American Cannabis Company Inc (OTCMKTS:AMMJ) Remains A Top Cannabis Pick

American Cannabis Company Inc (OTCMKTS:AMMJ) was one of the biggest cannabis runners last year leading up to the November ballot initiatives. Shares took off from their base of $.25 to hit $2 in less than a month. Now the stock has corrected and formed a baseline around the $.75 level. Taking a closer look, AMMJ looks to be a discount entry opportunity ahead of its next move.We first profiled AMMJ last April ahead of the big run. Most of our subscribers got in around $.10 and are still sitting on triple digit gains. What drew our attention is that AMMJ is one of the few cannabis names producing steady revenues and not burning through investor cash and keeping debt levels to a minimum.Further helping to drive AMMJ is its business model. For those new to American Cannabis, the company bills itself as offering end-to-end solutions to existing and aspiring participants in the cannabis industry. At core, it’s a sort of consulting and services company that helps new entrants get into the space. There’s a pretty rocky path to legal participation in cannabis right now, even with the medicinal side of things, but especially when it comes to recreational retail; a path fraught with regulatory hurdles. While the regulatory framework is likely to streamline over the coming couple of years, as more entrants get in the space and the governing bodies become familiar with the processes involved, it’s still uncertain, and entrants are going to need companies like American Cannabis to help them get set up.The November ballots further helped the bull thesis for AMMJ. California, Massachusetts, Maine, and Nevada all voted to legalize marijuana for recreational use, while North Dakota, Arkansas, Montana, and Florida voted for medical use. In Pennsylvania and Maryland, AMMJ keeps signing up new clients. Earlier this month, AMMJ announced that it secured its sixth client in Pennsylvania. AMMJ will be providing end-to-end solutions, including operational planning activities, conceptual design work, application completion, deployment of operations and ongoing remote management. AMMJ gets not only consulting fees, but an equity stake as well. CEO Terry Buffalo recently said:

"We are excited to be working with this particular client, as well as collaborating with them by taking an equity position in their business. The Company is actively exploring the development of hybrid relationships like this, that generate both consulting revenues and the opportunity for recurring profits from our equity interest. We feel that this new strategy will provide a beneficial long-term value to both our clients and our shareholders."

American Cannabis Company also developed and owns a portfolio of branded products including The Satchel, SoHum Living Soils, The Cultivation Cube and The High Density Cultivation System. Last June, the US Patent Office issued a patent to AMMJ for The Satchel, the company’s child-resistant exit package solution. The Satchel is a pouch-like case designed as a high-quality, child-resistant exit package solution for the regulated cannabis industry. The Satchel meets the child-safety requirements of the Consumer Products Safety Commission (CPSC), making it compliant in all states. The Satchel was also tested and meets the standards set by the American Society for Testing and Supplies (ASTM).AMMJ also has an investment agreement with Tangiers Global LLC for a fixed funding equity commitment of up to $5 million. Proceeds will be used for working capital purposes and to pursue acquisitions or other strategic opportunities. This funding puts AMMJ on track to fund its growth commitments in 2017.Currently trading with a market cap of $37 million, AMMJ is an exciting story among cannabis names and one of the best run plays for investors. In looking at the quarter ending September 2016, AMMJ posted $236k in revenues, gross profit of $132k, a net loss of $269k, $396k in total assets, and $540k in total liabilities. We expect AMMJ to post much better results once the December numbers come out.We will be updating our subscribers as soon as we know more. For the latest updates on AMMJ, sign up below!Disclosure: We have no position in AMMJ and have not been compensated for this article.