Global Consortium Inc. (OTCMKTS:GCGX) is making waves again, with shares pushing off recent basing lows to kick off the holiday-shortened week. The move higher appears to have been sparked by news that the company just announced its intent to acquire a revenue-producing marketing company to assist with the branding and expansion of Global’s Indulge Oils brand (https://indulgeoils.com/).
According to the release, today’s announced acquisition target is a Florida-based branding company that generated revenues of more than $1 million in the last two years and has a strong client base that includes Fortune 500 clients. Global seeks to grow its revenues through strategic acquisitions that can advance the Company toward its goal of being listed on NASDAQ. The Company is looking for businesses that are complementary to one another’s growth; are generating revenue of at least $1 million; and that have auditable financials or are audit-ready.
“Through this targeted acquisition, we intend to expand Indulge Oils’ brand larger then it was before, and set up multi-state marketing deals for its products,” stated Matt Dwyer CEO of Global Consortium, Inc.
This news creates a prepotency for the narrative surrounding this stock because active sales growth was the big missing variable in this equation. The target market is extremely ripe, and the long-term vision is compelling. But investors need to see a light at the end of the tunnel, and the brightest light for a recent commercial-stage entry is top-line growth.
An M&A move like this can offer up a quick and powerful resolution to that dilemma. And, judging by the stock’s initial reaction, the market may buy into that idea here, especially given the impressive overall vision that this company has put together.
Getting to Know You
Global Consortium Inc. (OTCMKTS:GCGX) owns Indulge Oils (www.indulgeoils.com), a cannabis distillate which is currently being manufactured and marketed in California. Global Consortium, Inc., is building America’s First Cannabis Mall in Sacramento, CA which, when completed, will house Manufacturing, Distribution, Delivery, Retail, Testing, and Cultivation all under one 64,000 square foot building.
The Mall will house the largest Manufacturing facility of THC and CBD Distillate and Edibles believed to be operational in the United States. Global Consortium has leased 25,000 Square feet of the building with a purchase option, the Company is working to secure a first right of refusal for the remaining 39,000 square feet.
Indulge Oils is a premium “pesticide free” product sought after brand as it is known for its purity and high quality. Indulge Oils produces clean and pure oils that do not contain any residual particles, are non-toxic and non-carcinogenic.
This is why Indulge Oils commands a premium for its oils and cartridges. Global Consortium, Inc. executed a 5-year lease with an option to purchase 25,000 square feet in Sacramento, CA.
In January/February of 2020 a new edible brand owned by GCGX will begin rolling off the line in Sacramento and sold through the Distribution and Delivery suite. During 2020 new products will be introduced including beverages.
The company is currently also expanding into the state of Florida.
There has been substantial progress in California with licensing and permitting. They are now ready to do full manufacturing for the Indulge Oils line. Dwyer also announced that GCGX will begin working Florida on a new CBD line, the upcoming elimination off all remaining convertible debt, and what is next for GCGX in 2020.
Dwyer stated, “Now that we are producing oil daily, the Company is now in the revenue producing phase making this a great time to update our shareholders on our progress. I wanted to let them know about all the progress we have made across several fronts and our excitement regarding launching CBD operations in Florida. We are working hard to wipe out convertible debt and work towards our upcoming share buyback.”
The Macro Context
With the company now in a commercial stage and M&A starting to fill in the picture in terms of jumpstarting top-line growth data, the micro level for the stock is starting to add up in a very interesting way.
That meshes well with the macro context, which is now finally a major tailwind. Stocks in the cannabis, hemp, and cbd space have been on fire lately, with a number of high-profile names breaking above their major trend moving averages for the first in years in some cases. The bear market in this space may be over, and the time may be at hand to go shopping for the bargains and speculative growth opportunities.
Given the micro-level story here, GCGX deserves a close look as this latest news works its way into the pricing function for shares.
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