AGRITEK HLDGS INC COM USD0.0001 (OTCMKTS:AGTK) has been truly all over the map in the past 10 months. AGTK was picked up powerfully in the craze of Green Rush 2.0, running well over 3,000% higher in a matter of months into the November 8 vote. However, AGTK has since come way back down to Earth, recently testing, and finding support at the one penny level, down over 80% from its 2016 highs.
That said, AGTK got a huge boost on Wednesday when the company announced the timely filing of the Company’s second quarter financial results for 2017. B. Michael Friedman, CEO of Agritek Holdings, stated, “We are pleased with the progress of our second quarter results and encouraged by the overall progress that we have made since uplisting to the OTCQX. Our first consulting revenues, initial release of newly branded products now in inventory, and the increased equity in our property portfolio including Colorado and Puerto Rico operations all show a strategic execution of our business strategy within the cannabis sector.”
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 noted above, AGTK shares have been holding penny support following a steep pullback over recent months. However, we saw some positive notes from management that appear to have helped the stock see some new inflows. It’s important to remember that this is a business listed on the OTCQB that reports fully audited results. There’s a platform of potential viability and credibility if they can start to put the numbers together well enough to counter some shaky balance sheet issues currently in place.
“Year to date, we have doubled our brand portfolio from two brands to four brands, assembled a team of best-in-class brand management professionals to drive organic growth, and we have positioned our company with new institutional investors to increase our balance sheet to execute on our land and brand acquisition strategies. With our five year operations agreement for our 25,000 square foot cultivation facility in Puerto Rico moving toward production and a newly executed Letter of Intent for an additional operations agreement in Washington State with one of the largest licensed operators with revenues in this highly favorable jurisdiction, there is still much work to be done, but certainly an exciting time for Agritek Holdings Inc.,” further stated Friedman.
We’ve witnessed 71% during the past week in terms of shareholder gains in the name, a rally that has pushed up against longer standing distributive pressure in the stock. However, AGTK has a track record that includes a number of dramatic bounces. Furthermore, the name has seen an influx in interest of late, with the stock’s recent average trading volume running nearly 170% above the average volume levels in play in this stock over the longer term.
At this time, carrying a capital value in the market of $10.09M, AGTK has a store ($241K) of cash on the books, which is balanced by a mountain of roughly $2.4M in total current liabilities. So, as noted above, the balance is a substantial obstacle at this point. This is especially true given the lack of any substantial revenues posted over recent quarters. That said, this may be a very interesting story and we will look forward to updating it again soon. For continuing coverage on shares of $AGTK stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: We hold no position in $AGTK, either long or short, and we have not been compensated for this article.