Nashville, TN – The game plan for CANNAGROW HOLDINGS (OTCMKTS:CGRW) is simple. The company wants to make money in the budding marijuana industry. It has taken a unique approach to the business to ensure that it succeeds. However, as always, the question remains about whether the company has a chance to succeed or whether it is making progress already.
Authorized stock amendment
The company recently sent a clear and widely positive signal that it was serious about preserving its value. CANNAGROW HOLDINGS (OTCMKTS:CGRW) announced the reduction of its common stock authorization. It reduced the number of its authorized common stock to 500 million from 2 billion. The amendment of the common stock authorization was a positive indicator because it addresses the concern of excessive stock dilution, which usually leads to a loss of value for the existing shareholders.
Helping startups with turnkey solutions
Having gained the much-needed investor confidence, CANNAGROW HOLDINGS (OTCMKTS:CGRW) can now focus on its core operations. It is targeting the marijuana industry with turnkey solutions. The ongoing legalization of marijuana in more states in the U.S. means that more companies are entering the business yet a lot is still unknown and that is where CANNAGROW comes in and makes money. It offers solutions to help marijuana-focused companies launch and stabilize their business. There is a big demand for such solutions in the state where cannabis is already legalized. More opportunities are expected in the locations where marijuana laws are still being worked out to allow business to start.
Other players worth highlighting
In the marijuana industry, CANNAGROW HOLDINGS (OTCMKTS:CGRW) has peers such as American Green Inc (OTCMKTS:ERBB) and MJ HOLDINGS, INC (OTCMKTS:MJNE). These companies are also undergoing changes in their systems to position themselves properly in the cannabis market. American Green Inc (OTCMKTS:ERBB), for instance, recently announced that it was selected to manage Urban Hills’ cannabis site in Nevada. The deal is expected to fetch $20,000 in revenue per month for American Green.
MaryJane Group Inc (OTCBB:MJMJ) is also making inroads in the nascent cannabis industry. The company recently updated on its financials whereby it said its gross profit increased to 43% of revenue in the most recent quarter from 23% in the previous one.