capital to help drive revenue and substantially increase the Company’s total assets while improving gross profit margins. We expect continued growth to the top-line along with a declining drop in net losses next year.”
Cannabis Strategic Ventures (OTCMKTS:NUGS) bills itself as one of the largest publicly traded marijuana cultivators in the United States.
The Company is Los Angeles-based that incubates, develops and partners with category leaders within the cannabis and ancillary sectors. The Firm’s NUGS brand experience provides operational and financial strategic partnerships and a range of essential services to emerging and existing Cannabis consumer brands.
According to company materials, “Cannabis Strategic Ventures is on a mission to shape the cannabis industry by striving for constant evolution in products, process, and people. The Los Angeles-based company incubates, develops and partners with category leaders within the cannabis and ancillary sectors. As one of the largest publicly traded cannabis cultivators in the United States, the Cannabis Strategic Ventures portfolio includes NUGS FARM, a 6-acre greenhouse operation with full cultivation, manufacturing and distribution licenses; Asher House Wellness a is a line of ingestible Pet CBD products that contains a broad spectrum of beneficial hemp; The Cloud is a dispensary, cultivation, and manufacturing facility located in the heart of downtown Los Angeles.”
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As noted above, NUGS just announced its new financials, with strong growth as the driving theme.
Recent action has seen 30% piled on for shareholders of the listing during the month. Moreover, the company has witnessed a pop in interest, as transaction volume levels have recently pushed a bit less than 380% beyond its prior sustained average level.
“We experienced acceleration in top-line growth in Q2 as we expanded the scale of our operations through new investments,” continued Yu. “As we press forward, we anticipate growth to continue in the months ahead. The message to our shareholders right now is this: Cannabis Strategic Ventures is committed to aggressive expansion as we gradually move toward profitability. We are becoming simultaneously bigger and more efficient with every passing month and are confident in our mission to create shareholder value.”
Earning a current market cap value of $18M, NUGS has a stash ($228K) of cash on the books, which stands against about $10.5M in total current liabilities. One should also note that debt has been growing over recent quarters. NUGS is pulling in trailing 12-month revenues of $1.5M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 1317.6%. 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 $NUGS 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 $NUGS, either long or short, and we have not been compensated for this article.