The cannabis glare continues to shine on companies operating in the sector. Throughout the period between 2017 till now, the cannabis sector has offered its early investors returns in the multiples. Some companies, moreover, have also created a platform on which affiliate companies’ share prices have risen drastically – to be explained later. As a result, companies which operate in the sector, be though in the primary cannabis production and distribution or in the provision of auxiliary services and products, have reaped massively from its rise.
Entities have come up with creative and novel solutions to every aspect of the food chain and continue to use technology to pioneer the cannabis sector. One such firm is MedTainer Inc (OTCMKTS:MDTR).
MedTainer Inc has come to be a renown brand in the cannabis sector for its production of FDA approved cannabis carrying containers. As a result, the firm’s orders have been on the rise and so has its performance. Fundamental analysis shows the operations of the company is driven greatly by a growth in the number of orders from other companies operating within the cannabis space. Moreover, courtesy of an announcement made over the course of this month – specifically 8th September – there has been a drastic spike in their share price leading to an over 250% increase in share price over the past month alone. Furthermore, this month has also seen the traded volumes rise to the hundreds of millions.
The chart below further explains this position:
As a result, we have opted to take a look at the company. This piece will, therefore, seek to postulate the firm’s future performance based on our analysis of current events and give investors an outlook as to what to expect from MDTR both in the short and long-term.
MDTR: The Path Taken
MedTainer Inc was founded back in 1997 and headquartered in Corona, California.
Until 7th September 2018, the firm was known as Acology Inc, a firm which through subsidiaries operated in the manufacture, design, branding, and sale of proprietary plastic containers – medical grade – within the United States. These, in addition to an array of other products, formed the revenue pipeline for the company. Over time, their marketing channels have continued to diversify. They thus market their products both directly to clients or through the Internet. Currently, their clients include both individuals – the products’ end users – as well as wholesalers and other associated businesses.
The most recent development pertaining MedTainer Inc is with regards to the name change which they just implemented. This change shook the market and continues to be seen in their share price as discussed below.
The Letter to Shareholders
On 8th October, shareholders at MedTainer Inc received a letter from the company’s Chief Executive Officer, Curt Fairbrother.
Therein, Mr. Curt outlined the progress the company had continued to make in its different spheres. First, he explained that courtesy of the approval by FINRA, the company’s name would officially be changed from Acology Inc to MedTainer Inc. As a result, its OTC markets ticker symbol would also change to MDTR. The move followed the firm’s previous move to completely own all the intellectual rights to MedTainerTM. He further explained that as a result of their current name change and continued operations, their share price had continued to rise, a move which postulates the market’s belief in their success going forward.
Furthermore, he also pointed out that their number of orders had continued to rise. Here, one of their key clients in Aurora Cannabis, among the largest cannabis producers and distributors. These revamped orders have become the reason for the success of the company and have even led them to be featured in different financial articles as being among leading successful companies. Moreover, with their operations being in California – a city which earlier this year legalized cannabis for recreational use – MDTR has seen a significant increase in their purchases. Their single business – which is the supply of containers – has continued to rise over the past three years by over 150% whereas their active customers rose by 225% over the same period.
Finally, he spoke to the future of the company. Here, he elaborated their vision to increase their product line as well as grow their revenue. He also remained very categorical as to the firm’s expected growth in future. He is quoted stating:
“Our marketplace is only now just beginning to scratch the surface of its potential. I am very confident that our company, MedTainer Inc., will continue to lead in compliant packaging… I can also foreshadow new products being manufactured and shortly made available to our sales partners.”
As a result of the above, there is continued hope within the market that MDTR will continue to rise in line with the words of their CEO, a factor which has led to their continues price surge.
Backed by strong fundamentals and overlain a strong brand in the market, MDTR continues to scale the height of packaging success. With some of the largest clients within the marijuana sector purchasing from them, it will take but a little more effort for them to dominate the current market, ensuring that they rise to the top.
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Disclosure: We have no position in MDTR and have not been compensated for this article.