GreenGro Technologies Inc (OTCMKTS:GRNH) is Leveraging the New Cannabis Laws

GreenGro Technologies Inc (OTCMKTS:GRNH) ended the last year in an unexpectedly high position. However, its remarkable loss of value has led to questions over its ability to remain a major player.Thankfully, its management has already announced its plans to take advantage of the new cannabis legalization to boost its revenues while expanding its operation across other states in the country.Take a look at its price action below: GRNH Daily ChartCompany HistoryGreenGro Technologies was founded by James Haas in July 1996 and is headquartered in Anaheim, California. The firm operates in the delivery of eco-friendly green technologies while focusing on specific domain expertise in indoor and outdoor agricultural science systems providing services for commercial agricultural markets and consumers. The firm is also involved in the construction, design and maintenance services to cultivation operations and collectives in the recreational marijuana and medical industries. GreenGro offers its services to support large-scale growth and cultivation operations.For more information on the company, check out our previous post here.Recent DevelopmentsIn February 2018, the firm announced the eagerly awaited launch of its dispensary which is to be Cathedral City-based using a tenant igot420. This is expected to be done in March up until April 2018. The firm mentioned that only possible cause of delay would be a result of the timing of the response from the State of California concerning its application for a temporary license permitting the firm to sell recreational cannabis. Previous delays were as a result of changes made to the dispensary in an attempt to ensure that it meets the new design requirements set out by the state of California new design standards and pertaining to all new microbusiness models.James Haas, CEO of GreenGro, outlined that it is likely that entrepreneurs would begin to search for possible means to boost their earnings as a result of the boom of the cannabis industry. The alteration in the sector landscape could easily lead to increased demand for the firm’s advanced turnkey dispensaries, leading to an increase in profits of a dispensary which could be as high as 50% from a retail perspective. Besides this, the financial, operational and technological support provided to its partners is aligned with the firm's over-arching future strategy to extend its business presence first over California, as it remains a strong candidate for being the biggest cannabis market in the country. This expansion strategy along with the very advanced technology will strengthen the belief that 2018 would be a breakthrough year for the firm and its shareholders.The firm had earlier announced that it anticipates the latest legislative initiatives concerning cannabis legalization, especially in California, to provide a favorable and conducive environment for a firm like GreenGro Technologies to increase its operations at a record pace.Haas again had explained that the new legislation represents a historic moment and is a major win for the cannabis sale space and a win for the country as well, as the plant edges closer to being recognized and accepted as a safe-to-use household name. The new initiatives have also created a much more acceptable and conducive legal and economic and legislative area for firms like GreenGro Technologies to succeed as the request for the once-outlawed item continues to grow at a rate astonishing to even the most positive industry analysts. As an outcome, it is believed that this present period could turn out to be a breakthrough year for GreenGro Technologies when appraising by its operational and financial achievements, which commence with the attainment of the five major targets set out in a press release.Financial PerformanceAccording to its statement of comprehensive income, the firm was able to increase its sales revenue by 61% from the last period, rising from $0.57 million to $0.92 million in 2017.This continued the trend of rising revenue for at least the last three years. However, cost of sales grew by a smaller 41% proving that the firm is increasing its operational efficiency. However, the firm’s huge operating expenses rose to led to an operating loss, validating the fact that the firm is still in its development phase. The net loss however dropped by 19% for the year, from $3.5 million to $2.8 million.The firm is not very highly leveraged as its liabilities are estimated are to be worth roughly $0.12 million, compared to assets $2.7 million and equity of $2.5 million. Its high liquidity of 6.5 as result of the amount of cash and receivables in its books suggests that the firm is capable of handling its regular operations smoothly over the year.ConclusionGRNH is performing above normal expectations for a developing company, however, it needs to improve its financials remarkably to see further market enthusiasm.We will be updating our subscribers as soon as we know more. For the latest updates on GRNH, sign up below!Disclosure: We have no position in GRNH and have not been compensated for this article.