Sometimes it so happens that certain stocks can fly without any material news with regards to its business, and that is what happened with View Systems Inc’s (OTCMKTS:VSYM) stock on Monday. The company, which is involved in providing security and surveillance products, saw its stock fly by as much as 100% yesterday.
However, there was no news regarding its business. While that may come as a surprise for most investors, it may be instructional to go through some of the recent events surrounding the company in order to make sense of the remarkable rally.
View Systems supplies its products to correctional facilities as well as to courthouses, schools, sports venues, and to government agencies, among others. These products are also used by businesses and by homeowners. However, it should also be noted that the company also has hemp and medical marijuana operation named Sannabis S.A.S.
The company announced in April that it started harvesting the first batch of hemp in Uruguay in one of the fields and continued to harvest in the rest of the fields for the remainder of the month. In this regard, it is important to keep in mind that the President of the company, John Campo, had also been issued with an import permit meant for the United States back in January.
The fact that the company can export these products to the United States is particularly important for View Systems. South America has become one of the most important regions for cannabis and hemp cultivation. Sannabis has operations in both Uruguay and Columbia, which is why it enjoys an advantage over some other companies. The company is keen to launch a new line of products in Columbia as well.
However, that is not all. There was another important development with regards to Sannabis back in February. The company announced that it’s ‘Made in Columbia’ had made its first sales in the United States, and that was certainly a major breakthrough for the View Systems subsidiary. The products were sold under the Cannaxhol brand. In addition to that, it also came to light that Sannabis was also going to start selling products under its Cannapiel brand directly.
While the first shipment to the United States represents a major breakthrough for the company and ushers in a new era, it should be noted that there are other markets at play as well. The company expects to make significant sales in the highly important markets in Africa and Australia as well. It goes without saying that these are highly positive developments for View Systems and possibly the triggers behind the rally in the stock on Monday.
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