Bayport International Holdings Inc (OTCMKTS:BAYP) shares were flat on Thursday but could be poised for more upside as it shows interest in the cannabis industry. The company has a market cap of $350K at 1.75 billion shares outstanding.
Bayport International Holdings is a multi-faceted holding company with proposed operations in strategic metals and precious minerals and energy production. Its main focus is on precious metals, rare earth and other critical strategic metals, and is primarily involved in acquisitions of oil and gas interests and mining properties. It also delves into the commercial exploitation of various oil and gas opportunities by acquiring and commercially exploiting various prospective oil and natural gas properties throughout the Northeastern and Midwestern United States primarily in Texas and Pennsylvania.
However, the company has shown increased interest in the cannabis industry, which is projected to grow to a $20 billion market by 2020, owing to the approval of medical or recreational use of marijuana in several states during the November 8 elections. A number of other companies are also leveraging their facilities in investing in this potential boom, including Bayport International Holdings.
Earlier this month, Bayport International Holdings announced that James Porter has made the decision to retire and is stepping down as President to give way for Clay Franks as new CEO. “Due to the current business climate, attractive oil and gas deals are minimal at this point and we feel that it is in the best interest of the company and our shareholders to go in a completely new direction,” remarked Franks.
“On October 10, 2016, we put out a press release stating that we were looking for reverse merger and/or acquisition candidates and we’ve been pleased with the response. A couple of the opportunities that have been presented to us are intriguing and we plan to take advantage of some of those opportunities in the very near future,” Franks continued. “The timing could not be more perfect for a change in direction. We have very little debt on the books. Our share structure has recently stabilized and the opportunities we’ve been presented have tremendous upside. We ask for your support during this transition and we look forward to sharing more on our future business strategy in the next few days.”
This underscores the company’s plans to diversify out of the slowing oil and gas industry, which has been weighed down by declining oil prices over the past couple of years. Still, the company could see some upside following an expected OPEC oil output deal, but it could take longer for the industry to rebound. In the meantime, it makes sense for Bayport International Holdings to have a stake in an industry that could enjoy its strongest gains in the near-term.
“The cannabis industry for the most part is still in its infancy. Multiple states already allow medical marijuana and several now allow recreational products as well. One of the options we’ve been presented has staying power for the long term and the risk vs reward if off the charts. We are excited about what we’ve seen to date and feel strongly that a separate division focused on the cannabis industry will create a long term benefit for the company and our shareholders,” Franks explained, confirming that they are looking into multiple acquisitions in the cannabis space.