On Friday, small cap hemp or marijuana stocks Next Generation Energy Corp (OTCMKTS: NGMC) surged 23.08% while SGD Holdings (OTCMKTS: SGDH) and iBrands Corp (OTCMKTS: IBRC) sank 15.56% and 14.29%, respectively. Moreover, all of these stocks have been the subject of paid promotions or investor relations type of activities – meaning investors and traders alike may have experienced some artificial highs that will force their investments into rehab. So will these three small cap hemp or marijuana stocks keep giving off a high or will they hit new lows? Here is a quick reality check:
Next Generation Energy Corp (OTCMKTS: NGMC) Now Has a Marijuana Dispensary in Hollywood
Small cap Next Generation Energy Corp is a holding company specializing in oil and natural gas assets that has approved a plan to redirect resources and to focus its core business on the fast growing medical marijuana industry. On Friday, Next Generation Energy Corp rose 23.08% to $0.032 for a market cap of $7.31 million plus NGMC is down 63.5% over the past year and down 93.6% since December 2010 according to Google Finance.
What’s the Catch With Next Generation Energy Corp? According to various disclosures, transactions of $10k and $35.5k have or will occur to mention Next Generation Energy Corp in various investment newsletters. On Friday, Next Generation Energy Corp announced that its wholly owned subsidiary, NextGen Cannabis Consulting, LLC, had executed a lease for a new medical marijuana dispensary in Hollywood. The dispensary should be open to patients by June 1 with the CEO commenting:
“We will continue to seek out additional locations as part of our aggressive strategy to open multiple dispensaries in Southern California. The opening of this new dispensary will allow NGMC to implement our Dispensary Manage System (DMS), which we have spent a great deal of time and effort planning. This includes a full suite of cannabis management software that provides seed to sale inventory control, point of sale and financial reporting. Our systems will meet or exceed current California rules and regulations. NGMC will also implement a state of the art audio/video security system and 24 hour monitoring.”
In mid April, Next Generation Energy Corp announced it had retained a prominent California law firm whose varied areas of practice include significant knowledge and background about the medical marijuana industry while at the end of March, the company announced that Nextgen Cannabis Consulting, LLC, would purchase 20% of the Capital Stock of Greens R US, Inc – a private company that operates a medical marijuana dispensary in Los Angeles. It was in early March that Next Generation Energy Corp had announced it was redirecting resources with plans to focus on the acquisition of retail and cultivation licenses throughout North America, as well as the development of a national brand. A quick look at Next Generation Energy Corp’s financials reveal revenues of $1k (most recent reported quarter), zero, zero and zero along with a net loss of $3,532k (most recent reported quarter), net income of $443k, a net loss of $1,725k and net income of $13k. At the end of December, Next Generation Energy Corp had $1k in cash to cover $896k in current liabilities.
SGD Holdings (OTCMKTS: SGDH) Is Into Hemp Paper Products
Small cap SGD Holdings’ Eco Paper, Inc has created a way to use post-consumer and agricultural waste as paper using no chemicals, less water, and inks made from vegetable oil and soy. In addition, Eco Paper, Inc’s Ecopaper.com has been marketing and distributing Hemp Paper Products for over 12 years. On Friday, SGD Holdings sank 15.56% to $0.0494 for a market cap of $5.02 million plus SGDH is up 84.3% over the past year and up 6,075% over the past five years according to Google Finance.
What’s the Catch With SGD Holdings? According to various disclosures, transactions of $15k and $22k have or will occur to mention SGD Holdings in various investment newsletters. Last Thursday, SGD Holdings announced today that on April 24, the company fully intends to continue its involvement in the marketing and distribution of Hemp Paper Products in the United States and around the globe. The CEO commented that Ecopaper.com was involved in this industry before it was popularized by the recent moves to legalize the use of Cannabis and the use of Hemp for Industrial purposes. He added that:
“All of these current changes are very exciting to us and we are closely monitoring the progress that is being made at the federal level to remove legal barriers in regard to the domestic cultivation, transportation, and processing of hemp products. With the recent passage of the 2014 Farm Bill another step has been taken, and as a country we are that much closer to the complete legalization of domestic hemp production. Ecopaper.com intends to be first in line, our distribution infrastructure is already in place and I see a time in the future where the company will not have to depend on importing hemp paper products from places as far away as India.”
Other and mid April, SGD Holdings announced that on April 1, the company had completed another delivery of its bulk rolls of 100% tree free sugar cane paper which are being converted into notebooks that will end up on the shelves of a well-known National Big Box Retail Store. However, a quick look on Yahoo! Finance reveals that the most recent financials for SGD Holdings date from the end of 2011 – meaning its investor beware.
iBrands Corp (OTCMKTS: IBRC) is Thinking of Acquiring a Marijuana Business
Small cap iBrands Corp is a holding company targeting the merger and acquisition of niche Internet-based brands positioned for rapid growth through proven products. On Friday, iBrands Corp sank 14.29% to $0.0006 for a market cap of $900 plus IBRC is up 500% over the past year and down 99.4% over the past five years according to Google Finance.
What’s the Catch With iBrands Corp? According to various disclosures, transactions of $1.5k, $2k, $2.5k and $5k have or will occur to mention iBrands Corp in various investment newsletters. In mid April, iBrands Corp announced that had closed the purchase of Ottawa based Hatchbrands Ventures – a fund that specializes in making startup technology pre-IPO investments in high quality startup companies developed in accelerators and incubators found in university/college environments. Hatchbrands Ventures focuses on several themes including: 1) SaaS / Cloud Infrastructure; 2) Online Finance; 3) Data Pipeline and Data Science; 4) New Advertising Battlegrounds; and 5) Reinvention of (Online/Offline) Retail. However, it was back in late February that iBrands Corp announced the company’s interest in pursuing the “Medicinal and Legalized Marijuana sector.” The press release stated that iBrands Corp had been presented an opportunity to potentially acquire a business operating in the sector and that this had encouraged the company to further investigate several business opportunities with the next step being to initiate dialogue with these potential acquisition targets and commence comprehensive due diligence. A quick look at iBrands Corp reveals no revenues; net losses of $48k (most recent reported quarter), $44k, $45k and $44k for the past four reported quarters; and $1k in cash to cover $53k in current liabilities and $848k in long term debt. So right now, its hard to see how iBrands Corp can acquire a business in the marijuana sector.
Three Small Cap Hemp or Marijuana Stocks Getting High or in Rehab: NGMC, SGDH & IBRC
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