AGRITEK HLDGS INC COM USD0.0001 (OTCMKTS:AGTK) Is A Rebound Candidate

AGRITEK HLDGS INC COM USD0.0001 (OTCMKTS:AGTK) continues to put out positive announcements that we believe will provide much-needed upside to lift to take the stock to $0.05 a share or higher by the end of 2017, as we predicted in our last coverage of the stock on August 31. In recent weeks, though, AGTK has pulled back after hitting some highs at the beginning of September. We see the stock rebounding.In today’s piece, we examine the developments that we believe will provide upside catalyst for AGTK. Before we get into the details, take a look at the price action below. AGTK Daily ChartFor those new to AGTK, here’s a brief profile of the company. AGTK is a pioneer in medical marijuana. It provides innovative technology and agricultural solutions to medical and creational cannabis industries. AGTK owns or manages property in the United States and Canada.The company owns a number of hemp and cannabis brands, which include “California Premiums”, “Hemp Pops” and hemp oil wellness products. Since AGTK largely licenses its technology and brands to cannabis companies, it has limited exposure to thinks like legal risks in the cannabis industry.The exposure of AGTK to the Canadian cannabis market is something that readers should take important note of considering that the country is on track to significantly expand its regulated cannabis market. Canada is working toward a July 2017 deadline to federally legalize cannabis for adult or recreational use. Legalization of creational cannabis in Canada should dramatically expand revenue opportunity for AGTK in the North American region.According to Arcview Market Research, regulated cannabis market generated $6.7 billion in revenue last year and the market is expected to expand to $20.2 billion by 2021.With the regulated cannabis market expanding, AGTK is making moves that will provide lift for its stock both over the near-term and the long-term as investors become more aware of its bright prospects.On September 20, AGTK announced that it signed an agreement to acquire Performance Nutrition Center – a move that will provide an immediate boost to the company’s topline.Performance Nutrition Center is a retail business that operates from South Orange County in California. The business also boasts a vibrant online presence on marketplaces such as eBay and Amazon. As such, AGTK is set to get a high-traffic physical and online retail spot with the acquisition of Performance Nutrition Center. The business that AGTK is acquiring is on track to generate $600,000 in product sales this year. It has consistently generated more than $500,000 in product sales over the last years.The long-term relationship that Performance Nutrition Center has established on platforms like eBay and Amazon will provide an important gateway for AGTK to launch its new products and brandsCommenting on the purchase agreement, B. Michael Friedman, the CEO of AGTK, said:

“With an established retail location since 2001, and built in consumer base, these new retail and online e-commerce assets soon to be within Agritek Holdings provides a much anticipated subsidiary for immediate and meaningful revenue and channel for the proprietary wellness products within the legal jurisdiction of California."

SourceAGTK expects to close the acquisition of Performance Nutrition Center before the end of this month.For a company that generated just $24,000 in the June 2017 quarter, the acquisition of Performance Nutrition Center is going to be a significant boost to the topline.Besides building its asset base, AGTK is also working to make its name known out there, which is good for the stock as it creates more investor awareness. On September 12, the company announced that its California Premiums brand will be featured in Variety Magazine’s The Emmy edition.AGTK noted that its California Premiums will be one of the first products featured in advertisement in the magazine as a product of choice for California’s recreational cannabis market. Sales of recreational cannabis are set to kick off in California starting early next year – a development that is set to expand AGTK’s market in the US.In another move to increase its brand awareness, AGTK announced on September 8 that it signed a branding agreement with WeedMaps to feature its Microdose Strips and California Premiums brands. The deal with WeedMaps means that the brands in question will receive specialized placement in specific regions in California.ConclusionWe see the publicity efforts coupled with the strategic asset acquisition providing support to AGTK.We will be updating our subscribers as soon as we know more. For the latest updates on AGTK, sign up below!Image courtesy of Liliana Navarro via FlickrDisclosure: We have no position in AGTK and have not been compensated for this article.