CANNAGROW HOLDINGS (OTCMKTS:CGRW) is currently waiting for the final approval of a new grower facility in Huerfano County, Colorado. The company has already made some positive steps towards the acquisition of the facility, clearing the way for it to make a non-refundable deposit to schedule delivery.
Opportunities for CANNAGROW HOLDINGS (OTCMKTS:CGRW) are expanding, and the company may need to make more facility acquisitions to meet the demand for cultivation properties. Not only are more states moving to legalize pot, but pros have also started throwing their weight behind legal marijuana.
Pros exciting marijuana industry
A venture capital firm known as Founders Fund, which is associated with former PayPal CEO, Peter Thiel, recently made a surprising investment in a marijuana company known as Privateer Holdings. According to Founders, push for broader legalization of marijuana is not slowing down. The fund did not reveal the size of its investment in Privateer, but the amount is believed to be a multi-billion dollar investment.
While CGRW was not a direct beneficiary of the Founders marijuana investment, the company is poised to benefit as pros pour money into cannabis companies. In addition to heavy-weight investors, such as the $2 billion Founders Fund, jostling for a slice of legal marijuana, other influential personalities have also continued to throw their weight behind legal cannabis. These developments pave the way for CGRW to sign more property leases as more companies enter the legal marijuana industry.
Improving shareholder value
Besides expanding capacity, CANNAGROW HOLDINGS (OTCMKTS:CGRW) has also been working to improve shareholder value. The company amended its common stock authorization, cutting the number to 500 million shares from 2 billion shares. The changes were effective December 4, 2014.
The company has also continued to attract a competent team of professionals to support its growth agenda in the legal marijuana field.
Share price and cash concerns
Shares of CANNAGROW HOLDINGS (OTCMKTS:CGRW) have risen more than 100% so far this year. Although investors have continued to bet on the stock of CGRW, driving shares up significantly, the company’s $3,858 cash position in the latest report raises cash shortage concerns.