It appears that the market is still thrilled about NORTH AMERICAN CANNABIS HOLDINGS, INC (OTCMKTS:USMJ), despite few reasons to support the excitement. On Thursday, the stock surged more than 20% to close the trading session at $0.011, shifting 8.7 million shares in the trading session.
The gains extended in yesterday’s trading session as the stock jumped more than 6% to close the trading session at $0.0120. The gains came at a share volume of 9.54 million compared to average share volume of 8.90 million.
The strong gains in North American Cannabis stock were fuelled by optimistic Press Release coming from the company. It reported that the company will be presenting an “on demand shareholder presentation” that was set to release on July 7. It comes as an opportunity for CEO Steven Rash to provide much-needed details related to the company’s acquisition of a fitness and health cafe.
It will be the first coffee shop of the company and therefore it will be interesting to watch how North American Cannabis plans to convert AmeriCanna Cafe into a popular nation-wide brand. It becomes all more important particularly when the company has very limited financial resources. As reported, the new acquisition entity generates nearly $500,000 in revenues. However, it is best to have a look at the consolidated financial numbers as and when they arrive.
North American also reported that the company has been taking care regarding the issuance of new shares. The objective is to keep the float under 100 million shares. As of March 2015, the company reported 27 million shares in float, on outstanding common shares of 48million.
NORTH AMERICAN CANNABIS HOLDINGS, INC (OTCMKTS:USMJ) reported no cash in latest financial report which suggest that a dilutive measure will be implemented soon. The company can issue new common shares to pay for the recent store acquisition.