Today, we are presenting THC Therapeutics Inc. (OTCMKTS:THCT), which used to be developing the product called dHydronator, a sanitizing herb dryer tested for use with cannabis, but it is entering the crypto-mining industry from January. We need to inform about THCT, because its stock price has spiked violently in the last two months. It seems like a ticker that should be monitored closely.
From being traded close to $0.25, the share price has gone to as high as $1.50. Undoubtedly, these are astonishing returns, but the most interesting is the market volume. More than 400 thousand shares changed hands in a very short period, which represents a new one-year record.
Check out the following stock chart and form your own opinion before we provide ours:
We believe that there is not only one reason. First of all, the company recently released that it will operate in Blockchain industry and new members have been added to the Board of Directors. This information should have waked up some market participants since the growth of this particular sector is very significant.
But, it is not all.
The financial statements given to the market show a tremendous amount of assets and minimal liabilities. This feature should have also been appreciated by those who only take care of the financials. Finally, the company is said to have signed an agreement with ADVFN PLC (LON:AFN) of the United Kingdom to create a JV called MJAC InvestorsHub International Conferences Limited. AFN is a large company, so the agreement has provided positive recognition for THCT.
We don’t want to tell the whole story. Let’s provide a brief introduction of the company before we go into more details.
The company was established in 2007 in the state of Nevada and is headquartered in Las Vegas, Nevada. It is focused on the commercialization of the dHydronator®, which accelerates the drying time of a herb while sanitizing it. It is a great innovation that can be applied to many herbs, but it has been individually tested for use with cannabis.
According to the company, the dHydronator can reduce the drying time for cannabis from 10-14 days to less than 14 hours. We believe that it can be a great tool to increase the production of marijuana. Of course, the industry will appreciate it. Also, it has come at the right time, when the demand for medical and recreational cannabis is booming.
If you are not aware of the cannabis market opportunity, read the following carefully. In 2017, many states in the United States and Canada have approved several forms of cannabis for personal consumption as well as medical use. Its demand seems to be growing at a high pace, and those who were able to enter the industry a few years ago are expecting attractive returns.
Of course, it is also helping public listed companies operating in the sector. The market returns in 2017 have been astonishing, and 2018 seems to be following the same path after the regularization of the recreational marijuana in California in January. We have talked quite a bit about companies operating in the sector, so if you are a starter, we encourage you to read our coverage.
What’s THCT’s business plan?
In the company materials, we could read that the company does not only grow organically. It is also seeking partnerships, mergers, and acquisitions in the cannabis as well as health and wellness industries. It is quite ambitious and a very good way of accelerating the growth of the business. The market should appreciate it. We believe that it can represent an opportunity and a good stock catalyst.
The agreement with ADVFN
We believe that we need to assess the agreement with ADVFN, because, in our opinion, it shows that the company is able to sign agreements with big operators. It is very positive. No matter if the company goes into new industries, if the management is able to negotiate with large and recognized groups in one sector, it will be able to do it in others. On November 20, 2017, THCT released that it will be creating 50/50 partnership to run the MJAC InvestorsHub International Conferences Limited. This is the way in which the conference was described:
“MJAC LTD, which will be headquartered in Las Vegas, Nevada, was formed to establish and sponsor Conventions/Expos for companies, traders and investors in the international marketplace for Cannabis, Cryptocurrencies, Blockchain Technology, Lithium and other emerging disruptive growth sectors.” Source
The most remarkable is that ADVFN is an 18-year-old company operating financial market websites with over 4.2 million unique visitors per month. It is the best partner that THC Therapeutics, Inc. could have to run ventures in the cannabis industry and cryptocurrency sector.
New direction: the blockchain technology
On January 18, 2018, the company noted that it would be entering the blockchain technology industry. It will change the name of the company to Millennium Blockchain and the current CEO Brandon Romanek will be working with a new member, Enzo Villani. The new member is Managing Director for the blockchain company “Transform Group International”, is a co-founder of Nasdaq Global Corporate Solutions, and has completed over $500 million in mergers and acquisitions in the technology and communications sectors.
Additionally, on January 23, 2018, it was noted that Michael Terpin has joined the company’s newly formed Board of Advisors. He has an outstanding experience in the blockchain industry. Please read part of his profile here:
“In early 2013, Terpin co-founded BitAngels, the world’s first angel network for digital currency startups, which gave birth in 2014 to the successful CoinAgenda series of blockchain investor conferences in North America, Europe/EMEA, Asia and Caribbean/LatAm. He co-founded early blockchain incubator bCommerce Labs; the Bitcoin Syndicate on AngelList (with legendary super-angel Gil Penchina), and the Dapps Fund, which was a lead investor in the initial crowdsale for Ethereum, Factom, MaidSafe and Storj.” Source
That’s not all. He is also running the ICO investment committee for Alphabit Fund, a $300 million digital currency fund registered in the Caymans, and provides advisory services to blockchain companies like Bancor, ICOBox, Zed Networks, Polymath, and LiveEDU. He seems very well prepared and holds a dual Bachelor Degree in Newspaper Journalism and English Literature from Syracuse University.
Finally, be sure to follow the next announcement by the company. In the last press release, it was noted that Transform PR was hired as the company’s public relations Agency. In our opinion, it will help the company send much more news to the market, and the share price may move quite a bit.
Currently trading with a market cap of $110 million, THCT is an exciting story among small caps. The last financial statements released show only $10,000 in cash, but $1 million in goodwill, $3.9 million in intangible assets, and $5 million in total assets. The amount of liabilities is little, $0.3 million, as compared to the assets. We believe that the fact that the net asset is positive will be appreciated by the market, but the company should explain new initiatives to increase its liquidity ratio.
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Disclosure: We have no position in THCT and have not been compensated for this article.
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