The initial few months of 2015 were not great for CGrowth Capital Inc (OTCMKTS:CGRA) as its stock price recorded sharp declines and traded below the market of $0.002. The company submitted its annual financial report last month which ultimately managed to fetch the attention of the investors. CGRA stock price recorded strong gains on April 1 as it doubled to close the day at $0.003 a share. However, the stock failed to build-up on the gains and in fact gave away all the gains in following weeks.
Few days ago, CGrowth stated that the management signed a letter of intent with firm Wildfire Cannabis Company LLC., which is a renowned licensed cannabis processor and producer. Under the new deal, the company intends to use CGrowth properties. The company also released another PR disclosing that the deal has been approved from some of the regulatory bodies in Washington.
The strong momentum
After the release of news, the stock price jumped 100% to close the day at $0.006. The gains came at a dollar volume of $390,000. The stock gained another 5% on Thursday to close the session at $0.00630 on share volume of 26.30 million. The up surge didn’t stop with Thursday’s gains as the stock price jumped 11% on Friday to close the trading session at $0.00700. The up move came at a share volume of 15.41 million compared to average share volume of 13.92 million.
The strong gains indicate that investors are optimistic on the new signed deal. However, it is still not clear the buzz is due to the word marijuana in the Press Release or because of the probable impact on the future financial statements. It remains to be seen how CGrowth intends to achieve its future goal as it posted cash of $1,227 in its latest annual report.