The first quarter of 2015 was not great for CGrowth Capital Inc (OTCMKTS:CGRA) as the stock was consistently declining and trading well below the $0.002 mark. The company filed its annual report last month which managed to attract the attention of the investors. The stock gained on April 1 and doubled to close at $0.003 per share. The spike was short-lived as the stock started declining in the next trading session and almost two weeks later, it reached back to the level from where it started. The volumes were low and it appeared the stock upsurge was over.
Last week, CGrowth confirmed that they have finalized a letter of intent with Wildfire Cannabis Company LLC. It is a licensed marijuana processor and producer and plans to use CGrowth properties. In the week, the two firms issued another PR stating that the deal received approval from some of the regulatory bodies in the State of Washington.
On Wednesday’s trading session the investors reacted to the news and the stock price surged 100% to close the trading session at $0.006 on a dollar volume of almost $390,000. In the very next trading session, the stock gained 5% to close the trading session at $0.00630. The gains came at a share volume of 26.30 million almost double compared to the average share volume of 13.05 million.
The momentum reveals that investors are excited about the agreement. However, it is not clear it is because of the word marijuana in the PR or because of the potential impact that the deal can have on the future financial statements.
As per the latest annual report, CGrowth Capital Inc (OTCMKTS:CGRA) reported cash of $1,227. The current assets came at $174,000 while current liabilities stood at $1.7 million. The annual revenues came at $486,000 and the yearly net loss was $561,000.