CGrowth Capital Inc (OTCMKTS:CGRA) is coming back towards the penny mark where it has established support in the past. The stock saw a significant rise in price earlier this year running from triple zeros to highs over $0.03.
CGRA was trading for as low as $0.0009 last year but that all changed in April when the Company announced the execution of a LOI with Wildfire Cannabis Company, LLC to lease a portion of their properties in Chewelah, Washington to grow pot.
CGrowth Capital Inc (OTCMKTS:CGRA) has traditionally billed itself as a holding company for businesses and assets focused on all aspects of mining, minerals, exploration, and commercial real estate.
The Company owns approximately 47 net acres of industrial land property as well as over 1000 acres of mineral rights & leases located in Stevens County, Washington. Recently CGRA has begun to strategically leverage assets for maximum value within the legally developing cannabis industry currently underway in Washington State.
Back in April CGRA announced the execution of a Letter of Intent (LOI) with Wildfire Cannabis Company, LLC to lease a portion of our properties in Chewelah, Washington. Wildfire Cannabis Company, LLC holds a Tier 3 Producer / Processor License in Washington State.
As a licensed Tier 3 marijuana producer and licensed processor, Wildfire Cannabis Company is currently qualified to manage between 10,000 square feet to 30,000 square feet of marijuana plant production, as well as additional processing within Washington State (the largest available license). A marijuana producer license allows the licensee to produce, harvest, trim, dry, cure, and package marijuana into lots for sale at wholesale to marijuana processor licensees and to other marijuana producer licensees.
CEO Bill Wright said at the time “We view corporations like Wildfire Cannabis Company as some of the highest value tenants currently available in the state. By restructuring the leases on our properties, and extending them to legally operating cannabis companies, we believe we can maximize lease rates, profits, and in turn shareholder value.”
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Back in May CGRA announced Wildfire Cannabis Company the Company’s Tier 3 cannabis producing tenant, has successfully passed their Final Inspection with the Washington State Liquor Cannabis Board (“LCB”). With this milestone, Wildfire will now move to finalize Phase I of the development and begin plant production in the days to come. The status change means revenues are imminent for the Company, who will concurrently begin Phase II of the buildout and production with Wildfire to include additional outdoor grow operations.
The Company previously announced approvals by Stevens County and the state of Washington for the legalized production and processing of cannabis at the Company’s Chewelah facility. Based on the current infrastructures and approvals, the Company is working on the initial 90,000 square feet of canopy space and is working towards doubling its capacity during the year for a total of six (6) licensed tenants (there are currently three (3) tenants under contact). Under the Company’s turnkey lease terms, the rental potential is in excess of $2,000,000 annually.
On August 15 CGRA announced its record financial results for the Quarter ended June 30, 2016. For the 2nd Quarter ended June 30, 2016, the Company’s consolidated net income topped $1,750,000 – marking the Company’s largest ever quarterly gain to date – and pushes total assets to nearly $22,000,000. Bill Wright, CEO of CGrowth Capital, Inc., simply stated, “This is a game changer!”
With the deployment of funds received through the Company’s bond offering and the execution of numerous business initiatives, the Company is looking ahead and excited about closing out the year on high note. Highlights of the quarterly financial statements and initiatives in the works include:
Consolidated net income: $1,755,578 for the quarter ended June 30, 2016. Total assets: $21,976,266 as of June 30, 2016 No additional stock issuance in over 9 months. Bond offering doubled to £30,000,000 Great British Pounds (“GBP”). Rent revenues projected to substantially increase though the end of fiscal year. Oil sales projected to increase and carry though winter months.
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Currently trading at a $3.5 million market valuation CGRA had $1.8 million in the treasury and $21 million in assets compared to $15 million in debt according to their August 15 disclosure. CGRA is one exciting story in small caps; the Company has been raising large sums of money through their bond offerings and recently announced their intention to up-list to a major exchange. CGRA also owns a property in Chewelah, Washington with 2 wells on site that can pump 5000 gal a day that is being leased by Wildfire Cannabis Company to grow pot. We will be updating on CGRA when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with CGRA.
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Disclosure: we hold no position in CGRA either long or short and we have not been compensated for this article.