CGrowth Capital Inc (CGRA)

[Mistral]

CGrowth Capital Inc (OTCMKTS: CGRA) Is Set For Another Upswing

The last time we reviewed CGrowth Capital Inc. (OTCMKTS: CGRA) back on July 19, 2016, the stock, was range trading near the resistance level of said range at $.0186, and had support at $.009. Immediately following our review with an article entitled "On The Verge Of A Breakout,” the stock actually made a breakout to a high of $.0320 on August 2, 2016. Since then the stock has again been range bound with the same support level at $.009, near where it is trading now at $.01. This is the third price dip to the support level after hitting the initial high of the range, followed by two strong bounces to the upper part of the range. From a technical analysis perspective, the stock is in a favorable set-up for a buying opportunity. In situations such as this, having fundamentals that support the buy signal allow for a higher probability of a successful trade.

Before we delve into the fundamentals of the company, some background for those not familiar with it. CGrowth Capital Inc. is an alternative asset management company for businesses and assets focused on all aspects of mining, minerals, exploration, and commercial real estate. CGrowth Capital’s services and solutions are designed to assist land owners with monetizing undervalued assets by bringing commodities such as gold, silver, oil and gas, and dolomite to market. CGrowth Capital focuses on acquiring land assets, while also providing partners and affiliates with management services, capital, contract management and logistical services necessary for the successful execution of operations. Through wholly owned subsidiaries, the company has begun to strategically leverage real estate assets for maximum value within newly developing industries, including the cannabis industry, currently underway in Washington State.

One of CGrowth Capital’s tier 3 cannabis producing tenants, Wildfire Cannabis Company, began posting initial lease revenues on November 1, 2016, following a blockbuster performance and outdoor harvest yield. Furthermore, CGrowth Capital’s manufacturing and processing facility in Chewelah, Washington is now providing turnkey commercial leases to tenants at its Washington state location where the state has legalized cannabis. Based on initial success, expansion of both indoor and outdoor operations is inevitable.

Bill Wright, CEO of CGrowth Capital, Inc., stated, “We have been working on this leasing structure and relationships for over 18 months and that diligence and patience is now paying off. While others in this new market space are spending their time telling people what they can do, we have rolled up our sleeves and executed on what we said we would do — a first to market. This is not an adventure with overnight success — it takes time, patience, the right relationships, and a whole lot of work — but we are there now and revenues will continue to build as we expand the facilities and properties under our control.”

On the financing front, CGrowth Capital Inc increased and renewed its bond offering in the United Kingdom to £30,000,000 British Pound Sterling for its subsidiary CGrowth Capital Bond Ltd. — releasing Bond Issue 2 Series 1v1 on November 9, 2016. CGrowth Capital Bond Ltd. has issued in excess of £15,000,000 GBP subscriptions to date. The Company also opened an affiliated office in Malaysia, which will support the Company’s efforts with the bond offering and other business affairs.

The offering was completed in conjunction with management’s visit with the bond administrator, and included meetings with strategic investment groups and pension managers. With the deployment of funds received through the Company’s bond offering and the execution of numerous business initiatives, the Company is focused on continuing the momentum into 2017. Subscriptions for the bonds remain strong and are expected to continue through 2017.

During the 3rd quarter of 2017, another of the Company’s oil and gas subsidiaries, Powder River Resources, completed infrastructure improvements, well workover programs, production and wellsite facility upgrades, and extensive mapping and data collection on new drilling locations. The extensive work is projected to result in oil and gas revenue ramping up through the winter and continuing to build into 2017 and beyond. As new drilling commences, and prior workovers come online, the Company looks forward to a robust energy division.

The company recently filed its 2016 consolidated annual financials for the period ended December 31, 2016 to OTC Markets. The Company’s consolidated Total Assets increased three-fold over the prior year to nearly $25,000,000. The Company has not issued shares for the 17th consecutive month, as the Company remains committed to developing its business plan without the issuance of stock. The United Kingdom audits have been completed, which now paves the way for Company to complete US audits in preparation for additional corporate developments and uplisting. Current market capitalization stands at $3.91 million, on 391.41 million shares outstanding as of April 14, 2017. The fundamentals are also favorable, supporting the current technicals mentioned at the beginning of this article.

https://www.insiderfinancial.com/cgrowth-capital-inc-otcmkts-cgra-is-set-for-another-upswing/121783/