Cannabis One Holdings Inc (CNSX: CBIS) upside action is still in play despite the stock pulling lower from this year highs. Bulls remain in control thanks to an 80% spike fuelled by a string of positive underlying developments.
Catalysts And Price Analysis
Some of the developments fuelling the upward momentum include the confirmation that the company has entered into an agreement in Colorado to acquire a portfolio of U.S cannabis assets. The acquisitions are poised to expand the Company’s operations into one of the biggest and fastest growing cannabis marketplaces in the world.
Cannabis One Holdings also remains the center of attention on confirming plans to acquire a leading Nevada –based cultivation, manufacturing and brand house as it continues to expand its footprint in the U.S. The stock’s market sentiments have also received a boost on the company expanding its premier brand portfolio on shifting focus to branding and marketing strategies.
The stock shooting higher in the market signals renewed investor interest in the stock in response to recent developments that affirm growth prospects. After spiking to the CA$4.50 level, the stock has pulled lower in what could be attributed to investors taking profit after an 80% spike.
While the stock is currently trading in a steep uptrend, any pullback from current highs will have to contend with sport at the CA$4 mark. Above the CA$4 mark, Cannabis One Holdings remains well priced to continue edging higher.
Conversely, a sell-off followed by a close below the CA$4 support level would leave the stock susceptible to further drops probably back to the CA$3.25 support level. The stock could turn bearish and continue edging lower on dropping below the CA$3.25 support level.
What Does Cannabis One Holdings Do?
Cannabis One Holdings develops and markets cannabis-related products in Colorado, Washington, and Nevada. The company is seeking to become a premier globally recognized House of Brands supported by an array of award-winning products. Its product pipeline is made up of Cannabis, INDVR, and INDVR firebrand names.
Why is Cannabis One Holdings Bullish?
Cannabis One Holdings has emerged as a bullish play on embarking on an aggressive expansion drive in pursuit of opportunities for growth across the United States. The company is increasingly becoming a multi-state operator, having expanded its footprint into California, Nevada, Washington, and Colorado Cannabis markets.
The expansion can only lead to accelerated sales growth as the company continues to come up with new products to cater to the growing needs of the diversified market. In Colorado, the company has signed an agreement with Hitachi Advisory Group LLC for the acquisition of a suite of portfolio assets related to cannabis retail, cultivation, and manufacturing operations.
Some of the assets the company is eyeing in the state include seven cannabis retail locations for strengthening sales channel. Cannabis One Holdings has also set sights on seven cannabis cultivation operations as it looks to strengthen its cannabis production capacity.
In Nevada, Cannabis One Holdings has struck a deal to acquire certain assets belonging to LV 3480 Partners LLC, Agro Finance LLC, and 3480 Investors Inc. Some of the assets the company is acquiring include cannabis cultivation and manufacturing licenses as well as award-winning, cannabis-infused product brands such as Evergreen Organic.
“With the addition of these popular Nevada marques to our growing portfolio of ‘Best-of-Breed’ brands, and the expansion of Cannabis One’s cultivation and manufacturing reach into the State of Nevada, CBIS continues to demonstrate its ability to execute on its stated strategy,” explained CEO Jeffrey Mascio.
Cannabis One Holdings has also completed a much-awaited entry into the California market after acquiring a majority stake in Coachella valley Cannabis Retail location. The expansion allows the company to pursue revenues and shareholder value in one of the world’s most vibrant markets.
Cannabis One Holdings expansion drive is gaining traction, and it’s just a matter of time before it starts reaping the rewards. Becoming a multi-state operator is an important achievement as it paves the way for the company to diversify its streams of revenues.
Increased cannabis cultivation and production capacity leave the company well positioned to be a key player as the cannabis industry continues to expand. With that in mind, the stock is likely to resume its uptrend as recent developments continue to shore up market sentiments and prospects.
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Disclosure: We have no position in CNSX: CBIS and have not been compensated for this article.