One of the marijuana penny stocks worth keeping an eye on this year is Galexxy Holdings, Inc.’s (OTC: GXXY) after it released a road map revealing a litany of developments that the company believes will catapult its share price to $2 in the next 12 months and uplist to NASDAQ. This projection may seem at first like mere speculative optimism, but given the litany of its agreements and their potential to grow revenues at an impressive rate, this projection is possible. In light of this, GXXY stock may be one of the most exciting OTC stocks to watch closely as its story unfolds.
GXXY Stock News
VRMS Technology
As the company is looking to secure a share in the rapidly growing cannabis market, GXXY is developing the VRMS technology to accelerate penetrating this market. This technology is a unique hybrid retailing approach that combines the physical features of the traditional brick and mortar experience with the convenience of online shopping through deploying its point-of-sale systems in stores. Through VRMS, GXXY is confident it could mass market its online Genus cannabis products via retail outlets that have contact with millions of customers. Based on this, GXXY could witness major growth financially once the VRMS technology is fully deployed.
Considering this technology’s potential in growing GXXY’s business, the company filed a provisional patent application in the US to protect its proprietary technology. In addition, GXXY intends to file a Patent Cooperation Treaty patent application to further protect its technology globally. Based on this, GXXY could have a competitive advantage in the cannabis market since VMRS could be a revolutionary technology in increasing the company’s sales of its cannabis products.
Genus App
In addition to the VRMS technology, GXXY is preparing to launch the Genus app to disrupt the cannabis market. As a free virtual app for customers, Genus will provide customers with access to discounted products as well as health and wellness information. With this in mind, GXXY intends to integrate this app with the VRMS technology to drive up sales on the Genus app. Meanwhile, the Genus app will also provide customers opportunities to generate income since it will include digital token capabilities.
To facilitate this blockchain venture, GXXY entered into a technology platform partnership with BlockCerts Blockchain to develop a fully encrypted blockchain operating system to support the growth of the Genus app. Moreover, this partnership will allow tokenization and digital currency exchange transactions on the Genus app. By integrating BockCerts’ blockchain solution into the Genus app, GXXY has the potential to accelerate its business operations, improve efficiency, increase productivity, as well as reduce operating costs.
Meanwhile, this new operating system will have features like cannabis supply chain control, web3 cloud, patented smart contract blockchain capability, in addition to privacy and authentication solutions. In light of these features, the Genus app could witness high demand since it will enable more authentic and secure online payment processes. Given that this app could disrupt the cannabis market, GXXY could be one of the marijuana penny stocks to watch in anticipation of the app’s release.
CFI Joint Venture
While the company is focused on developing the Genus app and VRMS technology, GXXY is in a JV with City Farm Industries Inc (CFI) for the cultivation of cannabis oils and isolate. The JV also includes the cultivation of hemp flowers to distribute in the US and Europe. CFI has a 25 year ground lease on 1600 acres of prime farmland in the Central Valley region of California which had $4.5 million invested in its infrastructure by the previous leaseholder. To facilitate this JV, GXXY plans to invest up to $10 million in tranches of $2.5 million to expand CFI’s cultivation processes.
Initially, the JV will utilize 300 acres of the property for large-scale greenhouse cultivation and the sale of smokable flowers to meet its customers’ requirements. With this in mind, the expansion plans will include the cultivation of hemp biomass for processing into several cannabis oils and isolate. Based on these plans, GXXY could be one of the best marijuana penny stocks to invest in considering the potential of this JV.
On that note, CFI already holds LOIs for sales of up to 20 thousand lbs of hemp flowers per month. Given that GXXY intends to expand the ground to include climate controlled greenhouses totaling 320 thousand square feet, the company projects to realize $10 million annually from this JV once all PODs are operating and production is sold. With this in mind, CFI plans to add more PODs when the JV turns profitable. In light of this, GXXY could become one of the most profitable marijuana penny stocks when its growth plans are achieved.
Aiming to start the large-scale greenhouse cultivation program, CFI signed an MOU for a $2.5 million JV investment with a private investor. This new investment is on top of the $10 million pledged by GXXY to increase the JV’s production capacity which could set the JV for further growth. According to this agreement, a new JV will be formed and will be owned 75% by the investor and 25% by CFI. Meanwhile, CFI will provide a sub-lease to the new JV to accommodate a large-scale POD containing 8 greenhouses.
Through this new JV, CFI will be able to develop an additional 80 thousand feet of greenhouse capacity that can produce 28 thousand lbs of hemp flowers annually which could generate $8.4 million in revenues. Considering that GXXY has the option to acquire CFI based on their JV, GXXY has the potential to become a major player in the cannabis industry based on its growth efforts.
KRTL Partnership
Looking to further grow in the cannabis industry, GXXY signed an MOU with KRTL biotech (OTC: QENC) to develop and distribute new cannabis and psilocybin compounds and medicines. These medicines are currently under development by KRTL’s team of US and Korean doctors and research scientists for the treatment of several disorders like autism, PTSD, ADHD, depression, addiction, as well as other psychological illnesses. According to this partnership, KRTL and its affiliates will support GXXY’s expansion plans by promoting the VRMS technology and Genus products across the world. At the same time, GXXY plans to invest $2 million in KRTL where the company will receive 10% of KRTL shares and certain commercial licensing rights.
Meanwhile, both companies will be joined by other public companies to move forward with this project. These companies include Here To Serve Holding Corp (OTC: HTCS) and Pervasip Corp (OTC: PVSP). In light of this project, GXXY could be one of the best marijuana penny stocks this year as investors remain anticipating more updates regarding this project.
Future Plans
Although the company has not shared any new updates since its name change back in April, GXXY is climbing investors’ watchlists after promising to share several PRs over the coming weeks. Since these PRs are about acquisitions, divestments, and board member additions, GXXY could announce the acquisition of CFI. In that case, GXXY could be well-positioned to benefit from CFI’s 1600 acre ground in growing its cannabis business. As these announcements are approaching, GXXY stock could be one of the marijuana penny stocks to hold this quarter in anticipation of these updates.
*Updated June 20th 2023
Dan Gay
It can sometimes seem like everything Gay touches turns to gold. When he worked at MCI Telecom the company experienced unprecedented growth as he led sales teams in 15 states which increased the company’s revenue by $115 million during his tenure there. The number of employees in the company also increased from 200 to 30 thousand as a result.
Furthermore, during his time at Qwest, he was instrumental in its growth leading it to a market cap of $60 billion. His time as iThrive Health’s Chief Marketing Officer (CMO) and VP was also met with substantial growth with online sales increasing 315% and its customer base grew 500%. Given his impressive achievements, it is safe to say that Gay is an indispensable asset that might cause GXXY to grow notably.
Functional Mushrooms
Many people tend to associate supplements and functional products with snake oil. This concern is warranted, however, that is not the case for Wellbeing Farms. The validity of Wellbeing Farms is simply apparent due to the data it provides concerning the species of mushroom utilized and the scientific benefits that are readily available in the literature.
It is for that reason that Wellbeing Farms has been extremely successful so much so that it started exporting its products to the UK and Europe and was nominated for the Leading Manufacturer Award at the White Label World Expo In October 2022 which is extremely impressive considering the fact that it was founded in 2021. Given Wellbeing Farms’ drastically fast growth rate, the company might be poised to start upscaling production which goes hand in hand with GXXY’s appointment of Gay.
One of the biggest risks that corporations face when they upscale is simply not finding enough vendors and or clients for their products. This would lead to less than satisfactory revenue that would be compromised by mounting expenses. That is where Gay comes in with his wealth of marketing knowledge that minimizes the risk. That said, Gay has seen his fair share of upscaling experience making him the perfect candidate to assist Wellbeing Farms in its expansive endeavors.
News This Week?
According to notable trader Frank Benedetto, GXXY stock is preparing to release news this week which might be related to its functional mushroom brand. If news drops, the stock could soar especially since it has an extremely low float of 3.8 million.
*Updated August 3rd, 2023
Road Map
Recently, GXXY revealed its plans for the coming year. These plans include improving its direct selling through investments in its online stores, improving retail through its VendGenie plan, and distributing its products through a distinguished wholesaler.
In an effort to improve its online sales GXXY is currently in the process of executing a joint venture with a marketing software leader in order to develop Galexxy.com. This development is projected to cause its online sales to skyrocket since it projects to realize around $1.5 million from subscriptions in 2023 while projecting online sales to increase to $7.5 million in 2023 and $20 million in 2024.
When it comes to retail, GXXY is committing $9 million to initiate its VendGenie plan which will riddle the market with vending machines. The first 40 machines are planned to be in Texas and Pennsylvania and are projected to bring in $7.5 million in revenue for 2023. Furthermore, GXXY projects to realize $27.3 million as a result of these vending machines in 2024.
As for the wholesale part of its business, GXXY entered into wholesale agreements with ABC Wholesale and Avaloo which might be the most promising development in the company’s plan. Currently, the company is projecting that these wholesale agreements would provide it with $1.4 million in revenues annually, however, this projection may be conservative given the size and audience of ABC Wholesale, which is a gargantuan wholesaler boasting 650 locations throughout the US. Since ABC Wholesale is present in states where cannabis is not legal, this deal is likely to significantly boost the company’s CBD and functional mushroom sales.
Based on all of these developments, the outlook for GXXY appears to be bright as the company recently generated $200 thousand in revenues in Q1 2023 which means that before these developments, the company was on pace to report $800 thousand in annual revenues. In contrast, the company projects to make $9 million from subscriptions and online sales, $7.5 million in vending machine sales, and $1.4 million from its wholesaler deals. In light of this, the company is on track to fulfill its goal of uplisting to the OTCQX in Q4 and ultimately uplist to NASDAQ in late 2024.
GXXY Stock Financials
Q1 2022 Earnings
According to its Q1 financials, GXXY has $5 million in assets mainly attributable to goodwill and IP. As for liabilities, GXXY reported $922.9 thousand including $553.9 thousand in current liabilities and $369 thousand in long-term liabilities. Meanwhile, GXXY did not report any revenues in Q1 and reported $218.8 thousand in net loss. Despite these financials, investors are bullish on the company’s prospects since it is still growing its business and has no convertible notes – reducing dilution risk.
Q1 2023 Earnings
According to its Q1 report, GXXY’s assets increased QoQ from $8 million to $9 million and its cash on hand also increased from $94 thousand to $122 thousand. On the other hand, its liabilities increased QoQ from $1.1 million to $3 million.
In terms of revenues, GXXY reported $204.3 thousand in revenue for Q1 2023. That said, expenses rose YoY from $238 thousand to $667 thousand, which in turn caused net loss to increase from $238.8 thousand to $527.4 thousand.
Media Sentiment
@ChaseMacTrades is excited about GXXY’s $2 price target.
@SuperRobotOTC expects significant growth from GXXY thanks to its road map.
Technical Analysis
GXXY stock is in a bearish trend and is trading in a downward channel. Looking at the indicators, the stock is above the 200, 50, and 21 MAs which is a bullish indication. Meanwhile, the RSI is neutral at 51 and the MACD is approaching a bullish crossover.
As for the fundamentals, GXXY appears to be one of the most exciting marijuana penny stocks thanks to its promising road map. This is backed up by the success of its functional mushrooms brand – Wellbeing Farms – which won an international retail award only a year after its inception. With the stock trading near support, bullish investors could wait for retests of the $.14 support to enter long positions ahead of the company’s uplisting to OTCQX later this year.
GXXY Stock Forecast
Fresh out of the digital printing press GXXY’s road map is an arbiter of great news. As things stand the company is in the process of executing deals with Avaloo, ABC wholesale, and a marketing software expert in order to increase its retail, and direct sales revenue. Given its recent string of success with Wellness Farms, as well as the thorough nature of its multilayered sales plan the company’s overarching plan of reaching a PPS of $2 and becoming a NASDAQ listed company by late 2024 is a real possibility.
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