Henderson, NV — Grow Capital, Inc’s (OTCPK:GRWC) (GRWC) recent reorganization and rebranding was written about on Insider Financial. Today, the company announced that it has signed a letter of intent (LOI) to acquire Bombshell Technologies. A due diligence review is underway and a final determination regarding this acquisition is anticipated within weeks. Article below.
Grow Capital Inc (OTCMKTS: GRWC) Turns Bullish On Fintech Prospects
By Jim Bloom
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Grow Capital Inc (OTCMKTS: GRWC) stellar start to the second quarter is picking up some steam. The stock is already up by more than 80% after breaking out of a tight trading range. The trigger behind the recent upswing has to do with an ongoing restructuring that has gone over well with investors.
GRWC CATALYSTS AND SHARE PRICE ANALYSIS
Grow Capital has confirmed plans to exit the cannabis sector as part of its new strategic business model. By exiting the multi-billion-dollar sector, the company intends to focus on a business model that plays to its strengths having set sights on the FinTech sector.
The company attracting over half a million in new investment to support the ongoing transition could explain why the stock is flying high in the market. After breaking out of the $0.06 to $0.09 trading range, the stock rallied to this year highs of $0.18.
ABOUT GROW CAPITAL
Grow Capital is tweaking its business model to focus on the FinTech sector. The company is focused on raising capital and investing in companies with operations around financial technologies.
CANNABIS SECTOR EXIT
Shares of Grow Capital have taken flight on the confirmation that the company is exiting the cannabis business to focus on growth opportunities in the FinTech arena. Under the new business model, the company has engaged an acquisition strategy focused on financial technology and other complementary companies.
“Yes, GRWC was once associated with the blooming marijuana industry. In stark contrast to the hundreds rushing to that un-federally regulated sector, we are moving to a model that plays to our strength and vision in the FinTech sector that has an anticipated growth rate of more than 18.40% over the forecast period 2018-2025,” explained CEO Jonathan Bonnette.
The company has raised over half a million dollars, on the issuance of stock, to facilitate the evolution into the fintech sector. The ongoing transition has also seen the company change its name from Grow Condos to Grow Capital to reflect the new business model. Plans are underway to come up with a new corporate website as well as the company logo.
According to the Chief Executive Officer, plans are underway to pursue strategic acquisitions that will strengthen Grow Capital prospects in the fintech sector.
“It is a simple approach – our business plan is to grow capital through smart acquisitions. We have established a clear plan and model: identify companies with a clear niche who have strong leadership. Acquire them. Mentor them. Help them grow. Watch our shareholder value increase,” stated Mr. Bonnette.
In addition, the company has confirmed the appointment of Mr. Trevor Hall as the new Chief Financial Officer succeeding Mr. Wayne Allen who takes over as the chair of the board. Mr. Hall joins the company with vast experience having served as the Managing partner of Hall & Associates. He has over seventeen years of experience in accounting.
WHATS NEXT FOR GROW CAPITAL
Grow Capital evolution from a cannabis-focused company to a fintech entity is taking shape. The company has already carried out a name change and raised a significant amount of capital to facilitate the transition.
The company has also confirmed plans to carry out acquisitions as it seeks to accelerate growth. The stock spiking higher in response to recent developments underscores growing investor confidence as the company moves to pursue opportunities for growth in the Fintech sector.
Disclosure: We have no position in GRWC and have not been compensated for this article.
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