Next Green Wave Advances Towards Multiple Imminent Revenue Streams
Next Green Wave Holdings Inc. (CA: NGW – $0.56 & US: NXGWF – $0.42) issued two important updates this past week in support of the Company’s quest to be an innovative cannabis conglomerate in the state of California. First, it announced the successful completion of the electrical installation and connection to the transformer necessary to provide power to ‘Facilty A’, the Company’s flagship 35,000 square foot premium indoor cannabis cultivation facility. Next, NGW announced the release of its second pet product, Loki Naturals CBD Tincture. Both of these updates are significant milestones towards attaining multiple revenue streams between now and the end of 2019.
One Step Closer Towards Final Approval For Cultivation As NGW’s Coalinga Property Receives Power
Pacific Gas & Electric took the necessary steps to provide power to Facility A and the entire cannabis zoned development property on which it is situated. That includes seven lots extending over 15 acres that are fully owned by NGW, enabling significant expansion of the future cultivation footprint once the Company is ready to do so. NGW commenced the inspection to test the integrity of the electrical system of the building during the past week. This is the final step in the testing phase before seeking approval from the City of Coalinga to begin operations under a state cultivation license. After nearly a year of construction, CEO Leigh Hughes reiterated that NGW will be “ready to bring premium cannabis products into the California market in 2019” once the 35,000 square foot facility is operational.
NGW Is Acting Quickly To Take Advantage Of The Lucrative Pet CBD Market
While NGW plans to join a handful of other companies as cannabis growers in California, it is already moving quickly to carve out multiple niches in the cannabis market. Two weeks ago, the Company announced the launch of Loki Naturals Love Biscuits, made possible through the acquisition of SD Cannabis.
Just two weeks later NGW has followed up with the launch of a second CBD pet product, Loki Naturals Tincture. Both products are now available online at www.lokinaturals.com and represent the first two of what will be many revenue-generating streams for Next Green Wave.
Through the Loki brand, NGW is positioning itself strongly in the premium pet health food sector as not only do its products contain the health benefits of CBD to dogs, they are made of the highest quality that will meet the standards of picky, health-conscience pet owners. The tincture’s extract is free of GMOs and contains many essential fatty acids vital to a dog’s healthy diet. The tincture makes an excellent supplement to the biscuits for dogs that need a greater dosage of CBD than what treats will allow and can be mixed in with the pet’s food.
Conclusion: Continued Pullback Remains A Buying Opportunity As Revenue Growth Appears On Track
Despite the steady stream of noteworthy updates that support Next Green Wave’s claims of substantial revenue growth starting as soon as Q2, the stock has continued to pull back throughout April, much to our surprise. We think this is mostly due to the greater cannabis sector pullback as investors are getting nervous over earnings season and the industry leaders have been recently decreasing from their very aggressive valuations. Contrary, we’re convinced that NGW shareholders will be looking forward to, rather than fearing, upcoming financials in 2019.
We believe that NGW is ideally positioned to take advantage of the lucrative Californian cannabis market in 2019. Investors who can tolerate this volatility and are able to hold onto NGW for the next several quarters to give the Company some time to prove itself, should consider this a tremendous buying opportunity. Smallcaps Recommendation: BUY.
|Smallcaps Recommendation: Buy||Price Target: $1.78||Latest Company Report (pdf)|
|For important disclosures, please read our disclaimer.|