Greengro Technologies Inc (OTCMKTS:GRNH) shares slipped 16.52% on Friday and were flat in after-hours trading. Share prices have been trading in a 52-week range of $0.02 to $0.16. The company has a market cap of $27.88 million at 307.34 million shares outstanding.
Cannabis shares have been under the spotlight over the past few weeks leading up to the polls, as nine states are set to vote on the legalization of cannabis in either recreational or medical use. A yes for California and Nevada would already represent a huge upside potential for the market, for which Greengro Technologies is nicely positioned.
Greengro Technologies Inc is a company that provides green technologies focusing on indoor and outdoor agricultural science systems serving both the consumer and commercial farming markets. In particular, it provides manufacturing and sale of vertical cultivation systems and facilities design. Its operating divisions include GRNH, Vertical Hydrogarden, Inc, and BP Gardens.
Apart from that, Greengro Technologies Inc provides design and consulting services to all agricultural divisions, including legalized Cannabis operations, sharing knowledge on designs and systems to maximize production for every crop cycle.
Vertical Hyrdogarden is a supplier of green agriculture products, including hydroponics, advanced nutrients, and vertical cultivation technology systems design and sales and also offers leasing and finance solutions, operational and maintenance consulting, and planning services. Meanwhile, BP Gardens uses methods to protect crops from detrimental environmental elements while generating market ready leafy green produce year-round in any climate.
Among cannabis shares, Greengro Technologies is one of the old favorites owing to its high liquidity and strong insider interest. Apart from its cannabis-related offerings, the company is also constructing multi-acre greenhouse facilities within which its franchisees can grow lettuces. These greenhouses come fully equipped with Greengro’s proprietary growing technology which can produce up to nine million heads of lettuce per year, with an average market rate of $0.75 / unit.
In addition, the company just announced a $7.5 million franchise deal for one of its lettuce grow houses to Ohio-based FoodRaiser Corp, which has greed to raise the funds for the agreement over the next six months. Now this should keep the company afloat and liquid for the foreseeable future while it seeks to leverage its position in the cannabis space. Greengro Technologies is already setting up another subsidiary called Cannabis Ventures Inc Glass Greenhouse Franchise / Cannabis Sector based on its lettuce-franchising system but targeted for the marijuana industry.
Greengro Technologies offers take-off purchase orders that see it absorb up to 100% of the produce grown in the facilities at market rate, which when applied to the cannabis industry could offer a lot of revenue.
If the operation can generate nine million heads of lettuce, the production of a comparable amount of cannabis is expected to be a game changer, not only for the grower but for the thriving local retail market. With loosening legislation, production demands are increasing and like Tier 1, purchase orders accompany this franchise opportunity,” Greengro Technologies shared in a company update.
After all, the company sets up the facility, fills it with its tech, and the franchisee oversees the growing process and if the November 8 elections favor the industry, there will be a huge jump in demand for grow facilities, as well as the finished product.