GCGX Builds Accumulation Base as Major Growth Phase Begins

Date : May 25, 2020

New Opportunity:  Global Consortium Inc. (OTCMKTS:GCGX)

 

The bear market in the CBD and Cannabis space has been brutal. Epically brutal. We’re talking a total wipeout. We have seen most of the companies in the space go under and disappear.

But that’s also what makes it one of the most remarkable opportunities current investors may ever come across because, while supply in the space has cratered, the demand curve has remained completely intact – in fact, recent evidence suggests it has accelerated, as cannabis pricing starts to ramp higher according to cannabisbenchmarks.com data.

In essence, we saw a gigantic swing from oversupply to undersupply, with the first big whiff of undersupply coming this summer as outdoor growers are no longer in harvest mode until the autumn.

This defines the backdrop for the survivors. And the survivors of a major bear market are often set to thrive. Imagine a forest of trees competing for precious sunlight hitting the canopy and precious water and nutrients in the soil. Now imagine a lightning storm that takes out 75% of the trees. The remaining survivors would suddenly face a surplus of nutrients, water, and sunlight and the unhindered ability to grow at breakneck speed.

Such is the case for the survivors in the cannabis, hemp, and CBD space. And one of the most interesting names in that space is Global Consortium Inc. (OTCMKTS:GCGX).

This stock is particularly interesting right now because it’s at a cusp. We love “cusps”. They often represent the most interesting opportunities because the micro-level context is set to change. In this case, the context is set to change from “potential” to “actual”, which is the most important shift to spot in the evolution of any stock.

The chart supports this idea as well, with a series of improving RSI Bullish Divergence events defining a supportive base that appears to represent some strong-handed accumulation likely ahead of tangible revenue growth from coming operations for the company, which makes sense as it secures needed permits to secure next-phase growth.

The following report is based on our independent research of Global Consortium Inc. (OTCMKTS:GCGX) from publicly available information, including information from the company’s website and investor relations material, as well as news, disclosures, press releases, and other material relevant to understanding the company and its operations and assets. We have been engaged to disseminate our findings from that research process along with our opinion about Global Consortium based on that research.

Symbol:  GCGX
Company:  Global Consortium Inc.
Quote:  http://finance.yahoo.com/q?s=GCGX
Latest News: 
http://finance.yahoo.com/q/h?s=GCGX+Headlines

Who is GCGX

Who is GCGX

Global Consortium Inc. (OTCMKTS:GCGX) owns Indulge Oils (www.indulgeoils.com), a cannabis distillate which is currently being manufactured and marketed in California.

Global Consortium, Inc., is building America’s First Cannabis Mall in Sacramento, CA which when completed will house Manufacturing, Distribution, Delivery, Retail, Testing, and Cultivation all under one 64,000 square foot building.

The Mall will house the largest Manufacturing facility of THC and CBD Distillate and Edibles believed to be operational in the United States. Global Consortium has leased 25,000 Square feet of the building with a purchase option, the Company is working to secure a first right of refusal for the remaining 39,000 square feet.

Indulge Oils is a premium “pesticide free” product sought after brand as it is known for its purity and high quality. Indulge Oils produces clean and pure oils that do not contain any residual particles, are non-toxic and non-carcinogenic.

This is why Indulge Oils commands a premium for its oils and cartridges. Global Consortium, Inc. executed a 5-year lease with an option to purchase 25,000 square feet in Sacramento, CA.

In January/February of 2020 a new edible brand owned by GCGX will begin rolling off the line in Sacramento and sold through the Distribution and Delivery suite. During 2020 new products will be introduced including beverages.

The company is currently also expanding into the state of Florida.

There has been substantial progress in California with licensing and permitting. They are now ready to do full manufacturing for the Indulge Oils line. Dwyer also announced that GCGX will begin working Florida on a new CBD line, the upcoming elimination off all remaining convertible debt, and what is next for GCGX in 2020.

Dwyer stated, “Now that we are producing oil daily, the Company is now in the revenue producing phase making this a great time to update our shareholders on our progress. I wanted to let them know about all the progress we have made across several fronts and our excitement regarding launching CBD operations in Florida. We are working hard to wipe out convertible debt and work towards our upcoming share buyback.”

Recent Catalysts

The company’s recent corporate update provides an excellent overview of the past, present, and future for GCGX.

Progress on Permits. In June 2019 GCGX received the permit it was waiting for to complete work on the space the Company leases in Sacramento, CA. The Certificate of Occupancy (CO) was finally issued in October of 2019, well over a year after the initial application for the manufacturing licenses were made. GCGX continues to experience delays primarily due to the time it takes regulators to issue building and other permits, however the number of new permits required is greatly reduced and GCGX expects to pass through this issue in 2020.

However, based on recent audio interview material, it would appear that there has been substantial progress in California with licensing and permitting. They are now ready to do full manufacturing for the Indulge Oils line.

Indulge Oils. Indulge Oils has been producing partial distillate strictly in-line with the permits already issued at the State and local level. The plan is to enter final production once the vent permit has been issued. Two weeks following the issuance, commercial oil sales can begin. Once final production of Indulge Oils begins, GCGX will start generating revenue from the lease of its assets as well as the management services GCGX offers to client companies.

Share Purchase plan. A portion of the revenue earned by the licensed cannabis company will be used to acquire GCGX Common shares in the open market. This action should help increase the value of the remaining GCGX Common stock and allow more of the money generated by the licensed cannabis company to directly benefit the shareholders of GCGX.

Farming operations. The test hemp farm in Colorado proved that GCGX was able to organize sufficiently to move rapidly into a farming phase. The company was able to contract a hemp seed manufacturer, contract a farmer, and the equipment purchased worked perfectly. On a commercial level however, the hemp crop failed to meet expectations. GCGX does not plan to work with the same farmer in Colorado.

The company has conducted an extensive “lessons learned” from the test hemp farm in Colorado in order to make structural changes to improve outcomes in future farming operations. The biggest issue with the crop in Colorado was the hemp seeds were planted too late in the season. This meant the plants didn’t have enough time to grow to maturity.

As a result, the harvested crop did not have the potency, nor did it meet the expected weight yields.

While the initial farming operations were not a commercial success in 2018, they are an important long-term strategy. Successful harvests will allow the Company to operate at a lower cost-basis than similar operations who purchase harvested hemp on the open market.

In furtherance of the farming strategy, over the balance of 2019 GCGX held discussions with landowners and other stakeholders to secure land in Florida to grow and process hemp. We plan to apply the lessons learned in Colorado to any future farming operations in Florida.

The company has boots on the ground in Florida which can oversee the project avoiding many of the major pitfalls in Colorado. A farm in Florida will give the Company complete control and entitle the Company to 100% of all the revenue generated. Initially the operation will consist of a farm and processing facility which will morph into edible brand under the name “Indulge Edibles” along with oils and nutraceuticals.

The State of Florida Industrial Hemp program estimates it will be accepting applications during the first quarter of 2020. GCGX will lease land and be on standby to submit for the necessary licenses. Farming is timing dependent. According to when the State of Florida actually issues the permits a full grow of ten acres is possible for 2020, although this may be delayed subject to permits and weather conditions.

Florida. In its recent SmallCapVoice.com audio interview, Global Consortium CEO, Matt Dwyer, announced that GCGX will begin working Florida on a new CBD line, the upcoming elimination off all remaining convertible debt, and what is next for GCGX in 2020.

Dwyer stated, “Now that we are producing oil daily, the Company is now in the revenue producing phase making this a great time to update our shareholders on our progress. I wanted to let them know about all the progress we have made across several fronts and our excitement regarding launching CBD operations in Florida. We are working hard to wipe out convertible debt and work towards our upcoming share buyback.”

Technical Analysis

GCGX shows the hallmarks of a productive accumulation base over recent months, with a multi-stage RSI Bull Divergence: diminishing selling intensity as support holds in place.

In many cases, this type of pattern is the footprint of smart money being put to work by strong hands with a deep understanding of the business context.

That wouldn’t be a surprising characterization of this stock at present, given its recent progress on permitting and its expansion into the lucrative Florida market. The macro context also provides justification for this interpretation, as the broad bear market in the cannabis and CBD space appears to be over, giving way to a new bull market phase.

About GCGX

GCGX (Global Consortium Inc.) owns Indulge Oils (www.indulgeoils.com), a cannabis distillate which is currently being manufactured and marketed in California.

Indulge Oils is a premium “pesticide free” product sought after brand as it is known for its purity and high quality. Indulge Oils produces clean and pure oils that do not contain any residual particles, are non-toxic and non-carcinogenic.

This is why Indulge Oils commands a premium for its oils and cartridges. Global Consortium, Inc. executed a 5-year lease with an option to purchase 25,000 square feet in Sacramento, CA.

In January/February of 2020 a new edible brand owned by GCGX will begin rolling off the line in Sacramento and sold through the Distribution and Delivery suite. During 2020 new products will be introduced including beverages.

The company is currently also expanding into the state of Florida.

  • GCGX is beginning to shift to commercial-stage operations, with big revenue growth potential as the cannabis and CBD marketplace starts to see robust traction after a long bear market.
  • GCGX recently secured necessary permits for its flagship Sacramento location and is now ready to start producing full-out
  • GCGX has put in place a multi-stage bullish RSI divergence during its long basing phase, suggesting potential upside ahead.
  • GCGX is a major opportunity in the global CBD market, which is estimated to grow at over 125% CAGR over the next five years.
  • GCGX is also expanding, with growing operations in the thriving Florida market ready to come online.

Conclusion

As the cannabis and CBD market rounds back into bull-market gear – much lighter and free of the garbage plays and pretenders – investors should be on the look-out for high-growth-potential opportunities, particularly those ready to inflect from development-stage activities to commercial-stage operations with tangible revenue growth about to appear for the world to see.

With a little research, you can find such opportunities in this high-growth space right now. Global Consortium Inc. (OTCMKTS:GCGX) is a perfect example.

The company has lined up a revolutionary take on the fundamental process of delivering a superior grade of CBD product to a rapidly growing marketplace. And the train is leaving the station. The chart shows the strong hands sitting at the opportunistic level, building their positions to be monetized when the money starts to roll in the door.

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