Grow Solutions Holdings Inc (OTCMKTS:GRSO) is up more than 80% for November so far, but the company just took a close to a 10% hit to its market capitalization midweek. There is opportunity to be had across the entire cannabis space right now, and we have made a point of trying to uncover the most solid of these opportunities. We think that the recent decline in Grow Solutions is a temporary pullback as traders take profits off the table, and that heading into the upcoming ballot, the same traders will use the current dip as an opportunity to load up ahead of further gains. With this in mind, here is a look at what the company does, and what we are looking at going forward as indicative of potential for momentum-type upside throughout the final quarter of this year and beyond.So, the company.As its name suggests, Grow Solutions is focused on the provision of indoor and outdoor gardening supplies to the agriculture industry. Specifically, and in line with recent market trends, the company is focusing on legal cannabis growth, providing services within the legal cannabis industry to those growing, processing and dispensing legal cannabis and legal cannabis-related products. It operates by way of a number of subsidiaries, something will look at in a little more detail shortly, with headquarters in New York.Since April 2015, when Grow Solutions hit the OTC, management has undertaken a pretty aggressive strategy to bring the company to where it currently sits, and this strategy doesn't look as if it is going to let up near term.Back in May, one month after public listing, the company acquired a garden and growth store called One Love Garden Supply, which it subsequently expanded to over 7000 ft.² of retail floor space. Since then, it has spent time acquiring and building on this initial acquisition to put together what is essentially a full suite of cannabis and cannabis related grow products. It's got a retail presence online, and a brand called Hygrow through which it retails gardening supplies in Denver Colorado. It's got a smoke shop and a dispensaries arm active in Florida.Of all the developments since listing, however, we see one as potentially driving growth for the company above and beyond the others, and it's nothing to do with retail.Grow Solutions is working on a website called JobGrow.com, which will serve as a portal through which employees can find vetted staff to work in their cannabis related enterprises, and vice versa; employees can find work. What makes it different, however, from another employment startup, is its affiliation with Recruiter.com.One of the co-creators of social networking site MySpace.com, Joe Abrams, is an early stage investor in Recruiter.com. He also partially funded and developed Grow Solutions’ Jobgrow.com, and the plan is to cross propagate members between the two sites when JobGrow goes live. There are more than 35,000 recruited members on Recruiter.com, and 3 million professional members. This may not sound a lot straight off the bat compared to some social networking sites, but from a revenue potential point of view, these members are worth far more per individual user members on, say, Facebook would be. They are actively looking for recruitment, and comprise the pool from which active recruiters are looking for hires.If the California and Nevada votes come in favor of recreational legalization, all of the companies that we are currently seeing put expansion strategies in place are going to need to act on those strategies, and in doing so, will need staff to support said expansion. We think Grow Solutions’ platform could play a key role in this recruitment drive, and in turn, could generate substantial revenues for the company near term.Right now, of course, it is the retail properties that are generating top line. The company just acquired a hydroponic supply company in Oregon, which will operate going forward under the above discussed One Love branding, and management expects this entire division to bring in $10 million or more in revenues for the coming year. This comprises $7 million from the current operating stores in Colorado, $2 million on the new Oregon acquisition, and just shy of $2 million by way of online retail.As is the case with many companies in this position (low capitalization, high-growth industry) cash is going to be an issue going forward, and early holders are probably going to have to accept some degree of dilution if the company is to capitalize on its opportunity to expand into growing demand. That's a downside risk, but one that is probably well worth bearing given the potential for growth.Cash on hand at last count was just shy of $200,000, and quarterly burn is a little over $200,000, so be ready for a raise early 2017.We will be updating our subscribers as soon as we know more. For the latest updates on GRSO, sign up below!Disclosure: We have no position in GRSO and have not been compensated for this article.
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