As one of this week’s hottest plays, ProText Mobility, Inc. (OTC: TXTM) is gaining investors’ attention after reaching new 52 week highs following its 311% run. This surge was triggered by the company finally announcing its reverse merger with a major South African medical cannabis producer. With the company’s new management promising updates in the near future, TXTM stock is one to watch this month in anticipation of more updates.
TXTM Stock News Delivering on its 2020 LOI, TXTM finally reverse merged with Republic of South Africa Medical Marijuana Dispensaries Acquisitions (RSAMMDA) through a share exchange. In this way, RSAMMDA exchanged 100% of its capital stock for preferred shares of TXTM. RSAMMDA is a jointly owned business led by Dylon Du Plooy and Dr. Ahmed Jamaloodeen (Dr. J) who represent RSAMMD and Leeds Boerdery.
Considered to be a pioneer in the medical cannabis industry, RSAMMD is focused on researching, cultivating, producing, and distributing high quality medical cannabis. To facilitate its operations, RSAMMD has partnered with Dr. J’s Leeds Boerdery to utilize his 5 thousand hectare New Castle farm and his federally issued cannabis and hemp licenses. As the world’s largest cannabis farm, the New Castle farm practices eco-farming and organic farming. For this reason, the farm is a Pilot of Excellence for the National Department of Agriculture Forestry and Fisheries as it uses advanced technologies and AI to grow its cannabis. With this in mind, many investors are bullish on TXTM stock’s future prospects as Du Plooy is now the company’s CEO and Dr. J is the company’s new president and chairman.
In the meantime, RSAMMD recently completed the cultivation of its semi-annual grow of cannabis and hemp over more than 1000 hectares. This was done by utilizing Dr. J’s permits and licenses to grow hemp and cannabis, in addition to research permits allowing for testing final products for human consumption and medical benefits. Considering the significance of these licenses, TXTM appears to be well-positioned to grow in the competitive cannabis market in the future.
As both companies signed an LOI back in 2020, they spent the past two years developing their operations in South Africa and across the world – while improving the infrastructure for cannabis and hemp extraction. On that note, RSAMMD currently operates a 10 thousand square meter state of the art greenhouse facility with full environment control and cannabis-related specifications which meet international ratings and standards. As well, RSAMMD has private consultation rooms and a medical center focused on medical cannabis science, prescription, as well as dispensing of medical cannabis products.
Based on this, RSAMMD expects this facility to become the headquarters for tracking and distribution of medical cannabis products to hospitals and pharmacies as widespread legalization takes place. At the same time, RSAMMD is bullish its infrastructure will allow it to produce the highest quality cannabis and hemp products in the world.
Meanwhile, RSAMMD has been busy over the past two years securing off-take agreements for end products. In South Africa, RSAMMD has only one off-take agreement with Dr. J’s New Castle farm. However, the company has been looking to increase its global reach and has agreed on several off-take agreements in principle with international leaders in the cannabis industry. In light of this, TXTM stock could see further growth if these deals are announced.
By acquiring TXTM, RSAMMD intends to integrate TXTM’s proprietary extraction technology with its existing infrastructure. Having previously tested the kettle system and extraction technologies on live cannabis, the technology showed its usefulness. While the company has not disclosed more information regarding this technology, Dr. J promised to “discuss this further as well as our upcoming operational plans”. Moreover, Dr. J shared that “Over the coming days and weeks, we will be sharing our immediate term road map and long-term plans we are developing for Protext which should translate into increasing shareholder value”.
These plans are mainly related to adding assets to TXTM to complement its new direction and commercializing the live plant extraction technology. In addition, TXTM intends to roll out a new crypto platform and a TXTM token in the near future. Through these plans, TXTM believes it could achieve its aim of uplisting to a major exchange. With anticipation brewing over these upcoming catalysts, TXTM stock is one to watch this month in anticipation of more PR.
TXTM Stock Financials Looking at TXTM’s financials, the company has $203.3 thousand in assets and $1.1 million in liabilities. TXTM did not report revenues in Q1 – yielding a net loss of $51.9 thousand compared to a net loss of $34 thousand a quarter ago due to an increase in derivative expense. Despite this, the deal with RSAMMD could set the company up for financial growth.
Technical Analysis TXTM is currently trading at $.0069 and has a newly formed resistance at .0073. The stock shows supports near .0063, .0041, and .0022. Given the bullish sentiment surrounding the company’s reverse merger, TXTM soared roughly 300% on the news. Considering the size of this reverse merger, bullish investors could find an entry point on any pullbacks.
In the meantime, accumulation is on an upward trend and the MACD is bullish to the upside. The RSI is at 82 indicating that TXTM stock is extremely overbought and that this is not a good time to chance. TXTM gapped up two times on its run, which investors should watch in case they fill later on. Currently, TXTM has an AS of 10 billion and an OS of 7.8 billion.
TXTM Stock Forecast As the company is reverse merging with a leader in the medical cannabis industry, TXTM could be a profitable stock to hold long-term. In light of the new management’s plans to add assets to TXTM and monetize its proprietary live plant extraction technology, TXTM has the potential to become a leader in the cannabis market. Given that the new management plans to uplist TXTM to a major exchange, these growth efforts could allow the company to achieve this target in the near future. Long term investors are particularly bullish on this plan since TXTM has clarified that it has no plans for a reverse split. In light of this, TXTM stock could have more news on the way as the company rolls out its plans for the future.