Since July 2019, Discovery Gold Corp. (DCGD) or GRN Holding Corp. has been adding a significant amount of advisors to its Board of Directors, which pushed up the stock price from $0.25 to more than $2. Most companies take years to build the market recognition that this company currently has. With this in mind, we were very interested in getting to know what type of business is DCGD about to create.
RECENT DEVELOPMENTS AND PRICE ANALYSIS
In July 2019, GRN Holding announced that the company intends to change its name to GRN Holding Corporation. This is very valuable information. It means that the management expects to create a new business model and add new personnel and advisors. Honestly, we don’t think that anybody could predict what was about to happen after the name change was known.
Right after the name change announcement was noticed, the stock volume spiked up to hit more than 10 million shares. On top of it, the demand for the stock pushed up the share price from $0.01 to almost $0.5. The addition of new advisors to the company’s Board was also appreciated. In July and the beginning of August, sales executive Peter Juvet and hemp government relations consultant Dr. Jeffrey Sharkey started working with GRN Holding. Read below some information about the business profiles of Mr. Juvet and Mr. Sharkey:
“Dr. Sharkey has tremendous insights and experience in all aspects of marijuana and hemp policy at the state and national level and can help the company develop successful growth strategies in diverse markets across the U.S.”, commented Justin Costello, CEO of the Company.
“Mr. Juvet was a sales executive for 3M, a Fortune 100 company for over 30 years. Mr. Juvet is a combat veteran of the Vietnam War and retired from the US Army as a Captain. Mr. Juvet was a Army Green Beret (special forces).” Source: Discovery Gold Corporation (GRN Holding Corporation) Adds Peter Juvet
The new appointments were very positive for two reasons. Firstly, the market should appreciate that GRN Holding can retain talent. In addition, the business model of the new consultants suggests that the company is about to enter the hemp and marijuana industry. This is our conclusion after noticing the addition of an expert in the hemp policy like Dr. Sharkey. With this information, the share price spike makes more sense because the cannabis industry grows at a high rate.
With that, in September, the stock run was even larger than that in August. The share price spiked up from the $0.75 level and crossed the $2.00 mark. The stock price move represents 166% stock returns in a short period of time. The new developments of GRN Holding Corp. could not create such a market reaction. Unknown individuals published a large amount of comments on social media, which created market attention. As shown in the lines below, GRN Holding made a few comments in this regard:
“Recently, unknown persons have published statements on the internet concerning the Company, representing themselves as shareholders, and touting the prospective business of the Company. These statements do not come from, nor are they approved by the Company.” Source: GRN Holding Corporation) Comments on Unauthorized and Unsanctioned Promotional Pieces
After hitting all time highs, the share price declined more than 66%. With more than 20 million shares exchanged, the stock price finally bottomed out at the $0.5 mark. In October, the market has not seen that amount of share price volatility. The price traded in the $0.75 – $1.25 range.
See below for more on the recent share price dynamics:
While it looked very relevant, the market did not react to the most recent announcement. On October 23, 2019, the company reported the addition of Nancy Norton as Chief Legal Officer. The CEO said the following words about her business profile:
“We are excited to welcome Nancy to our team. Nancy brings an impressive level of experience and expertise to GRN Holding Corp and will be a welcome and needed asset as we pursue a promising set of opportunities with our increased scale and expanded portfolio.” Said Justin Costello, CEO of the Company.
With a market capitalization of $224 million, GRN Holding Corp. appears to have surprised the market with positive net income in the quarter ended July 31, 2019. It is the first positive net income in 2019. With that, the GRN Holding has a lot of work to do. Notice that both the book value and the EPS are negative. Besides, the company needs to find liquidity to continue its operations.
Previous Financial Analysis:
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Disclosure: We hold no position in GRN Holding Corp. either long or short, and we have not been compensated for this article.