As of right now, General Cannabis (OTC:CANN) is trading at $7.35, putting the company’s stock up $2.11, or 40%, from Thursday’s closing price of $5.24. The stock has been on the rise for the past month, as investors no doubt are gathering cannabis assets about them like a squirrel storing away nuts for the winter. Why? Because as of January 1, 2018, adult use of cannabis is becoming legal in California – and this matters for General Cannabis because it just signed a huge grow facility contract in California.
On December 21, the company announced that it had signed a $955,000 two-year contract to manage a grow facility in California, and it looks like the news is paying off, with the stock being an active and steady climber throughout today’s trading now that we are only days away from the legalization in California.
This contract is the largest contract General Cannabis has ever signed and further entrenches the company within the California cannabis market, which Robert Frichtel, the CEO of General Cannabis, believes “will become the world’s largest legalized and regulated cannabis market at the beginning of the new year.” He went further to say that California “is projected to be a $7 billion state-wide market.”
This contract was a huge win for the company and marks its second major California-based project. General Cannabis expects “additional major contracts throughout the first and second quarters of 2018, which should lead to significant growth for the year.”
Revenue from this specific contract alone is expected to equal a sector of the company’s 12-month operations revenue, so it’s understandable why people would be excited about the gains of this contract.
I’d be very surprised to see General Cannabis’ stock do anything but climb in the next few months. With this contract plus its other project, the company is well placed in the California cannabis market for when adult use becomes legal in the new year. I’ll be checking back in on this stock, as well as other cannabis stocks to see what happened with them all, and you might want to check in to. Let’s go find out just how much growth this grower’s market can get.
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