Stony Hill Corp. (OTC:STNY) is a vertically-integrated cannabis company focused on multiple areas of the cannabis and hemp sectors. Stony Hill is actively exploring the consumer, health and wellness, recreational, medical, media and nutraceutical industries within the industry, as they have a keen eye for strategic acquisitions. There’s a lot to love about Stony Hill, but here’s 5 of the top reasons we’re bullish on the future of this cannabis stock.
Celebrity Cannabis Stock Backing
First and foremost, we love Stony Hill Corp. due to the fact that the company was founded by none other than Damian “Jr. Gong” Marley. Marley is synonymous with activism and awareness for the cannabis community.
While Ashton Kutcher just recently bought a new beach house in Santa Barbara for $10 million, Marley’s partners purchased a 77,000-square-foot former prison in California for $4.1 million with the intent to convert it into a cannabis farm. At that price, he’s still got money left over for a beach house!
Beyond Marley’s good intentions in the cannabis space, Stony Hill will benefit from his massive following. This following will allow Damian and Stony Hill to expand the reach and awareness of their portfolio companies and their own stock.
On Facebook alone, Damian has over 5.1 million likes and over 4.9 million followers. On top of that, Damian has over 500,000 followers on Twitter and another 426,000 Instagram followers to boot. In addition, his recently released album shares the same name as his cannabis company. Coincidence? Definitely not.
Cannabis Stock Diversification
Stony Hill Corp. is a cannabis stock with a diversified approach to the industry. Everyone has heard the saying “don’t put all of your eggs in one basket.” Stony Hill follows this adage in its own investment strategy. From strategic holdings in the media space, to lucrative licensing deals with dispensaries – Stony Hill offers its investors upside on many facets of this booming industry.
Just some of Stony Hill’s current portfolio includes CBD-focused companies like Stony Hill CBD, as well as Cannabi-Tech Ltd., and Israeli cannabis testing company, Hightimes Holdings Corp., the parent company of High Times, and finally a stake in Precision Cultivation Systems, LLC, a cultivation growth system developer.
Strong History of Strategic Acquisitions
Over the last 12 months, Stony Hill has made a handful of strategic acquisitions that have made the company even more attractive.
- In November 2016, Stony Hill purchased 29,571 shares of Preferred A stock at a price of $1.69086 per share for less than 5% investment in Cannabi-Tech Ltd., a private company incorporated in the State of Israel. Cannabi-Tech is a provider of lab-grade medical cannabis quality control testing systems used to test the quality of medical marijuana flowers.
- In January 2017, Stony Hill entered into an agreement to purchase 59,524 shares of Class A common stock at a price of $4.20 per share for less than 5% investment in Hightimes Holdings Corp. The agreement was finalized on May 31, 2017. Hightimes owns High Times Magazine and hosts festivals, events and competitions including the High Times Cannabis Cup and multiple e-commerce properties, including HighTimes.com, CannabisCup.com and 420.com.
- In June 2017, Stony Hill entered in a Subscription Agreement to purchase 0.5% interest in Precision Cultivation Systems, LLC for a purchase price of $50,000. Precision is developing a growth system that capitalizes on a patent-pending cultivation method that utilizes proprietary irrigation and root zone conditioning. As part of the Subscription Agreement, $42,500 of the investment is subject to repayment on a pro-rata basis.
No Debt in the Cannabis Stock
This is one space where Stony Hill is pushed far beyond other cannabis stock — the company has zero long-term liabilities. Sure, the company has $53,000 in short term liabilities, but that’s nothing compared to the current assets on STNY’s balance sheet. With a debt ratio of roughly 0.03, this company’s balance sheet is in a very good place to facilitate future growth. Find me another cannabis company with that low of a debt ratio….
To further our argument for how solid this company’s balance sheet is — there’s no outstanding warrants. That means that if and when the stock goes up, there’s no one coming out of the woodwork to exercise warrants and sell off shares. This non-dilutionary structure of Stony Hill makes it one of few cannabis companies we like for the long-term. Almost every other company out there uses a heavy debt load and warrant sales to finance their growth. That’s bad for long-term stability, and bad for shareholders.
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Overall, there’s a lot of reasons to love Stony Hill cannabis stock. These were our top 5 reasons, but if you dig through the company’s website, you’ll find even more.
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