GOLDEN LEAF HOLDIN (OTCMKTS:GLDFF) exploded higher to start the week, with shares breaking out above 10-month highs on a major jump in volume. The move was catalyzed by the company’s announcement that, on November 24, 2017, its subsidiary, Medical Marijuana Group Corporation, was granted a cultivation license for its marijuana grow facility located in St. Thomas, Ontario.
According to the company’s release, “MMG’s St. Thomas facility is expected to use the most current and advanced growing technologies to maximize its 6000 square foot space to yield high-value crops difficult to replicate in greenhouse operations. MMG expects to submit expansion plans for additional growing space, oil extraction labs and edible production space at the St. Thomas facility.” The license is a huge break. However, we would be remiss if we did not also mention that this company is rare in the space for having a balance sheet loaded with debt and devoid of cash.
GOLDEN LEAF HOLDIN (OTCMKTS:GLDFF) trumpets itself as “one of the largest cannabis oil and solution providers in North America.”
It’s a leading cannabis products company in Oregon built around recognized brands. The company notes that it leverages a strong management team with cannabis and food industry experience to complement its expertise in extracting, refining and selling cannabis oil.
According to company materials, “Golden Leaf Holdings Ltd., based in Portland, Oregon, is one of the largest cannabis oil and solution providers in North America, and a leading cannabis products company built around recognized brands. Golden Leaf Holdings cultivates, extracts and manufactures and distributes its products through its branded Chalice Farm retail dispensaries, as well as through third-party dispensaries. Golden Leaf leverages a strong management team with cannabis and food industry experience to complement its expertise in extracting, refining and selling cannabis oil.“
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As noted above, shares of the company broke out this week on confirmation that the company’s subsidiary has been granted a cultivation license for its marijuana grow facility located in St. Thomas, Ontario. This is an Oregon company, but it is also now a Canadian producer, which exposes the company to what has been perhaps the number one growth theme for the OTC market so far in 2017.
“Receiving this license represents a landmark step for Golden Leaf, as it will provide entry into what we expect will be a burgeoning Canadian cannabis market in 2018,” commented Mr. William Simpson, Chief Executive Officer of the Company. “Expanding into emerging growth markets such as Canada will enable Golden Leaf to leverage its expertise and experience in the oil extraction and edibles markets to achieve a significant market presence as Canada’s recreational cannabis market evolves. We are confident that the combination of our established Golden and Chalice Farms brands will position MMG as a market leader.”
Phil Millar, President of MMG added, “We are very excited to receive this key license from Health Canada and look forward to continuing to work with the agency towards expanding the operating scale of our St. Thomas facility. We are confident in our prospects to establish MMG as a vertically integrated provider of high quality cannabis oils and edibles to the cannabis marketplace in Canada beginning in 2018, targeting both medical and adult-use segments.”
The chart shows 160% tacked on to share pricing for the listing in the past month, a bounce that has taken root amid largely bearish action over the larger time frame. However, GLDFF is a stock whose past is littered with sudden rips. In addition, the stock has registered increased average transaction volume recently, with the past month seeing approaching 640% beyond what we have been seeing over the larger time frame.
Earning a current market cap value of $136M, GLDFF has virtually no cash on the books, which is balanced by about $12.8M in total current liabilities. GLDFF is pulling in trailing 12-month revenues of $7.3M. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -19.9%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $GLDFF 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 $GLDFF, either long or short, and we have not been compensated for this article.