TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
Over the last two weeks, CNRP Mining (CRPGF) has captured the market’s attention. During this time, the company has executed on its strategy by closing on the acquisition of X-Sprays and by completing a $3 million non-brokered private placement.
Although the recent rally has been significant, we think the shares still have room to run. CNRP has been laser-focused on executing and we believe the company has several potential catalysts that could send the shares sharply higher.
CNRP is in its pre-commercialization stage and we expect to see this CBD products company enter the commercialization stage in the very near future. This would be a major catalyst for the company and investors need to keep an eye on this.
Enters Colorado via a Dispensary Network
Today, CNRP announced a major milestone and launched a test market for two of its products (CBD and Sleep with CBD) with a group of Denver-based medical and recreational marijuana dispensaries. The test will last three months and once it is completed, CNRP will provide an update on the sales and performance of its products.
We are favorable on this development due to the market that the company is targeting. Colorado is a great place to test CBD products due to the maturity of its medical and recreational marijuana market.
Colorado is a massive market and as of September, the state has generated approx. $182 million in tax revenue in 2017. With three months left in the year, we expect Colorado to surpass the $193.6 million in tax revenue generated in 2016.
An Attractive Share Structure
Another reason why we are favorable on CNRP is due to the share structure. The company has a very small float and this will support share price appreciation when favorable news is reported.
The 6.4 million share float creates a supply-demand problem with the number of shares available for purchase and we are favorable on this aspect of the story. In January, the 10 million shares issued as part of the $3 million financing will become unlocked and we will be monitoring how CNRP trades ahead of this event.
