North American Cannabis Holdings (OTCMKTS:USMJ) shares rose 15.79% to $0.00110 and were flat in after-hours trading. Share prices have been trading in a 52-week range of $0.00 to $0.00. The company has a market cap of $35K at 36.88 million shares outstanding.
North American Cannabis Holdings Inc has entered into the marijuana industry in 2013 to pilot various cannabis sector enterprises and now it is well-positioned to take advantage of the expected boom. The market is expected to grow to $20 billion by 2020 thanks to the November 8 vote that legalized the use of medical or recreational marijuana in several US states.
The company recently reported its earnings for the quarter ending December 31, 2016 and indicated a 40% jump in revenue for the period to $193,000. It also reported an increase of 56% in gross margin to $110,000. In addition, company operations are eaching breakeven reporting a net margin loss of only $78 for the quarter.
Majority of its revenue comes from ongoing development of a cannabis concept restaurant, The AmeriCanna Cafe, which stems from the company’s experience operating a sport fitness and wellness restaurant. The pickup in Q4 revenue was mostly from sales of new sports and fitness supplements the Company is currently piloting.
Last year, the company announced that it is set to close the acquisition of controlling interest in Alternet Systems by December 20, 2016. Alternet Systems is a company that develops and commercializes a growing portfolio of digital commerce technologies and already has a long-term track record in financial services industry software solutions. It also partnered with Puration under their EVERx Sports and Fitness Nutritional Supplement Brand Name to market products targeted to athletes looking to enhance their performance, as CBD can substantially reduce recovery times and increase cardio output.
Note that the company is setting up for its major launch event in March that could further boost investor interest and stock gains.
The launch event is going to be huge, and both USMJ and PURA have big roles to play” said Steven Rash, CEO of North American Cannabis Holdings Inc. “An amazing ensemble of smart people and terrific organizations are coming together for what will be a tremendous launch event. When we tell you all about the EVERx launch event it will be crystal clear to you how USMJ and PURA fit together and how all the hard work getting to this launch has been worth it. EVERx is a winner and you will see it endorsed by winners at our launch event… in March. Put it on your calendar now.”
The stock’s long-term price chart shows a pickup in bullish momentum as it has been making new highs in the past few months, likely driven by the momentum after medical or recreational marijuana was legalized in a few U.S. states. Investor interest has also been picking up surrounding key company announcements and it won’t be surprising if we see another pop higher in volumes during their official launch with Puration next month.
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