General Cannabis Corp (OTCMKTS:CANN) has gone up 400% in the past month. As you can see in the chart below, it was trading at $0.74 at the beginning of September and went to as high as $4.75 recently. Why? The upcoming election and a little promotional activity. We have seen a pullback recently due to a private placement they conducted and negative news related to the promotional activity. At Insider Financial we believe this is a buying opportunity, as you'll read below.The State of Nevada is one of the states in the U.S. that has medical marijuana legislation in place. The voters of Nevada are going to vote in the upcoming election on the Nevada Marijuana Legalization Initiative, also known as Question 2. Other states have similar issues on the ballot. In this case, it will decide on whether its present legislation will expand that into a recreational product. Marijuana dispensaries throughout Nevada have set up voting booths in their stores. The vast majority of those polled at the dispensaries weren’t concerned with who is going to be elected into office, but they wanted to vote on marijuana legislation being passed.
Is it high time that America embraces marijuana legalization? Forbes magazine thinks it could be the case. The size of the market for legal marijuana in the United States is projected to grow to $7.1 billion in 2016, according to a report by New Frontier and ArcView Market Research. Legal adult recreational marijuana sales topped $998 million in 2015 compared to $351 million in 2014 — growing 184% year-over-year. America’s 2015 marijuana sales were higher than those of Dasani, Oreos and Girl Scout cookies. Harvard University professor Jeffrey Miron conservatively estimated that the total marijuana market in the U.S. was worth $14 billion. In an interview with Der Spiegel (a German magazine), Miron said that legalizing marijuana and other drugs could save the U.S., even more, money.
“If it legalized drugs, the United States could save $85 billion to $90 billion per year. Roughly half that is spent on the current drugs policy and half that is lost in taxes that the state could have levied on legal drugs,” Miron told Der Spiegel in 2013.
In the upcoming election, nine states will decide on whether to legalize either the recreational use or the medical use of marijuana. As it stands now, those states include Arizona, Arkansas, California, Florida, Maine, Massachusetts, Montana, Nevada and North Dakota.
The Company's slogan is "Yes We CANN." They are the all-in-one resource for the highest quality service providers available to the regulated cannabis industry. They’re are a trusted partner to the cultivation, production and retail side of the cannabis business. Fundamentally, CANN reported revenues in August for Q2’16 of $701,942, a 64% increase over the $427,202 in revenues for last year. CANN's total revenues in the first half of 2016 were $1,394,054, compared with $484,059 last year, over a 200% increase. If additional legislation is passed this could increase this number by an order of magnitude.
“We are encouraged by the distinct improvement in our revenues in the second quarter. During 2016, we have been focusing on developing our acquired businesses, as well as working on new initiatives. Our service revenues continue to grow significantly, driven by strong growth in our Next Big Crop division and Chiefton,” said Robert Frichtel, CEO of General Cannabis.
Las Vegas sports lines are usually a good indication of what could possibly take place. Vegas thinks there is a 75% chance of it getting passed in Nevada. The Las Vegas Review-Journal reported last month that there is more than $800,000 in advertisements being spent relating to legalized recreational marijuana use.CANN made a SEC filing on October 13th, a Notice of an Offering of Securities Made Without Registration. It announced that it was raising over $3 million in a private placement of debt and warrants. They issued $2.8 million of senior secured promissory notes at 12% per annum and issued $8.4 million warrants.Additionally, a day later, CANN followed up on a previous announcement regarding recent trading and promotional activity. OTC Markets stated that Stockpalooza.com is the source of the unsolicited promotional newsletter emails. CANN reaffirmed that it was unaware of the promotional activity until informed by OTC Markets.These recent news disseminations caused the stock to decline from its $4.75 to $3.17. As a result, this may present a prime opportunity to buy CANN. It was trading at over $60 a share during the last Green Rush. We expect that CANN will cash in on Green Rush 2.0 due to the upcoming legislation. If you thought the stock might trade lower from here, then you would be one of the few. We will be updating our subscribers as soon as we know more. For the latest updates on CANN, sign up below!Disclosure: We have no position in CANN and have not been compensated for this article.
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