Solis Tek Inc (OTCQB:SLTK) shares haven’t been performing according to market trends. The cannabis stock plunged sharply since the start of this year, amid lower revenue growth compared to the industry trends. SLTK stock dipped 50% since the beginning of this year. Its stock currently trades around the lowest level in the last 52-weeks. Solis Tek stock has the 52-week trading range of $0.96 – $2.64 – with the market cap of $44 million.
It is a technology innovator, developer, manufacturer and distributor focused on bringing products and solutions to commercial cannabis growers in legal markets across the U.S.
The company’s revenue expansion strategies aren’t impressing investors. Its revenue grew only 5% year over year in fiscal 2017. This is compared to 100% revenue growth from other cannabis companies.
The company is currently in the phase of creating foundational work that would allow it to capitalize on increasing demand from cannabis markets.
CEO Mr. Lien said, “Throughout 2017, we completed much of the foundation work to establish our nutrient vertical, including completing development of our Terpenez essential oil intensifier, which we expect will start generating increasing revenues in 2018.”
The company has been making important changes in its management and executives to expand their strategic foot-prints. Alan Lien was appointed as Chief Executive Officer last year, and the company has appointed Tiffany Davis for the role of Chief Operating Officer.
The company has also been making small acquisitions to expand their sales growth.
The acquisition of Arizona Operator – which provides turn-key services related to the management, will expand its sales in licensed medical marijuana cultivation and processing facility in the State of Arizona.
The company has also successfully raised new capital of $2.6 million in the latest quarter to run their business expansions strategies. Solis Tek has ended fiscal 2017 with $968,000 in cash, compared with $276,000 at the end of fiscal 2016.
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