“Green” Interest Returns
With the Elections behind us now and several more states “Going Green,” it is obvious that there will be a renewed interest in the Cannabis/Marijuana Sector of the MicroCap Market. Investors learned some pretty tough lessons last year when they chased some of the sector related stocks up and grabbed positions during what can only be described as a parabolic move. Now the hype is gone and so are most of the gains… what is left is a Market Sector littered with unfulfilled promises and disillusioned investors. Gone are the dreams of early retirement and gone right along with those dreams are the portfolios with the inflated unrealized profits and balances stuffed with stocks of companies that never had any intentions of delivering anything of real value. What is left is a Market Sector filled with a graveyard full of dead tickers along with a handful of real companies that will actually remain viable and execute on their business plan.
The State of Colorado alone estimates total Cannabis Sales for the next fiscal year could hit $160 million. This projection leaves very little doubt that there is going to be renewed interest as well as a residual effect on the Public Markets. The sixty-four dollar question is… how the hell do you navigate these shark infested waters without losing a leg or your shirt? The answer to that is a simple one… become a realist and use some deductive reasoning. If a company is making a lot of forward looking statements, has a share structure that only a lonely broke Transfer Agent could love, and has a story that seems too good to be true… then it probably is. The call of the day is DUE DILIGENCE! Read the filings, check out the Recent Headlines, look into the Share Structure, and pull up the chart… without completing all four of these due diligence actions then the best action for you to enter the Cannabis Sector of the market is …. NO ACTION.
With all of this being said, I want to briefly focus your attention in the direction of CannaGrow Holdings, Inc. OTC Pink (CGRW) formerly BizAuctions, Inc. This is a company that fits much of the criteria that was just hit upon. Run it up the flagpole and see what you think. It looks to me like a company that is not so much about selling stock as a business model but actually has plans to strategically enter the Medical/Recreational Cannabis Industry in the State of Colorado… without a marching band. I kind of like that idea…..
In early June BizAuctions, Inc. issued a Corporate Update with hints of a change in their Business Model and then proceeded to quietly make several more moves that went virtually unnoticed by the market on a whole. Here is what they did.
- Reduced the Authorized Shares of the company from 20,000,000,000 to 2,000,000,000
- Filed a Disclosure Statement and became completely current with their financials on OTCMarkets.com
- Hired a top Law Firm in the Denver Area the specializes in the Medical/Recreational Cannabis Arena in the State of Colorado
- Leased an office in Centennial Colorado
Keep in mind there has been no Fanfare or horn blowing… all these steps were taken very quietly and methodically over about 30 days, so make a mental note of that.
Now here is where it starts to get really interesting… In Mid-July the Company hires a Consultant with a PhD in Botany and a Bachelor of Science in Agriculture. Are you starting to get the picture yet? Again, the Company is not making any wild claims or outlandish statements… just step by step methodical moves.
Next, they hire an Executive to oversee the new direction the Company has taken. This new addition to the team has a Masters in Marketing and was the logistics manager of a 30,000 sq. ft. botanical and plant facility. It doesn’t take a brain surgeon to stitch these pieces together. This announcement was made at the end of July and the time period for all of these changes was only about 6 weeks.
Now the company goes quiet for a couple of months and the words “head fake” start to creep in as people who first noticed this story developing begin to question the all too familiar cessation of information. Just when the silence becomes almost deafening the Company comes out with a couple of very significant announcements. BizAuctions, Inc. has changed its name to CannaGrow Holdings, Inc. and submitted the change to Finra to take effect on November 1, 2014. Then, as if right on queue, the Company releases press in regard to a signed Lease Agreement with NuGro Industries, Inc. for 20 acres in Huerfano County, CO. The kicker to the Lease Agreement is NuGro Industries, Inc. agreed to build:
- “State of the Art” 7,500 sq. ft. Greenhouse and Operations / Head-House
- 6 – 1,800 sq. ft. Hoop Houses to accommodate 10,800 sq. ft. Summer Grows
Basically, The Lease calls for NuGro Industries to provide all of the development costs for the site plans, site work, utilities, and structures. Did you get that? CannaGrow Holdings, Inc. signed a Lease Agreement that calls for the Landlord to build to suit with some very specific terms.
On October 16, CannaGrow Holdings, Inc. adds to the ongoing saga by announcing yet another addition to the already experienced and knowledgeable “team grow”. The new member to join the team has a Bachelor of Science in Agriculture and specializes in plant propagation.
So here is what we have. A CEO that has 2 decades of experience in the public markets, a couple of experts in the area of agriculture, and an individual with extensive experience in greenhouse management. This is a company has clearly entered into the Medical/Recreational Cannabis Arena in the State of Colorado without hype. The stock has a very small float and is currently sitting at what appears to be a bottom that has been tested again and again over the last couple of months.
Let’s face it, with the move the whole Cannabis Sector saw last year and the subsequent sell off there is an abundance of skepticism that has been cast over the entire sector… as well there should be. That brings us to an interesting question… How do we know what is real and what is… well for lack of a better word… not real? My only suggestion is to adhere to these three words… research, research, research! If you are going to invest hard earned money into what appears to be an industry boom, that is unparalleled since the California Gold Rush of the 1800’s or the Texas Oil Boom of the 1900’s, I encourage you to DO YOUR HOME WORK!! Know what you are buying and don’t be deterred, you could soon join the ranks of the new Marijuana Millionaires…
CGRW Security Details
Share Structure
| Market Value1 | $12,707,343 | a/o Nov 03, 2014 |
| Shares Outstanding | 127,073,434 | a/o Oct 09, 2014 |
| Float | 25,762,901 | a/o Oct 09, 2014 |
| Authorized Shares | 2,000,000,000 | a/o Jul 07, 2014 |
| Par Value | 0.001 |
Cannagrow Holdings, Inc. (CGRW) Establishes Itself As a Leader In Colorado’s Expanding Cannabis Industry
https://finance.yahoo.com/news/cannagrow-holdings-inc-cgrw-establishes-130000745.html
BizAuctions — Shareholder Update
June 16, 2014
https://finance.yahoo.com/news/bizauctions-shareholder-101000205.html
BizAuctions Files Notice of Corporate Action With FINRA
June 19
https://finance.yahoo.com/news/bizauctions-files-notice-corporate-action-111000966.html
BizAuctions Files Disclosure Statements With OTC Markets
June 30, 2014
https://finance.yahoo.com/news/bizauctions-files-disclosure-statements-otc-111500402.html
BizAuctions Executes Engagement Agreement With Hoban & Feola, LLC Law Firm in Denver, CO
July 11, 2014
https://finance.yahoo.com/news/bizauctions-executes-engagement-agreement-hoban-201500006.html
BizAuctions-Signs Lease for Office in Centennial, Colorado
July 15, 2014
https://finance.yahoo.com/news/bizauctions-signs-lease-office-centennial-111500064.html
BizAuctions-Hires Consultant to Assist in Exploring Opportunities in Colorado
July 18, 2014
https://finance.yahoo.com/news/bizauctions-hires-consultant-assist-exploring-111500006.html
BizAuctions-Hires Executive to Oversee Expansion into Colorado
July 31, 2014
https://finance.yahoo.com/news/bizauctions-hires-executive-oversee-expansion-114500343.html
BizAuctions Files Name Change Amendment
October 3, 2014
https://finance.yahoo.com/news/bizauctions-files-name-change-amendment-104500207.html
BizAuctions-CannaGrow Executes 20 Acre Lease Agreement with NuGro Industries, Inc. for Lease in Huerfano County, Co.
October 9, 2014
https://finance.yahoo.com/news/bizauctions-cannagrow-executes-20-acre-104500228.html
Biz-CannaGrow Hires Consultant to Assist Dr. John Janovec with Colorado Cannabis Project
October 16, 2014
https://finance.yahoo.com/news/biz-cannagrow-hires-consultant-assist-104500754.html
BizAuctions-Files Notice of Corporation Action with FINRA
October 23, 2014
https://finance.yahoo.com/news/bizauctions-files-notice-corporation-action-104500295.html
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