CannaGrow Hldgs Rg (OTCMKTS:CGRW): A Top Play On The Cannabis Legalization Train

The cannabis legalization trend continues to roll. With nine additional state voting on the legalization of cannabis this last election season, eight of which passed overwhelmingly, and with six more expected to legalize cannabis in 2017, it can be stated with a high degree of confidence that the cannabis legalization “train has left the station, and there’s no turning back.”While there may be some setbacks due to changes in the political “winds,” they will be just that, setbacks. The current count is now 28 states, and Washington D.C. that have legalized the use of cannabis to one degree or another. With the six additional states expected to follow suit in 2017, the count will be at 34. That is more than two-thirds of the states in the union. It would be political suicide for a politician to “step in front of this train.” The politicians that oppose the legalization of cannabis may go on talk shows and say they do, but any attempt at bringing significant policy change to do so will more than likely result in more political downside than benefit.With that said, the cannabis revolution is expected to bring forth an avalanche of opportunity, both in the direct production and sale of cannabis products, and in the indirect support of the same. CannaGrow Hldgs Rg (OTCMKTS:CGRW) falls into the latter category.CannaGrow is a turnkey growth and consulting company in the cannabis industry. Cannagrow connects with companies looking to grow cannabis for commercial resale in Colorado, and guides them through the permitting, construction and operation of the greenhouses facilities required for optimal cultivation. The company brings in revenues from consulting fees paid by the client entity that has hired it to oversee the implementation process, and also a maintenance recurring payment related to the facilities being used.The company recently announced the realization of a major company goal as their client, Licensed Grower, Category One Botanicals, LLC, completes their first major harvest cycles and initiates marketing and distribution of wholesale retail cannabis products in the State of Colorado. Dr. John P. Janovec, COO, stated:

"As Facility Administrator, I am pleased to announce that Category One Botanicals has completed the process of curing bulk product from the first two harvest cycles at Colorado Buffalo Ranch Facility I. Despite the challenges we encountered, the Crew managed to pull off an impressive harvest of about 250 pounds of product that has been divided into 'Buds' and 'Shake/Trim,' with another approximate 50 pounds of product being harvested and processed this week. Mandatory potency and microbial contamination tests were conducted successfully, so the storeroom is now stocked with packages now for wholesale distribution to licensed retailers in the State of Colorado."

CannaGrow‘s stock price ended 2016 with a strong rally in the last 10 days of the year from $.90 to $2.22 on the first trading day of the new year 2017, a 222 percent price increase. This however came after a retracement from a 52-week high of $3.45 that was attained October 19, 2016. Since the beginning of 2017 it has retraced back to $1.60 before hitting a new local high for the this year (2017) at $2.30. It is currently trading at $1.50. There's plenty of movement for savvy traders to take advantage of. Fourth quarter financials for 2016 are yet to be reported. Market capitalization currently stands at $142.08 million with 101.27 million shares outstanding as of March 9, 2017.While CannaGrow’s financials sill remain weak and somewhat of a mystery, it has made some progress in making itself more appealing to investors. In any consulting business, there are two absolutes that are required for success. First, the consultancy must have qualified individuals that are highly knowledgeable experts in the field for which they are consulting. Dr. John P. Janovec, the company’s Chief operations Officer, is a PhD. Botanist. He directs all aspects of plant propagation. This certainly meets absolute criteria number one. Absolute criteria number two is a successful project that the company can point to for establishing credibility. The success of the Colorado Buffalo Ranch facility project fulfills this criteria.If CannaGrow can present some credible financials, it would certainly serve to increase its appeal to investors. For now, a “wait and see” posture is prudent, and CannaGrow should be kept on the radar. We will be updating our subscribers as soon as we know more. For the latest updates on CGRW, sign up below!Disclosure: We have no position in CGRW and have not been compensated for this article.