North American Cannabis Holdings, Inc (OTCMKTS:USMJ) Pops on New Teaser PR

It’s a rare sight but it is still happening – companies are actually releasing teasers of their upcoming press releases, using other press releases. On Friday North American Cannabis Holdings, Inc. (OTCMKTS:USMJ) closed 53% up just because of one such self-referential teaser.

After a rollercoaster of volume and price movement, USMJ popped up on the radar of OTC traders. Formerly known as Algae International Group Inc – a struggling enterprise that had not managed to generate a dime in revenues for years on end despite switching business models multiple times – USMJ switched to the logical choice of a new business direction in 2014 – cannabis and hemp! After all, those other pot stocks did well through part of 2014, right?

USMJ is in the spotlight and trading in heavy volumes because the company announced a new subsidiary called AmeriCana Cafe on June 16. The subsidiary will be the face of a “cannabis infused beverage shop” chain. USMJ does not happen to have such a shop chain among its assets. This is where the upcoming acquisition announced by USMJ comes in.

The entity USMJ is set to acquire is described as a “fitness cafe operation” that has been around for a decade. After the initial price bubble from the June 16 PR burst and the stock wiped the news-driven move, then slid further down the chart, it was obviously time to get traders stoked about the future acquisition once more.

USMJ put up a new press release on Friday. Its purpose seems to be to reassure traders how awesome the company’s acquisition is going to be through the cunning use of bold and underlined text and confusing wording. The PR never mentions the name of the future acquisition but states that the enterprise in question does close to $500,000 in annual revenues. USMJ believes that once the details are out, the potential for growth will be “obvious and compelling”.

The only thing that is not very obvious at the moment is why a company with zero cash in the bank is repeatedly tooting its horn about a big acquisition without revealing much about the deal or the payment method to be used. The tone of the press release sounds awfully similar to the mode of stock promoters who urge you to “load the boat” before you “miss the bus”.

Whether this particular bus will run on schedule remains to be seen, when next week USMJ finally reveals who they are acquiring and how they are paying for the acquisition.