This article looks at 4 OTC stocks that will be part of the next big OTC bull run. They are Brazil Minerals, Inc (OTCQB: BMIX), BoxScore Brands, Inc (OTCPK: BOXS), CV Sciences, Inc (OTCQB: CVSI), and Enviro Technologies U.S., Inc (OTCPK: EVTN).
OTC STOCKS #1 BMIX
Brazil Minerals, Inc continues to gain traction. The last time when we discussed it last month, it was trading near $0.016. The OTCQB stock is trading similarly after breaking above the $0.03 mark on Tuesday to hit a monthly high.
The $50+ million company operates a mineral exploration and mining business in Brazil. BMIX is focused on developing its two 100%-owned hard-rock lithium projects with the initial goal to enter commercial production of spodumene concentrate, which contains lithium. BMIX also has 100%-ownership of projects in other highly strategic minerals such as rare earths, titanium, and nickel/cobalt. On top of that, BMIX owns mining concessions for alluvial gold and diamonds, and in one of these areas we also mine and sell sand for construction usage. The company also owns about 44% of Apollo Resources Corporation, a private company currently focused on the development of an initial iron mine in the well-known Iron Quadrangle area of Brazil. It also owns about 25% of Jupiter Gold Corporation (OTCQB: JUPGF), a company focused on the development of gold projects and of a quartzite mine.
Its mineral rights portfolio for battery metals included approximately 60,077 acres for lithium, 30,009 acres for rare earths, 22,050 acres for titanium, 14,507 acres for graphite, and 7,509 acres for nickel and cobalt. It also owns 100% interest in mining concessions for gold, diamond, and industrial sand.
On Monday, BMIX announced that it had four lithium mineral rights totaling 3,811.23 hectares (~ 9,418 acres) owned by six persons, all unrelated to the company. In particular, Brazil Minerals acquired one mineral right which is immediately north and two mineral rights that are immediately south of one of its premier claims, the Neves Area, part of the company’s 100%-owned Minas Gerais Lithium Project.
BMIX is drilling on Neves and has identified multiple hard rock pegmatites with attractive lithium concentrations.
CEO Marc Fogassa said:
“This highly significant transaction is the result of months of hard-fought negotiations as these lithium areas attracted interest from multiple companies. We were successful in large part for having developed a solid local reputation for quality execution in our exploration programs. The Neves expansion is strategically critical and immediately brings our overall Minas Gerais Lithium Project to the next level.”
The global lithium market will continue to increase during the next years mainly due to surging demand for batteries, and BMIX is poised to benefit from this trend. Besides this, the company owns projects related to other metals as well.
With an attractive share structure and big plans to uplist to NASDAQ, BMIX is undervalued at <$0.2, and this is the right time to add this OTC stock to your portfolio.
OTC STOCKS #2 BOXS
Another Lithium play is BoxScore Brands, Inc. Unlike BMIX, which hasn’t managed to consolidate near its monthly high, BOXS updated the year-to-date high on Friday, gaining over 130% over the week to trade at $0.023.
The $9 million renewable energy company is positioned as a leading supplier to the US renewable energy industry manufacturing base. In 2021, BOXES’ team has expanded to include industry experts with decades of experience in energy markets from sales and leasing, acquisition, exploration and production through supply chain. The company is targeting ingredients and renewable energy components required to move its customer base forward at an accelerated pace to meet current and future demand.
The company’s project consists of 102 Federal mining claims in Lisbon Valley of Utah.
The company is still making its first steps after updating its name and business model earlier this year, which means a lot of opportunities for investors. Last week, the company added two senior executives to its Board of Directors, strengthening its position in the renewable energy industry.
The two new executives are Senior Investment Banker Justin Vorwerk – who previously worked at CSFB/DLJ, Goldman Sachs, and Bankers Trust – and Andrew Suckling. He has over 25 years of experience in the commodity industry.
Meanwhile, BOXS continues to focus on its Lisbon Valley project. CEO Sebastian Lux said in a recent update to shareholders:
“Lithium demand is at an all-time high. We could not be more excited about the advances in our research as it relates to the Lisbon Valley project. Our work on the geological, technical, and permitting sides continues as we look to further affirm our existing technical reports.”
BoxScore is currently in talks with extraction providers and remains committed to moving forward with its strategy of employing Direct Lithium Extraction technology. Company executives believe selective mineral extraction is clearly the most cost-effective and ESG-friendly approach currently available.
With more pressure on gasoline cars, electric vehicles are the future, and Lithium stocks like BOXS will be the big winners thanks to increasing demand for the metal.
$BOXS has Lithium and it is very undervalued and here is why: Lithium is a critical material in electric-car battery packs. But demand will outstrip supply for years to come. Tesla's Elon Musk has urged entrepreneurs to get into the lithium business. https://t.co/I0TDI2IBII
— Vito Corleone (@VitoCor13390479) August 27, 2022
OTC STOCKS #3 CVSI
CV Sciences, Inc has been struggling for months, declining from its YTD peak in January at $0.26. The OTCQB member bottomed out in mid-August near three pennies. Last week, it managed to double in price, currently trading near $0.05.
The price spike came after the company reported that it had extinguished its convertible debt. This is a bullish signal for investors as it may reflect a more confident management team. CEO Joseph Dowling said:
“We have retired all of our outstanding convertible debt which strengthens our balance sheet and helps us with our long-term strategic initiatives. The termination of all convertible debt and related obligations to issue stock to our lender will eliminate the dilutive impact of this debt on our stockholders. In addition, the termination of our convertible debt will eliminate the downward pressure on our stock caused by sale of the shares issued at each conversion event. Our focus is to support our business goals that build shareholder value, and in this regard we believe eliminating the negative impact of this financing is just as important as continuing to grow our PlusCBD™ branded products business.”
$CVSI NO MORE DILUTION! 🚀(12)
The company announced today that they extinguished ALL of the convertible debt=no more dilution!
On 11.15.21, a PR was released announcing this convertible debt- back then the PPS was *0.25$*- 700% from current PPS!
Only 142M float- BIG POTENTIAL! pic.twitter.com/IDZbVvBqMZ
— TeavelOTC (GTY) (@TevelOTC) August 25, 2022
CVSI operates two distinct business segments: a consumer product division focused on manufacturing, marketing, and selling plant-based dietary supplements and CBD products to market sectors and a drug development division focused on developing and commercializing CBD-based novel therapeutics. The company’s PlusCBD products are sold at more than 8,400 retail locations throughout the US and it is one of the top-selling brands of hemp-derived CBD in the natural product market, as per SPINS.
The $7 million company has a decent share structure that could favor a long-term ascension, especially given the termination of all convertible debt. The stock has been bleeding for months, and it remains to be seen whether the latest price surge can turn into a definitive reversal of the downtrend. CVSI’s PlusCBD brand continues to gain market share in the natural product channel, which could support the company’s future growth.
OTC STOCKS #4 EVTN
The OTC market always provides some rallying stocks no matter the economic conditions, especially thanks to merger and acquisition deals. One of the current examples is Enviro Technologies U.S., Inc, which has surged over 900% in a few days amid record volumes to trade at $0.40, the highest since 2020.
On Wednesday, EVTN announced the execution of a definitive agreement to divest its wholly-owned subsidiary, Banner Midstream Corp, through a reverse merger into EVTN. Enviro will issue almost 13 million shares to Ecoark (parent of Banner) in exchange for 100% of Banner’s issued and outstanding common stock to result in a 70% retained ownership for Ecoark at closing. Eventually, Ecoark plans to effect a 4:1 forward stock split of Enviro to allow for an approximately 1-to-1 stock dividend of Enviro to Ecoark’s shareholders of a future to be determined record date.
EVTN CEO John DiBella stated:
“We are excited for our shareholders to be able to acquire an operating business such as Banner which recorded $18.75 million in revenues for its most recently completed year-end on March 31, 2022. We believe this acquisition is the first step of fulfilling our goal to enhance our shareholders value. I plan to stay involved as an advisor to the Company following the closing of the transaction to work with Banner’s executive team to work to continue to monetize Enviro’s existing water separation technology.”
On the other side, Ecoark CEO Randy May commented:
“This acquisition is the first step in Ecoark’s goal of building Banner into an attractive oilfield services company, which will permit Ecoark to distribute its Enviro common stock to Ecoark’s shareholders.”
Besides Banner, Ecoark also owns Fortium Holdings, Inc., Zest Labs, Inc, and about 89% of Agora Digital Holdings Inc. Banner provides trucking and other services for oil and gas services companies, Fortium owns White River Holdings Corp., an oil and gas drilling company, Zest Labs, offers the Zest Fresh™ solution, a breakthrough approach to quality management of fresh food. Agora is engaged in the mining of Bitcoin. Ecoark is listed on NASDAQ with the ticker ZEST.
Despite the price surge, the current market still doesn’t reflect EVTN’s post-merger value, so there is still room for growth.
$EVTN This has the potential to have 5x returns now and 10x returns from current SP when all the smoke clears after forward split … no joke… the numbers are there. Don't take my word for it do yourself a favor and do some research. Holding long and strong.
— Deep Blue (@DeepBlueEquity) August 26, 2022
THE FINAL NOTE
All of the 4 OTC stocks discussed today are good stocks to own. The upside is much greater than the downside at these levels.
It’s also very important to eye OTC stocks that have yet to make their explosive move. There are plenty of opportunities, and we take our time to monitor hundreds of penny stocks to buy each week to find the best alerts for our subscribers.
Remember, all you need is one or two penny stocks to succeed in crushing the market averages.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in any of the securities mentioned. We wrote this article ourselves, and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is for informational and educational purposes only and does not provide investment advice.