CannaGrow Holdings, Inc.(OTCMKTS:CGRW) upward momentum shows no signs of slowing down the stock having risen to the $2 a share mark as investors continue to eye stakes in the fast growing industry. With the legalization vote now on the side, the big question is whether the stock can sustain the impressive run given and close in on its 52-week high of $3.45 a share.
Expanded Target Market
The legalization of Marijuana in eight states essentially means the target market for CannaGrow just like other plays in the industry has more than doubled. With the expanded market target the company should be able to attract more attention from investors having already emerged as a safe bet give its business model and growth prospects.
CannaGrow makes a good chunk of its money from offering consulting services to companies looking for permits to operate in the industry as well as looking to construct and operate cannabis greenhouses. The company has already overseen the development of growth facility in Colorado called the Buffalo Ranch facility.
CannaGrow Holdings has already confirmed that it has received a purchase order from the same license holder for the construction of three additional Greenhouses. The construction should lead to more earnings for the company as it continues to provide oversight as the facilities manager.
Even though CannaGrow Holdings is poised to benefit from, the new constructions it is still unclear how much it will generate from the projects. Until the company puts out its financial statement, the same should continue being a mystery.
While the company is not expected to, benefit directly from the massive project any success should be interpreted as proof that it is a reliable partner for such projects. With the legalization drive, more people are expected to venture into the business of growing marijuana most of whom will require CannaGrow Holdings, Inc. (OTCMKTS:CGRW) expertise when it comes to acquiring licenses and coming up with facilities for growing the plant.