Crop Infrastructure Corp. (CNSX:CROP) is showing signs of trading higher as a bear run that had pushed it to all-time lows continues to lose momentum. A dip in value appears to have presented a unique buy opportunity that investors are slowly taking advantage of.
Crop infrastructure Price Analysis
Renewed investor interest in the stock after a 50% pullback, follows a string of positive developments that have reaffirmed the company’s growth prospects. Crop Infrastructure has achieved significant milestones in the expansion of its business empire with the signing partnership deals as well as the strengthening of its cannabis production capacity.
After plummeting to the $0.15 mark, the stock has bounced back nicely to the $0.17 handle. The stock needs to climb above the $0.18 mark, seen as the next substantial resistance level. A close above the critical resistance level should help reaffirm the emerging uptrend, opening the door for the stock to make a push for the $0.21 handle, seen as the next key resistance level.
Crop Infrastructure stock faces immediate support at the $0.13 handle on any sell-off, below which it remains susceptible to further sell-off. However, the stock remains well positioned to spike higher after the recent pullback, given the strong fundamentals that continue to offer support for further movements on the upside.
About Crop Infrastructure
Crop Infrastructure is a diversified cannabis-focused company that constructs, owns and leases greenhouses projects as well as real estate solutions for the cannabis industry. The company is also engaged in the cultivation of marijuana in the U.S, Italy and has in the recent past expanded its footprint into Jamaica.
Why is Crop Infrastructure Climbing High?
Crop Infrastructure sentiments in the market appear to have received a boost on the company undertaking a number of projects and signing deals that underlines how focused it is about pursuing cannabis opportunities.
The recent spike in share price can in one way or another be attributed’ to investors taking note of the fact that the company is set for a bumper hemp harvest in Europe. Through a joint venture with XHemplar hemp farm in Italy, Crop Infrastructure is gearing up for a 600,000 hemp plant harvest, in a 25-acre property, planted less than two months ago.
Plans are already underway to sell the CBD hemp as biomass. The company also intends to process part of the harvest into CBD isolate for sale on the international market.
“We’re looking forward to CROP building out the extraction facility and unlocking the true value of the hemp plant. In 2019 we will look to increase the scale of our operations and asset base in Italy with CROP Infrastructure,” said XHemplar Chairman and CROP Infrastructure VP of M&A, EMEA Andrea Castiglione states.
Jamaica Expansion Drive
Crop Infrastructure has also set sights on Jamaica’s burgeoning cannabis market. The company has entered into a joint venture that paves the way for it to acquire a 49% stake in a 217,000 square foot property. Acquisition of the prime agricultural land in Westmoreland Parish marks the first step in the company’s bid to launch a cannabis production and extraction facility in the country.
Crop Infrastructure is in the process of identifying a tenant licensee for the project that is to oversee operation in the property. Jamaica is one of the countries that the company is eyeing as part of its global footprint expansion drive. The country’s marijuana market is one of the fastest growing given the number of people that flock to the country as tourists.
In the U.S, the company is also strengthening and expanding its operations has announced the construction of 12, 3,640 sq. Ft. greenhouses in Washington State. Once complete the greenhouses should be able to produce 2,000 pounds worth of cannabis, allowing the company to generate $2.67 million in wholesale revenue, a month.
The company is also fresh from closing a non-brokered private placement of 5.4 million units, at a price of $0.30 a unit. Gross proceeds from the offering totaled $1.6 million, which the company intends to use to support its operations.
Recent developments highlight a company that remains well positioned to succeed as the global cannabis market continues to grow. Pursuing opportunities in Europe and Jamaica is a smart move as it provides an opportunity for the company to diversify its revenue streams away from the U.S.
It goes without saying that Crop Infrastructure is headed in the right direction as it continues to expand its cannabis business empire. That said, the stock should continue climbing high on investors taking note of the underlying solid fundamentals.
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Disclosure: We have no position in CROP and have not been compensated for this article.