The profit and growth potential of the cannabis industry has prompted many businesses that originally were not involved in the cannabis space, to adjust their business models, or change their trajectories altogether, in order to take advantage of the opportunities presented by the burgeoning cannabis industry.Acacia Diversified Holdings Inc (OTCMKTS:ACCA) has made such an adjustment. In October of 2012 the Company changed its name to Acacia Diversified Holdings, Inc. to reflect its determination to diversify its business interests and enter into the cannabis industry. The Company, through its subsidiaries, originally engaged in the automotive auction industry, food-grade byproducts manufacturer, milling/grinding industry that milled finished citrus ingredient products, and the transportation industry.On January 15, 2016 the Company acquired the assets and related businesses of the MariJ Group of companies in Clearwater, Florida consisting of MariJ Agricultural, Inc., JR Cannabis Industries, LLC, Canna-Cures Research & Development Center, LLC, and TripiFlora, LLC. The Company created two new subsidiaries to become its new revenue-producing operations: MariJ Pharmaceuticals Inc. and Canna-Cures Research & Development Center Inc.MariJ’s impetus will engage in the extraction and processing of very high quality, high-CBD/low-THC content medical grade cannabis oils from medical cannabis plants. Canna-Cures will seek to enter into research and development projects with institutions of higher learning with a mission to develop new and better strains of medical cannabis related products for dispensing as medications, nutraceuticals, cosmeceuticals, and dietary supplements. The Company also plans to get involved in private label packaging services, and retail sales of medical cannabis oils, oil-infused products, and other merchandise through its web-based portal or retail dispensaries planned for that purpose.As of Dec. 29, 2016, the Company’s subsidiary MariJ, a certified organic mobile CO2 processor and handler, entered into a processing agreement with a certified organic hemp farm in Colorado, allowing MariJ to produce some of the first, certified CO2 organic hemp oil to be manufactured in the United States. On April 06, 2017, Acacia Diversified Holdings, Inc announced it has successfully completed phase one of its USDA certified organic processing for Blue Circle Development, an organic farm near Ft. Collins, Colorado. Richard K. Pertile, the company’s President and Chief Executive Officer said:
“MariJ Pharmaceuticals, Inc. is manufacturing what is believed to be the first USDA certified organic hemp oil made in America. We are very excited for our client and their customers who can now purchase USDA certified organic hemp CBD oils, completely solvent free.”
On the same day, the company also announced the debut of a new product line of endocannabinoid nutraceuticals by Dahlia Botanicals, for which MariJ is the exclusive organic extraction company, and Canna-Cures is the exclusive manufacturer.On May 1, 2017, Acacia announce that the Company has been invited to be part of the hemp pilot program in Tennessee, which will eventually result in the receipt of cannabis cultivation and sellers licenses. The Company is also waiting on a pending grower's license in the state of FloridaOn the financial front the Company announced on April 13, 2017 that the Depository Trust Company ("DTC") approved the Company's common stock for DWAC/FAST transfers through the company's transfer agent, Pacific Stock Transfer Company. This newly approved stock transfer capability will enable "Acacia" shareholders to transfer their shares of "Acacia" stock electronically after buying or selling on the open market, without the extra expense and delays associated with the processing and transfer of physical stock certificates.
ACCA stock is trading in the lower half of a range with $1.9944 as the resistance level, and $1.2986 as a support level. The stock is currently trading at $1.4750. The latest financial reports ending March 31, 2017 do show some revenue and a positive balance sheet, but the Company is operating at a Net Loss, and the scale is “lackluster” to say the least. The Company has secured a $5,000,000.00 equity credit line to execute its expansion plans. Current market capitalization stands at $25.72 million, on 17.43 million shares outstanding as of June 23, 2017.Like many other established companies that have decided change course to pursue the opportunities presented by the emerging cannabis industry, adjustments and transitions to a new strategy must be made. For those companies that plan intelligently, execute effectively, and persevere through the transition, the opportunities in the cannabis industry are abound. For now, we will put Acacia Diversified Holdings, Inc in the “watch closely” column. We will be updating our subscribers as soon as we know more. For the latest updates on ACCA, sign up below!Image courtesy of FlickrDisclosure: We have no position in ACCA and have not been compensated for this article.
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