North American Cannabis Holdings, Inc (OTCMKTS:USMJ) Claws Back Over a Penny
After its latest streak of disappointing sessions pushed the share price of North American Cannabis Holdings, Inc (OTCMKTS:USMJ) back in double-zero territory, yesterday the stock clambered back over one cent per share with a push and a shove. USMJ opened with a significant gap up, soared as high as $0.017 per share in the morning hours, then deflated significantly and closed at $0.0119, still 23% in the green.
The company finally announced the acquisition it teased for so long and this was obviously what got everyone so excited that USMJ shifted its all-time record volume of 56 million shares yesterday.
Somewhat disappointingly, the acquired entity is a City Blends licensee, a single store located in the Dallas Metroplex. No further specifics are provided concerning the store in question, except that it does “almost” $500,000 in annual revenues.
At this point, it’s not too clear how the acquisition of one store will ramp up into the company’s plans for a chain of cannabis-infused beverage locations. USMJ stated that further details about the business plan of its AmeriCanna Cafe enterprise will be made available “in the coming days”.
USMJ being a pink sheet, there is no 8-K filing detailing the deal and the press release makes no mention how a cashless company paid for the acquisition and what the exact terms of the deal were. One thing is almost certain – it’s very likely that USMJ currently has a bit more than the 48 million outstanding shares it last reported. Yesterday’s daily volume of over 56 million shares should give careful traders an indication of what may be going on with USMJ‘s share structure. There is also the odd Schedule 13G filing dated May 8, 2015 which refers to USMJ using its old name – Savanna East Africa Inc. – and indicates that as of that date the company had 66 million outstanding shares.
As of its last report for the quarter ended March 2015, the company was cashless and had not generated a dime in revenue for years on end. The company did a 1-for-20,000 reverse split in 2013.