Add This Pot Company to Your Watch List Now!
Specifically, the merger, acquisition and consolidation of many marijuana companies as this emerging market begins to mature.
And just last week another major merger in the pot industry was announced between Colorado-based Helix TCS and BioTrackTHC, according to SEC archives.
Dollar amounts tied to the deal are still unknown, but other details, according to Marijuana Business Daily, are as follows:
- The combined company will trade on the OTC under the Helix stock symbol HLIX
- Business operations of Helix and BioTrackTHC will stay independent
- Patrick Vo will stay on as CEO of BioTrackTHC
- Zachary Venegas will remain Helix’s CEO.
In a press release, Venegas notes:
After a very lengthy and competitive process, we have agreed terms with the company and major shareholders, and have signed a definitive agreement, creating the largest ancillary cannabis company in the industry. The combined firm will offer industry-leading services to clients, improving their ability to serve their customers while increasing efficiency and profitability.
Helix TCS is a publicly traded ancillary marijuana company, meaning it does not grow, process or sell pot-based products. Instead, the company has found its niche as a security services, banking-related consulting and logistical support company.
BioTrackTHC is a private ancillary marijuana company developing seed-to-sale cannabis tracking software to help businesses remain compliant with state laws.
In a press release, Vo notes:
We are confident that this merger will enable the combined companies to accelerate growth and thereby enhance the value of our products and services to the customers who rely on us. With the continued expansion and maturation of the cannabis industry, we are in an ideal position to rapidly adapt with the evolving needs of our clients.
The potential beauty of this deal is twofold for investors. For one, both these companies have a layer of protection from any federal crackdown.
The merger also, at least on the surface, looks good because these are two companies with complimentary services that when shared would greatly increase the companies’ footprints in the industry.
The industry as a whole could also benefit from this merger, claims Matt Karnes, analyst at GreenWave Advisors.
According to Marijuana Business Daily, Karnes “expects the ensuing cost synergies to trickle down to the bottom line of cannabis license holders.”
‘That hopefully is the benefit for the industry,” he said.
The merger also could be good for Helix share values too. The company has been on a downward slide for the better part of this year, but news of the merger could breathe new life into the stock.
The five-day chart looks promising:
I’m not saying HLIX is a must-buy stock. But it’s definitely worth keeping an eye on, as it appears to have found a bottom and seems poised for a bounce back.
That is, as long as its merger with BioTrackTHC is finalized quickly and without operational issues.
You’ll want to watch this one closely over the coming weeks and months.
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Chief Technology Expert, Technology Profits Daily