Advanced Container Technologies Inc (ACTX)

[BuddyGuise]

ACOL Poised for Record Year!

Sales of the Medtainer have exploded in 2016! Sales from the first three quarters of '16 nearly equal the entire breakout year of 2015. By the end of the summer selling season, the company stated they had sold over 700,000 Medtainer units internationally and domestically, doubling the previous year’s sales. Partnerships with Kush Bottles and the recently announced Boveda Inc. partnership, position ACOL to accelerate sales growth in 2017. News is imminent on pending agreements with Health Canada, the national Canadian healthcare service. If secured, this agreement will adopt the Medtainer as the premier container for cannabis users throughout the country due to the packages child resistance, labeling and track-ability. Currently, 3 of the top 5 medical cannabis consumer companies in Canada use MedTainers exclusively for their customer bases.

The graph below shows historical sales results for Acology, and clearly shows quarter over quarter growth for the company. Notice the full year 2016 column is only through three quarters and positions the company for another record breaking year.



Other signs ACOL is poised for growth; distribution points have grown to over 1,700, nearly double the number from 12 months ago. Share structure has remained unchanged since April, with the directors of the company holding over 76% of the common stock. This fact virtually ensures that whatever decisions concerning share structure will be in shareholders’ best interest. Artists such as Fetty Wap, Mod Sun, and Dizzy Wright along with clothing and accessories retailers LRG, Crooks and Castles and Young & Reckless have entered into agreements with Acology to produce and sell custom MedTainers.

Of course, with all these great sales increase, partnerships, and agreements, we need to pay attention to how ACOL is handling margins and gross profit. Here again, the company has done a masterful job of increasing both gross profit and margin on their lead product the Medtainer. Margins have increased from 65% in 2013 to 69% in 2014 up to a whopping 84% in 2015! As for Gross Profit, similarly to Sales, Acology has had meteoric growth. See graph below, and again please note that full year 2016 is for the current three quarters, an update will occur after the 10K in April.



Clearly $ACOL is on the right track, and could be one of those long term Buy & Hold stocks that will continue giving in the years to come. Below is a quick video the company presented showing their facilities and a summary of current business, enjoy!