Commencement of full-scale production of EU-GMP certified cannabis is one of the reasons why Canada House Wellness Group Inc (OTCMKTS:SARSF) is surging from all-time lows. The company has commenced full operations at its Pickering Ontario facility, just days after Health Canada awarded its wholly owned subsidiary Abba Medix a sales License.
Share Price Analysis
Investors have reacted to recent developments pushing the stock up the charts. The stock has since bounced from the $0.10 mark, fuelling speculation that a turnaround from all-time lows is in play. After the recent spike, the stock faces immediate resistance at the $0.14 mark. SARSF Daily ChartA rally followed by a close above the $0.14 mark, should affirm the emerging uptrend and consequently cement suggestions the stock has turned bullish. Above the critical resistance level, the stock should attract bulls that until now have been on the fence about the stock’s long-term prospects.Below the $0.14 mark, the stock remains susceptible to further drops given the underlying long-term downtrend and the fact that short sellers remain in firm control. However, if recent price action activity is anything to go by then, Canada House Wellness Group looks set to continue climbing the ladder in line with improving fundamentals.
About Canada House Wellness Group?
Canada House Wellness Group casts itself as an integrated medical cannabis company. Through its subsidiaries, the company provides patient-specific cannabinoid therapy products and services, mostly targeting those struggling with a post-traumatic disorder and chronic pain.
Full-Scale Cannabis Production
Canada House Wellness Group has started bottoming out, from one-year lows, on investors taking note of the fact that the company remains well positioned to leverage its new sales license. The company has also commenced full operations at its production facility in Ontario. The process of cultivating pharmaceutical grade and handcuffed quality cannabis has already begun, as the company moves to take advantage of growing demand for cannabis products.The company is on track to produce its first full harvest of EU-GMP certified cannabis mid this year. With the new facility operating at full capacity, the company should produce between 2,000kg and 3,000kg annually. The management remains optimistic about realizing annual revenues of between $17 million and $25.5 million annually.
“Entering into full commercial scale production at our Pickering facility is one of the most significant milestones in our Company’s history. This will be the catalyst that will enable Canada House to enhance shareholder value further. With plants in the flowering room and product coming to market mid-year 2019, we see this as a critical step in our growth from a revenue, cash flow, and profitability perspective,” said CEO Chris Churchill-Smith.
Canada House Wellness Group has approached provincial distributors as it eyes supply agreements to furthers strengthen its sales channels. The pursuit of supply agreements comes in anticipation of the company’s subsidiary Abba commencing production of extract products and edibles before the end of the year.
Phenotype Program
In addition, Canada House Wellness Group has confirmed its completely licensed producer Abba Medix Corp has accelerated its phenotyping program as it continues to build its genetics library. The company has already curated a library of strains offering a wide range of cannabinoid profiles.
“With Canada House Clinic’s medical professionals and diverse patient base, our proprietary software and our state-of-the-art controlled grow facility; we are positioned to become leaders in cannabis genetics. 2019 will be a pivotal year for Canada House Wellness Group Inc. as we claim our spot as leaders in the space,” said Mr. Smith.
Bottom Line
Investor confidence in Canada House Wellness Group has inched higher, in recent weeks, in response to a string of positive development that affirms the company’s growth prospects. The company commencing full-scale cannabis production at its Pickering facility is a development that continues to excite investors.Management has also tabled a positive outlook for the year with cannabis production poised to clock highs of 3,000kg, which could lead to revenues of up to $25 million. The company has also made impressive strides as part of its phenotyping program that has so far seen it develop 62 strains in-house.The developments attest to a company that is in a phase of rapid growth. That said investors sentiments should continue improving resulting in a higher share price. For early movers, Canada House Wellness Group is a stock worth paying attention to as it is trading at a discount with immense opportunity for growth.We will be updating our subscribers as soon as we know more. For the latest updates on SARSF, sign up below!Disclosure: We have no position in SARSF and have not been compensated for this article.
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