C21 Investments Inc (CNSX:CXXI) has turned bullish after coming under pressure in the second half of 2018. The bounce back comes on the heels of the company embarking on an aggressive acquisition drive that appears to have reinvigorated investor sentiments in the stock.
Share Price Analysis
The company has completed two acquisitions this year all but underscoring its push for inorganic growth. The acquisition of Phantom Farms is set to strengthen the company’s cannabis cultivation prospects in the Oregon area.Pure Green Dispensary acquisition, on the other hand, is poised to enhance the company’s prospects when it comes to the sale of medical and recreational products. In addition to the acquisition drive, C21 Investments has also strengthened its balance sheet with the closing of a private placement.Investors reaction to recent development has helped drive the stock above the CA$1 critical support level. A breach of the CA$2 resistance level should affirm the emerging uptrend setting the stage for the stock to make a run for all-time highs of CA$3.As it stands C21 Investments remains well positioned to continue powering high, given the solid fundamentals supporting upside action as well as the bullish momentum in the cannabis sector.
About C21 Investments
C21 Investments is a vertically integrated cannabis company that cultivates processes and distributes cannabis products across the United States. The company is currently cultivating cannabis in Nevada and Oregon, through its wholly-owned subsidiaries.
Recent Developments
C21 Investments has taken off on completing two major acquisition that have strengthened its sentiments in the market. In January, the company confirmed the acquisition of Pure Green Dispensary as part of an effort of enhancing its prospects when it comes to medical and recreational products distribution.With the acquisition, the company expanded its footprint into Oregon having gained access to a 3,000 square foot retail dispensary. The acquisition also sets the stage for C21 Investments to strengthen its retail footprint in the Oregon area in pursuit of revenue opportunities.Pure Green co-Founders Meghan and Matt Walstatter have affirmed their commitment to helping C21 Investments further strengthen its retail footprint.
“We've seen a lot of changes in the cannabis industry and Matt, and I believe joining the C21 Investments team will elevate our brand and further our capabilities. We want to continue to provide Oregon's medical patients and recreational customers with affordable, quality cannabis. The resources of C21 Investments will allow us to bring our community-oriented approach to customer service and a strong emphasis on product knowledge to an ever-expanding audience,” said Meghan Walstatter.
C21 investments has since followed the Pure Green takeover with the acquisition of Phantom Farms. The latest acquisition is set to strengthen the company’s cannabis cultivation capabilities given that it comes with outdoor cannabis cultivation facilities totaling 40,000 square feet.The two acquisitions underscore the C21 strategy of acquiring successful cannabis operations supported by experienced management teams. The company has also turned to acquisitions as it seeks to expand into other jurisdictions in pursuit of growth opportunities in the multi-billion-dollar industry.The acquisitions have been made possible by the closing of upsized private placement early in the year. The company generated $14.89 million in gross proceeds from the offering. With the new finances, the company remains well positioned to implement its growth strategy, in pursuit of shareholder value.
“Investors continue to show confidence in the company and its strategy. With the closing of several acquisitions and others due shortly, we are providing investors with the opportunity to invest in a vertically integrated cannabis company that cultivates, processes, and distributes quality cannabis and hemp-derived consumer products in the United States,” said CEO Robert Cheney.
Bottom Line
C21 Investments strong performance over the past few months can mostly be attributed to its robust acquisition drive. The drive has helped strengthen the company’s cultivation and distribution capabilities crucial to generating long-term value.Acquisitions have helped strengthen investor’s sentiments in the stock. As it stands, the stock remains well positioned to enjoy solid gains given the strength of the upward momentum. We expect the stock to continue its climb.We will be updating our subscribers as soon as we know more. For the latest updates on CNSX:CXXI, sign up below!Disclosure: We have no position in CNSX:CXXI and have not been compensated for this article.
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