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Crop Infrastructure Corp (CNSX:CROP) Looking To Make A Sustained Move Higher

Crop Infrastructure Corp (CNSX:CROP) Looking To Make A Sustained Move Higher
Written by
Jim Bloom
Published on
March 26, 2019
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Crop Infrastructure Corp (CNSX:CROP) is in dire need of new catalysts if it is to power through a tight trading range. Over the past few months, the stock has remained subdued between the $0.20 and $0.30 trading range, even on the overall cannabis sector turning bullish.

CROP Catalysts And Share Price Analysis

Amidst the underperformance in the market, the management has achieved significant progress in positioning the company for growth. Expansion into California with the acquisition of an interest in a distribution and packaging company has already come into play.Strengthening of growth prospects in Nevada through strategic partnerships has also come into play as part of an expansion drive targeting robust growth. In February, the company tapped the debt market in pursuit of additional capital to accelerate underlying growth.Amidst recent developments, Crop Infrastructure market activity has remained subdued in the tight trading range. However, with the bullish bias in the market, the stock looks like an ideal break out play. CRXPF Daily ChartA violation of the $0.30, resistance level, should open the door for the stock to bottom out and bounce back to 52-week highs. Conversely, a breach of the $0.20 support level would leave the stock susceptible to drops, probably to the $0.15 level, which happens to be the next support level.

What Does Crop Infrastructure Do?

Crop Infrastructure constructs and leases greenhouses facilities to licensed cannabis producers and processors in California and Washington. The company is also focused on cannabis branding as well as real estate assets.

Why is Crop Infrastructure a Potential Breakout Play?

Crop Infrastructure is a potential breakout play in part because recent underlying development affirms long-term growth prospects. The company has made significant progress in the recent past as it continues to push for value in the multibillion-cannabis industry.For starters, its subsidiary, Humboldt Holdings Tennant Hempire has acquired a 25% interest in a licensed distribution and packaging company with onsite extraction operations in California. With the acquisition, the subsidiary should be able to access turnkey equipment for processing cannabis flower, trimming cannabis and high-value distillate oil containing THC.

CROP CEO, Michael Yorke, stated: “This further vertically integrates CROP’s tenant Hempire in preparation for continued sales in the California market, this will streamline the manufacturing, and packaging and distribution of the brands reducing touch points and thus profitability and logistics of production for the California farms.”

The acquisition follows the signing of an agreement that paves the way for Crop Infrastructure to supply Antler Retail Inc. with finished packaged cannabis goods. The agreement opens the door for the company to strengthen its sales operations in California further.California is not the only marketplace that Crop Infrastructure has set sights on as part of its expansion drive. The company has also entered into an agreement with MYM Nutraceuticals to collaborate on a 120 acre of CBD-rich hemp farm in Nevada.Under the terms of the agreement, MYM Nutraceuticals is to fund Crop’s Infrastructure’s subsidiary Elite Ventures Group with $500,000 in exchange of 50% of CBD rich hemp grown in the parcel in Nevada. In return, Elite is to provide all the necessary capital and consumable supplies and harvest the hemp.

CROP CEO, Michael Yorke, stated: “This is a very significant partnership arrangement with Vancouver-based MYM Nutraceuticals which has operations in three countries and will bring additional exposure to our organic hemp products.”

Crop Infrastructure is in the process of constructing a 40-acre outdoor Nevada farm following the closing of an oversubscribed private placement. In the offering, the company generated gross proceeds of $3.1 million on the issuance of 10.3 million units made up of common shares and purchase warrants.The company has also confirmed plans to build a 30,000 square feet greenhouse in California. It is also planning to expand into other states in pursuit of opportunities for growth.

Bottom Line

A closer look at the bigger picture, it is clear that Crop Infrastructure has tremendous potential for success. Expansion into California and Nevada in pursuit of new opportunities for growth underscores the company’s growth potential.The company also boasts of a solid balance sheet capable of financing initiatives with the potential of accelerating growth. That said the company remains well positioned to succeed in 2019 even after underperforming the past few months. Upside action should gain some steam on investors taking note of the company’s growth possibilities. CROP looks to be a discount entry opportunity at current levels.We will be updating our subscribers as soon as we know more. For the latest updates on CNSX:CROP, sign up below!Disclosure: We have no position in CNSX:CROP and have not been compensated for this article.

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