General Cannabis Corp (OTCMKTS:CANN) has been reawakened over the past month, with shares soaring as much as 400% since early November as the turnaround continues for this small-float cannabis play. The latest from the company is another testament to continued expansionary themes, as management just put out word this week on a new $955,000 two-year contract to manage a grow facility in California. This represents the largest single contract the company has undertaken since inception.  The Company also plans to provide significant other services, including hardware and supply procurement, in addition to the initial contract terms.

“We have been developing potential clients in California for the past year, where cannabis becomes legalized for adult use on Jan. 1, 2018,” said Robert Frichtel, CEO of General Cannabis. “California will become the world’s largest legalized and regulated cannabis market at the beginning of the new year.  We are pleased to have gained a solid foothold in what is projected to be a $7 billion state-wide market.”

General Cannabis Corp (OTCMKTS:CANN) bills itself as a company that provides services to the regulated cannabis industry in the United States. The company engages in the acquisition and leasing of cultivation space and related facilities to licensed marijuana growers and dispensary owners; and provision of security services, including on-site professionals, video surveillance, and cash transport to licensed cannabis cultivators and retail shops.

CANN also designs, distributes, and sells apparel featuring graphic designs; and offers consulting services to the cannabis industry that comprise obtaining licenses, compliance, cultivation, logistical support, facility design, and building services. In addition, General Cannabis Corporation provides shared office space, networking, and A event services; and leases cultivation equipment and facilities.

According to company materials, “General Cannabis Corporation is the comprehensive resource for the highest quality service providers available to the regulated Cannabis Industry. We are a trusted partner to the cultivation, production and retail side of the cannabis business. We do this through a combination of strong operating divisions such as real estate, consulting, security, financing and the distribution of important infrastructure products to grow facilities and dispensaries. As a synergistic holding company, our subsidiaries are able to leverage the strengths of each other, as well as a larger balance sheet, to succeed.

Incorporated in 1987, General Cannabis Corp is a leader in the cannabis industry based in Denver, Colorado which prides itself in being a comprehensive resource for the highest quality service providers available to the regulated Cannabis Industry.

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As noted above, CANN shares have been riding a difficult trend over the past 10 months. But the company just reported potentially reassuring financial data trends for its recent quarter, particularly on the top line.

As noted above, the company just signed its largest-ever contract to manage a grow facility. According to the release, this new contract for Next Big Crop, the business consulting and management arm of General Cannabis, represents the second major California-based project for the company. The other comparable move came earlier this year, when “Iron Protection Group”, the firm’s security division, opened an office near Sacramento.

Revenue from this new contract alone for the two-year contract period would be nearly equal to Next Big Crop’s trailing 12-month operations revenue stream for the period ending Sept. 30, 2017,” said Michael Feinsod, General Cannabis Chairman. “The foundation for General Cannabis is now not only stronger but more expansive.  We are very excited about the opportunities for business growth in 2018 and beyond.  We continue to actively seek new opportunities in regulated markets across the country.”

The stock has seen interest climb, with an increase in recent trading volume of greater than 410% above its longer-run average levels. Traders should note this as important with the stock trading on a float that is relatively small at just 14.7M shares. One is wise to respect the dynamic this may create — ramping trading activity can overwhelm available supply in a stock with this type of small float, leading to an upward burst in prices, which has been evident in the tape for this name for the past six weeks.

Currently trading at a market capitalization of $104.9M, CANN has a reserve ($253K) of cash on the books, which must be weighed relative to about $2.7M in total current liabilities. One should also note that debt has been growing over recent quarters. CANN is pulling in trailing 12-month revenues of $3.3M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 20.9%. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $CANN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $CANN, either long or short, and we have not been compensated for this article.