SPO Networks Inc (OTCMKTS:SPOI), which has recently entered the cannabis space, announced this morning that it has bagged an initial pre-order for delivering the exclusive cannabis strain that it has developed.
The announcement from the company has come as a major boost to the SPO Networks stock, which has rallied by 20% so far this morning. The order was placed by a company which runs as many as 10 dispensaries in the state of Colorado. In this regard, it is also important for investors to remember that the cannabis seeds market has considerable potential.
According to a report from the firm Data Bridge, the cannabis seeds market is expected to grow at an impressive pace of 14.5% CAGR in the 2020 to 2027 period. By 2027, the market could be worth as much as $727 million.
In the United States alone, the market has grown at a breakneck pace and that is primarily due to the fact that 33 out of the 50 states have legalized cannabis. In such a climate, it might be a good move for investors to keep an eye on the SPO Networks stock.
Tom Smith, the Company’s CEO, said: “We are both eager and ready to enter this market, and to begin generating our first revenues in this sector. Initially, the revenues we will be receiving will be wholesale sales to the dispensaries. Dispensaries usually charge approximately 3 seeds for $50 and work on a 50% margin. We will also be opening our own dispensaries in multiple jurisdictions and acquiring more cultivation properties/operations in several U.S. states to further expand our revenue base.”
Market Action
As of 12, SPOI stock moved up 19.67% to $0.0073 with more than 3.44 million shares, compared to its average volume of 5.19 million shares. The stock has moved within a range of $0.0061 – 0.0075 after opening the trade at $0.0071.
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