ZEREZ HOLDINGS COM (OTCMKTS:ZRZH) Enters Cannabis; What's The Play?

The cannabis space is hot right now, and companies pretty much across the board with links to recreational and medicinal marijuana are picking up boosts in market capitalization on expectations of them attracting a portion of the forecast revenues towards their own balance sheet.One that just hit our radar is ZEREZ HOLDINGS COM (OTCMKTS:ZRZH). The company just entered the space by way of what amounts to a reverse merger with a grow operation called Next Generation Farming. Right now, there's very little available to go on as far as operations are concerned, but the company is attracting significant volume and is up substantially over the last couple of days, so it's well worth investigating to identify any potential for further upside.Let's take a look.So, since Zerez looks as though it's going to be operating solely through its Next Generation Farming brand, at least for now, we'll focus on that. The company bills itself as a provider of turnkey commercial greenhouse and operations systems. Specifically, and by way of the latest press release from Zerez, these systems are targeting the cannabis space, with the greenhouses and operational technology aimed at optimizing hydroponic marijuana growth.The Next Generation website is pretty sparse right now, although Zerez management made a point of saying this is about to change on the back of the takeover, with social media, front facing communications etc. all in the process of being updated. With this said, there's a bit of insight to be gained from what's available. Basically, the company offers greenhouse design services, which it is going to apply to the cannabis growth sector, and a system called light deprivation, which relates to what's called automated blackout. Cannabis growth requires pretty tight light control, and part of this control involves total light deprivation for a certain period. It looks like Next Generation is building this facility into its greenhouses, and then allowing growers to control the whole thing by way of mobile device based application. The application is in closed Beta right now, and on release, it should be compatible with iOS and Android, and able to provide access to environmental controllers, irrigation systems and soil testers, as well as allow users to receive push alerts if sensors stop reporting.On November 2, the company put out a release addressing new ownership, management, direction, and the above mentioned acquisition. This all sounds pretty good, but what's happening on the operational side of things?This is where things get a bit more attractive.The company is working on a greenhouse build in California, and we see this as the potential value driver near term. It's only a single greenhouse, but if the company can get it up and running, it will serve as a proof of concept with which the Next Generation sales team can go out and bid for contracts. There are some other constructs elsewhere, but none with the technology built in that the company is pitching as part of the new application driven houses. With the company being pretty much brand new in the space, having this in place is very important, and it gives us some degree of confidence that there is a team out there working under the brand to add value. In the current cannabis space climate, this cannot be said for a decent portion of those that have picked up market capitalization boosts on the back of some tenuous link to recreational legalization.There's a blog detailing this build here, well worth checking out for anyone looking for a bit of substance to underpin this suggestion.From a financial perspective, we're basically in the dark, and this adds to the risk side of the equation considerably. Zerez is updating its filings as we right this, so with any luck we should get a little more insight near term.Bottom line here is that this one is a risky play, but it's new to the game, and could pick up some speculative attention from those looking to diversify across the space. When it does, its market cap should rise, and as a short term momentum exposure, this makes it pretty attractive.We will be updating our subscribers as soon as we know more. For the latest updates on ZRZH, sign up below!Disclosure: We have no position in ZRZH and have not been compensated for this article.