RICH CIGARS Inc/SH (OTCMKTS:RCGR) is yet another perfect example of how, at the end of the day, themes dominate the OTC. Hot is hot, and crypto is blazing. This was, until Thursday, a cigar company in the salty air of the buccaneer region, in western Florida, where there is a long and sturdy tradition for cigars. Now, however, that tradition is being traded in, at a monster profit for shareholders – for the far less short and far more exciting mania in bitcoin mining.
Specifically, the company just announced that it has filed to change its name to ‘Intercontinental Technology, Inc.’ in order to reflect a change in the Company’s direction and overall strategy, including a move into the crypto mining space. Shares took flight in a monstrous manner, ramping as much as 3,400% higher in a move that was clearly powerfully augmented by the fact of the stock’s tiny 1.2 million share trading float.
RICH CIGARS Inc/SH (OTCMKTS:RCGR) trumpets itself as a company that was established to manufacture and distribute high-quality, hand rolled, premium cigars under the Rich Cigars brand name.
The Company has branded custom cigars to be sold via the internet and through retail locations. The Company’s primary operations are currently in the Ocala, Florida area, and management intends to conduct our business principally in the U.S. through our own sales and marketing team.
HOWEVER, the company has now apparently turned a new page. It is enlisting itself as the next crypto pivot play, and the market has obviously reacted in a manner that demonstrates why so many tickers are flocking to this theme.
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As noted above, the stock exploded higher on Thursday due to its advertisement of a new connection to the cryptocurrency theme and its very small trading float. At this point, that is an extremely combustible combination of factors given the current wild fervor for anything and everything that has any remote connection with the crypto space.
Richard Davis, current President, stated, “The Company underwent a change of control as documented in its filing with the SEC per an ‘Information Statement’ filed December 12th. As a result of this change, the Company has become a holding company with subsidiaries in fields unrelated to our traditional business, which is being phased out.”
He added, “New management of the Company is presently being appointed and will oversee a new strategic direction which is twofold: the acquisition, development and marketing of proprietary patented products that are readily marketable internationally, and at the same time, its entry into the business of cryptocurrency mining by our ownership and operation of multiple cryptocurrency mining machines.
According to the release, the company will apparently be making several announcements pertaining to this new direction over the next few weeks, including the announcement of the name change in its FINRA and OTC Markets’ listing, and a change in trading symbol. “We believe we are embarking on an exciting shift that going forward will have a significant positive impact on overall shareholder value.”
The chart shows approaching 1600% piled on for shareholders of the company during the trailing week, most all of which came on Thursday alone, but this action is running counter to the larger trend in the name. The situation may be worth watching. RCGR has evidenced sudden upward volatility on many prior occasions. What’s more, the listing has registered increased average transaction volume recently, with the past month seeing just under 1100% above its longer-run average levels.
As noted above, this move was powerfully augmented by the stock’s tiny 1.2M share float.
Earning a current market cap value of $2.4M, RCGR has virtually no cash on the books, which is balanced by $713K in total current liabilities. The company is pre-revenue at this point. 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 $RCGR 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 $RCGR, either long or short, and we have not been compensated for this article.