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Better Times Ahead For CannaSys Inc (OTCMKTS:MJTK)

Better Times Ahead For CannaSys Inc (OTCMKTS:MJTK)
Written by
Alex Carlson
Published on
January 23, 2017
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The worst looks to be over for CannaSys Inc (OTCMKTS:MJTK). MJTK and its shareholders were hurt in 2016 by convertible debts and the dilution that came with those debts. But those days are over after the company released its latest 8-K.Over the last month, CannaSys issued just over 367 million shares to satisfy outstanding convertible promissory notes. While 367 million shares may sound like a lot, the fact remains that MJTK has average daily volume of just over 84 million shares.Investors were certainly happy with the filing. A lot of big money has been sitting on the sidelines waiting to get in on MJTK when the dilution was over. This dilution hurt the company's share price and made 2016 a painful year for MJTK shareholders. Now CannaSys management and its shareholder base can turn to 2017 and Green Rush 2.0 that is taking place.First up, a little background on the company. CannaSys describes itself as "a leading technology solutions, marketing, and branding company in the regulated cannabis industry. Its core products are delivered "software as a service" to facilitate point-of-purchase transactions, customer relationship marketing solutions, and regulated cannabis laboratory information management systems. CannaSys plans to develop, acquire, and build strategic relationships with other businesses in order to bring additional solutions to market in both established and developing medical and recreational cannabis states."Kicking off Green Rush 2.0 was the marijuana ballot initiatives that passed in November. California, Massachusetts, Maine, and Nevada all voted to legalize marijuana for recreational use, while North Dakota, Arkansas, Montana, and Florida voted for medical use. All of these moves bode well for CannaSys and Citizen Toke, which has been embarking on a rapid expansion program.Last summer, we saw CannaSys expand into the California market with the adoption of its technology products by California Cannabis in Playa Vista, Los Angeles. Synergy implemented the use of CannaSys’ loyalty product, BumpUp Rewards, and plans to expand its offering with CannaSys’ new social deals application, CitizenToke. Synergy is the first dispensary in California to sign up to CannaSys’ technology suite and is in the heart of Los Angeles.In addition to its relationship with California Cannabis, CannaSys signed a strategic distribution and marketing agreement with Green Capital Ventures, Inc., a San Diego based cannabis industry consultancy and financing firm. Green Capital’s founders are also founders of Gridiron Cannabis Coalition, an organization also founded by former All-Pro Tackle Kyle Turley. CannaSys also plans to form additional partnerships to distribute its core technology products and celebrity branded products throughout California. The company’s goal is that as user and product adoption begins to increase, new products will be introduced into the market.In November, Citizen Toke expanded into Colorado just in time for the Thanksgiving holiday. For those not familiar with Citizen Toke, it is a mobile web based platform that communicates deals and distributes coupons to cannabis consumers and patients through a unique text message based system. The system is designed not only to enhance consumer's retail experience but also provide incentive for consumers to download and redeem coupons in a timely manner. CEO Michael Tew said:

As we look ahead, we are focused on new growth avenues to leverage our existing suite of products. We believe that Citizen Toke will be a meaningful part of this growth given its revenue model, attractive customer pricing and economic opportunity, social aspect, and ability to accurately gather end-user statistics within geographies. We believe these are unique capabilities compared with competitive products serving the market today. Early adoption and indications of interest from launch partners have been very supportive of the overall product.

Currently trading with a market cap of $1.63 million, we believe that indeed the worst is behind MJTK and 2017 is going to be the company's year. We also believe that Citizen Toke opens up the company to being acquired, especially by a company like MassRoots Inc (OTCMKTS:MSRT) and its $67 million market cap. This makes MJTK a stock that needs to be on every cannabis investor's radar. We will be updating our subscribers as soon as we know more. For the latest updates on MJTK, sign up below!Disclosure: We have no position in MJTK and have not been compensated for this article. We have previously been compensated $10k for a two day awareness campaign regarding MJTK.

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