Beleave Inc (CNSX:BE) is on the brink of breaking out as it continues to bounce back after a steep pullback. The stock has already breached a critical resistance level, as the emerging uptrend continues to gain momentum. Supporting the upward momentum is a string of positive developments that have once again reaffirmed the company’s growth metrics in the multi-billion cannabis sector.
Beleave Price Analysis
The company is fresh from carrying out a stock split, poised to strengthen the stock’s liquidity levels, key to attracting more investors as the company’s works on its aggressive expansion plan. Beleave has also reaffirmed plans to pursue growth opportunities in Europe with the signing of a strategic partnership. The company is also pursuing relevant authorization that would allow it to build a state of the art indoor cultivation facility in British Columbia.
The stock spiking high in recent weeks does not come on speculation, but on strengthening underlying fundamentals. The stock has already breached a critical resistance level at the CA$0.24 mark and now looks set to continue powering high. A close above the critical resistance level has opened the door for the stock to make a run for the CA$0.30 mark.
Above the CA$0.30 mark, the stock would have turned bullish, opening the door for bulls to continue pushing it higher. On the downside, Beleave faces a strong support level at the CA$0.15 mark, below which short sellers will regain control and continue pushing the stock lower in continuation of the long-term downtrend.
What Does Beleave Do?
Beleave is a Canadian medical cannabis company that cultivates and sells cannabis for medicinal and recreational use. The company operates a network of medical cannabis dispensaries around Ontario and Quebec that also act as reliable streams for sales. It also sales its products through an online store.
Enhancing Share Liquidity
Beleave has started showing signs of breaking out on renewed investor interest in the stock. The stock has continued to trade higher at the back of a high turnover in traded shares.
In a bid to improve the liquidity of traded shares in the market, Beleave has confirmed a seven for one share split. With the split, each shareholder is poised to walk away with an additional six shares for each share held.
“A sizeable portion of our investor base is holding their position for the long-term. This stock split will increase liquidity, allowing more investors to buy and sell our shares as we continue our ambitious expansion into 2019,” said CEO Andy Wnek, Beleave.
A move to strengthen liquidity of the traded shares is not the only development strengthening investor confidence in the stock. Beleave is fresh from signing a strategic partnership agreement with Canymed GmbH.
The strategic partnership paves the way for the company to expand and strengthen its footprint in Europe as it is now set to supply the German market with medical cannabis. The partnership is the first of a series of strategic initiatives that the company is clinging on, as it looks to penetrate the robust European cannabis market.
Germany offers an exciting cannabis market, given that cannabis has been legal in the country since March 2017. The country plays host to one of the largest federally-regulated medical cannabis markets in the world. Beleave has since confirmed the appointment of Angela Fehr who is to oversee international sales in such emerging cannabis markets.
State of The Art Cultivation Facility
In a bid to strengthen cannabis products pipeline, Beleave has filed an application with Health Canada. The application is for the construction of a state of the art indoor cannabis cultivation facility in British Columbia. The facility once complete will carry all the needed products as well as strains of cannabis yet to reach the Canadian market.
The facility will also process newly acquired as well as developed products including edibles, drinks and noncombustible cannabis products
“Once completed, the entire project will add hundreds of thousands of square feet of superior indoor grow space to our growing capacity. We will continue to update our stakeholders on its progress as developments arise,” said Mr. Wnek.
After the underperformance of the first half of the year, Beleave is on course to recoup a good chunk of the losses accrued so far. The stock has started trading high, supported by solid fundamentals that continue to reaffirm its growth prospects.
The company has also signed an agreement that provides it with access to a CA$30 million credit line. The credit line is of great importance as it will strengthen the company’s operating flexibility allowing it to pursue more growth opportunities.
For early movers, Beleave is an ideal play as a breakout stock, as it is poised to finish the year on a high supported by solid growth.
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Disclosure: We have no position in CNSX:BE and have not been compensated for this article.