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Trans Global Group Inc (OTCMKTS:TGGI) Is Today's Cannabis Focus

Trans Global Group Inc (OTCMKTS:TGGI) Is Today's Cannabis Focus
Written by
Jarrod Wesson
Published on
October 1, 2017
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Today, we need to talk about a new profile that is being assessed quite a bit nowadays, Trans Global Group Inc (OTCMKTS:TGGI). Photo from the Company's websiteThe number of shares that changed hands recently has been astonishing. More than 2 billion shares changed hands some days. Have a look at the recent share price action before we explain what's happening. 2 months chart for TGGIBusinessTrans Global Group, Inc. was founded in Colorado in 1979. It is a very old entity that has acquired several other companies throughout its business history.

  • In October of 2009, Ecosafe Insulation of Florida was acquired.
  • All Weather Insulation, Inc. and Kazore Holdings, Inc. were also acquired.
  • On November 3, 2010, the company acquired majority control of Rollings.Com, Inc.
  • On April 1, 2011, the company purchased the assets and liabilities of FederaLED, LLC.
  • VersaGreen Energy Corporation and Red Fox Bonding, LLC, were also acquired through share exchanges.
  • On October 5, 2016, the company engaged itself into a transaction with Baron Capital Enterprise, Inc.

What's the business model?The company explained in its last annual report that the company had been researching acquisitions in the marijuana sector since November 2016. Multiple discussions with several candidates were noted, but the company could not sign any transaction. Finally, according to the same document, the company decided to abandon the search for an existing company and is moving forward with its own business plan to enter the marijuana business.We have assessed extensively many companies operating in the MJ industry and believe that it is one of the sectors delivering, at the moment, the best returns. Since several states in the US and Canada accepted to legalize some forms of medical marijuana, the demand for this type of products has increased. Thus, many companies entered the sector trying to profit from this opportunity. We recommend readers to check our articles on other companies in order to understand why we believe that Trans Global Group, Inc. made a great choice.Recent DevelopmentsBefore we go for the developments delivered by TGGI, we need to note how the company communicates with shareholders. The company uses social media extensively, especially Twitter, wherein we could find the company's announcements in real time.The following update was released in August, which created a share price spike. It notes that the company was trying to regain compliance with the OTC Markets exchange and also 3 billion shares were expected to be cancelled: TGGI Update - Cancellation of 3 billion sharesWe appreciate the news and the market also did so. Less shares in the market means that each share is valued a little more. Thus, the share price increased. On top of it, it was noted that the CEO was returning 550 million shares. For those willing to know how much that amount of shares represents, here is the share structure:Market Value1$6,704,017a/o Sep 26, 2017Authorized Shares7,888,500,000a/o Sep 15, 2017Outstanding Shares7,887,078,306a/o Sep 15, 2017-RestrictedNot Available-UnrestrictedNot AvailableHeld at DTCNot AvailableFloat7,707,078,606a/o Sep 15, 2017Par Value0.0001Source: OTC MarketsAdditionally, the following tweets were received on August 30 and 31, 2017. This is very good information, as the company seems to be doing what it was promised:

"Sent yesterday via UPS 300 mill F/T shares to the T/A to be canceled, Once canceled the 1st Amend will be filed with the St of FL." Source"CEO has requested his broker return 230 mill F/T shares, to be returned to the T/A and canceled to further reduce the SS" Source

After these tweets, the company tweeted again noting that it was trying to contact OTC Markets and sending all the information. The market seemed to react to the new information, as once the work is done, things were about to happen.Finally, the following tweet was received by the market on September 12, 2017. It was celebrated by the market:

"$TGGI has updated its home page on http://www.transggi.com , a new page labeled Reports/Filings has begun to populated. $TGGI the June 2017 report is uploaded on http://www.transggi.com , the report covers from 3/31/16 - 6/30/17 with all the disclosures." Source

This was a big day for the stock and shareholders, as new filings were being received by the market. The company was regaining compliance with the OTC Markets.On September 15, 2017, the market received the following tweet, wherein it is stated that more shares were going to be cancelled:

$TGGI has completed the paper work to the cancel 300 mill shares of a total of 3 bill it intends to cancel more to follow shortly. Source

Additionally, on September 22, 2017, the company released that a lawyer had been working on the materials given to the OTC Markets exchange.

"$TGGI has submitted all the required reports including the Attorney Letter to be Upgraded to OTCPINK Current, detailed news once Upgraded" Source

Finally, on September 27, 2017, the company issued a press release, wherein we could find a summary of the good announcements previously reported: reduction of its float by 300 million common shares, and plans for further reductions in the float totaling 3 billion shares.Additionally, it was noted that Cannabis Consortium, Inc., which is a subsidiary of TGGI, has planned to begin trading as its own separate entity. Furthermore, Cannabis Consortium is planning to apply for MJ licenses in several U.S. states.We will need to be alert, as the announcement of new licenses could make the share price spike. Finally, some information was given regarding the business lines planned and retaining counsel to file several patents and trademarks on the new MJ products.ConclusionCurrently trading with a market cap of $3.9 million, TGGI is an exciting story among small caps. The company is making the right moves to boost shareholder value in terms of share cancellations and entering the marijuana space in a prudent manner. We like the moves TGGI is making and we have the stock now on our radar screen.We will be updating our subscribers as soon as we know more. For the latest updates on TGGI, sign up below!Image courtesy of Joe via FlickrDisclosure: We have no position in TGGI and have not been compensated for this article.

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