There are plenty of investors who are almost always on the lookout for stocks which may have gained strong momentum and that is often regarded as a fairly sound strategy under most circumstances. If you are looking for stocks which gained momentum on Tuesday, then it could be a good idea to perhaps take a look at the Zoned Properties Inc (OTCMKTS:ZDPY) stock. Prior to going into the latest development that brought about the momentum in the stock, it may be a good idea to first take a look at the nature of the company’s business.
Trading Data
On Tuesday, ZDPY stock gained 2% to $0.74 with more than 1.8K shares traded, compared to volume of 3.3K shares. The stock moved within a range of $0.7250 – 0.7400 after opening trading at $0.7250.
About The Company
Zoned Properties is one of the major players in the real estate development space when it comes to highly regulated and emerging industries. It is also involved with the cannabis industry. The company offers integrated growth services and by way of that, it has been able to bring about a new approach to commercial real estate investment as well.
Zoned Properties Secures Initial $4.5 Million Debt Facility for Cannabis Real Estate
The stock, however, gained momentum on Tuesday after it made an announcement with regards to the fact that it had been successful in securing an initial debt facility worth as much as $4.5 million. In this situation, it may be a good idea for investors to take a closer look at the key details with regards to the debt facility.
As much as 50% of the loan to value had been collateralized against the Tempe property that is owned by Zoned Properties. On the other hand, the term of the loan is for 6 years but could be amortized by the company over 25 years. The balloon could be payable after a period of 72 months. The company has the variable interest option to pay an interested rate of 2% above prime, however, at this point,Zoned Properties will be paying an annual interest rate of as much as 7% if it chooses that option.
However, at the same time, the interest rate if Zoned Properties chooses the fixed rate option is going to be +2.25% and the same interest rate on an annualized basis is going to work out to 7.25%. The interest only payments are going to be paid in the first 12 months.
Last but certainly not the least, it was also noted that following the tying up of this debt facility of the banking partners, there could is also the possibility of expanding the size of the debt facility in the future.
The Chief Executive Officer of Zoned Properties, Bryan McLaren, spoke about the latest development as well. He noted that the company had worked for years to make Zoned Properties one of the leading players in the commercial real estate acquisition space with regards to industries which are highly regulated. He went on to add that the debt facility is going to allow Zoned Properties in pursuing the acquisition of exciting new properties across many industries in different parts of the United States. It may be a good idea for investors to consider adding the stock to their watch lists at this point.
Key Quote
“We have spent years positioning and building Zoned Properties to become a top of class commercial real estate acquisition vehicle for complex and highly regulated industries such as legalized cannabis,” said Bryan McLaren, Chief Executive Officer for Zoned Properties. “Not only does this debt facility allow us to pursue Zoned Properties’ pipeline of exciting property acquisition candidates across the country, we believe it is also a major signal that sophisticated and trusted companies servicing the cannabis industry are starting to see more access to capital at more competitive rates.”
Technical Data
ZDPY stock is trading below the 20-Day and 40-Day Moving averages of $0.72 and $0.71 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.77. The company has a total market capitalization of $8.88 million. The stock is down 5% over the past 6-month.
