Freedom Leaf Inc (OTCMKTS:FRLF) is one of the stocks taking advantage of an emerging cannabis boom. Since the start of October, the stock has rallied by more than 100% and in the process registered a new 52-week high. The rally comes on investor’s sentiments in the stock turning bullish at the backdrop of a string of positive developments in recent weeks.
Freedom Leaf Price Analysis
The announcement that Freedom Leaf has received significant investment from private equity firm Merida Capital Partners continues to strengthen the stock sentiments in the market. The company announcing plans to pursue growth opportunities in Europe has also gone well with investors.
A recent spike higher saw the stock record a new 52-week high of $0.58. However, the stock has since pulled back to the $0.39 level. The pullback could as well be a minor correction on investors using the opportunity to take in some profit.
Freedom Leaf faces immediate support at the $0.30 level, on further sell-offs. A breach of the critical support level could see the stock plunging to the $0.20 level, seen as the next substantial support level. However, given the recent swing higher, bulls remain in firm control.
Above the $0.30 level, the stock remains well positioned to continue powering high. A breach of 52-week highs should reaffirm the emerging uptrend and set the stock on its way to registering a new 52-week high.
About Freedom Leaf
Freedom Leaf cast itself as a diversified vertically integrated hemp business. The company is a leading go-to resource for people looking for information pertaining to medical marijuana and industrial hemp industries. The company is in the process of building a diverse portfolio of valuable businesses through acquisitions, strategic mergers as well as the acceleration of projects throughout the country.
Merida Capital Investment
Freedom Leaf is the subject of increased attention in the cannabis market after rallying by more than 100%. The rally comes on the heels of the company announcing a substantial investment by private equity firm Merida Capital Partners.
Under the terms of the agreement, Merida is to provide certain operational resources for supporting Freedom Leaf U.S Hemp sales efforts. The company is also planning to accelerate its European hemp cultivation operations.
Part of the new capital injection is also to be used to finance upgrade works at the company’s recently acquired 430,000 square foot greenhouse facility in Valencia. The facility is currently harvesting hemp, for sale in the European market.
According to Freedom Leaf CEO, Clifford Perry, the investment is a validation of the company’s aggressive expansion plans.
“Receiving an investment from a leading cannabis firm like Merida, which already has investments in key supply chain providers like Kusch, GrowGeneration and Emerald Scientific, should drive our US expansion and ensure we are building our CBD production business efficiently, while also giving us incredible support in our global expansion,” said Mr. Perry.
Freedom Leaf underlining plans to pursue growth and sales opportunities in Europe has gone well with investors. The expansion drive should help diversify the company’s revenue streams in addition to supplementing its efforts in North America, which investors expect to lead to more shareholder value.
Tierra Science Acquisition
Meridda Capital investment comes a month barely after, Freedom Life confirmed the acquisition of Tierra Science Global LLC. With the acquisition, the company has essentially diversified its product line on gaining access to a line of health supplements that support peak bio-energy levels in humans.
Tierra Sciences should act as a reliable revenue generation prospect, given that it achieved revenues in excess of $500,000 in the first half of the year. The company generates a big chunk of its revenues from premium supplements, designed to enhance mental stamina as well as athletic performance.
Freedom Leaf intends to take Tierra Science brand and potential revenues a significant step higher. The CEO remains confident that they will achieve new revenue highs going forward, leading to more shareholder value.
What Next For Free Life
Freedom Leaf has turned bullish after imploding in the first six months of the year. The stock is currently trading in a steep uptrend and looks set to continue powering high at the back of solid fundamentals. A Recent pull back from record highs essentially presents a unique buy opportunity for investors who missed out on the initial upswing. Freedom Leaf remains a solid buy especially on any pullbacks from higher highs going forward.
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Disclosure: We have no position in FRLF and have not been compensated for this article.