Solis Tek Inc (OTCMKTS: SLTK) Is A Microcap Runner

Solis Tek Inc. (OTCMKT: SLTK), focused on the manufacturing of advanced & efficient lighting products that are widely used by Cannabis producers, has recently delivered substantial returns to investors due to recent events, the release of its last quarterly report and the inclusion of the company in the widely followed index U.S. Marijuana Index. Before we give you some insight about the company, have a look at how the company's common stock touched the price level of $1.00 and moved up to almost $1.75 in only one month. We will now tell you why:SourceBusinessSolis Tek Inc. was founded in 2010 in Carson, California. The company produces energy efficient greenhouse indoor horticulture lighting and ancillary equipment. It claims to provide high efficiency lighting and controls technology at competitive prices to the greenhouse and indoor horticulture markets. We didn't realize at first how sexy this business was until we found out that the main customers are the cannabis producers, who are currently experiencing a demand explosion. Consequently, the Solis Tek's products are experiencing a large demand as well. We encourage you to check the company's website, since the company distributes a large amount of products that we will not be able to cover here. The products are divided into several categories: Complete systems, Digital Ballasts, Lamps (SE and DE) and CMH Lamps.Recent Financial Figures Released and Market ReactionOn March 30, 2017, the company released its Q4, as well as annual results. Given the numbers reported, we were correct. The demand for the products is increasing as the business of Cannabis producers grows. The company reported record revenues of $8,563,751 for the year ended December 31, 2016 as compared to revenue of $7,713,456 in 2015. This is 11% increase as compared to the year 2015. Additionally, gross profits increased 15% over the previous year. However, the most astonishing figure was the gross margin reported as 36.5%. This is an incredible growth path that we believe investment managers and traders will appreciate when they discount the future cash flows of the business. We selected the following words stated by the CEO, Dennis G. Forchic:

"Throughout 2016, Solis Tek's revenues reached record levels as more states embraced legalized cannabis sales, driving commercial demand for indoor lighting equipment for cannabis cultivation. In addition to securing repeat sales from existing clients, we were pleased to sign new sales agreements with leading industry players such as DNA Genetics, a cultivator of diverse cannabis strains which has won 150 plus industry awards, and GrowBlox Sciences, Inc., a pioneer in the research and development of pharmaceutical-grade, cannabinoid therapies. GrowBlox Sciences, Inc. adheres to strict regulatory and safety standards to support its clinical trials and securing them as a client highlights our credentials as the industry-leading supplier of high quality, premium lighting products for cannabis cultivation. " Source

U.S. Marijuana IndexAnother very relevant information released in April and assessed by investment analysts (Forbes) was the inclusion of the company in the U.S. Marijuana Index. Like it happens to companies that appear in the S&P 500 or the Dow Jones, Solis Tek will obtain a lot of visibility from the U.S. Marijuana Index, which groups the most important Marijuana stocks in the country. A lot of visibility means that the company will be assessed by more investors and invest more in the company. Hence, the liquidity will be provided by this common stock, and it may also be reflected by its share price.ConclusionSolis Tek has delivered substantial revenue growth in its latest annual report and has also been selected to be part of the U.S. Marijuana Index. The news has been appreciated by investors, who have bought large amount of shares according to the volume registered in the days that the news were released. The demand for the stock increased turning SLTK into a microcap runner. In our opinion, more investors may become aware of the growth of the company in the near months, so we believe that the uptrend may continue in the future. To sum up, try to keep yourself informed about the press releases of the company. SLTK looks to get a lot more interesting. We will be updating our subscribers as soon as we know more. For the latest updates on SLTK, sign up below!Disclosure: We have no position in SLTK and have not been compensated for this article.