ML Capital Group Inc (OTCMKTS:MLCG) Is Today's OTC Focus Stock

ML Capital Group Inc (OTCMKTS:MLCG) has quickly turned into a microcap runner on the OTC Markets. At the beginning of the year, the stock was trading at just $.0001 a share before a flurry of press releases hit the tape. Shares went on to explode as high as $.0025 before pulling back. We're taking a closer look to see what's behind MLCG's action and what the prospects are for further gains.First up, a little background on the company. Last August, MLCG acquired First Class Hawaiian coaches, known publicly as Platinum Tours Maui (PT Maui). This acquisition was part of a strategic decision to aggressively target the travel and tourism sector for immediate and long-term growth. CEO Kevin Bobryk said:

"This acquisition is an ideal first step as we transform ML Capital Group into a travel and tourism focused holding company. PT Maui is, without a doubt, the most advanced, most luxurious and most rapidly evolving operator on the island. They are local experts, they offer unrivaled tour experiences, and there is no company that we would rather work with."

Fast forward to January 4th and we got news that the company was expanding its presence in the luxury and specialty travel markets with the pending acquisition of Spanish Peaks Scrumpdelicacies, a venture-backed producer of cannabis-infused edibles based in Colorado. MLCG plans to leverage this acquisition to launch a new, specialty tourism sector focused exclusively on cannabis-related travel experiences.The following day, MLCG announced a deal with Puration Inc (OTCMKTS:PURA), which we profiled this month as well. Puration wants to develop cannabis inspired tours that mimic those offered by the Napa Valley region in California, only with marijuana and cannabis infused drinks instead of grapes and wine. Its partnership with MLCG is looking to bring about a full suite luxury offering that combines Puration’s cannabis fusion operations with ML’s travel activities. MLCG CEO Kevin Bobryk said:

"Consider the vineyard tours in Napa Valley or Tuscany; Picture the distillery tours in Scotland or the brewery tours in Bavaria. I think now you might have an idea of the magnitude of the opportunity we plan to build into Colorado's $19 billion travel market with the help of Spanish Peaks and Puration."

While Puration CEO Brian Shipley added:

"I am very focused on generating opportunity where Puration can sell its gold standard cannabis extract. We're already working with Spanish Peaks to infuse our cannabis extract into Spanish Peaks' beverages. Now consider that nearly 25% of Napa Valley wines - almost $1 billion in wine sales - are sold to customers directly at the vineyards. That's selling wine to tourists. Needless to say, Puration is enthusiastic about participating in a partnership with Spanish Peaks and ML Capital Group."

Last week, MLCG announced record sales performance for the fourth quarter of 2016. In 2014, PT Maui reported gross revenue of $168,971, followed by $392,000 in 2015. By September of 2016 gross revenue had already reached $385,653. Management is now forecasting $1 million in revenues this year based on its introduction of a Cannabis Tourism offering on top of the ongoing growth from its existing luxury tourism business.MLCG and Puration will also be the official sponsors of the Denver 420 Fest 2017. The annual 4/20 celebration sees thousands of visitors celebrate cannabis legalization while enjoying A-List celebrity appearances and performances. The event reaches an additional audience numbering in the millions via online exposure through both commercial internet broadcasts and the social media integration. As an official sponsor, MLCG, PURA and Spanish Peaks ScrumpDelicacies will have their collective brand front and center, both physically at the event and online at the Super Bowl of Cannabis.Currently trading with a market cap of $1.6 million, MLCG has proven that it can turn into a microcap runner overnight. Our main concern with MLCG is that it has gone Dark or Defunct and OTC Markets has slapped the ticker with a STOP sign as a result. The company also needs to boost its balance sheet as it is sitting on $4.9 million in liabilities. Further dilution looks likely. Investors need to keep in mind that shares of MLCG are being driven by news flow rather than solid fundamentals. That's why we recommend traders watch the Level 2. MLCG has already proven that it can be a winner for nimble traders getting in and out. We will be updating our subscribers as soon as we know more. For the latest updates on MLCG, sign up below!Disclosure: We have no position in MLCG and have not been compensated for this article.