Signal Bay Inc (OTCMKTS:SGBY) Is Today's Cannabis Focus

Signal Bay Inc (OTCMKTS:SGBY) is one of the biggest winners for penny stock investors this year. Shares have made an epic run from triple zeroes to $.03 a share in just two and a half months time. This comes as the company is embarking on a major expansion and experiencing strong revenue growth. As we take a closer look, could the bull run in SGBY just be getting started?First up, a little background on Signal Bay. Signal Bay Inc, through its subsidiaries Signal Bay Research, Signal Bay Services and EVIO Labs, provides advisory services, operational management and analytical testing services to the legal cannabis industry. Signal Bay operates state-of-the-art testing facilities and offers reliable testing methodologies that ensure the safety and potency of the nation’s cannabis supply. The company is lead by CEO William Waldrop and President Lori Glauser. Waldrop is an expert in state marijuana regulations and has worked with Electrum Partners in the management and preparation of state license applications for Nevada Medical Marijuana Establishments. Glauser previously consulted for Electrum Partners as well.The move higher got started in July after Signal Bay announced that the company had exceeded 700 total business accounts. According to CEO William Waldrop, “The last few months have been a whirlwind of activity. Recently, we surpassed the 700 account milestone and due to an increase in additional services being requested, our average annual revenue per account has jumped considerably. A cursory review suggests that we should average well over one thousand dollars per account on an annual basis." This puts the company on a $700k revenue run rate based just on its existing customer base.Signal Bay has been refining its procedures and protocols with any eye toward expansion. The company has been able to streamline its business operations, which allows for scalability. The goal is “turn-key” labs that can be up and running quickly as new markets come online as a result of new marijuana legislation. Another advantage for Signal Bay is that the company offers reliable and trusted testing and consulting services that have become a requirement in the cannabis industry. Signal Bay provides a quick turnaround time that is critical for its customers. Combine that with accurate, detailed results and Signal Bay has quickly become one of the “go-to” options in the cannabis industry.The first step for Signal Bay in this regard is an aggressive push into the Portland, Oregon market. This is a natural progression for the company since its based in nearby Bend, Oregon. As part of the company's push into Portland, the company intends to purchase its fifth cannabis testing laboratory located in Portland, Oregon. Signal Bay also hired Ronnie Schmidt, a former General Manager for multiple Portland area dispensaries as a Sales & Marketing Director. CEO William Waldrop said:

"Today we ramped up our plans for growth by signing a letter of intent to purchase an already existing testing facility in Portland.vWith this one strategic move, the 90-120 day window we had in place for opening a facility in this market has virtually been eliminated. This acquisition also adds hundreds of already existing accounts to the Signal Bay portfolio. Add Ronnie Schmidt to the mix and all of this combined has us convinced that we are going to capture significant market share in Portland and the surrounding communities. He brings a wealth of experience to the table and a vast network of business contacts in the Portland market. In conjunction with that strategic hire, we had planned to process any and all accounts established by Ronnie through our existing facilities until such time that we could open the doors on an entirely new location in Portland. As of today, that plan has changed significantly for the better.”

Last month, Signal Bay announced that it was acquiring an additional cannabis testing laboratory in Northern California. This is a smart move for the company just as recreational marijuana legalization is on the November ballot in California. Northern California is already the largest cannabis market in the world and the new lab will add well over 500 existing accounts for Signal Bay.Currently trading with a market cap of just under $14 million, SGBY has quickly become a microcap runner for our subscribers that got in early. We still see more room for the stock to run, especially when you consider that the company reported just $125k in revenues last year and is on track to doing over $700k in revenues just off its current customer base. This makes SGBY one of the fastest growing small caps in the marijuana space. Investors can also rest easy because CEO William Waldrop has stated:

"In our opinion, the company is undervalued, so let me put this rumor to rest once and for all . . . we have no plans in the foreseeable future for a reverse split . . . period, and we will only increase the number of common or preferred shares of our company with the interest of the business and shareholders in mind. I want to reassure our shareholders that as we grow, we want your share value to grow right along with us."

We will be updating our subscribers as soon as we know more. For the latest updates on SGBY, sign up below!Disclosure: We have NO position in SGBY and have NOT been compensated for this article.