On Wednesday, 1PM Industries, Inc. filed an 8-K Current Report with the SEC to announce that the company has been retained by a new client — who paid the OPMZ $55,000 in cash and 4.9% equity in their company. Based on the $0.0003 price for the cannabis stock as of Thursday, and 888,722,319 shares outstanding as of Aug. 31st, OPMZ has a market capitalization of $266,616.
That means this new client contract is worth over 20% of 1PM’s market capitalization, not including equity. Currently, 1PM Industries works with three different client companies in three different sectors. The recently-signed client serves as a TV program production company. They also have a stake in elder care and the medical marijuana edibles industry.
1PM Industries sells and distributes marijuana edibles in California under their brand, Von Baron Farms. The company’s products include cookie spread, their award-winning line of waffle batters and more.
We believe that the size of the contract — relative to the company’s market capitalization — makes this cannabis stock an interesting opportunity. One word of caution, though. “While all investments involve risk, microcap stocks are among the most risky,” says the SEC. The risk of the company failing completely can’t be ignored, but the rewards could be significant.