GrowBLOX: Why this Company is One to Watch this Year
I’ve been watching the marijuana sector in the public arena since inception and this year alone, there have been quite a bit of new companies entering the space. Several weeks ago I highlighted one that I feel could have very strong potential to move more aggressively into the market than others simply based on its current business strategy and relationships within the industry. GrowBLOX Sciences (G B L X) has caught the attention of the masses and has begun to carve out its own niche within the medical marijuana market.
Several highlights have included increased insider buying that actually averaged up the PPS of GrowBLOX’s investment partner, Lazarus Investment Partners LLLP, as well as obtaining a bank (First Security Bank of Nevada) that will accept deposits and clear patients’ credit cards. The latter of the two is a major step forward not only for the company but for the industry alone!
In a recent article from MainStreet.com, GrowBLOX was noted as the FIRST marijuana company to be able to do this. First Security Bank of Nevada’s letter to GrowBLOX was signed June 10, which was about a month prior to the House of Representatives vote that now prevents the use of government funds to penalize banks that provide services to legal marijuana businesses.
“It’s the bank that will divide the money into percentage for taxes and the rest into our corporate account just like with casinos where a third party counts the money,” Ellins told MainStreet.
So there’s no doubt that this is a major step forward for the company and a huge testament to the its standing within the industry. Going back to my earlier point regarding insider investment, Lazarus Investments Partners has certainly echoed positive sentiment with GrowBLOX. Not only did it buy an additional 200k+ shares in the open market at the end of the month last month but a recent filing shows that yet again, Lazarus has been active in the market with the purchase of an additional 87,077 shares from July 28-30th.
The purchase prices for these shares include 18,777 @$1.21, 54,700 @$1.2461, and 13,600 @$1.24 for a total investment through the public market of $107,745. I don’t know about you but when a financing partner reinvests through the public market versus a private transaction, that alone sheds a very positive light on the overall potential of a company in my opinion. But then you throw in the fact that this financing partner is actually averaging up in price per share…need I continue with how a major investor like this could be considering where GrowBLOX could be in the near future??
Aside from these major milestones, the company has also been expanding its footprint outside of the Nevada market and has started to build strategic partnerships in the states of Florida and Illinois in preparation for pending legalization of a general medical or recreational decision in those states. Furthermore, GB Sciences has applied for two additional licenses in the state of Nevada focusing on the 40million+ tourist population.
“We are pleased to be submitting two new applications for dispensaries in the City of Las Vegas. We believe that working with our local partners has produced strong applications and we love our chosen locations. The City of Las Vegas and the State of Nevada have created very rigorous application processes, which we appreciate because it brings the standard of operations up to a high level for our industry. We want to make Nevada our flagship market.”
GrowBLOX Sciences’ CEO Craig Ellins
GrowBLOX expects to be generating revenues from the cultivation and sale of legal medical cannabis in the second half of 2015 and despite this timing, I’m sure many would agree that laying the groundwork for a massive expansion is key to success. So far the company has demonstrated this to a T in my opinion and as you’ll see below, investor sentiment within the market could also suggest that GBLX could have strong potential to head higher:
We’re looking at a wedge pattern on the chart here. Based on its “higher lows” and potential resistance between $1.25-$1.27, this ascending triangle patter typically suggests that there may be underlying bullish momentum coming into play. With the type of activity that I’ve witnessed over the last 10 trading days, this could be set to break resistance and head higher in my opinion.
Heading into the rest of this week, I’ll be watching GB Sciences. The company has been attracting a lot of attention both from insiders and the investing public alike. They have also just recently announced the first GrowBLOX grow chamber has been shipped which signals a huge step for the company where it can now begin growing plants for its dispensaries. On top of that, the technicals have shown that there could be strong breakout potential heading into August and furthermore, additional states have also begun to throw their hats into the legalized marijuana ring offer even more opportunity for the company to expand. For these reasons, GrowBLOX Sciences is at the top of my Marijuana Company list heading into the new month.