ML Capital Group Announces MJ Edibles Company Acquisition, Shares Up 14% On News
Thursday, February 16, 2017
With the U.S. economy growing at a decent clip, the tourism sector looks to also be in good shape in 2017, following a strong year in 2016. With the economy perking higher, disposable income is on the rise among consumers, specifically for the luxury tourism market, an area which ML Capital Group Inc. (OTCPK:MLCG) happens to be a major player.
As a result of these economic trends, the consulting company is looking to diversify their portfolio with the announced scheduling to close their equity purchase of Spanish Peaks ScrumpDelicacies. As per the press release announced earlier this morning, the deal will be finalized on February 22, 2017. Spanish Peaks will help the company in introducing a cannabis based beverage. The acquisition will let ML Capital Group have access to the $19 billion Colorado tourism market. The company is looking to promote marijuana based products as its unique selling point for the purpose of attracting tourists to the state.
ML Capital Group has collaborated with Puration Inc. on this deal with both of the companies taking an equity stake in Spanish Peaks. Puration has also been appointed as the exclusive Cannabis Extract Source for all Spanish Peaks beverage and edible production. Spanish Peaks is currently a private company; however, it has plans to go public.
The equity deal is designed to include a plan which will allocate a portion of the Spanish Peaks stock acquired to the shareholders of ML Capital Group and Puration in a dividend distribution.
ML Capital Group is engaged in the business of providing services and products for different industries. This is even more evident now with its foray into the flourishing marijuana industry. With growing acceptance of cannabis products and a more liberal regulatory environment, the company has seen strong upward traction in its business.
The company had recently reported its revenue for the fourth quarter of the year. Its growth was mainly attributed to its newly introduced affinity marketing partnership program.
The company has roped several prominent entities for its partnership program. Recently, it struck a deal with Hilton Hotels’ Taste of Waldorf Astoria program. ML Capital Group expects its revenue for 2017 to be in the close vicinity of $1 million. The forecast is based on its strong performance in the fourth quarter of 2016.
ML Capital Group has stated that it wants to grow its business both organically as well as through acquisitions. In 2016, it had acquired Platinum Tours Maui, which is a leading service provider in the luxury tourism market. The company is now in a prime positon to draw synergies from its tourism and cannabis business as it will help ML Capital Group in targeting that ultra-niche market.
Shares of MLCG have ballooned along with the Company’s fundamental growth. In the past 12 months, shares of MLCG have gained over 700%. The high trading volume of MLCG adds to its attractiveness as it imparts plenty of liquidity, something that not all penny stocks can lay claim to. With its new endeavors, and their recent focus on the rapidly growing marijuana market, shares may hold more upside potential as 2017 rolls along.
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