Here's A Near Term Catalyst In KAYA HLDGS INC COM USD0.001 (OTCMKTS:KAYS)

The entire recreational and medical cannabis sector has taken a hit over the last few weeks, on the back of comments from the Trump administration suggesting there may be some prohibitive action around the corner that could hamper growth. While we're inclined not to take this potential too seriously, markets don't pivot on our inclinations, and the overarching sentiment is in line with the potential for harm.We see this as a potential opportunity, however, to get in at a discount to some of the names that are taking a hit. One that we have covered a couple of times in the past is KAYA HLDGS INC COM USD0.001 (OTCMKTS:KAYS). This company has had a pretty slow start to 2017, with some selling pressure surrounding licensing issues for its retail stores weighing on valuation.Back in January, Kaya announced that it was in the final stages of OLCC recreational marijuana retail licensing approvals for its second and third Kaya Shack stores. For those not familiar with this company, and by way of a brief introduction to what this means, Kaya is a recreational and medical cannabis retailer that us currently operating out of Oregon. The company sells over the counter to walk in customers, from what it calls its Kaya Shack Marijuana Superstores. The company also has some grow interests, but we're really focusing on the recreational stores right now as key value drivers. The grow ops serve to provide stock to the stores, and the Shacks are the money makers.So, there was some issue with licensing based on a Portland City delay, and the Kaya has now sued the city to ensure that the remaining licensing runs through smoothly. The process works like this – the company builds a Shack and gets medical cannabis sale licensing for the location. It then applies for what's called an Oregon Liquor Control Commission (OLCC) license to start selling recreationally. Once this license is in hand, recreational customers can buy cannabis at the Shacks, and that's where the money is.And here's the interesting part, and the driver behind our taking a look at Kaya today – it had one of these OLCC licenses in hand at the end of January, and announced that (as mentioned above) it was nearing issuance of two more at that time. When these two extra licenses are issued, it's a huge upside catalyst for the company, as it basically expands sales revenue potential by 200%.As yet, we've not had any announcement from the company that these licenses are in hand, but take a look at this link:Here.This is the Marijuana Business Licenses Approved as of 3/3/2017, issued by the city of Oregon, through the OLCC arm detailed above.Page 26 states Kaya Shack 2 as approved. Page 27 states Kaya Shack 3 as approved. So that's basically saying that the two locations are now permitted to sell recreational cannabis – or in other words, it's the catalyst we've been waiting for.So why hasn’t Kaya announced this by way of a press release? Well, as yet, the permits haven’t technically been issued. The way this works is that the OLCC approves the locations for recreational sale, and then the location (or, more accurately, the company that operates the location) has to pay a fee to pick up the license. Once the fee is paid, the license is issued. We think that the company is waiting until it has paid the fee and actually received the licenses before announcing to wider markets said receipt.The takeaway here is that this is a sort of double weight opportunity. We expect a longer term industry recovery as markets realize there's very little credence in what Trump and his people seem to be saying about the cannabis space. Much nearer term, however, we think this one is going to run on the license issues, and the announcement is going to hit press any day now.We will be updating our subscribers as soon as we know more. For the latest updates on KAYS, sign up below!Disclosure: We have no position in KAYS and have not been compensated for this article.