Solis Tek Inc (OTCMKTS:SLTK) About To Breakout

Solis Tek Inc (OTCMKTS: SLTK), the marijuana stock that we featured in June, 2017, has delivered again interesting news. Its new innovation is a lighting controller enabling cannabis growers to monitor their garden's lighting environment.But, that's not all.The company is really working on public awareness.Its directors have presented products at many business exhibitions including the Annual Cannabis World Congress & Business Expo and the MicroCap Conference.The market does not seem to be responding to the good announcements. The recent share price dynamics shows that the price is stuck between the $1.0 and $1.5 share price levels.It seems like a consolidation movement and is difficult to say when the demand for the stock will finally push up the stock price.Have a look at it before we provide the more details: 1 month chart for SLTK 1 month chart for SLTKFor those who don't know, SLTK is focused on providing advanced & efficient lighting products to cannabis producers. After the legalization of some forms of medical marijuana, the demand for marijuana stocks as well as for SLTK’s products has increased. The returns of the whole marijuana industry have been astonishing. We encourage readers to have a look at other cannabis articles on this site.Recent DevelopmentsAs said earlier, the company has presented its products at several conferences. The following were the most significant:

• On June 15, 2017, Alan Lien, Co-Founder, Chairman and President of Solis Tek, presented "Light Science in the Grow Room" at the 4th Annual Cannabis World Congress & Business Expo.
• Dennis G. Forchic, Chief Executive Officer, and Alan Lien, Co-Founder and President, presented live at VirtualInvestorConferences.com on August 3, 2017.
• The presentation named "The Latest in Cannabis Investing", was also shown on Thursday October 5, 2017.

We appreciate the initiatives, as the company is working on public awareness, which is very good in the long term. In this particular case, nothing very sensitive was said in the conferences, as the share price did not react to them. But, we encourage readers to be alert when such events are live, because they can create a large amount of market volatility.The following were the operating developments.On June 15, 2017, the company announced the launch of its Nutrient Line. These new products contain natural ingredients to help growers increase yield, lower costs and ultimately grow healthier plants.Terpenez™, the first product of this new line, was featured with the following words in the press release:

"It is an organically derived, commercial grade essential oil intensifier blended in California. It is designed to naturally increase the terpene profile of the cannabis plant and enhance the aromatic experience associated with gardening. Terpenez™ identifies the plant's terpene profile and uses natural ingredients to increase the terpene levels, thus enhancing the plant's innate characteristics." Source

We believe that creating a new line of marijuana products is a great step, as the company will finally be able to profit directly from the marijuana industry. We agree with Dennis G. Forchic, CEO, when he said that the company will be able to use the expertise and know-how accumulated while working with marijuana growers. We believe that it is a smart corporate move. On July 19, 2017, more information was given about Terpenez™. It was highlighted that A & L Western Agricultural Laboratories, Inc., a third-party, had tested the product and noted that it does not contain heavy metals. Additionally, it was released that Terpenez™ does not contain cannabis derived terpenes and is only made using "the finest natural components available." Dennis G. Forchic, CEO of Solis Tek, said the following:

"The testing results confirmed the absence of heavy metals thus making it safe for all agriculture uses. Terpenez was developed to provide cannabis growers with a product which uses natural ingredients to help growers not only increase yield and terpene profiles, but ultimately grow healthier plants." Source

Additionally, for the first time, the company provided information about the size of the nutrient/additive sector; $32 Billion nutrient/additive sector. We believe that this is the most significant information for market participants. It shows that the new opportunities are large.On August 14, 2017, the company release its second quarter results, which created a large market reaction. The most interesting was that the top line of the P&L increased 15% over the same period in 2016. The company reported a revenue of $2.44 million. Additionally, the gross profit was also up by 15% over the same period in 2016. Finally, the gross margin was outstanding; 37.7%.On September 13, 2017, more good news were released. Another third party, Light Laboratory Inc., had conducted an independent photometric testing, in which Solis Tek's Digital Lighting had scored highest in terms of overall value for cultivators.According to the study, the Solis Tek All-In-One A1 was able to provide the highest photosynthetic photon flux density (PPFD), which is "the quantity of light that arrives at the plant canopy". It means that it is one of the best tools in the market for marijuana growers to create the best environment to increase yield.The study evaluated photosynthetic photon flux density (PPFD), which measures the quantity of light that arrives at the plant canopy and how plants "see" and "absorb" light. According to the study, the Solis Tek All-In-One A1 fixture had the best light output, providing a high-intensity and a more consistent footprint. To cut a long story short, Alan Lien said the following about the results:

"The research conducted by Light Laboratories conclusively proves that any grower concerned about quality, yield and cost should be using our lights." Source

Finally, on October 17, 2017, the company noted the availability of its lighting controller, which enables commercial growers to harness more control of their garden's lighting environment. This new tool enables marijuana growers to take more control and helps increase yield and ROI.We believe that the most significant said in the press release is that growers will not be able to find a similar tool anywhere else. According to the company, its level of versatility cannot be found in the market. Users can, for example, run lights on different time periods or change light intensity during a particular period.ConclusionCurrently trading with a market cap of $51.7 million, SLTK is an exciting story among small caps. With $0.4 million in cash, $3.4 million in assets and only $2.1 million in total liabilities, the financial situation is another thing to like.To sum up, keep a close eye on this name, as it is opening business opportunities and has assets to finance them. The stock price is due to breakout anytime now.Be sure to check out our coverage on SLTK!We will be updating our subscribers as soon as we know more. For the latest updates on SLTK, sign up below!Image courtesy of R. Crap Mariner via FlickrDisclosure: We have no position in SLTK and have not been compensated for this article.