General Cannabis Corp (OTCMKTS: CANN) saw a powerful run up the charts on Friday a day after the Senate unanimously approved a marijuana bill “the Cannabidiol and Marihuana Research Expansion Act” which cleared the full chamber without debate. The bill streamlines the application process for researchers who want to study the plant and to encourage the Food and Drug Administration (FDA) to develop cannabis-derived medicines. Advocates and stakeholders are eagerly awaiting the formal introduction of the Cannabis Administration & Opportunity Act (CAOA) which would make marijuana legal federally is being finalized by Majority Leader Chuck Schumer (D-NY) etc. All this points to a possible run on micro-cap cannabis stocks and CANN has a long, long history of making parabolic runs during this time; in February 2021 CANN skyrocketed from current levels to well over $2 per share. Microcapdaily has covered the stock for years and we have covered many of these spectacular runs CANN has made.
CANN is currently in good shape; since the acquisition of SevenFive Farm in May 2020, a licensed light deprivation greenhouse cultivation facility the Company has been booking solid revenues reporting $5,927,199 in sales for the year ended, December 31, 2021 as compared to $2.3 million in all of 2020. CANN recently acquired TREES, a multi-state operator in the U.S., operating in Colorado and Oregon. TREES currently owns and operates a 17,000 square foot light-deprivation greenhouse cultivation facility in Boulder, Colorado, a dispensary in Englewood, Colorado and three dispensaries in Portland, Oregon. The Company is pursuing a roll-up strategy of licensed assets in mature markets, while maintaining loyal, local customer bases.
General Cannabis Corp (OTCMKTS: CANN) is the comprehensive resource for the highest quality service providers available to the regulated Cannabis Industry. CANN is a trusted partner to the cultivation, production and retail side of the cannabis business. The Company does 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, CANN subsidiaries are able to leverage the strengths of each other, as well as a larger balance sheet, to succeed.
CANN acquired SevenFive Farm in May 2020, a licensed light deprivation greenhouse cultivation facility. During 2021 and 2020, 31% and 28%, respectively, of SevenFive Farm’s revenue was from two customers. The Company saw a significant surge in revenues and this was due to owning SevenFive Farm for a full year. SevenFive also started selling premium cannabis blunts that command a higher price than the traditional wholesale cannabis.
The Company’s recently acquired subsidiary TREES, a multi-state operator in the U.S., operating in Colorado and Oregon. TREES currently owns and operates a 17,000 square foot light-deprivation greenhouse cultivation facility in Boulder, Colorado, a dispensary in Englewood, Colorado and three dispensaries in Portland, Oregon. The Company is pursuing a roll-up strategy of licensed assets in mature markets, while maintaining loyal, local customer bases.
With the addition of the TREES Englewood dispensary on September 2, 2021 and the addition of TREES Portland and TREES Waterfront on December 30, 2021, CANN has established its retail footprint in the Colorado and Oregon markets and has become a vertically integrated company. The Retail Segment will provide consistent positive cash flows which will significantly contribute to the Company’s working capital position. CANN plans to rebrand itself as TREES and build a new corporate website.
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On January 6, CANN announced the closing of the acquisition of the “TREES” Oregon dispensaries. Total consideration for the acquisition of the three licenses and related assets in Portland, Oregon was $1,470,405 in cash and 11,394,229 shares issued at $0.89 per share.
Management stated:“We continue to work closely with the OLCC and local leadership as we expand our footprint in the Portland, Oregon market. We are looking forward to serving our communities and helping to create jobs in the state. TREES anticipates opening an additional dispensary in Denver in the coming months, which would expand the multi-state operator’s footprint to five retail locations. The closing of the TREES Oregon assets marks a critical milestone in our journey towards creating a focused, profitable vertically integrated operator in both Colorado and Oregon.”
Microcapdaily has reported on CANN many times in the past and back in January 2019 we reported on CANN: General Cannabis Corp (OTCMKTS: CANN) has been running up the charts in recent weeks since reversing off $0.46 lows. CANN has a long history of huge moves running from well under $2 to $11.19 a share at the end of last year. On January 7 CANN announced the retirement of its CEO Robert Frichtel. He will remain a member of the Board of Directors. The Board of Directors has engaged an executive search firm to find his replacement. Michael Feinsod, the Chairman of General Cannabis since 2014, will be the interim CEO. The Company said they have embarked on a search for a new CEO.”
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Currently trading at a $47 million market valuation CANN has 96,192,184 shares outstanding with authorized set at 200 million. While CANN is an SEC filer and has $2 million in the treasury and $1 million in inventories, it’s hard to calculate the over $14 million they carry on the books as “goodwill” and “intangible assets” the Company does have debt that can be converted into CANN and there will continue to be dilution in the future. But CANN is an exciting stock to watch here; it was one of the biggest runners over the past several pot stock booms we have experienced including a run to $60 + in 2014 and $0.25 to $2 + the last time pot stocks heated up. Currently trading near the bottom of its range CANN has better business prospects now than it ever did with SevenFive Farm, a revenue powerhouse and TREES just added, a multi-state operator in the U.S., operating in Colorado and Oregon. TREES currently owns and operates a 17,000 square foot light-deprivation greenhouse cultivation facility in Boulder, Colorado, a dispensary in Englewood, Colorado and three dispensaries in Portland, Oregon. We will be updating on CANN when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with CANN.
Disclosure: we hold no position in CANN either long or short and we have not been compensated for this article.