General Cannabis Corp. (OTCQX:CANN) is on a roll. At least, it has been for the past two weeks. Last week, after releasing a positive earnings report for Q2, CANN stock jumped 12%. Today, August 19, the cannabis stock is up nearly 20%. And here's why.
The Latest General Cannabis Acquisition
On Monday, General Cannabis announced that it has entered into a non-binding term sheet for the acquisition of a licensed cannabis retailer in Denver, Colorado. This acquisition, of course, is not the first cannabis operation in Colorado that General Cannabis has had its eyes on; the company's recent interest in cannabis entities in the state comes from the fresh signing of Colorado House Bill 1090.
“Colorado has been the national leader in legalized cannabis sales," said Michael Feinsod, CEO of General Cannabis Corp. "With statewide trailing twelve-month retail sales of over $1.5 billion, we believe Colorado cannabis cultivators and retailers are poised to take advantage of this new significant access to the public capital markets."
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But it's not all speculation and hope that cannabis companies in Colorado will benefit; CANN knows what this acquisition will do. First, it will bring the company's skill set to North Denver. It will also give the company a well-located business, ultimately providing another piece to its expansion strategy. "This facility would pair us with another operator and expand our customer base, allowing us to leverage our skillset as HB-1090 is implemented," explained Feinsod.
It seems the market agrees with the importance of this acquisition, which is the company's fourth licensed Colorado cannabis operator it has announced to acquire.
According to Yahoo Finance, as of 11:15 AM EDT, CANN stock is trading at $1.1301 on the OTCQX; this puts CANN stock up 18.95%. On top of the trading week the stock had last week, this nearly 20% jump is the icing on the cake for CANN stock investors.
Takeaway
What do you think about the success CANN stock has had the past few trading weeks? What do you think of the acquisition?
Let us know your thoughts in the comments below!
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