One of the more interesting operators in the cannabis space in 2020 is American Green Inc (OTCMKTS:ERBB), and this week, the company is in the news due to significant development.
American Green Inc (OTCMKTS:ERBB) is primarily involved in the production of hemp-based products and on Wednesday, the company announced that its own store had gone live on the e-commerce platform Amazon.
It’s a massive development for the company since it is going to give the company’s hemp-based products exposure to a huge pool of new customers.
The announcement has proven to be a major trigger for the American Green stock and on Wednesday alone, the stock rallied by as much as 137%. Thursday, the stock is pulling back slightly with a fall of 9%.
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American Green wanted to have its own store on Amazon since it believes that its hemp products are going to have a significant effect on its future. Moreover, the company also believes that there is a lot of demand for those products across the world at this point in time. In order to have a meaningful Amazon store, a company needs to showcase a certain variety of products and American Green seems to have done that.
One of the product lines introduced by American Green is that of scented creams in four variants. Those products are going to be available in the health and wellness section on the Amazon platform.
In the Press
In its press release on Wednesday, American Green noted that it had been working on its formula for scented creams over the course of the past six months.
The company went on to add that one of the other major factors behind selling its product on Amazon lies in the e-commerce giant’s excellence in logistics and well-known dedication towards providing good customer service. It is easy to see why the stock rallied so strongly on Wednesday. However, it remains to be seen if the stock can continue to maintain its gains once the markets reopen.
Disclaimer: We hold no positions in ERBB stock.