This Is Why Pazoo Inc (OTCMKTS:PZOO) Is Flying High

Pazoo Inc (OTCMKTS:PZOO) has seen a surge of more than 200% in its share price over the past few weeks, supported by some huge volume. The rally has helped pull the stock from all-time lows, after feeling the full effect of short sellers, for the better part of the year.However, the stock is still trading in a downtrend after underperforming the overall industry this year. The company’s sentiments on Wall Street have taken a hit on the lack of press releases since May, which made it impossible for investors to ascertain its long-term prospects. PZOO Daily ChartPazoo Inc. is currently trading in a $0.0011-$0.0027 trading range with a 52-week range of between $0.0002 and $0.15. The stock recently spiked to $0.0014 as investors reacted to positive news after months on the dark, trading volume has also received a boost and currently averages 81.8 million.Before we look into details of what might have caused the recent spike let us focus on what Pazoo Inc. does.Pazoo Inc. BusinessPazoo Inc. is a health and wellness company engaged in the online retail of nutritional foods, supplements, wellness goods and fitness apparel. The company runs an online advertising website that targets people and their pets. On the website, Pazoo.com, expert’s blog on health and wellness thus disseminating information on trends as well as developments and industry facts.Pazoo also distributes videos and articles on health and wellness with the aim of disseminating information on new health concepts. The company’s website also delivers health and wellness content through a wide range of media outlets including social media.In addition, the company provides pharmaceutical testing and laboratory testing services to the medical cannabis industry. It also provides marketing and sales agent services for the distribution of non-controlled hemp products.Pazoo Inc. Breakout Pazoo Inc. stock has spiked to life after being on the receiving end for months. An 8-k filling appears to have caught investors’ attention thus triggering the recent Bull Run. Pursuant to a certain Limited Liability Company Membership Interest Purchase Agreement, the health and wellness company has agreed to sell a 70% stake in its wholly-owned subsidiary MA & Associates LLC.MA analytics, an entity owned and managed by Pazoo lender Mark Sarna, is the one acquiring the stakes. The agreement also has a provision in which MA Analytics can acquire an additional 10% stake over the next 18 months at a 4% to 10% valuation premium.

“The sale was based on an enterprise value of MA & Associates LLC of $2,176,810. The purchase price for the purchased interest was $1,523,767, of which $492,227.30 was paid in the form of cash and $1,031,539.70 in the form of the retirement of outstanding loans, including accrued interest, made by Mark Sarna to the Company,” Pazoo in a regulatory filing.

With the sale, Pazoo Inc. has obtained projected funding needed to open and begin operations of MA Associates LLC in Las Vegas. The transaction also relieves over $1 million dollars in debt which constituted part of the 70% stake acquisition. Opening of the lab is slated for the first quarter of 2018.In anticipation of the opening of the lab, Pazoo Inc. has added a new lab director, and compliance officer to its staff.The sell has helped relieve a long-standing sell-off pressure that continued to push the stock to lower lows. The sell has also strengthened trading volume in the stock, as investors continue to jostle for positions in a bid to generate some returns.However, the 70% stake sale comes as a surprise given that MA, & Associates LLC is an entity that provides Pazoo with exposure to the fast-growing marijuana business. In May, the unit recorded its first transaction resulting in first revenues in the state of Nevada.In June, the wholly owned subsidiary achieved yet another important milestone after being approved for a dual-use license by the city of Las Vegas. The unit currently operates as an in independent medical marijuana medical laboratory where it also processes recreational marijuana samples.

"We are especially pleased with this approval since the City of Las Vegas and the State of Nevada have very stringent testing guidelines and by being granted this approval for both medical and recreational cannabis we are now proving the quality of our laboratory," said David Cunic, CEO. "This is a major step forward for the Company and its investors."

Bottom LineThe sale is expected to strengthen Pazoo cash balance, which currently stands at $103,000. However, it waits to be seen how the stock will trade going forward given that the company is still in the red when it comes to debt holdings. Fillings indicate that the company has $3.1 million in total current liabilities.Debt holdings have been growing in recent quarters a position that leaves the company financially strapped when it comes to pursuing investments that have the potential to accelerate growth. A decline in revenues quarter over quarter also leaves the company in a precarious position as it may not be able to generate any positive cash flows in the near future.We will be updating our subscribers as soon as we know more. For the latest updates on PZOO, sign up below!Disclosure: We have no position in PZOO and have not been compensated for this article.