Weed Inc (OTCMKTS:BUDZ) has started to make some noise again. BUDZ has a market cap of 181M, and shows cash on hand of $167,015 as of their latest financial report for Q1. This is an increase of 72,300%. (That’s a big jump). Cash on hand for 4th quarter of 2016 was only $231. However, there are no revenues reported yet in 2017, which would mean that this was capital raised either from loans or the offering of stocks. As per their latest report, they have raised 292,999 as proceeds from sale of common stock.
Another interesting point is that the two main shareholders are Glenn E. Martin with 54.1% and Nicole M. Breen with 19.3%, the CEO and Treasurer respectively. Another interesting detail is that they did not receive any cash compensation, only shares. Those names are also quite familiar with the drama that ensued from United Mines, the predecessor of BUDZ. Even until now, BUDZ still has three gold mines in Arizona. They are trying to sell their rights to those mines as they want to transition fully into cannabis. Just a heads up, Glenn Martin and Nicole Breen, when BUDZ was still known as United Mines, received a complaint for State Racketeering, Common Law Fraud, Breach of Fiduciary Duty, and Conversion. This was filed July 5, 2012. After two years of legal battle, the defendants have settled. The two then changed Untied Mines to Weed Inc.
Weed Inc (OTCMKTS:BUDZ) is structured as a holding company doing business through its divisions, wholly-owned subsidiaries, and strategically placed collaborative partners. WEED is dedicated to its global goals of finding treatments and medical cures utilizing the Cannabaceae plant family.
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We want to stress again that this is a pre-revenue company (if ever we can expect there will be revenue). We doubt that this company will ever be a real player in the cannabis industry; however, we may be able to trade this company for profits, especially since the wave of the green sector may raise all stocks related to it.
There is news of Weed Inc. finally moving from just marketing their stock to actually doing business. In May, BUDZ acquired Sangre AgroTech, making it into a wholly-owned subsidiary. According to Accesswire, Sangre AT is a plant genomic research and breeding company comprised of top-echelon scientists with extensive expertise in genomic sequencing, genetics-based breeding, plant tissue culture, and plant biochemistry, utilizing the most advanced sequencing and analytical technologies and proprietary bioinformatics data systems available.
Does this mean that BUDZ is finally starting to do actual business? The best answer is maybe, but it will take some time before it gets revenue and even more time for it to show profits. However, it does push some bulls to raise the stock up. The Accesswire article said: “The research team is focused on the development and application of cannabis-derived compounds for the treatment of human disease. Targeting cannabis-derived molecules which stimulate the endocannabinoid system, Sangre’s research team will develop the required scientifically-valid and evidence-based cannabis strains for the production of disease-specific medicines.”
“Our goals are global, our cures are local,” stated Mr. Martin. “Cannabis Research and Education are keys to WEED’s long term strategic plan for our sector. As WEED’s first major acquisition, the ‘Brain Trust’ of our dedicated staff of PhDs at Sangre AgroTech will prove instrumental in achieving WEED’s goal of creating NEW strain-specific, disease-specific treatments and cures over the next several years. Several patentable strains, along with accompanying THC and CBD compounds, look to be developed and achievable in our 5-year time frame. To this effect WEED has chosen Colorado as its headquarters for Sangre AgroTech, nestled in the Sangre De Christo Mountains in southern CO.”
Weed Inc (OTCMKTS:BUDZ) might be turning a new leaf. From a speculation pick to a finally real business, there may have an improved outlook for the company now, but there are still some doubts lingering. It would be bes to monitor how BUDZ is going to move forward and look for Q2 numbers to see if any actual revenues have been generated. Will Weed Inc. shake off the shackles of its past reputation or will it continue to be known as a “pump and dump” stock? For continuing coverage on shares of $BUDZ stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!