Cannabis Global Stock Rockets: The Company Enters California Delivery Market
The cannabis sector may not have had a great time over the course of the past year or so but there are certain individual companies that seem to be doing well. One such company is Cannabis Global Inc. (OTC:MCTC). On Thursday, the Cannabis Global stock soared by as much as 26% on the back of a major announcement for the company, and in light of such a situation; it could be a wise move on the part of investors to take a close look at the company. The company is trying to become a significant player in the middle part of the cannabis and hemp value chain.
California Delivery Market
Cannabis Global also aims to get into the research and development space in the cannabis industry and produce new products. The company had been reorganized back in 2019 and at the time, Cannabis Global had announced its aims to get into the cannabis sector. On Thursday, the company announced that it has managed to penetrate into the lucrative cannabis market in California after having finalized a deal with the Whisper Weed Inc.
Whisper Weed is a Los Angeles based company and will help Cannabis Global to get into the most lucrative cannabis market in the world. It is a significant development for the company and the rally in the stock did not come as a total surprise.
The Chief Executive Officer of Cannabis Global Arman Tabatabaei that the delivery joint venture has been set up with the aim of growing revenue and also for launching infusion technologies. The two firms also launched a California based corporation named CGI Whisper W Inc which is going to be involved in securing management services for the delivery joint venture. CGI Whisper will get as much as 51% of the profits for providing its services.
Whisper Weed will get $150000 worth of Cannabis Global’s restricted common shares under the terms of the agreement. Additionally, Whisper Weed will also get non-voting participating preferred stock in the newly formed company. These are highly important developments and if Cannabis Global can manage to get a foothold in the Californian market then it can hope to become a major operator in the industry in the years to come.
On the other hand, investors also need to keep in mind that the company’s CBD products are now listed on Amazon and that is another factor that could be in the company’s favor in the long run. The company’s CBD based products under the ‘Hemp You Can Feel’ went into the sale on Amazon earlier this month. In addition to that, Cannabis Global many infusion methods patents under review as well and that is another potential positive trigger that could be realized at some point in the future.
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