Americann Inc (OTCMKTS:ACAN) has resorted to trading in a tight trading range after taking a significant hit last year. Consolidation between the $2 and $1.80 range has turned out to be the order of the day, even on the broader cannabis sector trending higher. Does AmeriCann have what it takes to power through the tight trading range?
ACAN Catalysts And Share Price Analysis
As it stands, the stock has the potential to bounce back on the company serving a number of catalysts that could go a long way in triggering renewed investor interest.For starters, the company has completed a greenhouse structure at its flagship Massachusetts Cannabis Center. In pursuit of growth opportunities in the Massachusetts area, the company has also entered into a joint venture as it continues to pursue new avenues for strengthening its revenue streams.The company’s CEO, Tim Keogh, is also oozing in confidence that the passing of the Farm bill 2018 will have a positive impact on the company’s core business. The new bill puts the U.S on a clear path towards ending marijuana prohibition.While in most cases, the stock would have taken off in response to the string of positive development and bullish momentum in the sector that has not been the case. AmeriCann has found itself subdued in the $1.88 level in the market. ACAN Daily ChartThe $1.80 mark has so far acted as a solid support level from where the stock has continued to bounce back, with each pull back to the level. For the stock to turn bullish, it will have to rise and stabilize above the $2.10 resistance level.Above the $2.10 mark, AmeriCann should be on its way to the $2.90 mark, seen as the next resistance level. Below the $2.10 mark, AmeriCann remains susceptible to further drops given the underlying long-term bear trend.
About AmeriCann
AmeriCann designs and develops facilities used in the cultivation and processing of cannabis products. The company equips such facilities with greenhouse technology for cannabis cultivation. In addition, the company secures cannabis cultivation and production licenses on behalf of its clients.
Recent Developments
After a long period of subdued activity, AmeriCann could as well spike from current lows on providing crucial updates touching on its Massachusetts Cannabis Center. The company says it has completed the greenhouse exterior, of Building 1 at the Center.Building 1 is a cultivation and processing facility slated for completion in the summer. The company has already inked a strategic partnership with Bask Inc. that is to operate the facility once complete as part of a joint venture.The greenhouse is expected to produce 7,500 pounds of dry flower cannabis annually and 400,000 units of infused products once complete.
"We developed our Canopy System and designed the MCC to produce clean, high-quality cannabis. The completion of the greenhouse exterior represents an important milestone for us and reaffirms our commitment to sustainable cultivation and processing,” says Tim Keogh, CEO of AmeriCann.
Federal Marijuana Legalization Impact
Completion of the greenhouse could not have a come at a better time as the U.S embarks on a path towards ending marijuana prohibition. According to the company’s CEO, it is no longer a question of whether cannabis prohibition at the federal level will end, but when.Legalization of cannabis on the federal level would be a major breakthrough as companies would be able to work without having to worry of legal repercussions.
“Millions of Americans still do not have access to medical cannabis. One of the major benefits to the end of cannabis prohibition is that it should accelerate the number of states that embrace and regulate medical cannabis and expand the availability of safe, effective medicine for patients,” says Ben Barton, founder of AmeriCann.
Bottom Line
AmeriCann remains well positioned to benefit as the U.S moves to end marijuana prohibition. Legalization should go a long way in triggering a surge in entrepreneurs looking to strike it rich in the sector.The company should benefit as companies and entrepreneurs look for ways to set up the infrastructure for cultivation and production of cannabis. The company also offers logistical and administrative support that should receive a boost with the expansion of the sector.While the stock has underperformed over the past few months, the future still looks bright given the positive developments in the U.S cannabis sector.We will be updating our subscribers as soon as we know more. For the latest updates on ACAN, sign up below!Disclosure: We have no position in ACAN and have not been compensated for this article.
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