Greengro Technologies Inc (OTCMKTS:GRNH) is a company we noted last month as a potential turnaround play in the wake of the severe sector-wide losses seen for cannabis patch players in Q2 of this year. Management continues to push forward. The latest from GRNH is its recent announcement that it has received a commitment from Ohio Medicinal Gardens LLC (OMG), based out of Akron, Ohio, to build a state of the art Level-I 25,000 square foot medical marijuana facility. “I am 100% behind the system, it is the best we have seen,” said Joseph Scaccio, CEO of Ohio Medicinal Gardens.
According to the release, the facility will be equipped with three tiers of fully automated recirculating vertical hydroponic production, and will be powered by a combined chilling heat a power (CCHP) positive pressure HVAC system to improve energy efficiency and sustainability.
Greengro Technologies Inc (OTCMKTS:GRNH) casts itself as a company that designs, manufactures, and markets green eco-friendly vertical cultivation systems in the United States. It offers flux lighting products, table stands, nutrient mixers, home units, cloning systems, and tea brewers, as well as provides consulting and management services to its clients.
GRNH offers its products to consumers and industrial cultivators through its Website. It has a strategic alliance with Solaris Power Cells. The company, formerly known as Authoriszor, Inc., was founded in the 1996 and is based in Westminster, California.
According to company materials, “GRNH is a world class provider of eco-friendly green technologies with specific domain expertise in indoor and outdoor agricultural science systems serving both the consumer and commercial farming markets. It brings together community and commerce through the growth and distribution of healthy, nutritious foods and vital medicines backed by science and technology. Customers include restaurants, community gardens, small and large scale commercial clients. GRNH also provides design, construction and maintenance services to large grow and cultivation operations and collectives in the medical and recreational marijuana sectors.”
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As noted above, shares of GRNH continue to push back to the upside after a key support pivot around the $0.04 level in early July. GRNH recently picked up a new client — Ohio Medicinal Gardens LLC (OMG), based out of Akron, Ohio – for the construction of a state of the art Level-I 25k square foot medical marijuana facility.
According to the release, “With medicinal cannabis, recently being legalized in the State of Ohio, applications are being submitted and accepted for cultivation facilities in record numbers. OMG and GreenGro Technologies successfully submitted the application to the State by the June 30, 2017 deadline and is currently waiting for approval, which could be received as early as November 2017… OMG was the first of seven facilities to be approved by Akron’s Planning Committee in early June, and on Monday, July 31st,, Akron’s City Council approved OMG Conditional Use Permit (CUP) for the facility’s location.
“Biodynamics was founded in Akron, Ohio, and we are excited to have the opportunity to build one of the most advanced medical marijuana cultivation facilities in the country, right here in our home town,” said Trisha Madden, CEO of Biodynamics.”
Recent action has seen 11% tacked on to share pricing for the name in the past month, but that move comes in the context of a larger bearish trend, as discussed above. However, one look back at this chart and you can readily see the stock’s track record of dramatic rallies, which shouldn’t bo overlooked.
In addition, GRNH has registered increased average transaction volume recently, with the past month seeing 10% beyond what we have been seeing over the larger time frame, indicating a rise in recent participation.
Earning a current market cap value of $22.47M, GRNH has a stash ($1.6M) of cash on the books, which compares with about $1.1M in total current liabilities. One should also note that debt has been growing over recent quarters. GRNH is pulling in trailing 12-month revenues of $897K. However, the company is seeing declines on the top line on a quarterly y/y basis, with revenues falling at -11.2%. This may be a very interesting story and we will look forward to updating it again soon. For continuing coverage on shares of $GRNH stock, as well as our other breakout picks, sign up for our free newsletter today and get our next hot stock pick!