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Kona Gold Solutions Inc (OTCMKTS:KGKG) Is Today's OTC Focus

Kona Gold Solutions Inc (OTCMKTS:KGKG) Is Today's OTC Focus
Written by
Alex Carlson
Published on
July 20, 2016
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Kona Gold Solutions Inc (OTCMKTS:KGKG) has become one of the most talked-about names on the OTC Markets. The company aims to be the premier hemp lifestyle brand that will include Hemp Energy Drinks, Energy Patches, Hemp Apparel, Hemp Shampoo as well as a Hydroponics division. Adding to the interest is that while other cannabis stocks are diluting their shareholder base, Kona Gold is doing the opposite and reducing its share count. Could this be the start of the bull run in KGKG that investors have been looking for?Shares started racing up the charts this week after the company announced that it is retiring 30 million free trading common shares. The 30 million free trading shares have been sent back to the Company's Transfer Agent and will reduce the current float for Kona Gold Solutions, Inc., which is 62,031,197 as of July 18, 2016. This is a huge development for the company and a huge win for Kona Gold's loyal shareholder base. With this many shares removed from the market, KGKG is now a low floater and can really climb.Kona Gold has launched its apparel line, which includes fashion t-shirts and hats. Their apparel is available for purchase from their website and on Amazon.com. Kona Gold is also currently working on signing their first brand ambassador. The company plans to have its first brand ambassador signed within the next month. CEO Robert Clark said:

"Over the last several months, we have been working with an outstanding design firm to create what I feel is a fresh and stylish line of apparel products that successfully represents the Kona Gold brand. We wanted to have a little fun with the launch of our apparel line, so we are running a promotion where we are giving away $500 to one of the first 100 customers that purchases an apparel product from Kona Gold's website. Expanding our product line to include apparel, Kona Gold will be adding a substantial revenue stream to the company in conjunction with our energy drink line, which is currently on the market, online and in stores."

Kona Gold's new hemp energy drink that is slated to be launched in the third quarter of this year. In May, the company selected Sipp Industries (OTC Pink: SIPC) as its hemp extract provider. CEO Robert Clark said:

"We are very excited to announce that we have selected Sipp Industries as our hemp extract provider for our new premium hemp energy drink that we will be launching later this year. We have found a partner in the hemp industry that shares the same long term growth goals as Kona Gold and is passionate about the industry. Kona Gold's partnership with Sipp Industries will reach beyond just providing hemp extract, and we look forward to bringing some fantastic products to the market together."

In looking at the company's financials, they are not that bad compared to other OTC companies. At the end of March, Kona Gold reported $80,967 in cash and $93,074 in total assets. The one big overhang is $148,468 in convertible notes. Each Convertible Note plus accrued interest can be converted into common shares at any time before or after the Maturity Date by the Note Holder at a Conversion Price that is equal to a 50% discount to the 10-day average bid price of the Company. So while the company did retire 30m shares, there will be additional dilution if these notes are converted into common shares.Currently trading with a market cap of just $682k, KGKG is a low floater that could turn into a microcap runner at any minute. While other Hemp plays remain overvalued, that's not the case with KGKG. If investors look at all the problems happening over at Hemp Inc (OTCMKTS:HEMP), Kona Gold is a better bet on Hemp. As the company likes to say, "There are many hemp companies out there that get lost in the crowd, but Kona Gold sets the gold standard with its premiere line of products." To get our latest updates on KGKG, sign up for our free newsletter below!Disclosure: We have no position in KGKG and have not been compensated for this article.

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