CannaRoyalty Corp (OTCQX:CNNRF) generated substantial gains for investors last year. The unique company’s business model of supporting and building a diversified portfolio of assets in the cannabis sector impressed investors. Its business strategy of investing aggressively in growth opportunities also strengthens analyst’s confidence in its future fundamentals.
CannaRoyalty stock price rose 50% in the last six months, extending the twelve-month growth to 114%. CNNRF stock currently trades around $3.5 per share – with the market cap of $155 million. Analysts, however, have raised its price target to $7 after record financial numbers and several acquisitions in California.
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Business Expansion Strategy for CannaRoyalty Corp
CannaRoyalty Corp closed several acquisitions over the past year. It closed the acquisition of Alta Supply Inc. and announced their plan to acquire River Distribution and its affiliates. Both these acquisitions will help it in achieving a leading position as cannabis distributor in California.
Commenting on the business expansion strategy, the CEO said, “In 2017, our team worked hard to position the Company for long-term growth with the California market as a foundation. Those efforts culminated in several strategic transactions over the past four months that have transformed CannaRoyalty into one of the largest and best-positioned cannabis players in California.”
The company has also announced several other strategic deals to boost its position in the California cannabis markets. These deals include the acquisition of Kaya Management and the partnership with California premium craft cannabis cultivator Floracal Farms.
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Its business strategies are working considering the record revenues in fiscal 2017. The company’s revenue rose to $3 million in FY2017, up from $0.6 million in the prior year. CannaRoyalty Corp has also generated massive cash through an equity offering. Its cash and cash equivalents were standing close to $4.5 million at the end of fiscal 2017, higher from $2.9 million in the prior year. Its total assets increased 45% year over year in fiscal 2017.
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