North American Cannabis Holdings Inc (OTCMKTS:USMJ) posted a 15% an annual increase in revenue in sales worth $858,000 compared to last year when they had $742,000 in sales. As a result of tremendous growth, USMJ is becoming one of the most popular cannabis businesses. Their share price has been on an upward trend for the better part of the year regardless of having been on a downward spiral last year. For people who took their chances, they have managed to get upward gains of up to 1600%. Their share price has been increasing which has attracted more investors and traders.
North American Cannabis Holdings Price analysis
Although the USMJ stocks were on a downward movement for the better part of last year, there was an upward impetus in share price in 2018, and the upward trend is expected to continue in 2019 as the company looks to establish itself in the cannabis market. The spin-off of AmeriCanna café and Puratiion Inc. has been some of the reasons why their common stock has increased as they issued a transfer one for one shares transfer.
The stock has had a bullish cycle for the better part of the year, and presently the stock is on the increase. However, with the legalization of hemp by the Farm Bill, it is expected that the growth is likely to slow because of many players in the market. The current stock stands at $0.0013 after it had recorded a low of $0.0007.
The USMJ stock price is expected to continue growing in 2019 with projections estimating that it will rise from $0.001 to around $0.003 within the year. This past year USMJ share price had a range of between $0.0002 and $0.0015.
USMJ is has a market cap currently of $19 million and $1 million in total assets, and according to their quarterly financials, their total liabilities stand at $2.6 million. There are expectations that the large share of debt will be changed into common stock which will thus dilute the current shareholders. By the end of last year, almost 13 billion shares had been authorized for transfer and the number increased this year which means that if they keep the trend they will manage to offset the dilution.
What does North American Cannabis Holdings do?
USMJ operates in the cannabis market in the United States, and they have conducted various pilots in the cannabis market to establish growth opportunities. They have a beverage company that produces cannabis-infused drinks such as hemp infused coffee, and juices among other cannabis products.
Spin-off of Companies
The first company that USMJ spun off was Puration Inc. in which they issued one USMJ share for a share of Puration common stock for over 200 shares. As a result, the companies are making progress with the latest launching of EVERx hemp infused water which is a sports and wellness supplement. This is the first commercial brand expected to be launched, and it will add revenue to USMJ.
Similarly, USMJ has intentions of spinning off AmeriCanna café as part of the plans of restructuring their strategy as they look to start focusing on e-commerce. They have plans to sell AmeriCanna café to a traded company including dividends distribution.
The launch of an e-commerce site
As a way of leveraging their brand name, USMJ has embarked in restructuring plans by launching an e-commerce site that will be comprehensively focused on cannabis products in a move that is aimed at boosting sales. The launched is underway and only signing off is remaining, and the site will test its functionality by selling Puration’s EVERx CBD Sports Water.
The legalization of hemp farming
With the passing of the Farm Bill, USMJ is expected to exploit the numerous opportunities that come with it through their subsidiaries. USMJ has been piloting the production and farming of hemp and has been around since 2013 they understand the market, and through their sister companies, they expect to grow their franchise.
Therefore investors should expect the share price power of USMJ to continue to grow because of the various strategies that they have laid that will materialize in 2019. The spin-off of their cannabis restaurant AmeriCanna Café is expected to be through by the end of the year. Similarly, the e-commerce site once it gets signed off will be a great step in their growth as they plan to launch the EVERx CBD drink next year. Although the stock prices have been bullish this year, they nonetheless are expected to be on an upward push in 2019.
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Disclosure: We have no position in USMJ and have not been compensated for this article.