Green products and environmental sustainability are now on everyone’s agenda making green penny stocks popular investment opportunities. With the growing concerns over waste and climate change, companies like Code Green Apparel Corp (OTC: CGAC) are working on seizing the market opportunity by developing and seeking out profitable merger candidates. After “OTC merger guru” Caren Currier joined the company’s management team, CGAC saw a roughly 63% increase.
CGAC Stock News
In the past, CGAC was in the sustainable textiles industry targeting large corporations by offering corporate logo wear, uniforms, and other products made from sustainable textiles. As more companies transition their workforces and standards towards environmental social governance practices, CGAC planned to provide the products to meet this demand. If CGAC remains in the sector it could be a serious contender become on of the best green penny stocks.
As the company announced the appointment of Caren Currier as COO, CGAC was once again on investors’ watchlists. Well-known in the OTC market, Currier is a classic merger consultant whose work routinely produces great results for shareholders. With over 25 years of experience, Currier served as a Consultant, CFO and CEO for several OTC companies and has positively contributed to custodianship plays for companies like King Resources Inc. (KRFG), Kat Exploration Inc. (KATX), Novation Holdings Inc. (NOHO), and International Star, Inc. (ILST) while also acting as CFO of One World Universe Inc. (OTC: OWUV).
Investors are particularly bullish on her involvement considering the runs that OWUV, AXTG, ILUS, and SBES have had. Some investors speculate that the merger candidate may be involved in the Metaverse given Currier’s involvement in other Metaverse related plays.
With that in mind, CEO George Powell believes that this addition “will bring the consistency and oversight that CGAC needs in facilitating a merger”. In light of this, investors are bullish on CGAC’s merger potential as is evident by an increase in the stock’s trading volume over the past few weeks.
As CGAC increases its efforts to prepare for a successful merger, the company issued a number of shares to reduce its corporate debt. Although the substantial reduction in its debt will make CGAC a more attractive merger candidate, the company realizes this dilution’s negative effect on shareholders.
Going forward, it has highlighted its efforts to find the proper balance between debt and dilution. However, it expects more conversions from existing note holders in the mid-term which is something investors should be aware of before investing in CGAC.
Either way, CGAC has assured investors complete transparency as it continues to evaluate its options and work towards developing a business model that could enhance growth while bringing value to the company and its shareholders.
With this in mind, the company’s dilution appears to be a part of its business strategy as it aggressively searches for a merger candidate. Currently the company has an AS of 10 billion and an OS of 3.2 billion.
Media Sentiment
@shawonsarker84 and @TruthfulTrading highlight that despite the dilution, CGAC has the potential to be a major runner.
Technical Analysis
After a roughly 60% drop, CGAC is trading near its support at .0014. Currently, trading at $.0016, CGAC has an immediate resistance at .0021 and a second at .0036. Despite the drop, accumulation has remained relatively steady. With the RSI at 47, the MACD appears poised for a bullish crossover.
Given that CGAC is trading at its line of support, now could be a good entry point for investors bullish on the stock. With no definitive news regarding the reverse merger candidate, the increase in accumulation indicates investors are securing positions in anticipation of this catalyst. Although the company may be affected by additional dilution as CGAC’s management discussed, CGAC could be one of the most promising green penny stocks heading into the new year.
CGAC Stock Forecast
While CGAC may switch industries depending on its reverse merger candidate, it has a strong management team which is focused on transparency. In its ongoing effort to reduce debt and eliminate dilution, CGAC could become one of the green penny stocks to look out for.
Boasting a low float of 37 million, CGAC’s upcoming merger could send this penny stock on a run. Since the stock is currently trading at its support, now could be a potential entry point for bullish investors. Once a merger is confirmed, CGAC could easily break through its resistance and reach $.0036 in the run up – making it one of the best green penny stocks for a short-term merger play.
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