GSRX Industries (OTCQB: GSRX), a cannabis stock developing vertically integrated operations in Puerto Rico, California, and other markets, announced that it has entered into a Final Asset Purchase Agreement with Dispensarios 420, LLC to acquire the fully-licensed Dispensario 420 medicinal cannabis dispensary located at Carr. #1 Km 30.9 Plaza El Retiro Local 3 & 4, Caguas, PR 00725. The Company anticipates completion of the purchase during the third quarter, as well as rebranding/renaming the dispensary Green Spirit RX.
Why It Matters: There are only a limited number of licenses available in Puerto Rico, and GSRX has a strong start to building the dominant medical cannabis dispensary brand on the island, which is estimated to have a potential market value of $500 million annually. Combined with its operations in California, which also include majority-owned partnerships for growing, cultivation, and manufacturing, GSRX has built a strong foundation for long-term growth.
What’s Next: GSRX has plans to rapidly scale its business in the months and quarters ahead. To learn more about its strategy and long-term potential, watch our exclusive webinar with CEO Les Ball: https://www.redchip.com/events/28/gsrx-industries-webinar/gsrx
Disclosure
GSRX Industries (OTCQB: GSRX) is a client of RedChip Companies. RedChip Companies, Inc. received 1,000,000 registered shares of GSRX for consulting services and 50,000 shares for investor awareness services. Be advised RedChip intends to sell some or all of its shares at any time, including when you are buying.
Comtech EF Data Corp., a subsidiary within Comtech Telecommunications Corp.’s (NASDAQ: CMTL) Commercial Solutions segment, announced the introduction of new Durostream AHA725 and AHA723 WAN Optimization appliances with packet protection from its AHA Products Group. The AHA725 model is packaged in a 1RU rack-mountable chassis and supports WAN data rates up to 1 Gbps. The AHA723 is the compact form factor model that supports WAN data rates up to 50 Mbps.
The Durostream WAN Optimization solution provides a resilient, full-duplex, point-to-point survivable tunnel that dynamically adapts to network conditions to maximize throughput and minimize latency. The products address the challenge of packet loss on unreliable networks when streaming video or transmitting time-sensitive data.
The Backstory: Comtech Telecommunications Corp. designs, develops, produces, and markets innovative products, systems and services for advanced communications solutions. The Company sells products to a diverse customer base in the global commercial and government communications markets.
Key Quote: “Our Durostream product line enables the use of unreliable existing network infrastructure for broadcasters, enterprise and government users.” Joel Bifford, Sales Manager for AHA Products.
OFG Bancorp (NYSE: OFG) announced its Board of Directors declared a regular quarterly cash dividend of $0.06 per common share for the quarter ending September 30, 2018, payable on October 15, 2018, to holders of record on September 28, 2018, with an ex-dividend date of September 27, 2018.
The Backstory: Now in its 54th year in business, OFG Bancorp is a diversified financial holding company that operates under U.S. and Puerto Rico banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services and technology, primarily in Puerto Rico.
Appian Corporation (NASDAQ: APPN) last week announced the pricing of an underwritten public offering of 2,000,000 shares of its Class A common stock, of which 1,675,000 shares of Class A common stock are being offered by Appian and 325,000 shares of Class A common stock are being offered by existing stockholders of Appian, at a price to the public of $35.15 per share. Appian will not receive any of the proceeds from the sale of shares of Class A common stock by the selling stockholders.
The offering is subject to satisfaction of customary closing conditions. Appian has granted the underwriters a 30-day option to purchase up to an additional 300,000 shares of Class A common stock from it at the public offering price, less underwriting discounts and commissions.
The Backstory: Appian provides a leading low-code software development platform that enables organizations to rapidly develop powerful and unique applications. The applications created on Appian’s platform help companies drive digital transformation and competitive differentiation.
Galaxy Next Generation (OTC: FLCR), a U.S. distributor of interactive learning technology hardware and software that create fully collaborative instructional environments, announced an agreement to supply Total Package Hockey (“TPH”) with its 86” SAM series G2 touch-screen panels. TPH, one of the largest hockey service providers with a track record of moving players to junior, college, and professional hockey, uses the Galaxy SAM series G2 panels to provide their elite hockey student athletes with continued development and review training.
Why It Matters: While Galaxy predominately serves education institutions, this latest agreement showcases the broader potential for the company’s innovative learning technology.
Key Quote: “The SAM series G2 panels were the obvious choice for our student athlete development. This state-of-the-art technology allows for higher efficiency classroom training, and the results are clear, on and off the ice.” – Brad Schell, Director of Hockey for TPH Atlanta.
What’s Next: Galaxy expects to grow revenue 200% in the current fiscal year ending June 30, 2019. They’ve previously reported an opportunity pipeline of $10 million and are in the midst of what is normally a high-volume sales period for the company. If Galaxy achieves its sales goal of $20 million to $22 million for fiscal year 2019, it’s expected to report net income of approximately $3 million.
Disclosure
Galaxy Next Generation (OTC: FLCR) is a client of RedChip Companies, Inc. FLCR agreed to pay RedChip Companies, Inc. a monthly cash fee for 4 months of investor awareness services.
A cannabis-related ETF was among leaders in the markets Monday as Canadian pot stocks rallied amid rising speculation that more alcohol companies will be partnering up with marijuana growers in response to Canada's move toward legalization.
The ETFMG Alternative Harvest ETF (NYSE: MJ), first U.S.-listed ETF to target the cannabis and marijuana industry, jumped 6.2% Monday. MJ has surged 36.2% since its August 14 lows.
Leading the charge Monday, Tilray Inc. (NASDAQ: TLRY) shares advanced 29.0%, Cronos Group (NASDAQ: CRON) increased 24.3%, Aphria (TSX: APH) gained 13.9% and Aurora Cannabis (TSX: ACB) rose 7.1% as beer and liquor producers consider partnerships with the pot industries.
For example, Diageo Plc, the maker of Guinness beer, is holding discussions with at least three Canadian cannabis producers over a possible deal, Bloomberg reports.
Earlier in August, Constellation Brands, the maker of Corona, announced it would invest $3.8 billion in Canopy Growth Corp.
Molson Coors Brewing Co. is also starting a joint venture with Hydropothecary Corp. to make cannabis-based drinks.
Heineken-owned Lagunitas began a THC-infused sparkling water in California, according to Investor's Business Daily.
Cowen & Co. analyst Vivien Azer argued that more alcoholic beverage companies could make deals with Canadian marijuana growers after seeing Diageo making moves into the space.
“We expect more alcoholic beverage companies to announce deals with Canadian LPs over the course of the year,” Azer said in a note.
Nutriband (OTCQB: NTRB), a pharmaceutical company developing and commercializing a portfolio of prescription pharmaceuticals, OTC's and consumer products based around the science of transdermal/topical technologies, hosted an exclusive investor webinar last week to discuss recent developments, including its acquisition of 4P Therapeutics. Investors can now view the replay of the presentation and Q&A session: https://www.redchip.com/events/30/nutriband-webinar/ntrb
Disclosure
Nutriband Inc. (NTRB) is a client of RedChip Companies, Inc. NTRB agreed to pay RedChip Companies, Inc. a monthly cash fee and 10,000 shares of Rule 144 stock for 6 months of RedChip investor awareness services and consulting services.
Small Caps Expected to Outperform Larger Cap Indexes
Shark Tank investor and CNBC contributor Kevin O’Leary sees further outperformance for the small cap space, despite the potential for easing trade tensions.
"I say there is 20 percent more cash to come to these companies in the next 24 months through tax reform, so I am staying on this trade. I am betting they continue to outperform not only the S&P, but maybe even emerging markets. There is tremendous value to be unlocked in small caps in America," O'Leary said on CNBC's "Power Lunch."
"For the next two years, the full impact of tax reform will play out in enhanced cash flows in small caps, because what we have seen now is primarily driven by deregulation .... That's why you are starting to see this momentum," O'Leary said.
Brinker Capital global investment strategist Tim Holland acknowledged declining trade tensions "may take some of the bloom out of the small-cap rose," but he also said small caps have numerous other tailwinds to fuel their growth.
Despite his optimism, Holland warned the markets as a whole — small caps included — may experience a pullback in the coming months due to seasonal weakness in the equity markets, Federal Reserve rate hikes and special counsel Robert Mueller's investigation.
Quote of the Week
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