GreenGro Technologies, Inc. (PINK:GRNH) shot North after California’s Proposition 19 addressing the legalization of recreational marijuana usage was officially supported by an array of law professors. As an operator of medical marijuana dispensaries and nurseries, the company would be in direct benefit if the laws would change.The voting on Proposition 19 will take place on November 2. The legalization would, however, create discrepancies between the state and the federal laws, which is also a hot topic for discussions.
The support from the recognized law professors is a significant event, especially with only a couple of weeks left until voting. This will ignite hotter discussions on the legalization of recreational marijuana usage and will possibly attract more attention to the issue.[BANNER]
Though GreenGro’s stock rallies upon the excitement, the company hardly has anything under their sleeve at the moment. The business plan is to establish a nursery network of dispensaries. The Pink Sheets listed firm has $0 in assets at the end of 2009 as disclosed in their interim financial report.
The price action on the marked was partially induced by the considerably low stock float. Out of more than 95.7 million shares, only 18.8 million are freely traded. Low float stocks tend to show significant price movements when the buying pressure rises.
