CannaRoyalty Corp (OTCMKTS:ORHOF) A Stock That Keeps Giving On Pullbacks

CannaRoyalty Corp (OTCMKTS:ORHOF) looks set to continue trading higher and outpacing the pack as its rebranding drive continues to gain momentum. The company is in the process of changing its name to Origin House. The acquisition of RVR Distribution, as well as robust growth in revenues, are other developments that continue to strengthen investor confidence in the stock

CannaRoyalty Price Analysis

Since the start of the second half of the year, CannaRoyalty has rallied by more than 80%, with the upward momentum showing no signs of exhaustion. The stock is currently flirting with all-time highs after a recent pullback turned out to be a minor correction, from where buyers came back and pushed the stock even higher.

ORHOF Daily Chart

Given that the stock is currently trading in a steep uptrend, any pullback to the $6 a share level, should attract more buyers who missed out on the initial push higher. Immediate support on any sell-offs is seen at the $6 a share level, below which the stock remains susceptible to a drop to the $5.10 level.

CannaRoyalty remains well positioned to continue powering high at the back of a string of positive developments and catalysts that support further upward movements.

What Does CannaRoyalty Do?

CannaRoyalty set to be Origin House is one of the biggest players in the North American Cannabis business. The company is in the process of building what it says will be a leading distribution business in California, the hotbed of regulated cannabis market. The company intends to generate a good chunk of its revenue and shareholder value from well thought and built a world-class logistics platform.

Why is CannaRoyalty Skyrocketing

CannaRoyalty started powering high, in the market, after it emerged, it was in a phase of robust revenue growth. The company generated revenues of $3.5 million in the second quarter representing a 446% increase from the first quarter.

The robust growth once again underlined the company’s strategic focus on building its California distribution network. The growth should continue in the third quarter and fourth quarter, the company has completed two strategic acquisitions poised to strengthen its revenue streams.

CannaRoyalty is fresh from completing the acquisition of RVR Distribution. With the acquisition, the company gains access to two powerful brands RVR and Alta Supply, both of which generated combined revenues of $31.9 million last year. The acquisitions should position the company as a major third-party distribution platform in California.

According to the Chief Executive Officer, Marc Lustig, and the acquisition marks an important milestone in the CannaRoyalty push to become a home of cannabis growth brands.

“As a combined organization we now have the pieces in place to scale our California operations and rapidly leverage our brand IP and expertise into additional global markets such as Canada. Q2 marked a financial inflection point for CannaRoyalty, and this is just the beginning. We expect the closing of the Acquisition and the resulting acceleration of our growth plans to generate a sustained, multi-quarter step change in our revenue run rate,” said Mr. Lustig.

CannaRoyalty Rebranding

CannaRoyalty also appears to have caught the attention of investors on announcing an ambitious rebranding drive. The company will go by the name of Origin House in what management says is an attempt to align the company’s global strategy of maintaining global cannabis brands.

The idea behind the name change lies behind the strategy of positioning CannaRoyalty as the global house of marijuana brands. With the name change so has, the company also unveiled a new logo that will epitomize its core components. Going global is the company’s intention with the rebranding drive.

“Our strategy is being implemented in three overlapping phases. Phase Me of our business – to build the cornerstone for the ‘Origin House’ of promising global cannabis brands in California, is well underway,” said Afzal Hasan, President and General Counsel of Origin House.

What Next For CannaRoyalty

CannaRoyalty spike high in the market has come at the back of high turnover in traded shares. A spike of more than 80% since the start of the second half of the year further affirms the upward trajectory, the overall industry has turned bullish.

The company has also shown it has every reason to succeed as its continues to polish its cannabis distribution and logistics network in California. A 446% revenue growth in the second quarter underscores the fact that the business model is finally generating some value.

The stock looks set to finish the year on a high on strengthening investor confidence. That said pullbacks after the recent surge should act as a buying opportunity.

We will be updating our subscribers as soon as we know more. For the latest updates on ORHOF, sign up below!

Disclosure: We have no position in ORHOF and have not been compensated for this article.

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CannaRoyalty Corp (OTCMKTS:ORHOF) A Stock That Keeps Giving On Pullbacks
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