Marijuana Company Of America Inc (OTCMKTS:MCOA) Eyes The Canadian Cannabis Market

In our last coverage of Marijuana Company Of America Inc (OTCMKTS:MCOA) on July 23, 2017, we noted that the stock was in the midst of a breakout.Indeed the stock went on to hit some new highs on relatively strong volume following our review.While MCOA has pulled back a bit, we see more upside potential in the stock and in this piece we’ll discuss the catalysts.Before we get into the details, take a look at the price action. MCOA Daily ChartFor the sake of our readers not already familiar with MCOA, a brief background on the company will suffice.MCOA is an American company that operates in the regulated hemp and cannabis industries. Its activities include researching and developing hemp-based consumer products under the hempSMART brand. In the consumer segment, MCOA largely targets general health and well-being market. MCOA also engages in affiliate marketing program to promote its hemp-based consumer products that contain Cannabidiol (CBD). The company also leases real property to businesses engaged in production and sale of cannabis. As regulated hemp and cannabis markets expand, MCOA is keen to expand into ancillary areas of these industries to expand its revenue opportunities.MCOA posted a sharp year-over-year and quarter-on-quarter increase in revenue for the quarter ended June 30, 2017. The company’s assets also grew in the quarter.MCOA is moving to take advantage of Canada’s expand regulated hemp and cannabis markets. Canada is eyeing a legislation chance in 2018 that will allow extraction of cannabinoid from hemp. Canada is also on track to federally legalize marijuana for adult or recreational use in 2018. These legislation changes will expand Canada’s hemp and cannabis markets and create an exciting revenue opportunity for MCOA. And MCOA can be seen positioning itself to capitalize on what the future promises in Canada.MCOA partners for Canada pushAs part of its Canada push, MCOA on September 5 announced a joint venture (JV) with Global Hemp Group Inc. (OTCMKTS:GBHPF). The JV is part of MCOA’s industrial hemp project in Canada’s New Brunswick province. Under the JV agreement, GBHPF will assist MCOA in developing commercial hemp production in the New Brunswick.It’s important for readers to note that New Brunswick province is one of the regional administrations in Canada that have taken advanced steps to prepare for federal legalization of recreational marijuana in the country next year. As part of its preparation for the regulation of creational marijuana industry, the provincial government of New Brunswick has created a crown corporation that will oversee retail distribution of recreational marijuana in the province.MCOA’s joint venture partner GBHPF is headquartered in British Columbia, Canada and it has operation bases in Montreal and Southern California. GBHPF is focused on production and processing of hemp and cannabis and it carries out its activities through partnerships, joint ventures and acquisitions.On September 28, MCOA announced that it and its JV partner GBHPF tapped Space Cowboys to provide consulting services for their Brunswick hemp project. Space Cowboys boasts extensive expertise in cultivation and production of hemp rich in cannabinoids, especially CBD and CBG. As such, Space Cowboys will assist MCOA and GBHPF maximize cannabinoid production in their New Brunswick project.Regarding the hiring of Space Cowboys to provide consulting services, Donald Steinberg, the CEO of MCOA, commented:

"MCOA is excited to have Space Cowboys on board advising on our industrial hemp trials in New Brunswick, Canada. Space Cowboys has years of experience cultivating and processing industrial hemp cannabinoids. They can bring tremendous knowledge and expertise to our joint venture with GHG [GBHPF]."

SourceMCOA secures financing commitmentAs it expands its hemp and cannabis missions, MCOA has been building its war chest as well. On August 1, the company announced that it entered into equity financing agreement with Tangiers Global, LLC. Under this agreement, MCOA expects to receive financing of up to $5 million from Tangiers.In addition to the equity financing arrangement with Tangiers, MCOA also secured a bride loan facility of up to $250,000. MCOA expects to use the equity financing and the bridge loan for working capital and to pursue acquisitions or other strategic opportunities.Regarding the equity financing, Donald Steinberg, the CEO of MCOA, stated:

"We are excited to partner with Tangiers. They have committed to providing us with the capital we require to rapidly grow the business. Their decades of experience and knowledge will provide us with the edge we need to effectively position the Company in the marketplace. They thoroughly understand MCOA, our industry and our ambitious goals -- our partnership will ensure that we meet those goals and maximize shareholder value."

SourceConclusionTo sum up, in light of the favorable announcements streaming from MCOA and an expanding hemp and cannabis market in Canada and elsewhere, we see the stock of MCOA making a strong comeback.We will be updating our subscribers as soon as we know more. For the latest updates on MCOA, sign up below!Disclosure: We have no position in MCOA and have not been compensated for this article.