Whitechapel Holdings acquisition is the catalyst that has revitalized Dakshidin Corporation (OTCMKTS:DKSC) sentiments in the market. The stock has since rallied by more than 500%, after underperforming the past two years, as investors react to the big coup.
Dakshidin Price Analysis
The surge comes on the backdrop of one of the worst runs in 2018. Dakshidin Corporation remained in subdued levels at the back of subdued trading levels. However, 2019 appears to have started on a roll depicted by high turnover in traded shares in the market.
The chart above clearly indicates the stock has turned bullish as bulls continue to overpower bears in pushing the stock up the charts. After the recent spike, the stock needs to rise and close above the critical $0.01 level to reaffirm the emerging uptrend.
The stock faces immediate support at the $0.0050 level on any sell-offs. A breach of the critical support level could give short sellers a reason to come in and continue pushing the stock lower.
However, initial indication is that the stock has what it takes to make a run for the $0.01 level given the strength of the upward momentum. The Whitechapel holdings acquisition is the catalyst that bulls are clinging on as they bid to continue pushing the stock up.
About Dakshidin Corporation
Dakshidin Corporation core business revolves around the acquisition of companies engaged in renewable and sustainable energy markets. The company also produces and sells water pumping windmills across the U.S. The company is also diversifying its business by expanding into the cannabis sector.
Dakshidin Corporation exploded in the market on announcing it was in the process of acquiring Whitechapel Holdings, Inc. and its subsidiaries. The Delaware based company and its subsidiaries offer a wide range of services in the burgeoning legal cannabis industry.
With the acquisition, Dakshidin Corporation has essentially made its debut in the multibillion-cannabis sector. Whitechapel Holdings comes into the deal with Laughing Frogs, a subsidiary that runs an outline sales portal for proprietary organic CBD products. Laughing Frogs also runs one of the fastest growing distribution channel programs for retail distribution.
In addition, Whitechapel Holdings acquisition accords Dakshidin Corporation access to Runnymede Farms. The subsidiary is in the process of acquiring a 193-acre farm in Northern California. The unit has already secured a $500,000 financing that paves the way for it to commence the cultivation of marijuana having already secured the necessary licenses.
The acquisition of Whitechapel Holdings is a big coup as it will allow Dakshidin Corporation to expand its footprint into the market poised to generate annual revenues of $57 billion by 2027. Last year alone, cannabis sales in North America clocked record highs of $9.7 billion from $9.2 billion registered in 2017.
“Whitechapel believes that, Cannabis and CBD are mainstream products being consumed by a mainstream clientele; we believe that trusted brands will be the future of the cannabis industry. Furthermore, we believe that the end of cannabis prohibition is inevitable, the industry is still in its infancy, and we plan to capitalize significantly on its potential for sustainable growth,” said Whitechapel CEO Chris Haigh.
In addition to the Whitechapel, acquisition Dakshidin Corporation has confirmed it is in the process of reconstituting its management team. Late last year J. Match Seaton vacated the chief Executive Officer seat leaving the company in limbo.
What Next For Dakshidin Corporation?
After underperforming the last two years, Dakshidin Corporation prospects are slowly turning positive. The acquisition of Whitechapel Holdings sends a clear message of how the company remains committed to pursuing growth at all costs.
The company has acquired a company that has already entrenched its footprint in the multi-billion industry. For that reason, the company looks set to start generating immediate value through the sale of proprietary cannabis products. In addition, the company is also planning to gain further exposure in the sector through the cultivation of cannabis.
The management team has also confirmed that there are no immediate plans to alter the current share structure. In addition, it has confirmed plans to honor and reward long-term Dakshidin Corporation shareholders by implementing a strategy for future growth and development of the business.
Expansion into the cannabis sector has essentially reinvigorated Dakshidin Corporation sentiments in the market. However, the company needs to serve new groundbreaking catalysts if it is to continue climbing up the charts, as the Whitechapel holdings development is already priced into the share price.
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Disclosure: We have no position in DKSC and have not been compensated for this article.
Image courtesy of Fischbauch via Flickr