AgraFlora Organics International Inc (OTCMKTS: PUFXF) bulls are certainly in control and the bears are fighting a losing battle with AgraFlora Organics. The stock has continued to edge higher after an excellent start to the year, supported by improving fundamentals.
PUFXF Share Piece Analysis
The bounce back is well supported by improving fundamentals key among them being the progress the company has made in affirming its long-term prospects in the cannabis industry. The company’s 2.2 million square foot Delta Facility is on course for completion, on the company securing the much-needed funding.In addition, the company has inked a strategic partnership with Dixie Brands as it seeks to expand its operations into Europe in pursuit of opportunities for growth. AgraFlora is also eyeing international listing as part of an effort of creating a leading international medical cannabis company.Investors have continued to push the stock up the charts in response to the string of positive developments that affirm push for growth in the multibillion-cannabis sector. The stock is currently trading in an uptrend with bulls in control.After pulling back from the $0.60 handle, the stock has once again started surging in what appears to be a continuation of the emerging uptrend. A breach of the $0.60 resistance level should affirm the emerging uptrend, setting the stage for AgraFlora to make a run for $1.10 mark, which is the next substantial resistance level. PUFXF Daily ChartConversely, sell-offs will in the meantime be restricted to the $0.40 mark, which appears to be the immediate support level, supporting the upside action. A breach of the support level would leave the stock susceptible to further drops, in continuation of the long-term downtrend.
What Does AgraFlora Organics Do?
AgraFlora casts itself as a growth-oriented and diversified company focused on the cannabis industry. The company owns an indoor cannabis cultivation facility in London and Ontario.
Why is AgraFlora Organics Surging
Shares of AgraFlora are surging in response to the milestone achieved in the development of the company’s marquee 2.2 million square foot cannabis facility in Delta British Columbia. The Company has closed two tranches of a $40 million equity participation with Delta Organic Cannabis Corp.The company’s state-of-the-art cultivation facility under construction is now fully funded and will become the second largest in Canada upon completion. With the new facility, the company is on course to become one of the mainstay players in the burgeoning Canadian cannabis marketplace.
“With the completion of all three retrofitting phases at the Delta facility, AgraFlora estimates that, as of 2020, it will be capable of growing 250,000,000 grams of high-quality cannabis every single year. Based on the landscape of the current Canadian marketplace, this would make the Delta operation the fourth largest grower in the country on a per gram basis,” AgraFlora in a statement.
In addition, the company has acquired an additional 10% stake in Propagation Services Canada for $14 million. The acquisition takes the company’s stakes in the cannabis flower company to 60%.
European Union Expansion
Even as AgraFlora continues working on strengthening its cannabis production capacity, it has also set sights on the European Union, as its next frontier for growth. The company has since inked a strategic partnership with Dixie Brands.The two are to work together on the manufacturing, sale, and distribution of cannabis-infused products, in legalized markets across the European Union.
"The European Union is a significant opportunity with more and more countries embracing medical cannabis and cannabis-based products. By exploring these opportunities with AgraFlora, we can leverage our experience in the United States to bring high-quality products to the European market,” said Chuck Smith, President of Dixie Brands.
Bottom Line
A surge in share price and market activity attests to growing investor confidence about AgraFlora growth prospects. Completion of the Delta Cannabis facility would be a major milestone that would propel the company to the top of the charts when it comes to cannabis cultivation and production in Canada.Expansion into Europe also underscores the company’s push for new opportunities, sure to accelerate its growth prospects. Recent developments provide clear evidence of a company destined for success as the Canadian cannabis market continues to expand.All of these factors make AgraFlora an exciting investment with long-term potential.We will be updating our subscribers as soon as we know more. For the latest updates on PUFXF, sign up below!Disclosure: We have no position in PUFXF and have not been compensated for this article.
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