Medicine Man Technologies Inc (OTCMKTS:MDCL) Successfully Executing Its Growth Strategy

The cannabis sector in general has been experiencing a downward trend since late 2016 following the November election. Many of the stocks in the sector enjoyed a brief upward surge on the heels of the favorable results of the election, with respects to cannabis. The initial enthusiasm following the election has faded and many stock are giving back all the gains. However, the cannabis industry continues moving forward, in spite of what the price charts depict. Medicine Man Technologies Inc (OTCMKTS:MDCL) is one of many companies that continues to move forward with its expansion strategy.

For those not yet familiar with the company, Medicine Man Technologies Inc is a cannabis retailer, distributor and consultancy firm based out of Denver. Established in March 2014, the Company secured its first client/licensee in April 2014. To date, the Company has provided guidance for several clients that have successfully secured licenses to operate cannabis businesses within their state. The Company currently has twenty eight active clients in 12 states and Puerto Rico, focusing on working with clients to utilize its experience, technology, and training to help secure a license in states with newly emerging regulations, and to deploy the Company’s highly effective variable capacity constant harvest cultivation practices through its deployment of Cultivation MAX. The Company also advises clients on how to eliminate the liability of single grower dependence to avoid the costly mistakes generally made in start-up, and how to stay engaged with an ever expanding array of licensees and partners, all focused on quality and safety that will ‘share’ the ever-improving experience and knowledge of the network.

Medicine Man Technologies Inc recently provided an update regarding its second quarter of 2017 interim activity. On the Consulting, Licensing, and Cultivation MAX Services side of the business, the Company is pleased to announce that it has added several new clients this quarter including two Ohio based large cultivation application groups, and four Arkansas based cultivation application groups. Also added were two Arkansas based dispensary application groups, two California Cultivation MAX client, two Michigan cultivation/processor application groups, and one new Florida based vertically integrated application group. The first two Nevada Cultivation MAX clients are well into their first harvest cycles. The Company expects to see revenue from the Nevada projects next fall.

On the International Services front, Puerto Rico licensure client just completed their initial training in Denver and expects to wrap up construction of the cultivation facilities utilizing the Company’s designs.  cultivation operations are set to commence in the fall of this year. The Company also initiated paid support for a South Africa based client and expects to enter into a provisional support license agreement shortly as that South Africa’s medical cannabis position evolves.

On the recently acquired Success Nutrients side of the business, the Company is pleased to announce that the Success Nutrients line is now being carried in five new supply store groups in Colorado including Grow Generation, Way to Grow, Cultivate, Cost Plus Hydro and Grow Your Own. The product’s first presence in California with Pacific Coast Hydro has also been established.

On the financial front, the company recently released its first quarter results for the three months ended March 31, 2017. Total revenue for Q1 of FY 2017 was up by 270%, to $541,136, in comparison to revenues in Q1 FY 2016 of $199,615. Total costs of services increased by 20%, or $27,718, for the 1st quarter of FY 2017, rising to $165,159 in comparison to cost of services in the 1st quarter of FY 2016 of $137,441. Net income before taxes for the 1st quarter of FY 2016 was $111,163, compared to losses in the 1st quarter of FY 2016 of ($113,856). The Company’s CEO, Andrew Williams stated:

“It was gratifying that the revenue projections included in our press release filed in conjunction with the filing of our 2016 annual report on April 18th was accurate when combined with our March Success Nutrients performance. We generated approximately $677,000 in revenues which represented more revenue in this quarter than we generated in all of 2016.”

On the acquisition front, the Company announced on May 9th that it has agreed to terms to acquire the Denver Consulting Group, LLC with offices in Denver, Colorado and Portland, Oregon. The transaction has already been approved by the Board of Directors of MMT and by the Managers and Members of Denver Consulting Group, Inc. The terms of the acquisition provide for MMT to issue an aggregate of 2,258,065 shares of its Common Stock to the Members of Denver Consulting Group.

MDCL stock has been on a steady downward trend since it came off of its high of $2.19 on November 08, 2016. The stock is currently trading at $1.58, near the same level prior to the sharp up move that took place in mid-October of 2016. Current market capitalization stands at $27.31 million, on 18.45 million shares outstanding as of June 13, 2017. Keep an eye on MDCL. It has some notable upside potential. We will be updating our subscribers as soon as we know more. For the latest updates on MDCL, sign up below!

Sign up for next microcap runner ahead of the crowd.

Disclosure: We have no position in MDCL and have not been compensated for this article.

Sign up for our next MicroCap Runner ahead of the crowd!
We hate spam. No Hidden Fees. Unsubscribe Anytime.
Medicine Man Technologies Inc (OTCMKTS:MDCL) Successfully Executing Its Growth Strategy
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

Enter Symbol For Report

To Top