Leading Cannabis Firm Levels Up With Regulation A+ Filing: Crypto Market Expansion
Things are about to get more exciting for one of the leading cannabis companies in the U.S. PotNetwork Holding, Inc. (OTCMKTS:POTN) is taking the next step in its business with Reg A+ filing to the Securities and Exchange Commission this month.
Cannabis companies are enjoying a comeback in the past years after being on the back burner for a long time. The perception has been more welcoming and states have regulated its use for medical and recreational purposes. Experts believe that the CBD oil industry will balloon into a $1 billion industry by 2020.
PotNetwork Holding has been blessed with forward-looking management and superb cannabis products via its subsidiary, Diamond CBD. But the company has no plans to rest on its laurels and the next step in line would put the company in an even greater position in the cannabis industry. PotNetwork Holding CEO Richard Goulding believes there is no other way than up.
“We believe that we are standing on the threshold of a revolution in this marketplace. We have pursued industry leadership and robust market penetration. Now that we have established a solid foundation, we are ready to step into a stronger and more advantageous financial arena,” he added.
This year, POTN’s projected revenue is 60-70 percent increase compared to last year due to increased collaborations and new product releases.
With the planned filing to the SEC this month, PotNetwork Holding is setting an example among its peers. It has collaborated with Public Company Accounting Oversight Board (PCAOB) auditors to make it more transparent to its existing shareholders and potential investors. The company’s financial statement has been reviewed by a specialized legal counsel. The latest audited consolidated financial statements revealed $14.49 million in sales with gross profits of $5,180,865 for 2017.
The PCAOB adheres to strict standards when it comes to auditor reports. Last year, it has adopted new guidelines that are more in line with providing more information to investors beyond the numbers.
"The changes adopted today breathe life into the audit report and give investors the information they've been asking for from auditors,” Chairman James R. Doty explains.
What makes this move crucial for POTN is the transparency it is trying its best to uphold at all times. With exciting times ahead, POTN is looking to join other cannabis firms that have sights on going public. MedMen company from Canada targets going public simply because regulations are more relaxed there.
“The Canadian public markets offer access to a lot of capital, with a lot of certainty and a lot of speed, and there is this appetite among global investors to invest in a U.S. play,” MedMen CEO and co-founder Adam Bierman says. If POTN can pull this off, it can be considered a feat for a cannabis firm in the U.S.
PotNetwork’s crypto expansion
In a bid to expand its portfolio and market potential, POTN has also decided to venture into the growing cryptocurrency market. Early in March, the CBD leader announced the formation of a new subsidiary called Blockchain Crypto Technology Corporation.
A month after the inception of the new subsidiary, POTN is already taking major steps to solidify its crypto footing. It recently purchased a state-of-the-art facility equipped with 115 mining rigs. Through this, POTN hopes to become a bigger player in the crypto market.
Investors need all the information they can get so they can make intelligent and informed decisions when it comes to investing in cannabis firms. The track record and financial statements reflect how the company is doing at the moment. There are risks involved, as with other companies going public, but with transparency and investments made on stable companies, the risks are lessened effectively.