x min read

AmeriCann Inc (OTCMKTS:ACAN) On A Bull Run

AmeriCann Inc (OTCMKTS:ACAN) On A Bull Run
Written by
Alex Carlson
Published on
February 22, 2017
Copy URL
Share on LinkedIn
Share on Reddit
Share on Twitter/X
Share on Facebook

AmeriCann Inc (OTCMKTS:ACAN) has been one of the top runners in the cannabis space over the past three months. Shares have rallied off the $1 support level in December to new highs of $5.44 a share, with new highs look set to follow. We called this bull run in December and said that "judging by the volume and price action, a breakout looks to be in the cards for ACAN." With all the excitement surrounding Green Rush 2.0, the bull run in ACAN could be just getting started.First up, a little background on the company. AmeriCann is a publicly traded company that plans to develop and lease sustainable, state-of-the-art medical cannabis cultivation properties. The Company has over 1,000,000 square feet of facilities in the planning and design stages of development. The Company has also designed a proprietary line of cannabis infused products which will be branded and licensed to companies in regulated markets.In December, AmeriCann hired Campanelli Construction as the General Contractor for the Massachusetts Medical Cannabis Center. Those in the Boston area know that Campanelli is a well-known general contractor. The company is a third generation, full-service commercial real estate development and acquisition company with over six decades of experience having developed, built and acquired over 22 million square feet of property.AmeriCann plans to develop the property as the Massachusetts Medical Cannabis Center, one of the largest and most technologically advanced cannabis cultivation facilities in the nation. Designs for the MMCC include the construction of sustainable greenhouse cultivation, processing, and infused product facilities that will be leased or sold to Registered Marijuana Dispensaries under the Massachusetts Medical Marijuana Program. AmeriCann’s Cannopy System uniquely combines expertise from traditional horticulture, lean manufacturing, regulatory compliance and cannabis cultivation to create superior facilities and procedures.AmeriCann acquired the rights to the 53-acre property in Freetown last year from Boston Beer Company (NYSE:SAM) for $4,475,000. The sustainable greenhouse project will consist of multiple planned phases; the first phase will include two buildings at 130,000 and 30,000 square feet, respectively. Future phases are permitted for an additional 800,000+ square feet based on market demand. AmeriCann plans to break ground on the first phase in the first quarter of 2017 and AmeriCann’s Preferred Partners will have cannabis in production on the property by fall of 2017.Earlier this month, AmeriCann was the Title Presenter at the New England Real Estate Journal's first summit of 2017, the Cannabis in Commercial Real Estate Summit. AmeriCann's President and CEO Tim Keogh was a panelist and met one-on-one with attendees and investors throughout the event discussing the company and the Massachusetts Medical Cannabis Center. This was a smart move for him to attend because the Commercial Real Estate market in Massachusetts will undergo significant expansion and revitalization as the Cannabis industry develops, just like it did in Colorado and California.The latest news is that AmeriCann was added to the LD Micro Index and will be included in the first cannabis ETF, the Emerging AgroSphere ETF. The proposed ETF will be focused on medical cannabis and will not invest in any companies that are focused on serving the non-medical marijuana market in the United States, Canada or any other country unless and until such time as the production and sale of non-medical marijuana becomes legal in the United States, Canada or such other country, respectively.The LD Micro Index is designed to give the most accurate representation of the intraday activity of microcap stocks in North America. The index is market cap weighted and is comprised of approximately 1,000 stocks in the U.S. and Canada. Included stocks have a market capitalization between $50 million and $300 million and an average daily traded value of $50,000 over the preceding 3 months. This inclusion is important because institutional investors look at this index to screen small caps with decent volume. As a result, new money flowed in and the first day in the index saw ACAN's share price jump 30%.Currently trading with a market cap of $103 million, ACAN has a float of just 5,425,000 shares. This has no doubt squeezed many of the shorts and contributed to part of the bull run we've witnessed. But the real reason is the fundamentals behind ACAN. The company has a first-mover advantage over its competitors in Massachusetts, permitting in place, $2 million, and a 1 million square foot facility about to go into construction. The Massachusetts cannabis market has been pegged at roughly $1.8 billion, and this gives ACAN a lot more room to go on its bull run.We will be updating our subscribers as soon as we know more. For the latest updates on ACAN, sign up below!Disclosure: We have no position in ACAN and have not been compensated for this article.

Discover Hidden Gems

Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.