General Cannabis Corp (OTCMKTS:CANN) Is Alive
On May 6, General Cannabis Corp (OTCMKTS:CANN) joined an extremely exclusive club. It became one of the very few penny stocks that were allowed to go back to the OTCQB tier after it had been downgraded to the Grey Market due to an SEC suspension. This was massively good news for the shareholders as it was supposed to serve as a testament to the fact that all the issues regarding the alleged unlawful distribution of shares from April 2014 are now behind the company’s back. At least that’s what most people thought.
In reality, despite the regained OTCQB status and despite the promises that CANN could one day become a NASDAQ stock, the ticker never really showed any intention of climbing the charts. In fact, between May 6 and August 19, the stock dropped from $3.48 per share all the way to a 52-week low of just $0.67.
Part of the reason for the massive drop could be found in the latest 10-Q. Here’s what it tells us:
- cash: $16,371
- current assets: $248,990
- current liabilities: $2,445,185
- quarterly revenues: $427,201
- quarterly net loss: $4,349,222
Indeed, unlike many other OTC companies that entered the marijuana industry at the beginning of last year, CANN actually managed to start generating revenues. The sales weren’t particularly convincing at first, but thanks to the acquisition of Iron Protection Group LLC in March, the company can now brag about some relatively respectable figures. Sadly, the losses are still pretty immense and this, in turn, has led to some gaping holes in the balance sheet.
The press releases are few and far between as well. The latest announcement, for example, is now more than two months old which is a lot of time in Pennyland. And this makes the stock’s performance from the last few days all the stranger.
CANN hasn’t seen a red session since September 1 and it would appear that it’s picking up speed by the minute. On Friday, it emerged out of the sub-dollar levels for the first time in over a month and after another 10% jump yesterday, it found itself at $1.30 per share.
While not explosive, the volumes are quite significant as well and judging by the discussion boards, there are people who believe that CANN can repeat last year’s feat and get back to over $10 per share. But can it really?
That is for time to tell. You might want to bear one thing in mind if you’re willing to take the risk, though – many people lost a colossal amount of money when CANN dropped from over $48 to less than $0.70 in no more than a year and a half, so being cautious will do you no harm.