We've been profiling GreenGro Technologies Inc (OTCMKTS:GRNH) since the beginning of 2016. The last time we reported on GRNH was May 24. We stated that we were waiting for the next catalyst to take shares of GRNH higher. It's here now.On November 8th, tens of millions of Americans will cast their ballots on one of the most controversial issues in modern history. At stake is the future of a taboo vice that has ignited a modern-day gold rush. It has already transformed everyday Americans, from coast-to-coast, into millionaires virtually overnight. This highly sought after commodity is expected to create $6.7 billion of new wealth, and that's just in 2017. By 2020, Bank of America and Merrill Lynch estimate that will grow to $35 billion industry, and many experts believe it could eventually reach $150-$200 billion annually.GRNH is beginning to move up as we get closer to the election. It provides manufacturing and sales of green, eco-friendly, sustainable vertical cultivation systems, and facilities design. GRNH's products and services are targeted at consumers, industrial farming operations. Like so many other companies it's actually never sold an ounce of weed. It builds greenhouse facilities for those that do and has announced that is making strides to go into the beverage industry.Last month, the company announced the "Greengro 3-Tier Franchise Model" for businesses in the field of controlled environment agriculture (CEA). The three tiers are: 1) Glass Greenhouse Franchise, 2) Glass Greenhouse Franchise / Cannabis Sector, and 3) Vertical Hydrogarden Stores. The Greengro 3-Tier Franchise Model is being marketed by the Company's subsidiaries Vertical Hydrogarden and BP Gardens, Inc., a CEA company that specializes in the use of leading-edge technologies and production methods. End user customers for this franchise program include companies in the field of leafy green produce production and distribution, e.g., lettuce producers and processors.Come November, voters in at least 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. So far, 25 states have established medical marijuana programs. These states include: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island,Vermont, and Washington. In addition, Washington, DC and Puerto Rico allow medical marijuana for patients.In California, where GRNH is based, things are really heating up. Proposition 64, which is on the November ballot, would allow people age 21 and older to possess and use up to an ounce of marijuana and would allow pot shops to sell cannabis for recreational use. The initiative also includes a provision that could someday allow cannabis sellers to advertise their products in print ads and on digital sites and radio and television stations. If Californians vote to legalize recreational use, overnight it will triple the size of the US cannabis market. So far, Proposition 64 has widespread support. Lt. Gov. Gavin Newsom (D) and at least four California U.S. representatives are supporting the measure. Most importantly, latest polling data shows 60% of Californians in favor of legalization.Currently trading with a market cap of just over $9 million, GRNH is an exciting story among pot stocks. The company stands out compared to other cannabis names with its low market cap relative to its balance sheet. In the quarter ending June 30, GRNH reported $138k in cash, $2.1m in total assets, $426k in total liabilities, and total stockholder's equity of almost $1.7m. We believe GRNH is one name that should be on every pot stock investor's screen. The catalyst to take shares higher is just around the corner. 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.
Discover Hidden Gems
Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.
