Barely a month after announcing the acquisition of a new distributor in Metro New York, Elev8 Brands Inc (OTCMKTS:VATE) is yet again in the news. The confirmation that the company has eliminated 81% of its debt is the latest catalyst pushing the stock up the charts. Increased trading activity at the back of a high turnover in traded shares attests to renewed investor interest in the stock.
Elev8 Brands is a break out play heading into year-end if recent developments are anything to go by. After taking a significant hit from this year’s highs, Elev8 Brands has started showing signs of bottoming out after a period of consolidation.
Some of the developments that appear to have strengthened investor confidence in the stock include the formulation of a new CBD Lemon Iced Tea as well as the signing of a new distribution agreement for Metro New York.
The company has also embarked on an expansion drive that has seen it launch in three new locations. Elev8 Brands has also confirmed the availability of its products in two new Brick and mortar stores. The stock has since resorted to trading in an uptrend as investors react to the improving fundamentals.
Elev8 Price Analysis
After a recent spike higher, the stock faces immediate resistance at the $0.06 mark. A rally followed by a close above the $0.06 mark should open the door for bulls to push the stock to the $0.08 mark, which is a critical resistance level.
The stock needs to rise and stabilize above the $0.08 mark, to reaffirm suggestions that it has turned bullish. Above the 0.08 mark, bulls should resume control from short sellers and could consequently push the stock to this year’s highs of $0.14 mark.
Taking into consideration the underlying downtrend, Elev8 Brands faces immediate support at the $0.03 mark, on sell-offs. A breach of the critical support level could open the door for shorts sellers to continue pushing the stock.
About Elev8 Brands
Elev8 Brands is a development stage company that markets and distributes products for the fitness and wellness markets. The company’s pipeline soft products include hemp seed coffees blend as well as hemp infused water products and supplements.
Elev8 Brands trading activity in the market picked pace on the announcement of an 80% debt reduction. The company’s liability currently stands at about $19,000. The company struck a deal to pay off debt worth about $83,000, through the issuance preferred stock with a one-year versing period.
“I am thrilled to announce the retirement of this debt. Elev8 Hemp is already showing the strongest month in revenue, it has ever seen, and now we are much closer to being cash flow positive. By the end of the week, we hope to have an additional sales role filled here in Orlando,” said CEO, Ryan Medico.
Strengthening product Line & Sales
Elev8 has also added new product lines as it looks to strengthen its revenue streams. The company has already engaged the services of two copackers that are to bottle its new CBD Iced Tea and can is new CBD Iced Coffee. In the race for more revenues, Elev8 has engaged the services of YP Natural Inc. to be its chief distributor in the New York Area. The distributor has agreed to market the company’s products in its network
In addition, Elev8 is expanding its footprint on the international scene having made its product available on Amazon Prime in Canada.
“Canada is a huge step for the Company, and we will soon double our Amazon revenues. We continue to work with a marketing organization that manages our brand on Amazon which allowed us to instantly receive sales once product went live,” Medico in a statement.
Retail chain Lucky’s Market based in Florida has also announced that it will carry Elev8 cannabis products.
Elev8 is in a period of rapid growth as it continues to expand its footprint in key cannabis markets. The company has already indicated that sales are growing at an impressive rate and it is only a matter of time before the company turns cash flow positive.
Sales growth is one of the developments that indicate the company is on course to generate significant shareholder value going forward. That said Elev8 is an ideal play for early movers as the stock is relatively cheap relative to the underlying fundamentals. The stock looks set to continue climbing high as there is a lot of room to move on the upside, after a steep pullback.
We will be updating our subscribers as soon as we know more. For the latest updates on VATE, sign up below!
Disclosure: We have no position in VATE and have not been compensated for this article.