CannaRoyalty Corp (OTCMKTS:ORHOF) is showing no signs of slowing down after an excellent start to the year. The stock is on its way back to record highs, having emerged as an attractive fundamental investment. Investors have continued to push the stock up the charts, in response to a string of groundbreaking catalysts that affirm the company’s tremendous potential.
ORHOF Catalysts and Share Price Analysis
The stock’s sentiments and prospects have continued to inch higher on the company signing strategic agreements poised to strengthen its prospects in the cannabis sector. For starters, the company has signed a brand accelerator, program agreement with Heritage Holding of California. The company has also inked a strategic partnership with premium cannabis brand Kurvana for distribution rights in Northern California.The company has also reiterated its push for inorganic growth with the acquisition of major online and retail Canadian vapes operator. The purchase came just weeks after the company inked an exclusive distribution agreement with Humboldt’s Finest.The stock resorting to trading in a steep uptrend does not come as a surprise given that the company is firing on all cylinders when it comes to operational efficiency. A 50% plus spike since the start of the year has all but catapulted the stock, close to 52-week highs of $8.40. ORHOF Daily ChartThe stock faces immediate resistance at the $7.4 level, a breach of which will open the door for bulls to push it back to 52-week highs. Sell-offs, on the other hand, face strong support at the $6.50 level, below which CannaRoyalty could tank to the $5.70 level, the next substantial support level.As it stands, CannaRoyalty remains well positioned to continue powering high, in line with the overall bullish momentum and the fact that bulls remain in control.
What Does CannaRoyalty Do?
CannaRoyalty casts itself as cannabis products and Brands Company. The company is striving to become a global house of cannabis brands. Headquartered in California, the company boasts of a portfolio of 130 branded cannabis products that it distributes to a majority of licensed dispensaries in the state.
Why is CannaRoyalty Skyrocketing
CannaRoyalty is skyrocketing as investors react to the company's aggressive expansion drive that continues to strengthen its growth prospects in the industry. The company has completed the conversion of its royalty interest in Altmed consequently increasing its stake in the company to 5.1%. The conversion paves the way for the company to gain more exposure to a multi-state operator of AltMed status. In addition, the stakes broadens the company’s exposure to Florida and Arizona, some of the fastest growing cannabis market.
“With rapid expansion of their business in Florida and Arizona, we're confident that having an increased ownership level in these two states through AltMed will increase the already sizeable return on investment,” said Marc Lustig, Chairman, and CEO of Origin House.
Distribution Deal
CannaRoyalty has followed the AltMed deal with the signing of an exclusive distribution agreement with Heritage Holding of California. The agreement is part of the company’s brand acceleration program that it is leveraging to strengthen its revenue streams.Under the terms of the agreement, CannaRoyalty is to distribute Henry has branded products through its wholly owned subsidiary RVR distribution. The agreement should advance the company’s mission of becoming a global house of cannabis brand.Renewed investor interest on CannaRoyalty also comes on the heels on the company announcing the conversion of C$20 million worth of debentures to common shares.
"In addition to strengthening our balance sheet by eliminating the debt and the corresponding interest expense, the early voluntary conversion of the majority of the outstanding debt is a testament to investor confidence in our company's strategy and the strength of Origin House common equity," stated Mr. Lustig.
CannaRoyalty has also moved to strengthen its retail footprint in pursuit of revenue opportunities with the acquisition of 180 Smoke. The acquisition is poised to strengthen the company’s revenue streams given that it boasts of a rapidly expanding nicotine vapes, e-juice manufacturing, and cannabis hardware business. The acquisition is also poised to expand CannaRoyalty footprint in the Canadian market
Bottom Line
CannaRoyalty meteoric rise back to the top is supported by improving fundamentals that affirm the company’s growth prospects. The signing of strategic deals for expanding cannabis brands portfolio, expansion of retail footprint and the strengthening of balance sheet attest to a company destined for greatness.Price action activity indicates the stock is on its way to all-time highs with pullbacks acting as buy opportunities.We will be updating our subscribers as soon as we know more. For the latest updates ORHOF, sign up below!Disclosure: We have no position in ORHOF and have not been compensated for this article.
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