DNA Brands Inc. (OTCMKTS:DNAX) shares lost 16% on Monday after the company announced the signing of an agreement with aLos Angeles, California-based partner.
Trading Data
On Monday, DNAX stock slumped 16% to $0.1250 with more than 135k shares, compared to its average volume of 10k shares. The stock has moved within a range of $0.1240 – 0.1600 after opening trade at $0.16.
Major News
According to the agreement terms, the company will become a majority owner of a newly established subsidiary Green Thumb Ventures LLC. The Colorado-based subsidiary aims to identify and cherry-pick valuable assets that are struggling, particularly in the cannabis industry. The California cannabis market is among the largest globally, and federal legalization is expected soon. However, the state’s businesses are hurting due to depressed wholesale cannabis, facilities, and licenses that are at an all-time low.
Green Thumb Ventures will identify undervalued cannabis enterprises that require additional funds but offer immediate value for investors. The joint venture already identified the first opportunities, including prime Humboldt County Cultivation properties, a licensed distributor, manufacturer, and retail delivery entity. The ventures are well run and operate, but current pricing and market conditions will enable the JV to acquire a majority interest. So in the coming weeks, DNAX is worth watching.
Key Quote
Adrian Patasar, CEO of DNA Brands said this: “After meeting with Ren, both in CA and in NJ (where Ren’s East coast project is located). I am very happy l to have the honor of working with someone of Ren’s expertise and calibre. Ren has the boots on the ground cannabis knowledge coupled with the business and legal savvy, to help grow the company exponentially. As a minority business owner Ren understands the intricate details of the cannabis market and has identified the gross negligence, overspending and mismanagement of funds that has occurred over the past few years and we plan to take full advantage of that. We are ecstatic to have him as a partner on this venture. “
Technical Data
DNAX stock is trading below the 20-Day and 50-Day Moving averages of $0.17 and $0.20 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.52. The stock is down 35% in the past month.
