Ascent Industries Corp (CNSX:ASNT): After a 200% Rally Wait For A Pullback

Shares of Ascent Industries Corp (CNSX:ASNT) have been on a fly mode, on the stock’s sentiments in the market turning bullish. A 200% plus rally, on a high turnover in traded shares, underlines growing investor’s confidence about the stock’s long-term prospects.

Ascent Industries Price Analysis

However, the big question remains, does the stock have what it takes to continue powering high? With sentiments in the overall industry turning bullish, it is becoming clear that the stock might have some steam to continue climbing high at the back of solid fundamentals. PGTMF Daily ChartAfter a spike to 52-week highs, immediate support on any pullback is seen at the $0.48 mark, below which the stock remains susceptible to further drops to the $$0.39 mark. Given the strength of the upward momentum, buyers look set to continue pushing the stock higher with pullbacks emerging as buy opportunities.

About Ascent Industries

Ascent Industries is engaged in the cultivation, processing, production, and distribution of cannabis as well as cannabis-based products. The company boasts of a pipeline of about 40 products made up of consumer-focused brands including gels, capsules, and tinctures. The company has also inked a partnership with Simon Fraser University and the University of Kentucky for cannabis-based research activities.

Raped Up Production Capacity

A 200% rally has not come about merely on speculation, but on the company providing a positive corporate update that affirms long-term growth prospects. For starters, the company says its flagship cultivation and processing campus in Maple Ridge British Columbia is operating at full capacity with harvests trickling in on a weekly basis.The company has already harvested two batches of cannabis and is now in the process of pursuing a sales license inspection from Health Canada. In addition, its 20,000 square foot production and manufacturing campus, Agrima Labs, is at the confirmation stage awaiting approval by Health Canada. Completion of Phase 1 should pave the way for Ascent Industries to engage in the production of high margin products that it plans to use to target the European market.Ascent Industries is also working on Agrima Meadow campus, which is a 600,000 square foot greenhouse slated for completion in October. Completion of the three facilities should open the door for the company to start enjoying high margins as the Canadian cannabis market expands.

"We are all very excited that our Canadian projects are progressing well. Once we have our sales license for Agrima Botanicals, and the Agrima Labs and Agrima Meadows campuses are licensed and operational, we expect to be prominent leaders in the sector,” said CEO, Philip Campbell.

Supply Deals For Sales

Even as the company continues to expand its cultivation and production facilities, it has already started inking supply deals as it looks to generate maximum value from its harvests. Ascend Industries has already entered into a supply agreement with the Ontario Cannabis Retail Corporation for the supply of branded Cannabis products for the adult use market in the province of Ontario.The company is set to supply cannabis products for sale in OCS online sale network. It will also supply Ontario’s private retailers with cannabis products, once the province implements all the needed frameworks.In addition, the company has signed yet another supply agreement, this time with British Columbia Liquor Distribution Branch. The company has also opened talks with other provincial liquor boards and emerging private retail operators in pursuit of a new sales channel, awaiting the opening up of Canada’s adult-use marijuana market.

"As legalization approaches in Canada, Ascent is pleased to have been chosen as a supplier to the provincial distribution bodies in two of Canada's largest markets. We look forward to introducing consumers to our adult-use products and continuing to expand our relationships with these two important purchasers,” said Mr. Campbell.

What Next For Ascent Industries

Ascent Industries is one of the top performers in the market if a 200% plus rally in one month is anything to go by. Taking into consideration recent developments, it is clear why investors remain bullish about the stock as the overall industry continues to bounce back from one of the worst sell-offs.There is no doubt that Ascent Industries remains well positioned to continue climbing high as sentiments in the overall industry improve. The opening up of Canada’s recreational market should also result in new opportunities expected to strengthen the company’s growth prospects.After the recent spike that has seen the stock climb to record highs, it may be wise to wait for a pullback, before entering a long position on the stock, as recent developments support further movements on the upside.We will be updating our subscribers as soon as we know more. For the latest updates on ASNT, sign up below!Disclosure: We have no position in ASNT and have not been compensated for this article.