Elixinol Global Ltd (OTCMKTS: ELLXF) has once again started climbing the ladder after a minor correction from 52-week highs. The stock has been on an impressive run, since mid-last year, depicted by strong price performance and favorable technicals.
ELLXF Catalysts and Price Analysis
Expansion in Europe, as well as the launch of products in New Zealand in bid to accelerate sales growth, are some of the developments that continue to trigger renewed investor interest in the stock.
In addition, Elixinol Global has continued to strengthen its product line with the launch of water-soluble flavored CBD as it seeks to cater to the needs of the diversified cannabis marketplace. In the recent past, the company has also unveiled extra strength Hemp Balm with double the CBD of original balm.
The company has also inked a strategic partnership with KBMD for the launch of a new hemp CBD extract. In the recent past, the company has secured U.S Hemp Authority Certification consequently joining the exclusive club of companies allowed to use Certified Seal of U.S Hemp Authority on its products.
The stock exploding in view of recent developments does not come as a surprise. Elixinol Global is already up by more than 90% for the year as it continues to flirt with higher highs. After a recent pullback, the stock has emerged as a bounce-back play after hitting a crucial support level.
The $4.20 level is the immediate resistance level standing in the way of Elixinol Global continued ascendance back to higher highs. Failure to take out the resistance level could result in the stock trading in a range with a bullish bias.
Conversely, a sell-off followed by a close below the $2.90 level could leave the stock vulnerable to further drops, probably back to the $2.40 mark, seen as the next support level. Above the $2.40 mark, Elixinol Global remains bullish. A violation of the $2.40 support level could result in the stock turning bearish.
What Does Elixinol Global Do?
Elixinol Global manufactures and distributes industrial hemp-based dietary supplements and skin care products through its subsidiaries. The company boasts one of the largest retail distribution networks with operations in North and South America as well as Europe, Asia, and the Pacific region.
Why is Elixinol Global Skyrocketing?
A spike to all-time highs comes on Elixinol Global serving a number of groundbreaking catalysts that have continued to strengthen confidence, consequently fuelling a buying spree. It all started early in the year with the company launching its hemp CBD brand in New Zealand as part of the global expansion drive.
Some of the CBD products the company is using to target the broader New Zealand cannabis landscape include liposomes as well as branded CBD capsules, topical and tinctures. In addition to New Zealand, the company has also expanded its operations in Europe with the hiring of key personnel as well as the setting of offices in the Netherlands, Spain, and the UK.
The expansion paves the way for Elixinol Global to target a broader target market as it moves to strengthen its revenue streams.
“This expansion of our European team and infrastructure reflects the trust of our European customer’s place in Elixinol. Elixinol is an innovative and dynamic company. We will continue to meet and exceed customer expectations by developing new products and making them available around the globe,” said Gabriel Extension, President of Elixinol.
Product Line Expansion
The expansion comes high on the heels of the strengthening of the product line with the release of an array of CBD infused products. For starters, the company has unveiled what it calls a full spectrum of water-soluble hemp CBD water in three distinct flavors.
Extra-Strength Hemp Balm is another innovation formulated with a blend of hydrating plant butter, organic herbal extracts, and essential oils. In partnership with Ken Brown, of KBMD Health, the company has launched KBMD CBD extract in signature Natural and Cinnamon flavors.
“Specialists like Dr. Brown are going to help us pave the way for the future of the quickly growing and evolving CBD industry. He’s helping those who are newer to the world of cannabinoids understand the vast potential for daily health and wellness,” said Chris Husong, VP of Marketing and Communications.
Elixinol Global solid performance in the market is supported by solid underlying fundamentals that continue to improve and strengthen by the day. The launch of new products, as well as expansion into new markets, underscore the company’s long-term prospects as well as growth metrics.
A pullback from all-time highs presents an exciting entry opportunity as Elixinol Global remains well supported for further upside action.
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Disclosure: We have no position in ELLXF and have not been compensated for this article.