In the cannabis industry, establishing and maintaining credibility with customers, and investors is very challenging, and in many cases tenuous at best. Marijuana Company of America Inc (OTCMKTS:MCOA) is making every effort possible to be taken seriously by customers and investors alike.For those that are not familiar with the company, Marijuana Company of America is headquartered in Southern California. It is acquiring, or partnering with companies across all sectors of the marijuana industry, constructing a portfolio of synergistic companies involved in cultivation, extractions, oils, tinctures, edibles, and distribution of medical and adult use marijuana in compliance with the laws of each individual state.MCOA provides a wide range of products and services all dedicated to educating and supporting its patients/members in obtaining all the benefits of a cannabis lifestyle. MCOA has developed a knowledge base complete with information from subject matter experts, medical articles and opinions, current articles, YouTube and other videos, blogs, and industry news and papers. MCOA is dedicated to transferring knowledge to its patient/members to allow them to become their own advocates. MCOA will provide comprehensive information on popular and rare strains, and other processed products that will be available through the MCOA club. MCOA will track industry and consumer information and post to their social media and online knowledge base.After completing its due diligence, Marijuana Company of America announce on March 22, 2017 that it entered into a binding joint venture agreement with GateC Research, Inc. ("GCR"). The purpose of the agreement is to engage in the cultivation of legal marijuana in Adelanto, California. MCOA will invest cash and stock in a newly formed entity, and receive a 50% equity and share in the net profits produced in the joint venture in Adelanto, California, where GCR owns a permit for cultivation.A three-person board of managing members will oversee operations of the newly formed entity. GCR will contribute its expertise in marijuana cultivation, as well as establish partnerships and licensing agreements that will enable the legal cultivation of marijuana in the State of California.
Donald Steinberg, MCOA President and CEO, commented, "We are excited to work with the GateC Research, Inc. team, and we look forward to strengthening our supply chain pipeline in California. We have some very exciting marketing ideas to implement as regulations allow."
"Our partners have managed many successful and legally compliant cultivation projects in California and we are looking forward to expanding our operations with MCOA's assistance into Adelanto County and starting a cultivation model that we intend to successfully replicate with MCOA," said Adam Agathakis, an Officer of GateC Research, Inc.
On March 28, 2017 the company announced that its auditors completed a two year audit of the Company's financial statements for the years ended December 31, 2015 and 2016. The audit was conducted by the accounting firm L&L CPAs, PA. The firm is registered with the Public Company Accounting Oversight Board (PCAOB), and is experienced in conducting audits of public companies in the cannabis industry.
Completing the two year audit is a very important step in successfully filing a Form 10 registration statement. MCOA's SEC legal counsel is now finalizing a Form 10 registration statement with the SEC. Once the registration statement becomes effective, and the Company's common stock is registered with the Commission, the Company will apply to uplist its trading tier with OTC Markets to the OTCQB exchange. The company’s goal is to enhance long-term shareholder value, and attract a broader and more diverse shareholder base, including more institutional investors.
Donald Steinberg, MCOA President and CEO said, "Our goal is to meet the requirements to be a fully reporting company. This is in-line with our business plan to move to a higher level stock exchange. As we continue to grow within our industry, achieving the highest level of transparency for our current and future shareholders is of paramount importance to us. With the audit completed, we are well on our way to becoming fully reporting and offering more transparency to investors and shareholders."
MCOA stock is currently trading at $.055, up from the support level of $.0433. The stock is holding on to a significant portion of the gains it made in the run-up last November of 2016 when it topped out at $.1985. Volume has backed off a bit. As for the financials, the two latest press releases indicate that revenues should begin showing up in the quarters to come, and the information should be transparent and credible. MCOA shows a market capitalization of $85.74 million, on 1.55 billion shares outstanding as of April 2, 2017. We will be updating our subscribers as soon as we know more. For the latest updates on MCOA, sign up below!Disclosure: We have no position in MCOA and have not been compensated for this article.
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