Grow Capital Inc (OTCMKTS: GRWC) On A Positive Trajectory

Grow Capital Inc (OTCMKTS: GRWC) kicked off a business restructuring campaign last year which began with a name change. Further restructuring includes the recent appointment of a new Chairman of the Board as well as acquiring a new member of its team. The developments seem to have bode well for investors as the stock is on an upward trajectory.

How is the stock performing?

For much of 2018, the stock traded under $0.1 and investors seemed poised for a further slump. However, the company indicated, since last year, that it was serious about reversing the sentiment about its shares in the market. In particular, the company revealed to its investors that it would abandon the cannabis sector for a model which aligns with its strengths.Notably, Jonathan Bonnette, CEO of GRWC said that they faced too much risk in the cannabis sector. Particularly, there are unclear regulations on the Federal level in the sector and that poses an existential risk to investors. On the contrary, the new sector (FinTech) around which the company is building its model is robust and has immense growth opportunities. Further, the CEO alluded to the fact the industry is anticipated to grow at over 18.40% between 2018 and 2025. This is the more reason which supports the shift of focus, said Bonnette.Grow Capital has received positive support for the transition and revamping of the business model. The company raised close to $600,000 after selling over 9 million shares. According to GRWC, the bulk of the shares were sold to eight investors who had relevant accreditation. Following the developments, the share price broke above $0.10. The stock continues to trade above the level with a day’s range of between 0.18 and 0.23.However, the current movement indicates that there is hope for the stock to break past that range and establish new highs for year-to-date. On Friday, the stock closed up 21.11%, having gained 0.0380 during the day. On a year-to-date basis, the stock is robust with the difference between the year’s opening price and the last close being +266.67%. GRWC Daily Chart

What does Grow Capital do?

Incorporated in 1999, Grow Capital built its initial business model around purchasing, developing and managing specific use of industrial real estate within the US. Previously known as Grow Condos Inc., the company’s interests traversed various industries including finance, education, real estate, and technology services. After the rise of the cannabis sector, the company established businesses focused on providing grow facilities for cultivators in the cannabis industry.Grow Capital is now transitioning from the business model into FinTech. The company has a team in place and it will implement the new strategy both the short-term and long term. Notably, the company recruited like-minded entrepreneurs and partners to work towards the achievement of the new strategy.[embed]https://www.youtube.com/watch?v=xBK9-mrBnS0&t=1s[/embed]

Name change and establishment of a new website

Last year, the company confirmed that it would change its name, although the ticker would remain unchanged. On April 8 this year, Financial Industry Regulatory Authority (FINRA) confirmed the intention hence making Grow Capital Inc., the official name. According to company management, the changing of the name mirrors the evolving and growing nature of the business.

“GRWC is growing and evolving like our name. We are strategically moving out of our current space in exchange for a model that increases investment through smart acquisitions in the FinTech industry,” said Jonathan Bonnette.

The name change affirms Grow Capital’s intention to steer in the direction of growth and to improve the stock sentiment. To establish further resolve to grow and pursue new opportunities, the company changed its website alongside a new URL domain address. Also, the company upgraded its logo and rebranding to match the fresh growth impetus established in the company.

Acquisition initiatives

Like earlier discussed, the company will rely on acquisitions and partnerships to embolden the new business model. In this direction, Grow Capital recently signed a letter of intent (LOI) which will lead to the eventual acquisition of Bombshell Technologies. The company anticipates finalizing the acquisition in the coming weeks pending a due diligence review which is already underway.The acquisition will give GRWC full control of the subsidiary. Bombshell Technologies has already established itself as a formidable player in the FinTech industry. In particular, GRWC anticipates leveraging the subsidiary’s networks to establish its foothold in the new industry.

Bottom line

GRWC may have abandoned a budding industry but management is upbeat that the new direction is better. Given the figures that the CEO quoted regarding the growth of the FinTech industry, there is a real growth opportunity. Further, the rebranding was necessary to breathe fresh air into the firm and to help them focus. In a word, the current bull run of GRWC stock is likely to continue.We will be updating our subscribers as soon as we know more. For the latest updates on GRWC, sign up below!Disclosure: We have no position in GRWC and have not been compensated for this article.