PotNetwork Holdings Inc (OTCMKTS:POTN) is the latest cannabis stock to be running up the charts. We’re seeing a wave of new tickers that aim to capitalize on Green Rush 2.0 happening in America. This is why that in less than a month we’ve seen POTN run from just $.01 a share to $.05 today.
These types of moves are not unheard of here at Insider Financial. We’re always on the lookout for the latest cannabis play to alert our subscribers. The November ballot wins have been the primary drivers of this bull run. California, Massachusetts, Maine, and Nevada all voted to legalize marijuana for recreational use, while North Dakota, Arkansas, Montana, and Florida voted for medical use. The American public favors legalization and this is something President Donald Trump understands. All first time administrations want a second term and a war on marijuana by Attorney General Jeff Sessions would hurt President Trump in 2020.
For companies in the space, there’s big money to be made. The size of the market for legal marijuana in the United States is projected to grow to $7.1 billion in 2016, according to a report by New Frontier and ArcView Market Research. That represents 26% growth over the previous year, driven largely by adult recreational sales of marijuana, according to research cited by Forbes.
PotNetwork Holdings Inc is a publicly traded company with two wholly owned subsidiaries, Sunrise Auto Mall Inc. and First Capital Venture Co. and its wholly owned subsidiary Diamond CBD Inc.. Sunrise Auto Mall, Inc. is a first-rate pre-owned auto dealership, launched in June of 2014, as an operation geared toward enabling people challenged with bad or no credit in securing quality transportation while simultaneously rebuilding the client’s credit. The company has developed a highly profitable business model around the continually rising subprime lending industry.
First Capital Venture Co. through its’ wholly owned subsidiary, Diamond CBD Inc. is a progressive organization focused on the advanced research and development of the industry’s finest premium hemp extracts and making them available to the global marketplace. The Company’s notable team, consisting of hemp industry pioneers and natural product experts, chemists, and scientists, is dedicated to producing the finest and purest CBD oil.
The acquisition of First Capital just happened in January. This is why POTN is a virgin ticker among cannabis names and investors are just finding about the company now. Furthermore, the acquisition is a big win for POTN. Diamond CBD has been an innovative leader in this industry for years. The products are distributed in all fifty states, USA-made, and produced with CBD derived from the industrial hemp plant. Diamond CBD Oils are considered among the most powerful natural CBD E-Liquids on the market.
Since the acquisition, POTN has made considerable progress. At the 36th annual Las Vegas CHAMPS event, the company booked over $250,000 in orders for its Diamond CBD oils. PotNetwork Holding also recently announced that the Company will keep its current name and symbol designation, which suitably corresponds to the nature of the Company’s business model, as Diamond CBD continues to maintain and strengthen its position as an industry leader in the growth emerging market’s most thriving and popular sector.
Last week, POTN announced that it will be exhibiting at the popular Market Week Event in Las Vegas, NV., a notable event well-known to showcase a comprehensive collection of the world’s widest variety of popular retail merchandise in one resourceful shopping experience. Boasting 45,000 buyers from 88 countries that visit ASD Market Week each year, showcasing at this event brings thousands of ASD vendors and exhibitors within range for Diamond CBD. Of that number, 98% of attendees have major purchasing power. The average buyer spends $82,500 per show, equating to $2.8 billion annually across hundreds of product categories. 88% of event buyers are domestic and 12% are international.
Currently trading with a market cap of $4.6 million, POTN is an exciting story among small caps. The one concern we have is that the company is going to need to boost its financials. While it did elect to not pursue a $2,000,000 line of credit, we want to see confirmation of Diamond CBD oil orders turning into revenues. The last financials on OTC Markets are from the quarter ending September 2016, which showed ZERO cash, $1.1 million in total assets, and $2.6 million in total liabilities. We are looking forward to more updates regarding POTN’s finances.
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Disclosure: We have no position in POTN and have not been compensated for this article.