Body and Mind Inc (OTCMKTS: BMMJ) strong performance in 2019 can be attributed to among other things an aggressive expansion drive that has triggered an uptick in market sentiment. The stock is already up by more than 90%, in what is turning out to be a break out year after a tumultuous 2018.
BMMJ Share Price Analysis
Investors have continued to push the stock up the charts on taking note of its aggressive expansion drive in Ohio and Arkansas. The expansion is hot on the heels of the company securing much-needed financing from Australis Capital that has left it in a stable financial position to pursue growth initiatives.
Considering the bullish momentum in the cannabis sector, Body and Mind Inc is likely to continue climbing the ladder on improving fundamentals and market sentiments.
A breach of the $0.80 technical level has opened the door for the stock to continue edging higher, with the next stop being the $1 a share mark.
A rally followed by a close above the $1 psychological level should affirm the emerging uptrend, setting the stage for the stock to recoup the losses accrued last year.
On the downside, support is seen at the $0.80 mark, below which the stock could plunge to the $0.40 mark, the next substantial support level.
What Does Body and Mind Inc Do?
Body and Mind is a cannabis-focused company that invests in high quality medical and recreational cannabis cultivation. The company boasts of a diverse cannabis product line made up of dried flower, edibles topical and extracts.
Why is Body and Mind Inc Skyrocketing?
Shares of Body and Mind are flying high on investors reacting to the company’s expansion drive in pursuit of growth opportunities. Arkansas is the latest cannabis marketplace that Body and Mind Inc has set sights on as part of its growth strategy.
The company has teamed up with Comprehensive Cater Group to develop a medical marijuana dispensary in the state. With the facility, the company will be able to engage in retail sales as well as cultivation of up to 50 plants to address stem growing demand for cannabis products.
Under the terms of the agreement, Body and Mind is to provide CCG with a convertible loan of up to $1.25 million through its wholly owned subsidiary Nevada Medical LLC and DEP Nevada Inc. In return, the company is to be paid monthly management fees, equal to monthly net profits generated by CCG.
“This deal provides BaM shareholders greater retail exposure, a fourth platform for growth and a path to launch some of its’ own products to the medical patients of Arkansas. We are proud to have been selected as one of only 32 dispensary licenses awarded in Arkansas and look forward to working with Comprehensive Care Group,” stated Robert Hasman, director of the Company.
Expansion into Arkansas comes on the heels of the multi-state operator setting foot in Ohio Cannabis marketplace. The company has since opened a new medical marijuana dispensary in the state as it continues to expand its retail chain.
According to Robert Hasman, the opening of the Clubhouse Dispensary is an excellent achievement as part of the company’s drive of opening new stores. The opening comes a month barely after the company secured $777,894 in new financing form Australis Capital to support its expansion drive into Ohio.
“Revenue consolidation of our Ohio platform is critical to Balm’s growth, and we are delighted to have executed upon this accretive transaction. We are now positioned to evaluate tie-on acquisitions in Ohio and across our multi-state footprint. We would like to thank Australis for their continued support, both financially and as advisors to the Company,” said Director Hasman.
An aggressive drive into key cannabis markets is one of the reasons to remain optimistic about Body and Mind long -term prospects. Investor sentiments in the stock have inched higher ever since the company announced plans to set toes on Arkansas and Ohio.
The opening of medical marijuana dispensaries in new markets should allow the company to strengthen its sales channels ideal for generating revenues and shareholder value.
After the recent breakout, Body and Mind Inc is likely to make a run for new 52-week highs given the strength of the upward momentum and improved market sentiments.
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Disclosure: We have no position in BMMJ and have not been compensated for this article.