The cannabis sector, while down still year-to-date, has experienced a massive volatility since the outbreak of covid19. The coronavirus has laid waste to financial forecasts but some analysts and executives argue that the cannabis industry, and stocks related to it, still have long-term potential for growth. Investors now are looking for companies that will simply survive. There are only a few names in the legal-marijuana sector that investors can look to for relative safety and Cannabis Global, Inc. (OTC: CBGL) is on top of our list.
Cannabis Global, Inc., formerly known as MCTC Holdings, Inc., is a fully audited and reporting Company with the U.S. Securities & Exchange Commission. The Company is an emerging force in the area of cannabinoid sciences and highly bioavailable hemp and cannabis infusion technologies. The Company does not engage in the production, distribution, or sales of any controlled substances, including marijuana. The Company has an actively growing portfolio of intellectual property having filed six patents in the areas of cannabinoid delivery systems and cannabinoid polymeric nanoparticles. The Company launched is Project Varin early in 2020, to develop new delivery methods for rare cannabinoid Tetrahydrocannabivarin (THV-C) and to develop products based on this cannabinoid.
the company recently pre-announced some aspects of its financial performance for the fiscal year ended August 31, 2020, including a significant increase in assets reported on its balance sheet for the period.
While the Company expects to file its full annual report for the fiscal year ending August 31, 2020, prior to the deadline of November 15, 2020, Cannabis Global expects the balance sheet to show significant improvements. Assets are expected to be reported at approximately $2,396,558, up from $807,824 as of the end of the quarter ending May 31, 2020. Of the increase, approximately $1.7 million is attributable to the recent investment in 266,667 shares of common stock of Natural Plant Extract of California Inc., a California corporation (“NPE”), representing 18.8% of the outstanding capital stock of NPE on a fully diluted basis. NPE operates a licensed psychoactive cannabis manufacturing and distribution business operation in Lynwood, California. Additionally, the Company expects an additional step-up of tangible assets of $650,000 relating to its recently announced share exchange with strategic technology and marketing partner, Marijuana Company of America, Inc. (OTC: “MCOA”). The sum of the increases in assets is expected to total approximately $2.35 million.
“We recently made acquisitions of two valuable assets within the cannabis and hemp marketplaces,” commented Arman Tabatabaei, CEO of the Company. “We have made great progress in only one year developing some strong technologies, filing several provisional patents, and launching some of the industry’s most innovative products. We feel strongly that the expected significant increase in our assets, will more accurately reflect the value we have created for our shareholders.”
CBGL is trading at a discount compared to other players. And several upcoming catalysts could catapult shares higher. In our view, a bounce is all but guaranteed. Right now, all of the fear and negativity is priced in. That means, Cannabis Global, Inc. (OTC: CBGL) in the short-term, have nowhere to go but up.