AGRITEK HLDGS INC COM USD0.0001 (OTCMKTS:AGTK) is a recent revival story in the cannabis patch on the OTC. AGTK had been seemingly left for dead over the course of the first half of the year after being launched some 2,000% in a month surrounding the election last year (as 8 of 9 states voted to increase the relative legality of pot on November 8). However, we have seen some life clearly seep back into this story over the past couple weeks. That life was augmented earlier this week when AGTK announced that it had executed a five-year operational and exclusive licensing agreement with Green Acres Pharm, a 10,000 sq. ft. licensed and operating cultivation and manufacturing facility located in Washington State.
According to the release, “Agritek Holdings will help provide additional infrastructure buildout costs for the services of licensing products for the Company in the new manufacturing facility as well as provide equipment lease/financing partners. Under the five (5) year operational contract and licensing agreement, Agritek Holdings will receive revenue in the form of consulting fees, licensing fees on all vaporizer and edible brands, equipment and lighting rental and financing fees. The Company has infused the first $100,000 of funding into Green Acres Pharm at the time of this release with plans for an additional $250,000 over the next months for machinery and equipment. The company will also seek to purchase the cultivation and manufacturing facility as an addition to its present real estate portfolio including Colorado and Puerto Rico.”
AGRITEK HLDGS INC COM USD0.0001 (OTCMKTS:AGTK) trumpets itself as a company that offers various products and services to the medicinal marijuana sector in the United States. It distributes hemp-based nutritional products; and provides solutions for electronically processing merchant transactions.
AGTK is also involved in the acquisition and leasing of real estate properties, such as cultivation space and related facilities to licensed marijuana growers and dispensary owners. In addition, it offers consulting services, including obtaining licenses, compliance, cultivation, logistical support, facility design, and building services to the cannabis industry.
According to company materials, AGTK considers itself “a pioneer within the medicinal marijuana space, provides innovative patient technology and agricultural solutions within the Compassionate Care Technology for the recreational cannabis industry. Agritek Holdings, Inc. does not directly grow, harvest, or distribute or sell cannabis or any substances that violate or contravene United States law or the Controlled Substances Act, nor does it intend to do so in the future.”
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As discussed above, AGTK shares have started to potentially come back to life in recent weeks, a theme that was materially boosted this week by news of the exclusive licensing agreement the company recently hammered home with Green Acres Pharm.
Michael Friedman, Chief Executive Officer of Agritek Holdings, Inc., stated, “Washington State is one of the most compliant jurisdictions within the medicinal and recreational cannabis sector. This long term operational contract and licensing agreement executed for the expansion of the 10,000 square foot cultivation facility now expands the footprint of Agritek into four jurisdictions as a leading provider of financial services, consulting and expansion of our brands and product lines. Washington State is becoming one of the fastest growing and compliant jurisdictions within the legal cannabis sector and we are excited to have the opportunity to work with one of the largest licensed facilities in the state.”
Recent action has seen 62% tacked on to share pricing for the stock in the past month, but that move comes in the context of a larger bearish trend. That said, AGTK has evidenced sudden upward volatility on many prior occasions. Moreover, the company has registered increased average transaction volume recently, with the past month seeing a bit over 130% over the long run average.
Currently trading at a market capitalization of $10.09M, AGTK has a reserve ($113K) of cash on the books, which must be weighed relative to about $280K in total current liabilities. AGTK is pulling in trailing 12-month revenues of $24K. However, the company is seeing recent declines on the top line on a sequential quarterly basis. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $AGTK 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 $AGTK, either long or short, and we have not been compensated for this article.
