Full Alliance Group Inc (OTCMKTS:FAGI) Due For A Bounce

Shares of Full Alliance Group Inc (OTCMKTS:FAGI) registered record trading volume recently. Unfortunately, someone was dumping their position as the stock price collapsed. Is the stock due for a bounce? Have a look at the recent price move, we will justify later what happened:SourceWhat's the dealSourceFAGI is a holding company operating two subsidiaries; DiMora Pods, Inc., and Latitude 32. Additionally, the company states on its website that potential acquisitions in the future may be businesses operating in the following sector: "Medical Grade Marijuana, CBD Oil, Soil Companies, Nutraceuticals, and Organic Food Production."Before continuing, we want to point out that purchases in this sector should be considered a catalyst for the stock performance, as the growth of this sector is at the moment astonishing. If it is the first time that you are hearing about the cannabis industry, please read some of these articles, which include how the legalization of some forms of cannabis is delivering interesting returns to investors.The group also states that the most important asset in the firm is its management team and the company's strategy.

"Companies acquired are paired off with Full Alliance Group, Inc.’s visionary management team. Focus is then given to capital growth and best practices. Full Alliance Group’s strategy lies beyond the simple acquisition of companies and assets: The primary goal is to provide the means for the rapid growth of these acquisitions." Source

Let's focus now on the subsidiaries.SourceDiMora Pods: it manufactures and markets "customizable modular cultivating systems for the indoor cultivating industry". The main customers are cannabis producers. The image above is self explanatory, but check the company website for more detailed information about the business. The company is based in Rancho Mirage, California.Latitud 32: designs and markets cosmetics, which address skin care needs. The company develops UV protection from wrinkles to acne and others. The strategy is not to compete with existing beauty products on the market, but to complement their use. In addition, FAGI is said to research to launch products "that don’t exist on the market, creating new niches by using the most vanguardian natural ingredients on earth". It is quite an ambitious business plan. Traders can find more information on the company website.Recent DevelopmentsThe company communicates a lot, which we appreciate. The most interesting press releases put out recently are the following:On June 5, 2017, the company released the addition of Robert Heggie to its Advisory Board. Mr. Heggie brings extensive experience accumulated as Managing Director of HK Retail Concepts, Inc. Additionally, his contacts are impressive. HK’s previous customers include Target, Wal-Mart, Hudson's Bay Company, Bloomingdales, Neiman Marcus, and Macy's. The CEO, Jacob Thomas, also said the following about Robert Heggie:

"Robert's impressive track record brings unparalleled experience to FAGI in the marketing and branding of its Latitude32 cosmetics, nutraceuticals and medical CBD infused lines. Robert's first task will be to advise and assist FAGI management on how to aggressively market and brand its current and future product lines." Source

In addition, on May 23, 2017, it put out the issuance of "23,500,000 warrants, at $2/share, to the directors of DiMora Pods, Inc., as part of the acquisition consideration", to pay for the acquisitions of this subsidiary. Day traders fearing the dilution risk from these securities need not to worry, as the strike price is higher than the current share price. Thus, warrant holders are not going to issue new shares.Another new addition to the Board of Directors was Dr. P Brian Volpp, Medical Director of San Diego Radiosurgery, graduated from Princeton University. Have a look at the comment of the CEO:

"Dr. Volpp's knowledge and experience in oncology and research, along with his formal business acumen, will be a great contribution in the future of the company as it continues with its reformulation of the neutraceutical line with CBD oil," said Jacob Thomas, current Chairman of the Board. "His utility should be more substantial looking ahead, however, as the company has targeted several other medically-related projects and acquisitions. Tapping into Dr. Volpp's skill set should prove particularly beneficial to the company during this expansion. We will continue to put together a strong management team that we feel will positively impact shareholder value in both short and long term." Source

ConclusionFAGI is an interesting acquisition if you are looking for a diversified company targeting high growth industries. Taking into account that the cannabis sector will grow at a high pace, we believe that FAGI has plenty of potential. To sum up, follow the company and subscribe as the turnaround may come soon.We will be updating our subscribers as soon as we know more. For the latest updates on FAGI, sign up below!Disclosure: We have no position in FAGI and have not been compensated for this article.