Arcturus Growth Technologies Inc (OTCMKTS:AGSTF) has quickly emerged as a volume and price leader on the OTC Markets. This comes as the company has been raising money, signing deals, and getting a bump from what we at Insider Financial are calling Green Rush 2.0. While shares have traded in a sideways pattern over the past month, we believe shares are due an upside breakout as more news hits the tape on the company's developments. It's time to take a closer look at Arcturus as today's cannabis focus.First up, a little background on the company. Arcturus says that it is developing and acquiring technologies that will position it as a leader in the evolution of Controlled Environment Agriculture (CEA) for the global production of various types of plants. Arcturus provides scalable, indoor CEA systems that utilize minimal land, water and energy regardless of climate, location or time of year and are customized to grow an abundance of crops close to consumers, therefore minimizing food miles and its impact to the environment.The Company holds an exclusive, worldwide license to use a patented vertical farming technology that, when compared to traditional plant production methods, generate yields up to 10 times greater per square foot of land. The contained system provides many other benefits including seed to sale security, scalability, consistency due to year-round production, cost control, product safety and purity by eliminating environmental variability.
The Company is also in the business of designing and distributing LED lighting solutions utilizing the COB and MCOB technology. The Company is focused on delivering cost efficient lighting to North America via advanced e-commerce sites the Company owns and operates. LEDCanada.com which caters to B2B customers is a supplier of the newest and highest demand LED solutions. The Company also owns and operates COBGrowlights.com which caters to both large and small agriculture green houses and controlled cultivation centers.
Arcturus expects to close its latest private placement by December 23. The company is offering up to 2,000,000 units at a price of $0.25 per unit for gross proceeds of up to $500,000. Each Unit consists of one common share and one-half share purchase warrant. Each half Warrant will entitle the holder to purchase one additional common share at an exercise price $0.35 per share. The Warrants are exercisable for a period of twelve months from date of issuance, however this period may be accelerated if the Company's share price is above $0.45 cents for ten consecutive days.
Earlier this month, the company announced that it partnered with CBO Financial, Inc. for the development and operation of a major "LED" vertical farm project in Baltimore, Maryland. Arcturus also announced that it signed a Letter of Intent to lease 25,000-sq ft of commercial shell space from Volunteers of America Chesapeake to accommodate the Baltimore farm. AGSTF Chairman and CEO William Gildea said:
"We are pleased to have partnered with CBO Financial and Volunteers of America Chesapeake on this project and believe that its success will be a bellwether for public private partnerships within the urban farming industry. With Volunteers of America Chesapeake's diversified real estate holdings, CBO Financial's experience in community development and expertise in navigating the NMTC process and Arcturus's CEA technology, this is a perfect partnership. Our goal was always to create impactful social and corporate programs that are mutually beneficial for all involved, from the community, to the company and our shareholders. Partnering with Volunteers of America Chesapeake and CBO Financial puts us in the position to achieve that goal. We hope this is the first of many joint-projects for our companies."
In Canada, its LED division, LED Canada, received its largest purchase order to date from a 40-year-old Canadian chain of stores. This one customer positions LED Canada, a wholly-owned Arcturus division, to potentially generate over $1,000,000 in business in 2017. Arcturus believes that its Scorpion COB LED Grow lights have the best LED technology to grow legal cannabis on the market and can offer its lights at the best price as compared to its competitors.
In Florida, Arcturus signed an LOI to acquire a 15-acre parcel of land in Redland, Florida, in a county that is designated to legally cultivate, process and dispense cannabis. Redland is an unincorporated community within Miami-Dade County, with Biscayne National Park to the east and Everglades National Park to the west. Redland is primarily a Miami suburb and a major agricultural area. With this acquisition and the previously announced 10-acre greenhouse acquisition near Orlando, Arcturus has the potential, if fully licensed, to develop 25-acres of cannabis crops.
Currently trading with a market cap of $8.8 million, AGSTF certainly has a lot of irons in the fire. Our biggest concern is that the company will have to dilute existing shareholders to complete its plans. However, we believe that the value add will far outweigh any dilution. Overall, investors can expect further upside from current levels.
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Disclosure: We have no position in AGSTF and have not been compensated for this article.
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