CGrowth Capital Inc (OTCMKTS:CGRA) Lights Up The Charts

CGrowth Capital Inc (OTCMKTS:CGRA) has lit up the charts and become a microcap runner on the OTC markets. This comes as the company makes the transition from mining to becoming a cannabis operation in the great state of Washington. Pot stocks in general have caught fire as investors are banking on a new Green Rush in 2016.We’ve been talking about a new Green Rush ever since 2016 rolled around. Roughly 14 states could legalize marijuana this year, adult-use cannabis or possibly both, either at the ballot box or through state legislatures. While it’s doubtful all those states will be successful, there’s a good chance at least a handful will legalize in 2016. No other single year has offered such incredible promise in terms of the sheer volume of states that could legalize, thanks to other pioneering marijuana markets and growing support for cannabis in general.The ArcView Group just reported that legal sales of cannabis grew to $5.4 billion in 2015, up from $4.6 billion in 2014. Demand is expected to remain strong this year and the research firm forecasts sales of $6.7 billion. Nonmedicinal adult use accounted for $998 million of the total sales in 2015, up from $351 million in 2014, according to the ArcView/New Frontier report summary.The most surprising aspect for us at Insider Financial is the fact that marijuana stocks have underperformed the major market indices. This sector is probably the fastest-growing industry in America right now and most of the public companies in the space are trading for pennies. With the potential interest coming from all walks of life, we think you’ll see bottom fishers looking for a place to invest.Pot stocks got active last month after GW Pharmaceuticals plc (NASDAQ:GWPH) reported a successful phase three clinical trial that proved its drug Epidiolex significantly reduced seizures in children with Dravet Syndrome. This news created momentum across the entire marijuana spectrum. Investors see the potential for cannabis-based drugs to replace addictive pills like Oxycodone. Many are now seeing the bigger picture with cannabis and that it’s not just for recreational use, but can also treat diseases. This will lead to more widespread acceptance and get not only Wall Street behind pot stocks, but the regulatory environment in Washington DC as well. These two factors will send pot stocks exploding up the charts.CGRA has sought to capitalize on cannabis in Washington state. Last week, the company received a Determination of Non-Significance ("DNS") from Stevens County regarding the company's application to allow its Eastern Washington industrial facility to transition from a mineral processing site to one that can grow and process cannabis. The effect of the DNS clears the way for the company to proceed with its plans to lease portions or all of its 47-acre site to company's legally producing and/or processing cannabis and its byproducts in the state of Washington.The company previously announced an initial lease to Wildfire Cannabis Company ("Wildfire"), a Tier 3 cannabis operation. Under its license, Wildfire is qualified to manage up to 30,000 square feet of plant production. The company is in the process of providing Wildfire its initial turnkey building space, with the objective of fulfilling the entire 30,000 square feet, plus a separate processing facility.CGRA has also executed a 5-year lease to provide an approved F-1 manufacturing facility for legalized cannabis production and processing to two (2) additional I-502 Tier 3 cannabis producer/processors at its Washington state facility. The tenants, "Randolph and Mortimer" and "Wonder West Group," join the previously announced Wildfire Cannabis Company at the site to bring the total lessees to three.A licensed Tier 3 marijuana producer is currently qualified to manage between 10,000 square feet to 30,000 square feet of marijuana grow canopy, as well as additional processing within Washington State (the largest available license). The combined tenant production that the company now supports is as much as 90,000 square feet of marijuana grow canopy at full capacity.Currently trading with a market cap of $6.59 million, CGRA has also issued bonds in the amount of £7,300,000.00 GBP. The bonds subscribed include £4,100,000.00 GBP in cash (or ~$ 5,700,000.00 USD gross proceeds), a note receivable in the amount of £1,900,000.00 GBP, and equity in the amount of £1,300,000.00 GBP. Funding from the bond subscriptions are being used to finance the three (3) bond projects, including the company's Powder River basin oil and gas project in Wyoming. The company's subsidiary, Powder River Resources, Inc.'s proven and probable oil reserves, which management estimates to be $250,000,000.00, is the focus of the funding. Powder River Resources, Inc. and CGrowth Capital Bond Ltd. have an umbrella policy of $10,000,000.00 covering the project. We will be updating Insider Financial as soon as we know more. For continuing coverage on CGRA, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in CGRA and have not been compensated for this article.