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AMAZONAS FLORESTAL COM USD0.001 (OTCMKTS:AZFL) Running Up The Charts

AMAZONAS FLORESTAL COM USD0.001 (OTCMKTS:AZFL) Running Up The Charts
Written by
Jarrod Wesson
Published on
August 22, 2017
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Today, we are covering again AMAZONAS FLORESTAL COM USD0.001 (OTCMKTS:AZFL), the forest company, which recently announced plans to grow CBD Hemp in Weld County, Colorado. We noted this good business decision in our previous article called "AMAZONAS FLORESTAL COM USD0.001 (OTCMKTS:AZFL) Is Today’s Stock Focus." That's the reason that AZFL drew attention.SourceOk, but what's new with AZFL? We believe that a new update was necessary, as the company released good news including a new commercial relationship with Dekker Hout and a new agreement with TSC, Inc. Additionally, it was noted that the company will not be implementing a reverse stock split during 2017. Have a look at the positive reaction of the stock price to the news:SourceRecent DevelopmentsLet's rapidly recap the business model of AZFL. This is the way the company stated its activities in a recent press release:

"Amazonas Florestal Ltd. is a natural resources company dedicated to innovative, sustainable management of large tracts of land in the rainforests of Amazonas, Brazil, that include the certification and sale of carbon credits and the growth, harvesting, research and development of Industrial Hemp and related products in the U.S." Source

As we said, the interesting fact is the new activities of the company in the marijuana industry. On July 10, 2017, AZFL released that the management had agreed to deliver an initial trial order for 20 X 40 Ft Containers of Angelim Vermelho Hardwood Dimensioned Posts and Pilings to Netherlands company Dekker Hout. This European company manufactures the ELEFANT line of hardwood products.SourceRicardo Cortez, Company Chairman for Amazonas Florestal, Ltd. celebrated the news in the following words:

"This new purchase contract has been placed for production with IPA- Industrias de Piso de Amazonia in Iranduba, Amazonas, Brazil. IPA is one of the foremost wood products manufacturers in northern Brazil. Their mill was installed in 2005 at a cost of more than $40 MM. Should the initial trail work it would open the door for larger orders. We believe that Dekker has the capacity to purchase more than 100 containers per year us and represent substantial revenues for Amazonas." Source

In the same press release, we could read that the company has retained Michael Hoffman, a SEC specialist, who will help complete the company name change process. The new name will be called Amazon Forests, Inc. We believe that the following sentence should be noted:

"We will notify our shareholders by email and further upcoming press articles when this change has been made official." Source

With regards to the developments in Colorado, Peter W. Stebbins, CEO, commented that a headcount of more than 500,000 plants of Marquis M1 appears to be growing in total and many of these plants are already reaching heights of more than 24." This is a very good news.On July 17, 2017, AZFL released that it partnered with TSC, Inc. According to the news, both companies will collaborate to "research, develop, and manufacture future innovative products made with Hemp tailored to the wireless industry."Who is this new partner?TSC commenced operations in 1997 as a computer hardware and software broker, but later it diversified its activities by entering into the cellular handset segment. The company has now offices in Atlanta, and Shenzhen.SourceThe Chairman of Amazonas Florestal, Ltd. celebrated the news with the following words:

"I believe this is not only a strategic but also a creative decision that will benefit both entities that thrive for similar goals and visions. Our plan is to engage in many research projects for the development of innovative products for the wireless industry, ideally our goal is to ultimately replace recyclable materials like cartons and plastics for Hemp" Source

Additionally, in the same press release, the market got to know some new information about the Hemp plantation. The project is almost 55% complete and the CEO will be moving to Miami in August to manage the operations directly from the company's headquarters. Furthermore, negotiations to pre-sale the product and high market demand were noted. We need to be alert on the company's new announcements, as pre-sale agreements could send the stock price higher.On July 24, the company stated in this press release that AZFL will not be implementing a reverse stock split during 2017. We could read that "the company's board is studying the possibility to buyback shares and pay back part of the debt once the proceedings and profits from the Hemp plantations in Colorado are available." In addition, the company will not be selling notes until after harvesting time late October 2017. The news were celebrated by the market. Why? Because it means that AZFL will not dilute its shareholder base.Finally, on August 15, 2017, the last quarterly earnings were received by the market. Given the large amount of volume registered, it seems that the financial figures were appreciated. The most significant amounts on the balance sheet were the following:

  • Total Fixed Assets (as of June 30, 2017): $3,152,605
  • Total Assets: $4,758,463
  • Total Current Liabilities: $3,057,938
  • Total Long Term Liabilities: $231,449

In addition, we could read that the total amount of outstanding shares was 233,882,935 and the company has some convertible debt, but in the quarter ended as of June 30, 2017, no conversion was noted.ConclusionAZFL continues to deliver interesting news to the market, not only about the completion of its project in Colorado, but also about new partners such as TSC, Inc. and Dekker Hout. Additionally, in this article, we also pointed out that the company has promised to reduce the sale of convertible notes and will not execute a reverse split in 2017, which is a great news. Regarding the financial accounts, the company shows positive net asset value per share and a large amount of fixed assets. To sum up, we like what we're seeing and so is the market.Be sure to check out our coverage on AZFLWe will be updating our subscribers as soon as we know more. For the latest updates on AZFL, sign up below!Image courtesy of Rene Nijs via FlickrDisclosure: We have no position in AZFL and have not been compensated for this article.

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