Captor Capital Corp (OTCMKTS:NWURF) Is A Smart Cannabis Play

Captor Capital Corp (OTCMKTS:NWURF) has emerged as an exciting growth play in the cannabis space. In the wake of California legalizing recreational use of marijuana, the stock has spiked higher and we believe there is still some room for more upside run. Captor Capital Price Analysis The stock has risen to 9-years high after gaining more than 200% in market value, since the start of the year. With the stock trading in a strong uptrend, it could spike higher after a pullback from a 52-week high of $0.72. A pullback from the highs appears to be a minor correction as investors continue to take profits after the gigantic rise. NWURF Daily ChartTaking into consideration the strength of the upward momentum, the stock faces immediate resistance at the $0.72 mark. A close above the mark could see the stock registering a new 52-week high as it continues to trim losses after a poor run over the past few years. On the downside, the stock faces immediate support at the $0.42 mark, a close below which could see the stock dropping to the $0.21 handle.Before we look at the catalysts likely to push the stock higher, let us review what Captor Capital Corp does in its pursuit of a value proposition. Captor Capital Corp Business overview Captor Capital Corp bills itself as an investment firm focused on acquiring profitable and well-established companies that require capital to scale. The company has invested in a number of companies including Millennial Esports in the technology space. It also has interests in the natural resources sector through URU Metals.In addition, the company has in the recent past expanded its footprint into the legal cannabis space in pursuit of opportunities for growth.Renewed investor interest in the recent past has to do with the company’s investment in the cannabis space, which investors believe have the potential to lead to more shareholder value going forward.Stock Catalyst Early this year Captor Capital Corp entered into an agreement for the acquisition of a majority stake in I-5 holding. The acquisition is part of an effort that seeks to maximize the growth potential of I-5 Holdings dispensaries operating under the MedMen Brand in the Los Angeles area.

"Since cannabis was legalized for recreational use on January 1st, we have had lineups of at least 150 people from open to close at our Santa Ana and West Hollywood locations," said Adam Bierman, co-founder of MedMen. "We are seeing more awareness, more traffic, and more purchases than we ever have before, with early indications being that revenues are up significantly over the same period last year."

According to the company, investments in I-5 Holdings should pay off, given the size of the California market. In addition, legalization of recreational use in Canada should present another marketing opportunity given the relationships the company has with well-established brands such as MedMen.In a bid to accelerate growth at I-5 Holdings, Captor has announced plans to raise up to $20 million in a non-brokered private placement. Part of the proceeds is to be used to fund the new acquisition’s operations.The company intends to use the remaining proceeds to subscribe for Class B Membership interests with MM Enterprises USA LLC for an aggregate subscription price of $30. The investment will allow the company to gain exposure in some of the most significant and strategic markets that MedMen currently controls.In addition to pursuing growth opportunities in the legal cannabis space, Captor Capital Corp has expanded its operations into the gaming business. The company has made an investment of $500, 000 in Millennial Esports with the purchase of 714,285 units of securities.Captor intends to make an additional investment of $1 million in a bid to gain access to a string of global solutions that cover gaming technology, content production, and broadcasting.

"Millennial Esports is uniquely positioned to benefit from the growth in Esports with popular, revenue-generating assets such as Eden Games, Stream Hatchet, and O'Gaming," said John Zorbas, President Captor Capital. "Equally importantly, these assets present the company with an immediate potential market of 30 million people for their token initiative.”

Millennial Esports has also announced the creation of a new division that will leverage blockchain technology in cross-platform games and digital content tokens Bottom LineCaptor Capita Corp investments in I-5 Holdings, MedMen, and Millennial Esports underscores its willingness to invest in high growth industries. After feeling the wrath of Wall Street in the previous years, the company appears to have found a way to revitalize growth at the back of a diversification strategy that appears to be working.The legal cannabis space provides the company with unique opportunities for growth, taking into consideration the fact that it enjoys a head start in California marijuana recreational market. The company has already acknowledged that it is seeing more awareness, traffic, and purchase than ever before an indication that it is poised to post impressive revenue growth this year.That said, the stock should continue to power high the charts as investors take note of the company’s revenue growth prospects.We will be updating our subscribers as soon as we know more. For the latest updates on NWURF, sign up below!Disclosure: We have no position in NWURF and have not been compensated for this article.