Notis Global Inc (OTCMKTS:NGBL) is taking a beating in the market even as investors switch their attention to pot stocks in numbers. With more states moving a step closer to legalizing the use of marijuana for medicinal purposes, growth opportunities in the industry continue to clock new highs to the benefit of some stocks.
Notis Global Poor Run
However, it comes as a surprise that Notis Global continues to tank in the market amidst the growth opportunities available in the industry given the growing demand for pot products. The stock is currently trading at the lower end of its trading range an indication of waning investor confidence in its prospects.
Notis Global has sought to bolster its prospects in the fast-growing hemp business with the expansion of its farm operations. Last month it entered into a purchase agreement for more than 115 acres in Pueblo county Colorado. The transaction, which is expected to close in October, should bolster the firm’s farmable acreage by 35% as well as it production capacity.
Expanding Farm Operations
Expansion into Colorado is a strategic move given the state is among the few that have already legalized marijuana use. With the market, growing exponentially by the day, having operations in the state should help the company build connections needed to attract sales for its products.
Notis Global has already confirmed that the acquisitions will go a long way in bolstering cloning operations. The farm will also act as a strategic research and development center for the development of unique CBD oil products.
Legal sales of marijuana stood at $5.4 billion last year from $4.6 billion in 2014. Sales this year could top highs of $6.7 billion as demand continues to soar, providing unique opportunities for the likes of Notis Global.
Marijuana stocks have underperformed major indices for the better part of the year even though the industry is one of the fastest growing in the US. The likes of Notis Global Inc (OTCMKTS:NGBL) will have to do more going forward if they are to benefit from the marijuana boom.
Progressive Care Inc (OTCMKTS:RXMD) Surpasses FY2016 Target
Progressive Care Inc (OTCMKTS:RXMD) has announced earnings result for the 2Q2016, revealing that it had made record year-to-date sales of $8.5 million. The company reported a 22% year-over-year growth for filled prescriptions at its pharmacies. RXMD cited that there has been an increase in the demand for its services, since more doctors are moving towards capitated rate contracts with insurance providers. PharmCo, a subsidiary of Progressive Care, was alone responsible for $4.5 million of the pharmacy revenues, a surge of 38%, from a year ago. It should be noted here that at this point, RXMD has already surpassed its objectives for the whole year.
Moreover, this was the second consecutive quarter for the company, in which it reported a net income. During the 1H2016, Progressive Care also lowered the total number of issued shares, by returning 12 million shares, sold to Tarpon Bay. In addition to this, S. Parikh Mars, the CEO of RXMD, claimed that the busiest part of the year was yet to come. He further reaffirmed that the company aims to take advantage of this momentum and accelerate its growth even further.