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AGRITEK HLDGS INC (OTCMKTS:AGTK) Presenting the Future of Hemp

AGRITEK HLDGS INC (OTCMKTS:AGTK) Presenting the Future of Hemp
Written by
Jim Bloom
Published on
December 27, 2017
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The month of December has been one that has sent cheers in the quarters of AGRITEK HLDGS INC (OTCMKTS:AGTK) shareholders.The company’s share price has risen from $.01 in the beginning of December to close yesterday at $.0322, a near 200% surge in the share price. Furthermore, their traded volumes have averaged at about 20 million during the month, nearly doubling from previous periods of November and October.The chart below exemplifies the above stated price action: AGTK Daily ChartWith the surge being as stated above, we have opted to take time and look into the value proposition that Agritek Holdings Inc is selling to the market and how it has led them to receive such a high valuation from the market.A Brief Into AGTKIncorporated in 1997, AGTK has been a significant player within the medical marijuana space. The company provides innovative patient and agricultural solutions to their clients. Currently, they are working towards becoming market leaders in Compassionate Care Technology within the medical marijuana industry.Furthermore, the company also provides real estate management services and has grown their health and wellness product lines through their subsidiary Agritek Venture Holdings Inc. Previously, the company did not grow or sell any cannabis related products, however, they are currently working towards venturing into this field.The company has, since inception, been working at growing their presence within the medical marijuana space and has made a lot of efforts to ensure this happens.AGTK: The Business GrowthAGTK has been working at ensuring it is a strong footing within the cannabis industry. With the growth that has been seen, the company is seeking to benefit by securing a stronger position within the market. This far, they have made a lot of moves to ensure that they are strongly positioned for growth and are actually growing.They begun by obtaining about 80 acres in Pueblo, Colorado.The land was then meant to ensure that they had a strong footing within the sector as well as act as an anchor for them to begin their research into CBD infused products. Their work circles around the creation and patenting of genetic strains of true medical marijuana and hemp-based CBDs.Their most recent breakthrough has been with a genetic strain of highly standardized hemp-based CBDs that are THC free in content, a breakthrough whose output is currently in place within their property.It is upon this backdrop that the company realized that there is massive potential for them to scale up and produce much more. Therefore, their management decided that they would buy the surrounding 900 acres so as to complete the 1,000-acre piece of land from which production would be done. Furthermore, AGTK is working towards a partnership with its Industrial Hemp license partner that will see them venture into the cultivation, handling, transport, processing, and distribution of the output from their farms. This is meant to ensure they are constantly in business and can safely sell their produce to the market they have already established.The deal, upon approval, with see AGTK elevated to the operator of one of the world’s largest Hemp research projects. Moreover, the company is now expecting to harvest over 350,000 pounds of dry flower each year for extraction into oil at its research and development facilities. These oils will serve the society by aiding in the treatment of some diseases such as obesity, diabetes and insomnia, some of the conditions which cannabis has been seen to alleviate.With the hemp industry expected to continue on its 22% annual compounded growth trajectory, AGTK sees itself as being a key player within it as we head into the future. Their goal is to ensure that they have enough backing to ensure that they are part of the $1.8 billion that the industry is expected to generate by 2020.With such success expected in the future, the company has made a lot of efforts to market their brand and this has paid off for them.The company’s CEO, Michael Friedman, has once again been requested to appear on "New To The Street”, a show on Fox Business News that seeks to introduce some of the companies within the US that have breakthrough ideas that are expected to revolutionize the industry.The show which has a viewership of over 95 million homes will provide the company with an opportune branding and marketing platform from which their CEO can ensure that the country knows their products and appreciates the value derived from them. This being the second time he is appearing on the show alludes to the fact that there is a lot that can be gotten from his first appearance. As such, AGTK is taking this as a sign that they are already on a path headed all the way up.FinancialsThe company has been in a loss position for quite some time with their current loss standing at over $1.9 million. This is courtesy of their revenue position which currently stands at $24,000 which is quite low when compared to their expenses which stand at over $390,000.However, the company made a smart move this month by collaborating with some institutional investors to rid them of some convertible debt which was toxic to their balance sheet. The investors provided some capital infusion which enabled AGTK do away with $700,000 worth of convertible debt in a move that saw the dilution effect on their shareholders mitigated.The company is working at partnering with these investors in a bid to ensure that they can benefit from a long-term relationship with them.ConclusionAGTK has made a lot of long-term moves as they work towards ensuring that they do not miss out on the benefits accrued from cannabis. The market is quite solid for them, their effectiveness and efficiency in management of the process is all that remains. We remain bullish about the stock.We will be updating our subscribers as soon as we know more. For the latest updates on AGTK, sign up below!Disclosure: We have no position in AGTK and have not been compensated for this article.

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