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Mountain High Acquisitions Corp (OTCMKTS:MYHI) Is Just Getting Started

Mountain High Acquisitions Corp (OTCMKTS:MYHI) Is Just Getting Started
Written by
Jarrod Wesson
Published on
January 5, 2018
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In our last article on Mountain High Acquisitions Corp (OTCMKTS:MYHI), which was published in July 2017, we noted that the company was capitalizing on the growth of the marijuana industry by providing services to licensed cannabis growers, processors, and producers. Company logo - Mountain High Acquisitions Corp OTCMKTS:MYHIAfter the legalization of some forms of marijuana in Canada and some states in the U.S., the demand for cannabis has been increasing much, so we believed that the company's strategy was brilliant. Additionally, we explained that if the company’s sales efforts pay off, MYHI could become a stock that can be a microcap runner.As of today, we can say that we were not wrong in saying so.Suddenly, in December, the share price increased from around $0.10 to hit the ten-months highs of $0.40. On top of it, the share price highs were accompanied by increases in the number of shares exchanged. The trading volume spiked up to hit more than 5 million shares some days. In our opinion, it shows that many in the market became interested in the stock.Have a look at the recent share price action before we provide new details: 1-month chart for MYHIThose who could not read our previous assessment can learn now about the business model of MYHI. Mountain High Acquisitions Corp. was founded in 2010 and is headquartered in Scottsdale, Arizona. It is focused on providing a turnkey, cutting-edge infrastructure provider to licensed cannabis growers, processors, and producers in regulated markets. The company helps licensed operators leverage scientific and technological innovations specifically geared to optimize the cultivation and processing of cannabis.What's going on?As mentioned in our previous article, the company commenced collaborating with D9 Manufacturing, Inc. to launch a new pilot project, in which the company was providing the infrastructure. It was said that the marijuana markets of California, Washington and Arizona were taking an interest in both groups.Additionally, the management noted again why companies like D9 Manufacturing, Inc. need the services of MYHI:

“A grower needs infrastructure and equipment that maximizes the quantity and quality of their production—and all of that can be expensive. That’s where we come in. By providing swift access to affordable turnkey solutions not only do we greatly reduce setup time and costs and help growers get growing, we also help them to minimize risk and optimize their business.” said MYHI CEO Alan Smith.

That was not all.It was also noted that further opportunities had been identified for both companies to pursue once this revenue model is vetted and fine-tuned. The market could not get to know what were the chances that the company was referring to. Thus, the share price did not increase much.We needed to wait a little more to get more details.On October 18, 2017, the company released that it has expanded its pilot program. D9 and MYHI will now include the development of reliable Standard Operating Procedures (SOPs) that growers will be able to greatly reduce the risk of low yield or failed grows. According to the new information, the new innovation will help growers cultivate efficiently and produce a better harvest, "visually rich, extremely fragrant, pleasantly palatable, and free of harmful chemicals."There is more on the new technology:

"The proprietary design of MYHI's intermodal grow containers enables us to bring this cultivation technique quickly to any legal market. In fact, the standardized conditions allow us to achieve a 15 to 20% increase in yields over the industry standard using D9's proprietary cultivation process." said D9's Chief Science Officer, Jeremiah Molinaro.

Additionally, the company seems to have chosen the right place to operate. According to The Bright Field Group, a cannabis market research firm, Arizona is ranked number three on its list of the best places for running a cannabis business.Revenues increaseIn November, we were able to have a look at the new financial statements for the quarter ended September 30, 2017. We were glad to see that the company reported $30,000 in revenues, which is higher than $11,460 shown in the same quarter in 2016. The expenses also increased, as the company seems to be expanding its operations. The selling, general and administrative costs were worth $181,264, whereas the depreciation accounted for $10,000. Additionally, the company had to pay to several consultants that seem to be helping grow its assets. So, the final net income was not positive, which is quite usual for startup companies. We don't mind these results if the revenues growth keeps increasing. This is the crucial factor that we need to check out.ConclusionCurrently trading with a market cap of $25 million, MYHI is an exciting story among small caps. With $0.05 million in cash, $0.282 million in assets and $0.832 million in total liabilities, we believe that the company should be able to refinance its balance sheet now so that it can be successful in the market. Additionally, we need to note for those readers who appreciate volatility plays that this company seems to be a low float runner. It has a total amount of outstanding shares equal to 83,093,867, and only a float of 31,844,837 shares. Thus, the order book may be quite empty sometimes, and market orders could move the share price violently.To sum up, we continue to believe that there is a lot to like on this name.We will be updating our subscribers as soon as we know more. For the latest updates on MYHI, sign up below!Disclosure: We have no position in MYHI and have not been compensated for this article.Image courtesy of Peter Stabolepszy via Flickr

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