American Cannabis Company Inc (OTCMKTS:AMMJ) is a micro-cap stock that has grabbed hold of the attention of traders during the stock’s recent bounce. AMMJ recently announced that it has secured a new client in the state of California. This client seeks to acquire a license that will permit them to dispense medical cannabis to patients.
According to the release, “ACC has been contracted to complete operational planning activities, to provide conceptual design work for a retail dispensary location, to assist with 2017 city permitting, and to help with 2018 state application completion. Upon the client being awarded a city permit, ACC will be further retained in the dispensary deployment process where the consulting firm will provide facility staffing solutions, a customized set of operational workflow procedures, and remote operational monitoring support. ACC expects to leverage this contract to secure additional revenues through long-term consulting agreements and future sales of ancillary products, as this client is looking to seek licensure for the California recreational/adult-use cannabis program in the near future.”
American Cannabis Company Inc (OTCMKTS:AMMJ) promulgates itself as a company that provides solutions for businesses operating in the cannabis industry in the United States and Canada.
AMMJ provides advisory and consulting services, including commercial cannabis business planning services, cannabis business license applications, cultivation build-out consulting, cannabis regulatory compliance, compliance audit services, cannabis business growth strategies, and cannabis business monitoring services.
The company also sells products and equipment used in the cultivation, processing, transportation, or retail sale of cannabis. Its product offerings include The Satchel, a pouch-like case designed as a child-proof exit package solution for the regulated cannabis industry; SoHum Living Soil, a just-add-water soil; High Density Racking System, which ensures the proper use of space; The Cultivation Cube, a self-contained and scalable cultivation system; and other products for cultivation operations, medicinal and recreational cannabis dispensary operations, and infused-products.
According to company materials, “American Cannabis Company, Inc. offers end-to-end solutions to existing and aspiring participants in the cannabis industry. We utilize our industry expertise to provide business planning and market assessment services, assist state licensing procurement, create business infrastructure and operational best practices. American Cannabis Company also developed and owns a portfolio of branded products including: The Satchel, SoHum Living Soils, The Cultivation Cube and The High Density Cultivation System. We also design and provide other industry specific custom product solutions. The building and development of our brands and product suite is based on our Geoponics Philosophy, “the art and science of agriculture in soil.”
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As noted above, AMMJ shares have continued to find a serious bid. The latest catalyst for shares is the company’s announcement this week of a new client now in the state of California.
Terry Buffalo, CEO of American Cannabis Company, commented: “We are glad to be engaged with this client in the state of California. This state, while deeper than most states in its cannabis industry history and tenure, continues to present vast amounts of opportunity within the marketplace. As a company, ACC is actively seeking to align itself with strong clients who have an understanding of what it takes to achieve success. Needless to say, we are confident that our new client in California is equipped with the right tools to be competitive, and we will strive to make this client more and more competitive within the marketplace as we seek to be a long-term consulting solution for this group.”
The chart shows 18% added to share values of the listing over the past month of action, a rally that has pushed up against longer standing distributive pressure in the stock. That said, AMMJ has a history of dramatic rallies. What’s more, the name has seen an influx in interest of late, with the stock’s recent average trading volume running above 120% beyond what we have been seeing over the larger time frame.
This is particularly important due to the tight float size in the stock (not even 23M shares). This type of thing is something to watch out for: a restricted trading float and a jump in trading volume can crimp supply and push share prices higher.
Earning a current market cap value of $44.5M, AMMJ has a stash ($1.7M) of cash reported on the books, which is balanced by virtually no total current liabilities. AMMJ is pulling in trailing 12-month revenues of $1.6M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 14.2%. We will update the story again soon as further details emerge. For continuing coverage on shares of $AMMJ stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $AMMJ, either long or short, and we have not been compensated for this article.