Crown Baus Capital Corp (OTCMKTS:CBCA) is the latest company to see its valuation skyrocket on expanding its portfolio into the blockchain space. The stock has ballooned by more than 100% since the start of the year.
Stock Price Analysis
The massive rise does not come as a surprise given the hype around blockchain and marijuana industries. Over the past one year, stocks in the two sectors have seen their value increase on the influx of investors looking for new investment opportunities.
Crown Baus stock has risen to highs of $2.44 a share since the start of the year as it continues to trade in a strong uptrend on huge volume. It now awaits to be seen if it will continue to rise given that it has a 52 week high of $9.49 last clocked in February of last year.
Crown Baus Capital Business Overview
Crown Baus capital bills itself as a global acquisition conglomerate targeting opportunities in industries of high-tech incubation drug development, entertainment/medium educational and financial services. The company is focused on global markets and participates in both national and state markets.
The company has in the recent past shown signs of expanding its footprint into the cannabis and blockchain space, something that appears to be fuelling the current momentum in the stock.
Renewed investor interest in Crown Baus Capital after an extended period of consolidation follows the announcement that the company is teaming up with Cannabis Science Inc. (OTCMKTS:CBIS) on a massive project. The two companies are teaming up to strengthen CBIS planned crypto-currency ICO offering.
Cannabis Science plans to pre-launch sales for its blockchain, which should begin ICO trading before the end of the month.
“Working together is in the best interests of both CBCA and CBIS as this type of relationship leverages the capabilities, experience, and expertise of both Companies. CBIS seeks to link the capital structure of CBCA with its upcoming asset-backed blockchain cryptocurrency ICO, as well as leverage the pharmacies and pharmaceutical drug development programs currently underway as well as in the robust pipeline,” said a press release.
According to the press release, Cannabis Science is to leverage Crown Baus capital structure to access additional funding that it intends to use to fast track growth plans for its pharmacy openings and drug development projects.
The agreement closely aligns with interests of CBCA and CBIS when it comes to drug development and financial security. As it stands, each one of them will be able to focus on their particular area of expertise. Considering the size of the pharmaceutical drug development space and the emerging cryptocurrency blockchain industry, the two should be able to generate significant shareholder value.
“[..] So we are looking to add two or three engines to this blockchain thing and see what it does. We most certainly believe it will actually put us in a much stronger position to move our projects forward at a much faster growth rate. With California alone having the world’s sixth largest economy with a GDP of 2.5 trillion dollars, this has opened up a very large market for both Companies in our own backyard,” stated Mr. Raymond C. Dabney.
Crown Baus Capital faces an uphill task to regain its past glory considering it traded at highs of $15.5 a share, as early as 2015. Ever since, it has lost more than 90% of market value, a move that has seen its market value depreciates from highs of $1.9 billion to $350 million.
However, it appears the company has learned from its past mistakes as it continues to make a comeback be it in small steps. In the past, the company suffered from the fact that it did not have a substantial business portfolio, capable of generating sufficient revenues to get investors excited about its long-term prospects.
Things have changed, and the company is looking to reinvent itself uniquely. A name change from Cannabis Capital to Crown Baus Capital marked the first steps in the company’s push to reinvent in a bid to generate shareholder value in various industries.
The interest that Crown Baus Capital is receiving on Wall Street does not come as a surprise. Companies that have added blockchain technology in their portfolio remain the talk of the Street given opportunities for growth in the fast emerging technology.
However, there are also concerns that the stock might have run too fast, given that the two are yet to release any new product. The current stock price is based on optimism that the two will come through on their blockchain and drug development aspirations.
Crown Baus Capital remains well protected given that it boasts of a diversified business portfolio that encompasses various industries. By teaming up with Cannabis Science, it highlights how willing and open it is to pursue new opportunities in emerging fields that have great potential.
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Disclosure: We have no position in CBCA or CBIS and have not been compensated for this article.