Acology Inc (OTCMKTS:ACOL) is a micro-cap player in the medical secondary market supply space with a growing sense of overlap with the marijuana space. ACOL stock has been exploding higher for the past month since the company announced a partnership with Boveda Inc., thereby implying the addition of patented 2-way humidity packs into the distribution design of their signature product, the MedTainer.
More recently, the company also just announced that they are expanding their Canadian operations in anticipation of the national referendum to legalize recreational cannabis. Traders will note a bit less than 910% during the past month in terms of shareholder gains in the name. This is emblematic of the stock. ACOL has a history of dramatic rallies. Furthermore, the name has seen an influx in interest of late, with the stock’s recent average trading volume running greater than 120% beyond what we have been seeing over the larger time frame.
Acology Inc (OTCMKTS:ACOL) represents itself as an innovative company operating in the fields of manufacturing, branding, sales, consulting and has most recently brought a revolutionary design to the forefront, the first-ever polypropylene (PP) air-tight, water-tight , smell-proof delivery and storage system which also embodies a grinding component.
Acology Containers give consumers the ability to store, carry, and dispense items such as pharmaceuticals, herbal remedies, teas and many other solid and/or liquid contents with ease.
According to company materials, “Acology trades on the OTC under the call letters ACOL. The company’s websites are www.Acologyinc.com for the hospice and palliative care industry and www.themedtainer.com for the recreational and medical marijuana industry. Orders for Acology products can be taken online and by phone. Custom orders are especially welcome.”
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According to the company’s most recent release, “recent high-level meetings with industry insiders have convinced Acology executives that the timing for increasing an already strong presence in the Canadian medical cannabis industry is in its’ and their investor’s best interest. Acology has maintained offices and a distribution facility in Vancouver, BC for the past 3 years. Acology’s signature product, the MedTainer, is seen by many in the industry as the ideal solution for companies that are looking to package cannabis products in a child-safe, FDA approved multi-functional container.
“With close to 3 million unit sales Acology’s Medtainer has made strong advances into wholesale and retail operations globally. Acology products are now sold by more than 4000 distributors worldwide. As added value to their growing customer list, and in light of their recent agreement, each MedTainer is now shipped with a 4-gram Boveda hydration packet inserted in each container. Boveda products have become a staple in the hydroponics industry. With Acology now acting as the marketing arm for the Minnesota-based company sales of both companies’ associated products have increased exponentially.”
We also think this news, paired with the Boveda partnership, has made this stock a hot prospect. “With the addition of a Boveda pack in each retail and wholesale MedTainer offered for sale internationally the end-user can be assured of a fresh, properly-maintained product. Acology begins the new year in the enviable position of being the only pharmaceutical container made from FDA approved PP#5 that is certified child-resistant and can be purchased world-wide. Vendors, retailers and end-users can now be assured that wherever Acology products are sent the contents will arrive properly maintained and ready for use.”
As a note, we have noticed in the past that this ticker has been frequently involved in “investor awareness” campaigns. While we don’t see any clear evidence of that in this case, and we do see some interesting catalysts in play for the stock at present, one should take note of the potential for that dynamic here as well.
Currently trading at a market capitalization of $172M, ACOL has virtually no cash on the books, which must be weighed relative to about $1.2M in total current liabilities. Hence, this is not a pretty balance sheet. One should also note that debt has been growing over recent quarters.
That said, ACOL is pulling in trailing 12-month revenues of $1.8M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 45.7%. We will update the story again soon as developments transpire. For continuing coverage on shares of $ACOL stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!