Venturing into the crypto, cannabis, and wellness fields, American Diversified Holdings Corporation (OTC: ADHC) is looking for high revenue opportunities to increase its shareholders’ value. ADHC stock is currently climbing investors’ watchlists after the company shared an update regarding its future – leading the stock to climb by as much as 50% overnight. With an upcoming merger under negotiations, many investors are bullish ADHC could be poised to hit $.01 on more updates. In light of this, ADHC stock could be one to hold in anticipation of more news regarding its future.
ADHC Stock News
Rolls Choice
As it looks to expand into the cannabis industry, ADHC agreed to acquire the cannabis innovator – Rolls Choice. According to the terms of this agreement, ADHC will fund Rolls Choice’s operations and Rolls Choice will pay a royalty fee to ADHC from the gross sales of its cannabis related adhesive products. With ADHC expected to close the deal after its due diligence period, the company could see a boost in its revenues thanks to these royalty fees.
Well-known for its natural adhesive glue pen, Rolls Choice sold over 12 thousand adhesive pens since its start. This pen is made of food grade premium ingredients making it flavorless, colorless, and stainless. This means it can be used to seal cannabis and tobacco rolled products including blunts, cigars, and hand rolled cigarettes.
In addition, Rolls Choice is in the process of developing new cannabis related products which will be launched upon the completion of this acquisition. As part of its efforts to become a leader in the cannabis industry, Rolls Choice applied for a trademark with the USPTO.
According to Rolls Choice’s founder, Allen Staines, he was inspired to make RollsChoice after becoming frustrated his swishers were not staying stuck together and by the image of people spitting or slobbering on the joints when rolling them. Now that people have become much more health conscious following the pandemic, RollsChoice could find a more receptive audience interested in his product.
He has even considered creating multi flavored packs and believes that the product helps seals joints better and with more precision. Staines has been shipping the product around the world since creating it and it’s currently in a number of smoke shops and dispensaries across the US. Currently Staines sells it in bulk or individually and with ADHC’s help he could expand his business further.
Moreover, this acquisition will allow ADHC to capitalize on Rolls Choice’s impressive social media following. With over 80 thousand followers on Twitter and Instagram combined, ADHC could attract more interest from investors through Rolls Choice’s following. With this in mind, ADHC intends to make Rolls Choice’s founder responsible for the company’s social media accounts to drive more engagement from shareholders and customers. In light of this, many investors are bullish ADHC stock could be one of the OTC’s major runners.
*Updated July 11th, 2022
Considering the success of Rolls Choice’s cannabis adhesive pen, the company received approval to offer its product on Amazon. By offering the cannabis adhesive pen on a major platform as Amazon, ADHC could be poised to witness a surge in revenues as the adhesive pen would be offered to millions of Amazon’s shoppers. With this in mind, this listing could position ADHC and Rolls Choice to offer more cannabis products on Amazon in the future. In light of this, ADHC stock could be one to hold for the long-term as the company has major growth potential in the growing cannabis sector.
Future Acquisitions
Despite the potential of this acquisition, investors are more excited about the company’s roadmap for 2022 which includes acquisitions generating revenues of $100 million. If ADHC is successful, then the company could become extremely undervalued considering its current market cap of only $3.7 million. Through these acquisitions, ADHC could be positioned to deliver on its target of uplisting to the OTCQB which requires a minimum share price of $.01. Given that details regarding this road map are set to be announced this week, many investors are bullish ADHC stock will reach $.01 very quickly.
*Updated July 11th, 2022
Delivering on its roadmap for 2022, ADHC signed an LOI to acquire a medical staffing company. This company is expected to boost ADHC’s financials significantly since it realized more than $65 million in revenues over the past 5 years – including $15 million in 2021. With this in mind, ADHC expects this company to generate more than $20 million in revenues for this year.
By acquiring this company, ADHC is positioning itself to capitalize on the $16 billion staffing market which is forecasted to grow to $22 billion by 2026. Although ADHC has not shared more details regarding this deal, the company promised to update shareholders on new developments regularly. Meanwhile, ADHC is currently working to release another announcement. Considering the potential of the company’s announcements, ADHC stock could be one of the best holds this year as the company continues to deliver on its roadmap.
Pharmastrong Partnership
In terms of its wellness venture, ADHC is in a strategic alliance with Pharmastrong to develop its online business. Focused on developing high-quality CBD products for the wellness industry, Pharmastrong has an impressive portfolio of popular, hemp based products. Part of Pharmastrong’s approach is to produce and process hemp without adding chemicals or pesticides to maintain the high quality of its homegrown hemp. Considering the booming industry for CBD and hemp products, many investors are bullish on the future prospects of ADHC’s venture.
Crypto Venture
In addition to these ventures, ADHC also seems to have plans for cryptocurrency following its strategic relationship with noted cryptocurrency innovator Alvin Tabios and his “stable of cryptocurrency and blockchain development projects”. While details regarding its crypto plans have yet to be released, investors are looking forward to the launch of ADHC’s new website.
Share Cancellation
The website is expected to be launched in the near future and will likely outline the company’s plans for its e-commerce sites and other ventures. Additionally, ADHC is working with its TA on a share cancellation. On that note, ADHC previously filed a lawsuit for the cancellation of 320 million shares.
In light of its upcoming catalysts, ADHC stock could be a profitable opportunity at its current price as the company and its investor relations teams becomes more active in anticipation of its plans for uplisting to the OTCQB and acquisition news.
*Updated December 13th, 2022
Business Update
As the company is looking to realize $100 million revenues in 2023, ADHC is gaining momentum thanks to its most recent update. In this update, ADHC shared that it is currently in talks to finalize a merger that would bring in a new management team to the company. According to ADHC, this merger is expected to greatly add value to the company since it projects a new high PPS and market cap upon the completion of the deal. Based on this, ADHC stock could be one to watch closely over the coming weeks in anticipation of further updates.
While this potentially profitable merger could add significant value to the company’s shareholders, ADHC is also ensuring additional value to shareholders as it is currently in the process of a large share cancellation. Considering the company’s current float of 504.1 million shares, such a large cancellation could make it easier for ADHC stock to move on strong buying activity. At the same time, ADHC promised that no reverse split would take place to further protect shareholders’ value. In light of these plans, many investors are confident ADHC stock could be poised to run past $.01 on more news.
ADHC Stock Financials
Q2 Financials
Despite its promising catalysts, ADHC reports in its Q2 filing that “During the six months ended January 31, 2022, and 2020, the Company suffered net losses of $70,854 and $56,142, respectively. As of January 31, 2022, the Company had a negative working capital of $2,726,255 and a stockholders’ deficiency of $20,802,051”. The company identifies in its report the need to improve its capital position which has likely led ADHC’s management to pursue its recent acquisition plans.
Q3 Financials
ADHC continued to share underwhelming financials as the company incurred a net loss of $722.6 thousand for the nine months ended April 30th. However, the company improved its stockholders’ deficiency to $2.8 million as of April 30th compared to $20.8 million on January 31st. Despite the company’s poor financials, ADHC’s acquisition plans could be setting the company up for major growth financially in the future.
Annual Report
In its latest annual report, ADHC reported $61.2 thousand in assets. Meanwhile, the company’s liabilities climbed YOY from $2.6 million to $3 million. As for revenues, ADHC has not reported revenues in 2022 – similar to 2021. However, operating costs grew significantly to $693.9 thousand compared to $150.3 thousand last year. In light of this substantial increase in costs, ADHC reported a net loss of $817.5 thousand.
Media Sentiment
@AngryRed316 anticipates ADHC stock to break the penny mark soon.
@InvestmentGuru_ is watching ADHC stock for a potential run on more news.
Technical Analysis
ADHC stock is currently trading at $.004 and has supports near .0033, .0020, and .0017. Meanwhile, ADHC shows resistances near .0043 and .0049. After sharing its latest update, ADHC surged by as much as 50% since the news could set the company up for significant future growth. Despite the bullish sentiment surrounding the stock, ADHC failed to break through its resistance multiple times. In this way, bullish investors could watch for retests of the VWAP support or the $.0033 support to enter their positions in anticipation of more updates.
As the upcoming merger could position ADHC on track to realize its projected $100 million in revenues for 2023, accumulation spiked on the news. Similarly, the MACD is bullish to the upside. Meanwhile, ADHC stock is overbought at the moment with the RSI at 76. Based on this, ADHC could be poised to momentarily drop as the RSI regulates which could provide investors with cheap entries into the stock. ADHC has an OS of 946.4 million and a float of 504.1 million.
ADHC Stock Forecast
With the company moving into a new direction, many investors are increasingly bullish ADHC could be well-positioned to achieve its projected $100 million in revenues for 2023 upon the closing of this merger. As a new management team is set to be appointed following the merger, ADHC stock could be poised for substantial growth in 2023 and beyond since the new management could be experienced in the company’s new business line. Given that the company expects the merger to increase its PPS and market cap, investors are watching closely for more updates since the merging company could be extremely profitable. With a large share cancellation planned and no plans for reverse split, ADHC stock could be one to hold as its pending catalysts play out.
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