Well said BoSox! Bottom line is if you have done your homework on these guys than you have to see the big picture here! These guys aren't going to be selling pencils on a street corner. They are going to be selling a product that there is a great demand for! How many other licensed California publicly traded cannabis companies are there? All the licenses for California started being issued in January. It's now March. How about a little patience folks. If you are in penny land, you have got to expect volatility. This isn't a sub penny junk play with billions of shares on the float. They are a startup company with 5 plus million shares on the float. If you have seen the Instagram photos they have put up, it shows progress. People ask them questions and they answer them. Progress is happening.
It wasn't too long ago that this was trading at a 100 million dollar market cap on 50 million shares. There were no licenses back then, but there was a vision. Since then, they have reduced the float and the authorized shares substantially.
So, what do they have going for them?
They are one of the few publicly traded licensed cannabis companies in California. Not only do they have a cultivation license. They have a manufacture and distributor license. One would think that carries a lot of weight when all these harvests come rolling through wouldn't you think?
They got outside financing to expand their operation and build more greenhouses to grow more product. Do you think they would do this if they didn't see what an explosive business opportunity this would be? They got private financing because banks typically won't lend to marijuana related companies. Sounds like REI has faith in them!
Speaking of expansion, once the grow out of the approximate 32,000 sq. feet is completed they have a vision of making 750,000sq ft of grow space eventually. Baby steps first. I agree, but they can see that happening. I just witnessed a Canadian cannabis company hit the Nasdaq this week with 70,000 sq ft. of grow space. They are expanding to 243000 sq. ft. grow space. Oh, there market cap is a measly 1.2 billion.
So, all I'm saying is if you are long that you need to see the big picture here. Don't let the noise get you down. I'm confident that these guys are going to do extremely well.
Think about it this way: If you are in the small percentage of companies that are licensed, wouldn't you think that those companies will almost have a monopoly when it comes to selling? This company is one of the few companies that is at the forefront of legal cannabis in California.
Let them grow and be patient! This is unfolding as we speak. Best of luck guys. I know that down trends are tough, but the nice thing is they don't last forever. Chart is looking pretty bottomed out on low low volume. People are holding tight because they know better.
AI
