The issuance of a strategic review from a company to its shareholders is almost always a major event and so it was for American Green on Thursday.
Trading Data
On Thursday, ERBB stock fell 6.76% to $0.0034 with more than 27.76 million shares, compared to its average volume of 24.22 million shares. The stock has moved within a range of $1.6000 – 1.8100 after opening trade at $1.60.
Cannabis Grow Operations at “Sweet Virginia” and Newly Under Construction “Cypress Chill” Pave Way for Increased Revenue and More Expansion in 2022
In the update from the American Green (OTCMKTS:ERBB) yesterday, the company provided the highlights of some of the events from 2021 and then went on to provide a glimpse into its outlook for the future. However, it seems that the update did not quite whet the appetite of investors with regards to the stock and it suffered from a selloff to end the day with a decline of 6%.
The president and chairman of the company, David G Gwyther spoke about the situation at American Green. He noted that the basis of the successful year that the company had in 2021 was set up when American Green decided to hire the services of Gierczyk Development as its design build contractor. While the successes in 2021 were important, Gwyther also noted that in the future American Green sees the state of Nevada as a significant opportunity with regards to the expansion of tis cannabis operations. Despite the fall yesterday, it is a stock that could still be followed closely at this point.
Key Quote
“The company successfully negotiated and signed a 5-year lease agreement with the building owners (allowing for three additional 5-year terms) in May, including an option for American Green to purchase the 40,000 SF building,” continued Mr. Gwyther. “We are planning to exercise our option to buy the “Cypress Chill” property by the end of the year. Owning this property locks in a state-of-the-art cannabis real estate asset that projects to be worth as much as $14 million dollars upon completion, in a market that we believe will become one of the hottest recreational cannabis markets in the country.”
Technical Data
ERBB stock is trading above the 20-Day and 50-Day Moving averages of $0.0030 and $0.0029 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0048.
