Very recently, One Step Vending Corp (OTCMKTS:KOSK), a holding company focused on the acquisition of market-changing and disruptive business models, made a great change in its business model. It signed an agreement with Hemp Inc (OTCMKTS:HEMP) for the distribution of marijuana products. The agreement was signed in October and, in our opinion, very little people noticed it.
Although the company has been releasing interesting news recently, the stock price has been trading in the range of $0.01 – $0.02. Nobody seems to be realizing that the recent corporate decisions could increase market share and accelerate the revenue growth.
Have a look at the recent share price dynamics and form your own opinion before we provide more details:
KOSK explained the following about its business model in its annual report:
“One Step Vending Corp. offers U.S. corporations and businesses innovative micro market kiosks installed in their premises to provide packaged snacks and beverages along with customer loyalty solutions.” Source
How is the company’s growth planned?
KOSK is growing through acquisitions and cooperative agreements.
The targeted sectors are the following:
- Micro-market vending services
- Customer loyalty management market
- Online food ordering industry
The company was created in Nevada on June 21, 2004 and is headquartered in Harrison, NY.
The following are the most significant news received by the market in 2017. The company is doing a great job by communicating new developments to the market.
We will only assess those that created share price appreciation.
On March 8, 2017, the market reacted to the announcement of 18 new micro market location installations. On top of it, it was highlighted that the growth was expected to continue and the “the company shifts focus to national expansion.” We believe that these were the words which were celebrated by the market.
Additionally, we could read about the potential revenues in 2017. The market usually looks for such type of remarks. The CEO, Daniel Garfinkel, was quoted:
“Each location presents us with tremendous revenue potential, so we’re expecting to see our cash flows grow over the course of 2017.” Source
On March 27, 2017, the company released that it had “finished installing four new micro markets within a major pharmaceutical corporation’s facility in San Diego.” The name of the client was not disclosed, but it was noted that the micro markets will serve approximately 250 people and it has offices in over a dozen countries and numerous states in the US. Thus, we could expect new micro markets to be installed soon. We need to be alert!
In our opinion, the following were the most significant words of the CEO:
“We expect these markets will perform very well as more employees begin working at the San Diego facility, and we are hoping to have the opportunity to install more markets for this pharmaceutical giant at its other locations.” Source
Additionally, on September 21, 2017, the company released an exclusive purchase and engagement agreement with Hemp Inc. (OTCMKTS:HEMP). We believe that the news was very relevant. The CEO of One Step Vending Corp., Daniel Garfinkel, noted that the company will help HEMP “meet the high demand of the current CBD consumer market.” We could not agree more.
If you are not aware of the current market opportunities in the marijuana industry, then listen to this. After the legalization of some forms of medical marijuana in some states and in Canada, the demand for these products has increased. We have assessed many companies operating in this industry and many have delivered incredible returns in 2017. Hence, we believe that KOSK may be able to extract some profits from the industry. It is a great and brilliant business move!
Furthermore, the volume seemed to increase in October as a result of the following announcements.
On October 12, 2017, the company noted the installation of a micro market kiosk in TriWest Healthcare Alliance premises in San Diego, CA. It will serve 80 to 100 people, but more important is that the company could install more kiosks in the 28 states that TriWest Healthcare Alliance operates. The company is expanding the business nationally. Without any doubt, the market appreciates it.
Furthermore, on October 17, 2017, the company released more good news regarding its relations with Hemp Inc. The company had decided to “direct its focus on multi-billion dollar CBD products marketing and sales online as well.”
According to the press release, an e-shop will be created for the sale of selected CBD products online. It is even better to read the following:
“Is also exploring the potential to develop its own line under its own brand as revealed in previous press releases. ” Source
We believe that many market participants did not get to read the full press release. In our opinion, the announcement was not incorporated into the share price.
Currently trading with a market cap of $4.1 million, KOSK is an exciting story among small caps. With $0.4 million in assets and $1.7 million in liabilities, the company may need some funding soon, which, we believe, will not represent a problem. Given the large amount of developments announced this year, equity raising will not be a problem. To sum up, follow closely the new developments of KOSK and its new ventures. There’s a lot to like, especially as more investors find out about the developments happening with KOSK.
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Image courtesy of Abdus Samad Khan via Flickr
Disclosure: We have no position in KOSK or HEMP and have not been compensated for this article.