Players Network (OTCMKTS:PNTV) Aims To Be A Cannabis Industry Giant

The last five days have seen the share price of Players Network (OTCMKTS:PNTV) rise by about 30%. During this period, the company’s share price jumped from its low price of $.07 to close yesterday at $.0925. Furthermore, the traded volumes also rose to about 2.4 million shares on average, speaking to the remarkable belief by the market on the company’s performance going forward.The above price action can be seen in the chart below: PNTV Daily ChartWith Players Network rising while other marijuana stocks fall, we decided to take a closer look at the stock and evaluate what catalyst has driven the above.History of PNTVPlayer Network Inc was founded back in 1993 and headquartered in Las Vegas, Nevada.The company operates as a holding company with its tentacles within both the media industry as well as in marijuana. So far, the company owns 85% of its subsidiary: Green Leaf Farms Holdings, LLC which has a license to cultivate as well as produce medical and recreational marijuana. In addition to this, they also operate Weed TV (their wholly owned subsidiary) which is currently developing a channel for the marijuana industry.Their landmark achievement, however, is the development of the marijuana accelerator – a platform designed to connect investors and entrepreneurs so as for partnerships between them to be developed. Through this programme, the company is working at revolutionizing the marijuana industry in general as well as ensuring that innovation within it continues. Their goal is to ensure entrepreneurs continue to innovate and that they give back to the community through such innovation.The New Production FacilityA lot of moves have been made by Players Network Inc since our last review – which can be accessed here – however, none of them compares to their most recent press release.The company, as of 5^th February entered into a deal with Grass Roots Industrial Park to develop a new 2.72 million square foot indoor marijuana production facility, the largest such facility in the world. In this deal, the two companies will co-develop and co-own the rights to the production facility.However, the deal also gives Players Network the right to develop about 400,000 square feet for light industrial agricultural cultivation and manufacturing of marijuana. Through this deal, the company believes that they now have the rights to the largest such industrial park both in California and globally as such they can meet the demand of their clients amicably if the implementation of the above is well done.The outline envisioned by the company is a space which provides amicable cultivation space as well as leisure for visitors. Currently, they are working towards having sixty-eight marijuana cultivation and manufacturing facility units with each having an approximate size of 40,000 square feet. Furthermore, they will have about an eight-acre zone – non-cannabis – which is meant to host a hotel and sky bar, a cannabis college as well as residential spaces and a commercial and conventional space.Through the above, the management expects that they will benefit both from the revenues from the cannabis sales as well as those from the residential and commercial spaces. Furthermore, the site will lead to cost cutting as Weed TV will have their facility on site thus produce their content from there. Moreover, they will be marketing most of the content within the facility through the same medium, cutting the marketing costs for Grass Roots Industrial Park in the process.On the overall, management explained that they had obtained this facility based on two main factors: the higher revenue generation courtesy of the facility being within the marijuana industry as well as located within California as well as the private well which would provide water to the entire facility and ensure production goes on all year round – the well generates about 1,100 gallons per minute and will ensure the production costs within the facility are reduced significantly.The above was underscored by the company’s CEO, Mark Bradley who stated:

“Some of the major expenses associated with growing consist of electricity and water utilities. This location will be substantially more cost effective for both of these cost drivers, which will provide us with a competitive edge over other California cultivators.”

Source:With the above in mind, it is easy to understand why the market gave the company such an increase in their valuation over the past two days. The revenues expected from this facility over the long term as well as the cost-cutting as a result of the aforementioned benefits will serve the company quite well going forward.It, therefore, goes without saying that our view on the company’s share price, similar with that of the market, is quite bullish.ConclusionPNTV has just made its major leap by signing this deal. Through the deal, the benefits accruing to the firm will be quite significant, and their costs will reduce significantly as well. Over the long term – once their strategic vision is well implemented – the company will be one of the largest cannabis players in the country. As such, we remain bullish about the stock.We will be updating our subscribers as soon as we know more. For the latest updates on PNTV, sign up below!Disclosure: We have no position in PNTV and have not been compensated for this article.