General Cannabis Corp (OTCMKTS:CANN)

Today’s Cannabis Focus Is CannaSys Inc (OTCMKTS:MJTK)

Shares of CannaSys Inc (OTCMKTS:MJTK) are making a comeback after getting crushed the beginning of June. We alerted our subscribers that CannaSys was due for a bounce and MJTK turned into a microcap runner. It certainly looks like the worst is behind MJTK.

CannaSys describes itself as “a leading technology solutions, marketing, and branding company in the regulated cannabis industry. Its core products are delivered “software as a service” to facilitate point-of-purchase transactions, customer relationship marketing solutions, and regulated cannabis laboratory information management systems. CannaSys plans to develop, acquire, and build strategic relationships with other businesses in order to bring additional solutions to market in both established and developing medical and recreational cannabis states.”

MJTK became a victim of what every small cap investor fears most-convertible notes. MJTK owed roughly $500k to toxic financiers Tangiers Investment Group, LLC and Kodiak Capital Group, LLC. These vultures converted their shares at a 50% to 55% discount and flooded the market with their cheap shares. As a result, MJTK went below a penny.

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The slide in MJTK shares was unfortunate, but the recent move higher has brought in a new and loyal shareholder base that is seeing triple digit gains off the lows. This comes as MJTK has become one of the marijuana industry’s go-to tech companies. Last month, MJTK announced that that it had successfully expanded into the California market with the adoption of its technology products by California Cannabis in Playa Vista, Los Angeles. Synergy has implemented the use of CannaSys’ loyalty product, BumpUp Rewards, and plans to expand its offering with CannaSys’ new social deals application, CitizenToke. Synergy is the first dispensary in California to sign up to CannaSys’ technology suite and is in the heart of Los Angeles.

In addition to its relationship with California Cannabis, CannaSys has signed a strategic distribution and marketing agreement with Green Capital Ventures, Inc., a San Diego based cannabis industry consultancy and financing firm. Green Capital’s founders are also founders of Gridiron Cannabis Coalition, an organization also founded by former All-Pro Tackle Kyle Turley. CannaSys also plans to form additional partnerships to distribute its core technology products and celebrity branded products throughout California. The company’s goal is that as user and product adoption begins to increase, new products will be introduced into the market.

In early May, MJTK signed a letter of intent to acquire CitizenToke, an innovative new deals communication platform for the cannabis industry. CitizenToke, initially a mobile web based platform, communicates deals and distributes coupons to cannabis consumers and patients through a unique text message based system. The system is designed not only to enhance consumer’s retail experience but also provide incentive for consumers to download and redeem coupons in a timely manner.

Then, MJTK announced that Duby, LLC would join forces to accelerate new user adoption for CannaSys’ latest product, Citizen Toke. On December 10, 2015, CannaSys acquired a minority interest in Duby, LLC and formed a joint marketing relationship with the company, bringing it into its technology marketing and branding ecosystem. Duby has a unique algorithm that allows cannabis users to create content and facilitate sharing of that content with like-minded consumers throughout the world. In partnership with CannaSys, Citizen Toke can access Duby’s significant user base to provide retailers with a new consumer audience to which they would not have otherwise had access.

Currently trading with a market cap of under $500k, MJTK is an exciting story among cannabis names. When you consider that stockholder equity in the company is $827k, shares still remain under valued at a price of $.02 per share. Fair value based on stockholder equity is at least $.04 per share. When you consider the value of its assets and fair value in a takeover, shares are worth even more. As CEO Michael Tew said in his last shareholder update:

We are at yet another inflection point of our corporate transformation, and I am pleased to report that there are exciting times ahead with new partnerships, product launches, and consolidations all on the horizon. As we reinvigorate CannaSys and move in new directions, we have raised our visibility which has and increased our opportunities for growth. It is a pleasure to lead your company into what I believe to be an exciting and rewarding opportunity for stockholders.

We will be updating Insider Financial as soon as we know more. For continuing coverage on MJTK, sign up for our free newsletter today and get your copy of The Insider Financial Guide To Penny Stocks!

Disclosure: We have no position in MJTK and have not been compensated for this article. We have previously been compensated $10k for a two day awareness campaign regarding MJTK.

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Today’s Cannabis Focus Is CannaSys Inc (OTCMKTS:MJTK)
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