Greengro Technologies Inc (OTCMKTS:GRNH) Remains A Top Cannabis Pick

The outlook for the cannabis industry continues to be very optimistic. According to SIVA Enterprises, a full-service business development firm that provides consulting services to the cannabis industry, statistics reveal that by 2020 the U.S. market for legal cannabis will hit $11 Billion. Since the end of 2014, dispensary jobs have grown 90%.According to a report from New Frontier Data, tax revenue in states with legalized marijuana is forecasted to reach $1.8 billion, of which $1.4 billion will be from cannabis specific taxes. Additionally, North American legal marijuana sales totaled $6.7 billion in 2016, and the industry is projected to top 255,000 jobs by 2019 and reach $24.5 billion in sales by 2025. Greengro Technologies Inc (OTCMKTS:GRNH) is positioning itself to capitalize on the growth of the industry.For those that are not familiar with the company, Greengro Technologies is a world class provider of eco-friendly green technologies with specific domain expertise in indoor and outdoor agricultural science systems serving both the consumer and commercial farming markets. It brings together community and commerce through the growth and distribution of healthy, nutritious foods and vital medicines backed by science and technology. Customers include restaurants, community gardens, and small and large-scale commercial clients. Greengro Technologies also provides design, construction and maintenance services to large grow and cultivation operations and collectives in the medical and recreational marijuana sectors.In June and July 2017, Greengro Technologies’ division GenoBreeding, Inc. solidified a joint venture with Gala Global Inc (OTCMKTS:GLAG), by which Dr. Rehman Maqsood, Chief Operating Officer of Gala Global and one of the world’s foremost soybean geneticists, joined Greengro Technologies in order to conduct genetic research on new plant strains, on behalf of GenoBreeding.Greengro Technologies announced on July 10, 2017 that its majority-owned subsidiary Biodynamics, LLC, Akron, Ohio, has been awarded a contract to sell a branded photovoltaic (PV) solar glass hydroponic vegetable greenhouse as part of a $17 million purchase agreement with GH Farms Group, LLC, an Ohio-based greenhouse company. Under terms of the agreement, Biodynamics will construct a 254,528 sq. ft. PV solar glass hydroponic vegetable greenhouse for GH Farms Group, with construction expected to start in the third quarter of 2018. The project, incorporating Biodynamics’ industry-leading fully automated off-grid greenhouse technology, will cultivate vegetables hydroponically using Biodynamics’ proprietary controlled environment agriculture (CEA) growing systems and techniques.Additionally, Greengro Technologies announced progress with a $25 million project signed in February 2017 with Global Renewable Resources LLC (GRR), Shaker Heights, Ohio. The City of Warren, Ohio’s Mayor William D. Franklin recently committed the needed land to develop the project. GRR is a startup specializing in sustainable technologies and renewable energy. After securing the land for the greenhouse project from the City of Warren, GRR management is currently working on completing the project’s capital raise, expected to be closed by the end of second quarter of 2018.On June 08, 2017, Greengro Technologies announced it has secured a $4 million funding commitment to build a second igot420 dispensary in Cathedral City, California. $2 million of that financing has already been received with the remaining $2 million to be drawn down pending advancement of the project’s construction schedule. igot420 is a major tenant of Greengro properties. The Cathedral City dispensary follows the commencement of the Company’s construction of its North Hollywood flagship location, currently about 35% completed. James Haas, Chief Executive Officer of Greengro Technologies commented:

“This important project will prove out our business model for replicating our scientifically designed, cost effective facilities and scaling them quickly, regionally. With the Cathedral City project capital already secured, and the igot420 team ready to go, we are confident the exciting progress in the third quarter of 2017 will position Greengro for another breakout year.”

GRNH stock has been on a downward trend since the beginning of 2017. It has recently bounced off of a support level at $.04 on better than average volume. The stock is currently trading at $.05. The quarterly financial reports for the period ending March 31, 2017 do show revenues, but the Company has consistently operated at a Net Loss. However, on July 19, 2017, Greengro Technologies announced it expects revenues for its second quarter ending June 30, 2017 to reach a record $830,000, or nearly eight times its revenue during the second quarter of last year. The Company also reported that its pipeline of new contracts has grown to nearly $50 million as of the end of the second quarter, with recurring revenues expected to generate between $2- 5 million in produce sales annually. Current market capitalization stands at $20.17 million, on 384.69 million shares outstanding as of July 12, 2017.Greengro Technologies is positioning itself to capitalize on the California legal cannabis which is expected to go into effect at the start of 2018. If recent events in Nevada are any indication of what is to come, opportunities to seize as much legal cannabis market share as possible in California will go to those companies that are strategically well prepared. We will be updating our subscribers as soon as we know more. For the latest updates on GRNH sign up below.For the full story, be sure to check out our complete coverage.Image courtesy of Jurassic Blueberries via FlickrDisclosure: We have no position in GRNH and have not been compensated for this article.