Body and Mind Inc (OTCMKTS: BMMJ) explosive price action activity has already caught the attention of traders and investors. A 180%-plus spike since the start of the second quarter remains the talk of the market, as the upward momentum shows no signs of exhaustion.
BMMJ Price Analysis
After crashing in 2018, the stock resorted to trading sideways in the first quarter of the year. However, price action activity has taken off in Q2, even on the management reiterating it is not aware of any material change.
The meteoric rise comes on the heels of the company announcing plans to expand into Arkansas having inked a strategic partnership for the development of a medical marijuana dispensary.
In February, the company received a boost on securing regulatory approval for the opening of Clubhouse dispensary in Ohio. The company’s balance sheet also received a boost on Australis Capital investing $777, 894 into the company.
Shares of Body and Mind have continued to skyrocket in the wake of positive developments that affirm the company’s growth metrics. With the stock flirting with all-time highs of $2 a share, it remains to be seen if the upward momentum is strong enough, to continue fuelling the upside action.
A breach of the $2 a share resistance level could open the door for bulls to continue pushing the stock higher in continuation of the steep uptrend. Conversely, pullbacks after the recent spike will have to contend with support at the $1.15 mark from where Body and Mind began its recent leg higher.
A sell-off followed by a close below the $1.15 mark could result in the stock plunging back to the $0.75 mark, a critical support level above which Body and Mind remains bullish.
About Body and Mind
Body and Mind is a cannabis-focused company that invests in high quality medical and recreational cannabis cultivation and retail. It boasts of one of the first medical marijuana cultivation licenses in Nevada. The company produces cannabis products for both medical and recreational market.
Why is BMMJ Exploding?
Shares of Body and Mind are exploding even on a lack of material change as reiterated by management in a press release. However, the company has served a number of press releases that underscore underlying growth and one of the reasons behind improved market sentiments.
The company has embarked on an aggressive expansion drive seen by the kind of deals it’s been signing. In the recent past, the multi-state cannabis operator has moved to expand its footprint into Arkansas on the inking of a strategic partnership with Comprehensive Care Group
The two are to work together to create a medical marijuana dispensary facility that will act as a sales channel for medical cannabis products in West Memphis.
“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, Body and Mind director.
Expansion into Arkansas follows the confirmation that Body and Mind is planning to make its products available in Ohio with the opening of Clubhouse dispensary. The company has already secured all the necessary regulatory approvals for the opening of a dispensary.
In Ohio, the company acquired a 100% interest in NMG Ohio LLC, which owns a dispensary and a cannabis production license. The acquisition paves the way for Body and Mind to open several stores as it seeks to strengthen its cannabis retail network.
A $777,894 capital injection by Australis Capital Inc. leaves the company in a stable financial position to consolidate revenue from Ohio operations and increase its multi-state influence.
Body and Mind stellar performance in the market does not come as a surprise given the investments the company has made in expanding its footprint into new markets. Expansion into Arkansas and Ohio allows the company to target a broader diversified market in pursuit of revenue opportunities.
With recent developments pointing to a bright future, the stock is likely to continue surging. However, given the meteoric rise, it might be wise to wait for pullbacks to open new positions in the stock.
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Disclosure: We have no position in BMMJ and have not been compensated for this article.