General Cannabis Corp (OTCMKTS:CANN) has been steadily making moves higher on recent developments. CANN has been grinding slower over the last year where it once traded as high as $4.25 and is current at the depressed levels of $0.50. The stock has been attempting to breakout over the past week and did so when a report was issued on the overall favorable state of the marijuana industry which is one of the fastest growing industries and expected to reach $44 billion soon enough.
CANN has a wholly owned subsidiary called Chiefton Supply Co which is an apparel and design company based out of Denver Colorado. It specializes in innovative cannabis graphic design and branding. CANN has officially launched the design agency’s website http://www.chieftondesign.com/. During the 4th quarter of 2015, CANN’s wholly owned subsidiary had numerous clients that used its design and branding services. Grow stores, dispensaries, and wholesale marijuana companies all were all assisted by Chiefton’s service offerings. Creative director Bryan stated, “Making Chiefton Design official was something we had planned since the beginning. We are passionate about bringing a fresh look to the cannabis industry and get excited about working with clients who share that goal.”
The company recently changed auditors to an independent auditing firm called Hall according to its most recent 8-k filing. CANN has successfully been able to grow revenues above $0.5 million but with increased SG&A expenses. CANN will need to continue to find ways to grow its topline while maintaining its expenses.
CANN is the all-in-one resource for the highest quality service providers available to the regulated Cannabis Industry. It acts as a trusted partner to the cultivation, production and retail side of the cannabis business. CANN do this through a combination of strong operating divisions such as real estate, consulting, security, financing and the distribution of important infrastructure products to grow facilities and dispensaries. As a synergistic holding company, its subsidiaries are able to leverage the strengths of each other, as well as a larger balance sheet, to succeed.
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CANN is currently trading at a $7 million market valuation. CANN may be in the beginning stages of a turnaround if its wholly owned subsidiary continues to grow and add new clientele. The issue that we are concerned about is a reoccurring revenue stream. It is yet to be seen if Chiefton can lift sales meaningfully and move the needle. Stay tuned for this exciting story.
We will be updating on CANN when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with CANN.
Disclosure: we hold no position in CANN either long or short at the publication of this article and we have not been compensated for this article.
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