Surprisingly enough, given all of the cannabis sector plays that we track on a regular basis here on Street Register, we’ve yet to touch upon General Cannabis Corp (OTCMKTS:CANN), which has established cannabis consulting and brand design operations.
As we’ve been seeing from quite a good portion of cannabis stocks, the entry of the Trump Administration and DOJ under marijuana detractor Jeff Sessions, was highly damaging to CANN. With gains realized toward the end of 2016 being absolutely obliterated, the stock only recently began making a recovery off of its ultimate lows.
The recovery of General Cannabis Corp (OTCMKTS:CANN) has been significant, however, with shares of CANN jumping from lows of 1.12 printing just last week, and the stock returning to the $2+ range this week.
On top of that, the company recently announced the acquisition of GC Finance Arizona, LLC (“GC Arizona”) from Infinity Capital West, LLC (“Infinity Capital”). GC Arizona owns two primary assets: 1) a 50% LLC membership interest in DB Products Arizona, LLC (“DB Arizona”) and 2) a secured promissory note with DB Arizona in the amount of $825,000, plus accrued interest. General Cannabis paid $106,001 for the acquisition of GC Arizona. Infinity Capital is owned by General Cannabis’ chairman of the board, Michael Feinsod.
DB Arizona produces and distributes medical marijuana infused products in the state of Arizona. The vast majority of DB Arizona’s products to date have been Dixie Brands Inc.’s full line of medical cannabis “Dixie Elixirs and Edibles.” DB Arizona began production in the fourth quarter of 2016. During the first quarter of 2017, gross revenues for DB Arizona were approximately $194,000. DB Arizona has significant excess production capacity at its 14,000 square foot state of the art commercial kitchen and infused products manufacturing facility.
“We are excited to announce the purchase of GC Finance Arizona, LLC. We look forward to working with our partners to introduce and produce the highest quality infused products for the medical marijuana industry in the state of Arizona.” said Michael Feinsod. “Closing on this milestone expands our public company platform and further diversifies our revenue stream, which will create significant shareholder value.” (Source: Globe Newswire)
That announcement came just a couple of weeks removed from another key revelation; the company’s record-setting quarter. For the quarter ended March 31, 2017, the company reported a 4% increase in total revenues when compared to the quarter ended March 31, 2016. During the first quarter of 2017, the company’s Operations segment, Next Big Crop, increased revenues by 119% over the first quarter of 2016. Offsetting this increase, the Security division experienced a 16% decrease in revenue, because of a decline in wholesale cannabis prices in Colorado, and the company’s preference to work only with well-capitalized clients and not overextend credit to security clients.
“Next Big Crop, our Operations segment, had record revenues in the first quarter of 2017,” said Robert Frichtel, Chief Executive Officer of General Cannabis. “With 29 states and the District of Columbia now having legalized medical marijuana, of which eight states also legalized recreational use, Next Big Crop has expanded its business by assisting companies submitting applications to acquire licenses, and have also signed new contracts to provide operational consulting and products. Next Big Crop is developing a robust pipeline of business for the next year.” (Source: PR Newswire)
Like we mentioned above, it’s odd that we had yet to cross paths with CANN to this point, but it’s a mistake we wanted to remedy with expedience, because there’s a good underlying story to go along with the stocks re-emergence on the chart. Track that story right along with us. Just stay locked to Street Register for updates, and we’ll deliver important developments on CANN as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in CANN stock, short or long.