Cann American Corp. (OTC: CNNA) is one of this week’s hot stocks after completing a reverse merger with a tech company and appointing a new CEO. Since announcing its intention to release the deal’s PR, CNNA has been landing on investors’ watchlists – which has sent the stock soaring nearly 175%. While CNNA has lost some of its gains since this parabolic run, CNNA could be on track to surge in the near term as its upcoming catalysts play out. With the company promising updates soon, CNNA stock could be one of the hot stocks to watch closely this month.
CNNA Stock News
While originally focused on the legal cannabis and hemp industries, CNNA is now shifting its business focus after agreeing to reverse merge with Mark2media Group. According to this deal, CNNA acquired 80% of Mark2 in exchange for 1.5 million of its series B preferred shares. Through this merger, CNNA’s main operations will become in the tech industry since Mark2 develops and distributes applications. To facilitate its operations, Mark2 utilizes a unique business model that eliminates heavy end user costs which could have a positive impact on the company’s profitability. Based on this, CNNA could become one of the hot stocks to watch in anticipation of updates regarding Mark2’s financial situation.
With this in mind, Mark2 has already launched its first game – Infinite Dragoon – back in September 2021 and received thousands of downloads across Google Play and Apple Store. Meanwhile, the company is working to finalize the development of its upcoming game – Dragon Caster which is set to be launched in 116 days. On that note, Dragon Caster is witnessing high interest as the game received more than 11.5 thousand sign-ups. Through these sign ups, Mark2 projects to realize between $600 thousand to $1 million in revenues annually from this game for 2 thousand daily active players.
At the same time, Mark2 recently signed a $500 thousand app development and distribution deal. When this deal is finalized, Mark2 expects to generate positive profit which could make CNNA stock a more attractive investment. In light of these revenues, CNNA could be an intriguing long-term hold thanks to its potential to become one of the profitable OTC companies.
Moreover, the deal included the resignation of CEO Jason Black and the appointment of Mark2’s CEO Alex Woods-Leo as CNNA’s new CEO and director. With this in mind, many investors are bullish on CNNA’s future prospects under Woods-Leo’s leadership thanks to his more than 10 years of experience in public companies and financial services. This experience includes being former CEO of Novagant Corp. (OTC: NVGT) where he helped the company become SEC reporting. For this reason, CNNA could be one of the hot stocks worth investing in thanks to Woods-Leo’s proven experience in leading public companies.
Under this new leadership, CNNA is set to operate as a diversified holding company and is already in negotiations to finalize additional acquisitions. One of these acquisitions is a company operating in the tech government contracting industry. With this in mind, CNNA assured investors that this deal would not include any issuance of common shares to protect shareholders’ value. At the same time, CNNA is retaining a 20% stake in Cannagram with the view of leveraging its technology to enhance the platform and expand it into a tech-driven cannabis delivery application. Through these actions, CNNA appears to be on track to become one of the best hot stocks to hold onto for the long-term.
In addition to its focus on growing its operations, CNNA is showing interest in adding value to its shareholders as the merger deal includes a non-dilution clause in place and is authorizing a 1.3 billion AS reduction. Meanwhile, CNNA intends to restructure its debt to preserve its capital structure while working to begin auditing its financials to pursue an uplisting to the OTCQB. However, most investors are bullish on CNNA’s plan to authorize a 10% profit dividend to its shareholders. In light of these solid plans, CNNA could be poised to reach greater highs in the future – making it one of the hot stocks to watch closely this year.
@Jcazz17 is confident CNNA could be undervalued below a penny.
@ChaseMacTrades is bullish CNNA’s plans to add value to shareholders.
As one of this week’s hot stocks, CNNA is currently trading at $.0057 and shows supports at .005 and .0037. Meanwhile, the stock shows resistances near .0073 and .01. Since promising to share the merger’s PR, CNNA has been gaining momentum with the stock nearly reaching $.01 in the lead up to the merger’s announcement. Given that the company is promising additional updates soon, CNNA has the potential to continue its run over next week.
In the meantime, CNNA is trading above its 50 MA support after recently testing it. Considering that the stock is gaining more momentum in anticipation of the coming updates, CNNA could be poised to run near $.01 upon sharing the news. With this in mind, investors could watch for a rebound off the MA for a good entry point. However, if the MA support fails to hold, an entry point could be found near $.005 which could be an ideal entry for bullish investors.
Accumulation is witnessing a downtick at the moment after CNNA’s recent surge and the MACD is bearish which could be attributable to investors taking profit. Meanwhile, the RSI is holding at 49 which could indicate the stock’s potential to have a strong movement in either direction in the short-term. Considering the bullish sentiment surrounding the stock, CNNA could be well-positioned to have another run soon. CNNA has an OS of 261.6 million and a float near 167.2 million.
CNNA Stock Forecast
As the company is shifting its business focus into becoming a diversified holding company, CNNA appears to be on the right track to provide value to its shareholders thanks to its plans. With the company projecting up to $1 million annual revenues from its upcoming game, CNNA could be one to keep an eye on as the game is set to launch in 116 days. At the same time, Mark2 is preparing to finalize a $500 thousand deal that would make the company profitable for the first time. While Mark2 holds value as a tech company, CNNA could be poised for additional growth as it is currently in negotiations to acquire a tech government contracting company and other companies. Based on this, CNNA could be well-positioned for significant financial growth in the future.
Meanwhile, investors are bullish on the company’s plans to add value to its shareholders. Since the company intends to reduce its AS by 1.3 billion and authorize a 10% profit dividend, CNNA could attract new investors which could send the PPS to new highs. In light of this, CNNA is one of the hot stocks to watch this month in anticipation of more news.
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