Cannabis Strategic Ventures (OTCMKTS:NUGS) has a product to sell which is capable of changing the landscape of the cannabis consumption sector. With its recent innovation, the firm is set become a major player in this industry and this will likely go on for at least a few years.
In this piece, we discuss the details of the new product and its potential impact on the company’s performance. Below is a chart showing the company’s stock price movement in the last year:
Cannabis Strategic Ventures was formed in December 2003 and its head office is located in Beverly Hills, Calfornia. NUGS is a firm which specializes in operations within the medical and legal recreational cannabis industries. The organization delivers administrative as well financial services to support the entrepreneurial development of small business entities.
The company also delivers outsourced personnel services ranging from providing permanent, temporary and fixed-term staffing services to employment and human resources consulting as well as Profession Human Capital services, which are made to suit the growth conditions of cannabis dispensaries, manufacturers, cultivators, dispensaries and any other cannabis marketplace players.
Very recently, Cannabis Strategic Ventures successfully completed a name and symbol change from its previous name Cascade Energy, Inc The firm is publicly listed on the United States OTC Market using the stock symbol NUGS.
In March 2018, the company announced its unique new product soon to be released for use within the continuously expanding cannabis marketplace. The product, a cannabis smoke filtration product known as Halo Filter is still patent pending, and it is expected the product that will be introduced to the market within summer and spring periods. It was created using an internally developed filtering technology utilizing extremely high-quality fibers and bundled using its own proprietary technologies. The Halo Filter was designed to remove virtually all of the components within cannabis smoke causing harsh taste while effectively reducing the number of heavy metals, harmful chemicals and any other toxins within the cannabis smoke while still maintaining optimum taste and cannabinoid levels.
The general reaction towards the inhaling of cannabis smoke has changed drastically within the last few years with the consumers a lot more knowledgeable on the potentially harmful impact on the human system. According to study results, cannabis smoke may possess as high as to 50% to 70% cancer-causing materials when compared to tobacco smoke. A particular major research recorded that one single cannabis smoking experience could have as much negative health impacts and possible damage equal to smoking five regular cigarettes, at the same time. The risks faced by serious cannabis smokers range from inflammation of the respiratory tract, bronchitis, and other major health problem. The purpose of the Halo Filter is to help reduce these risks.
According to Chief Executive Officer of Cannabis Strategic Ventures, Halo was created to help consumers enjoy the cannabis smoking experience. Presently, the average cannabis consumer derives values from the aroma and potential medicinal benefits of high-quality cannabis products as well as the high-quality taste while still hoping to reduce any possible negative impact on their health. It is believed by the company’s leadership that the Halo filtration system is very relevant in meeting the swiftly fast changing taste of the modern cannabis user. The Halo filter preserves all of the desirable attributes of smoking, while still eliminating the numerous components that effectively lead to consumers having a negative experience.
Its management remains pleased to have brought such as unique problem-solving product into the market. As it epitomizes consumers need to enjoy cannabis, although in the safest way possible.
Initially, the Halo Filters will be produced for use with blunts and joints while future versions will be tailored to fit with smoking rigs. At present, the company has already made a decision on the product design and is already in the process of deciding on its manufacturing partners to deliver this new cannabis smoking technology to the continuously developing market.
For the period ending March 2017, there were no revenues reported, a trend which has continued since its operations in 2014. It is expected that in years to come, the firm will move out of this growth phase and generate revenues from the sale of its products.
In the same period, sales, general and administrative expenses dropped by 85%, an indicator that the firm may have improved its operational efficiency. With no operating income, operating loss for the year was recorded at $18,000. It should be noted that it is a regular trend for developing companies to be unable to generate revenues while still incurring costs in the growth years. Net loss for the year was $85,000, an improvement from the prior year loss of $73,000.
The statement of financial position reveals that the firm is somewhat highly geared. On its books, its total debt is worth just $46,000, resulting in a relatively high debt-to-equity ratio. Worryingly, it has a very low liquidity ratio, with no current assets and current liabilities of $46,000.
The future of NUGS is highly dependent on the performance of some of its new products and the next year will be indicative of this.
Disclosure: We have no position in NUGS and have not been compensated for this article.
Image courtesy of Don Goofy via Flickr