Rodedawg International Industries Inc (OTCMKTS:RWGI) Stock Soars As Company Adds New Licensed Cannabis Facility to Management Portfolio

It was a fairly good day in the markets for investors in Rodedawg International Industries Inc (OTCMKTS:RWGI) as the company’s stock enjoyed a strong rally and ended up with gains of as much as 18% for the day. The company came into focus among investors yesterday after it announced that it had signed and executed a contract with regards to the management of dispensary worth millions of dollars.

Trading Data

On Tuesday, RWGI stock moved up 18.33% to $0.0710 with more than 10.10K shares, compared to its average volume of 22.56K shares. The stock moved within a range of $0.0500 – 0.0710 after opening trading at $0.0710.

Rodedawg International Industries, Inc. (OTC: RWGI) Adds New Licensed Cannabis Facility to Management Portfolio

The dispensary would be opened at some point in January next year or before that. The contract  is with regards to a facility located in California, which manages a cannabis operation and is fully licensed as well. The facility owns licenses related to manufacturing, distribution, retail dispensary and delivery.

The management contract that had been signed by Rodedawg is also going to involve the completion of the build out that is now remaining. Following that, it will be possible for the company to ascertain the right valuation for the facility so that an offer of acquisition could be made. It was also noted by Christ Schwartz that the management contract was also an acknowledgement of the fact that Rodedawg had the requisite expertise for the cannabis market.

Key Quote

Chris Swartz, CEO, states, “Not only does this contract position Rodedawg for it’s first dispensary acquisition but also will generate several hundred thousand in monthly revenue while we assess the true value of the entire facility. Based on our initial assessment, we expect this facility will generate over $5 million dollars in the first year of our management and that before year end, our team will be in position to tender an offer.”

Technical Data  

RWGI stock is trading above the 20-Day and 50-Day Moving averages of $0.0417 and $0.0445 respectively. However, the stock is trading below the 200-Day moving average of $0.0715.