Elev8 Brands Inc (OTCMKTS: VATE) is no longer struggling for direction, as was the case in our previous update. The stock has started trending higher after bouncing off a key support level on renewed investor interest.
OTCMKTS: VATE Catalysts And Price Analysis
A spike in market activity, as well as share price, follows the confirmation that the Company continues to enjoy continued growth. Impressive Q1 financial results are one of the catalysts fuelling the upside action on the stock bottoming out from one-year lows.
Elev8 market sentiments have also continued to edge higher as investors take note of its expansion into the burgeoning cannabis sector. At the start of the second quarter, the Company confirmed the launch of a ready-to-drink CBD-infused iced coffee, a development that has once again strengthened the Company’s revenue stream.
Expansion into new markets leaves the Company well positioned to enjoy accelerated sales growth key to generating shareholder value. The stock has since taken a flight on hitting the floor and bottoming out on huge turnover of traded shares.
The stock finding support above the $0.03 mark has essentially opened the door for further rallies as it becomes clear that Elev8 Brands is a potential bounce-back play. Considering recent price action activity, the stock could as well be on its way to the $0.05 mark.
A rally-followed by a close above the $0.05 technical level is what is needed to affirm the stock’s break out credentials. A rally followed by a close above the $0.05 mark should pave the way for bulls to ramp up pressure that could result in the stock making a run for the $0.08 resistance level.
What Does Elev8 Brands Do?
Elev8 Brands is a company focused on the development and marketing of products for the fitness and wellness market. The Company’s pipeline is made up of hemp-based food beverage as well as health care products such as hemp coffee and hemp tea.
Revenue Growth Milestone
Elev8 Brands has bottomed out of one-year lows on the stock’s sentiments inching higher following the delivery of impressive Q1 financial results. Revenue growth is one of the milestones that has once again affirmed the long-term company prospects.
Q1 revenues totaled $166,000 compared to revenues of $372,000 generated in all of 2018. Over the past month, the Company has seen its sales in the Amazon platform surge, having exceeded the $20,000 mark.
“We are so thrilled to be where we are today and to have achieved so much. These CBD-infused beverages have become the catalyst for exponential growth this year. We are currently working with a few distributors, but our team has 11 new distributors in our sales process. As a result, it’s very likely we will see revenues double in the second quarter,” stated CEO Ryan Medico.
According to the Chief Executive Officer, they are expecting tremendous growth in the second quarter thanks to brand recognition. The Company’s products are also reaching more customer nationwide a development that points to accelerated sales growth going forward.
CBD Beverage Opportunity
The launch of a new ready to drink CBD-infused Iced Coffee asserts the fact that the Company is on its way to a record-breaking year on revenue generation. The new product expands the Company’s toes into the burgeoning cannabis sector with vast opportunities for growth.
The Company has already shipped pre-orders for the ready to drink cannabis-infused coffee beverage affirming the strong demand it continues to elicit in the market. The redesigning of the Company’s website paves the way for the Company to engage in aggressive e-commerce all in the effort of driving sales.
“This is an amazing time to be in the growing CBD space. In addition, CBD-infused iced teas are just days from shipping and, as a company, we are positioned to be the first publicly traded, national brand to launch both CBD-infused iced tea and CBD-infused iced coffee in the ready-to-drink beverages market,” explained Mr. Medico.
What Next For Elev8
Elev8 sentiments and prospects, in the market, are turning positive by the day, given the investments the Company has made as it seeks to safeguard its long-term prospects. Expansion into the cannabis sector with the unveiling of a much-needed ready to drink CBD infused coffee affirms the Company’s long-term prospects.
The stock bottoming out from one-year lows on huge turnover of traded shares underscores growing investor confidence. That said the stock is likely to continue edging higher given there is a lot of ground to cover on the upside.
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Disclosure: We have no position in OTCMKTS: VATE and have not been compensated for this article.