Freedom Leaf Inc (OTCMKTS:FRLF) Has Some Growth Potential On US Soil

The marijuana legalization wave is now in full swing, and there are a number of opportunities to be had on the investment front. Companies across the space are grabbing low hanging fruit, and our job is to select which of these fruit pickers are the most likely to succeed. When a new industry springs up like this, companies have the chance to take something that works in a legacy industry and transfer it to the new. Freedom Leaf Inc (OTCMKTS:FRLF) is doing exactly that with print media, and in a recent announcement, outlined its latest application of this concept.Before we get to that, what's Freedom Leaf?The company bills itself as being the leading go-to resource in the cannabis, medical marijuana, and industrial hemp industry. It is involved in mergers and acquisitions in the space, including incubation/acceleration and spin offs of new marijuana/hemp related companies. To simplify this, however, it's easier to say that the company is an industry marketing and media outlet. It publishes material through online and print channels, and generates revenues by raising brand awareness of the companies that work with it. Say a new dispensary wants to raise its profile, it goes to Freedom Leaf and the two entities work together to get the word out.So what's the latest news?Freedom Leaf has been publishing a localized magazine, called Freedom Leaf Magazine, in various regions where recreational and medical cannabis is legal since 2014. One of the most successful elements of this publication is a localized franchise type system, whereby the company leaves space in the magazine for local journalism, as well as region-specific advertising. It's got these sorts of programs set up in the Netherlands, as well as certain regions in Spain and Portugal. Basically, local franchisee units buy the rights to the magazine in their region, fill out the empty space with content about what's going on in their respective locales, and sell the advertising space to local cannabis retailers and other entities.There's also the potential for some add on initiatives – things like branded merchandise sales, localized consulting services, conference holding, that sort of thing.Up until recently, this hasn’t been a viable business plan in the US. As more and more states vote on recreational legalization, however, more and more markets are opening up into which Freedom Leaf can sell its franchise units. And the company is taking advantage of these markets as they become available.The latest press release announced the launch of the program in the US, and Freedom Leaf is reportedly in discussions with companies or individuals in three states who have expressed an interest in the potential acquisition of a Freedom Leaf license. We don’t know which states these are, but we'll hazard a guess at California, Colorado and Nevada. This interest has come without the company marketing its program to potential acquirers (Freedom Leaf refers to them as Licensees in its material). When the marketing efforts kick in, which should happen early next, we expect that Freedom Leaf will start to generate a lot of interest on their potential.Here's a quote from the announcement:

Based on preliminary interest in these local licenses, we anticipate significant revenues to result from our new licensing program within the next two years.

If this plays out, there should be some significant upside on offer.There's risk, of course. Freedom Leaf doesn’t have any cash to speak of, and it's probably going to try and raise at some point next year. With this, we'll likely see some dilution. It's also not generating much in the way of revenue – a little over $120K during the third quarter of this year.There's growth potential here as well, however, and as the industry matures, Freedom Leaf could start to run.We will be updating our subscribers as soon as we know more. For the latest updates on FRLF, sign up below!Disclosure: We have no position in FRLF and have not been compensated for this article.