American Green Inc (OTCMKTS:ERBB) is a micro-cap stock that has started to garner attention as the stock bounces up the chart. The principal catalyst driving the recent action is really quite remarkable: in fact, ERBB just announced that it purchased the town of Nipton, California, a 100-year-old community in San Bernardino County, and intends to modernize it into the country’s first energy-independent, cannabis-friendly hospitality destination — all while retaining its historic look and value.
According to the release, “as the second oldest and the largest publicly-traded cannabis company in the US (with over 50,000 certified shareholders), American Green is the first company to buy an entire town for the purpose of capitalizing on the emerging cannabis tourism industry. Many of Nipton’s current and past highlights can be viewed at www.nipton.com.” So, you know right off the bat that this is something weird going on. For a little background…
American Green Inc (OTCMKTS:ERBB) operates as a technology company in the medical cannabis industry in the United States.
It develops retail, brand, and commercial cultivating solutions in partnership with licensed retail medical marijuana dispensaries operated under the American Green brand name. The company operates ZaZZZ, a consumer operated marijuana vending machine for automated, age-verifying dispensing of cannabis-based medicines.
It also offers Jurassic Water for cannabis plants; truth lighting, a LED lighting solution; and OG tea nutrients, a specialty fertilizer product. It has collaboration agreement with Endexx Corporation to develop the Access Control Identification and Verification Vending Platform.
The company was formerly known as Tranzbyte Corporation and changed its name to American Green, Inc. in May 2014. American Green, Inc. is headquartered in Tempe, Arizona.
According to company materials, “American Green, Corp. became one of the first publicly traded technology companies in the medical cannabis industry in the world, beginning in 2009, with the introduction of the ZaZZZ machine for automated, age-verifying dispensing of cannabis-based medicines. Now, with over 50,000 individual shareholders, the largest shareholder base of any cannabis-related public company in the US, American Green’s mission is to be the cannabis & industrial hemp industry, seed-to sale innovator, leveraging our team of professionals, as well as value-added companies and products — spanning cultivation, manufacturing and extraction, retail, and community outreach. We strive to develop sustainable businesses, while increasing shareholder value, and awareness beyond our industries.”
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As noted above, the company just bought a town. And they want to make it into a marijuana mecca, if you will.
“We are excited to lead the charge for a true ‘Green Rush,'” says David Gwyther, chairman and president of American Green. “The Cannabis Revolution that’s going on here in the US, has the power to completely revitalize communities in the same way gold did during the 19th century. This acquisition allows us to channel the myriad interests in cannabis production and consumption for an immediate positive impact to this community’s members and to cannabis consumers across the country. As industry leaders since 2009, we are thrilled to begin work on this first-of-its-kind eco-tourism experience for conscious cannabis consumers.”
We’ve witnessed 45% added to share values of the name over the past week of action, but that move comes in the context of a larger bearish trend. This is emblematic of the stock. ERBB has evidenced sudden upward volatility on many prior occasions. In addition, the stock has registered increased average transaction volume recently, with the past month seeing 390% above the average volume levels in play in this stock over the longer term.
At this time, carrying a capital value in the market of $51.3M, ERBB has a reserve ($191K) of reported cash on the books, which is balanced by about $7.4M in total current liabilities. ERBB is pulling in trailing 12-month revenues of $11K. However, the company is seeing declines on the top line on a quarterly y/y basis, with revenues falling at -16.9%. As more color becomes clear on the name, we will review the situation and update our take. For continuing coverage on shares of $ERBB stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $ERBB, either long or short, and we have not been compensated for this article.