Epazz Inc (OTCMKTS:EPAZ) Is A Bitcoin Cannabis Play

Today, we are bringing a company that seems to have recently seduced the market. Epazz Inc (OTCMKTS:EPAZ), an enterprise-wide cloud software company, has launched a Reg CF Crowdfunding campaign to market its bitcoin cannabis payment mobile app ZenaPay and other products. Company LogoAs a result of the announcement, the market pushed up the share price astonishingly. From $0.007, the stock price jumped to $0.03 in only one session. On top of it, an enormous amount of shares changed hands. Some days the volume registered was higher than 10 million.Have a look at it before we provide more details: 1 month chart for EPAZBusinessEPAZ is focused on providing "customized web applications to the corporate world, higher education institutions and the public sector." Company WebsiteThe company's main developments are BoxesOS solutions. The company explains them with the following words in the company materials:

"Epazz unique BoxesOS applications can create virtual communities for enhanced communication, provide information and content for decision-making, and create a secure marketplace for any type of commerce all through the medium of the Internet. Epazz is the answer to the increasing information technology demand of the 21st century." Source

Recent DevelopmentsThe following were the developments that we believe had the largest market reaction.On May 4, 2017, the company noted the interview of Michael Manahan, Company's strategic advisor, on CEOLive.tv. Thanks to this interview, the market got to know new details about Epazz's new cannabis payment system.As noted in the press release, cannabis operators are having problems processing payments because of Federal banking regulations. EPAZ's solution will help them, as it will allow customer to pay acquired products with Bitcoin at the point-of-sale.Additionally, we believe that the following two advantages will seduce consumers and merchants: lower transaction costs and anonymity. Shaun Passley, PhD, CEO of Epazz, was quoted:

"We saw a strong need in the cannabis community for a payment system for merchants due to the stringent limitations by the standard banking systems. We came up with a solution that we feel will fill that need. We will have the ability to license the software to numerous merchants in many states. By responding to the needs of the market with a viable solution, we have positioned our Company for significantly greater growth going forward." Source

Another press release was released in May. The company announced that the Company's new cannabis payment system is called Zenapay: Company LogoAdditionally, the market got to know that Zenapay was currently recruiting beta customers and that the service is being tested to be a completely alternative payment service to the traditional banking system.On May 23, 2017 the new quarterly results were released. EPAZ highlighted $473,974 in revenues, which were compared to $416,260, which was obtained for the same period in 2016. We also appreciated the net income of $28,186, which is much better than the loss of $375,553 for the first quarter of 2016. As it was noted in the press release it seems that the company is making a turnaround.Epazz, Inc.'s CEO, Shaun Passley, Ph.D. reacted noting that the company's valuation does not reflect the value of the company. Additionally, he noted that as Zenapay commences to bring revenues the good trend should continue.How was the most recent share price spike created?We believe that the spike was created by the press release that the market received on October 4, 2017, which noted EPAZ's efforts to raise $1 million. The company had commenced the following offering:

"Revenue Sharing Preferred Stock Series D ("Preferred Stock") via Reg CF of the Jobs Act ($0.25 per Preferred Share). Minimum investment of $1,000 or 4,000 Preferred Shares, plus Transfer Agent cost of $35 per certificate." Source

It was highlighted that the company will finance the company's sales, marketing, and software-development force to focus on selling ZenaPay Bitcoin Cannabis Payment Solution among other products. Additionally, it was noted that a demo video of the ZenaPay bitcoin cannabis payment mobile app will be soon released.ConclusionCurrently trading with a market cap of $0.4 million, EPAZ is an interesting story among small caps. With $18,000 of pure cash in the balance sheet and $5.3 million in total liabilities it seems that the market is really believing that the recent initiatives will drive the company's growth. Given the most recent announcements we agree with these vision. We will need to be alert on the financing of the project as if the company raises $1 million from the Revenue Sharing Preferred Stock Series the share price could continue going up.To sum up, check the company's announcements as it is really what's driving the share price on this name.We will be updating our subscribers as soon as we know more. For the latest updates on EPAZ, sign up below!Image courtesy of Fortune420 via FlickrDisclosure: We have no position in EPAZ and have not been compensated for this article.