Shares of Medical Cannabis Payment Solutions (OTCMKTS: REFG) are exploding up the chart after the company announced a deal with DeltaNevada to provide its platform and services to process payments and to provide depository services. The news is indeed a game changer for not only REFG, but the cannabis industry as a whole. Payments are one of the biggest problems the cannabis industry faces as marijuana remains illegal in the US on a federal level. REFG providing the solution makes the company the only game in town and justifies the stock exploding higher. Taking a closer look, we at Insider Financial see a lot to like with REFG.
First up, a little background info for those that aren’t familiar with REFG. The mission of Medical Cannabis Payment Solutions is to provide end-to-end management, across multiple management systems, for medicinal marijuana operations. Many medicinal marijuana companies have experienced such rapid growth that they are finding it difficult to manage all aspects of their operation. In order to become a successful and compliant medicinal marijuana operation, effective management must depend on many different systems.
REFG solves the fragmentation problem by identifying tools that are important to dispensaries and customizing those tools specifically to the industry. The company strives to create awareness within the medicinal marijuana industry and to develop an environmentally friendly, economically sustainable business while increasing shareholder value.
DeltaNevada is a Nevada investment and management company that has entered the CBD extraction and processing space. Upon closing the deal, DeltaNevada said:
”The entire industry has been plagued with problems getting financial services, to the point that many think they’re not available, or if they are, they’re simply too expensive. By entering into this agreement, we recognize compliant, affordable, secure and domestic payment processing is available. This is the solution we’ve been looking for.”
REFG CEO Jeremy Roberts said:
”We are delighted to introduce Medical Cannabis Payment Solutions’ expanded financial product offering, supported by Go!, to DeltaNevada and their clients. We look forward to being of service to them and their customers. The customers will have access to fast and reliable electronic payments with the resources and security of Go! as a solution specializing in compliant state-sanctioned payments.”
Go! is an electronic payment processing platform that supports money transfers and serves as an alternative to traditional transactions, such as cash or check. The system, with best-in-class security, allows state-sanctioned cannabis entities to accept electronic, domestic payment without the need for paper currency. The company believes this system solves the “cash problem” facing the cannabis industry.
The Company noted that almost entirely word-of-mouth advertising from across all segments of the cannabis industry, including licensed cultivators, manufacturers, distributors and dispensaries, has been driving the ongoing acceptance and processing of applications for its payment solutions at www.paywithgo.com. CEO Jeremy Roberts said:
“We announced last September that we have launched our nationwide banking solution for state-sanctioned cannabis. We’re happy to announce today that we have several dozen accounts open and over 120 applications in our queue. Not only does this provide a revenue stream for the company, but we believe we are the only company currently providing banking services in all states with legalized cannabis. Licensed marijuana establishments may apply for a bank account on our website.”
Currently trading with a market cap of $18 million, REFG is an exciting pick-and-shovel play among cannabis stocks. With payments being perhaps the biggest obstacle facing the industry, the solution provided by REFG makes the stock an excellent play on the future of cannabis. Judging by the excitement surrounding the DeltaNevada deal, we believe this bull run is just getting started for REFG.
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Disclosure: We have no position in REFG and have not been compensated for this article.
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