Future Farm Technologies Inc (OTCMKTS: FFRMF) could as well have hit rock bottom and due for a major bounce back. The stock has shed more than 40% in market value after an excellent start to the year. As we see it here at Insider Financial, the pullback presents a tremendous opportunity given the ever-improving fundamentals.
FFRMF Catalysts And Share Price Analysis
The company has made impressive strides and achieved significant milestones that underscore its growth metrics going forward. In our view, recent developments have the potential to trigger a bounce back, in line with the bullish momentum in the cannabis sector.
For starters, the Florida Agricultural and Mechanical University has selected the company to enter into a research partnership, to grow hemp in the state. The company is also fresh from closing a new investment that paves the way for it to accelerate its cannabis development projects in Puerto Rico, Rhode Island as well as entire North America.
Future Farm Technologies has also commenced the sale of its newly unveiled Cherry Wine seeds a development that has seen it amass sales of more than $40,000. The company has also secured two important licenses that allow it to commence industrial cultivation of hemp in Maine.
Amidst the string of positive development, the stock has continued to languish near all-time lows. However, it could be a matter of time before investors take note of what is at stake, conversely trigger a higher valuation of the stock.
After the recent plunge, Future Farm Technologies needs to rise and stabilize above the $0.18 mark to avert further slides in the market. Above the critical technical level, bulls could be tempted to come back and continue pushing the stock higher.
Below the critical technical level, the stock remains susceptible to further drops given the underlying steep bear trend.
About Future Farm Technologies
Future Farm Technologies casts itself as a diversified cannabis company. The company is focused on operating and developing technology/ breeding innovation businesses, in marijuana and hemp wellness segments.
While the stock has taken a significant hit over the past few weeks, one cannot dispute the fact that it is a potential bounce-back play, if recent developments are anything to go by. The announcement that the company is to collaborate with a top Florida university to research on Industrial Hemp is a development that continues to shore investor interest.
A partnership with Florida Agricultural and Mechanical University paves the way for the company to start cultivating hemp in Florida. In addition, the two are to join forces to carry out research on areas touching on pharmacology, agriculture technology, and biosciences.
The primary goal of the strategic partnership is to come up with cannabis cultivars, ideal for Florida’s climate and soil condition.
The pursuit of cultivation operations in Florida comes on the heels of Future Farm Technologies securing a substantial investment from Yorkville Advisors Global. The company is to use proceeds from the financing to refinance a previous investment made by Yorkville.
Part of the funds will also go towards supporting the development of the company’s projects in Puerto Rico bad Rhode Island
“Yorkville continues to be a very supportive partner for our endeavors, including our soon to open medical cannabis dispensaries in Puerto Rico. Puerto Rico is a strategic location for Future Farm expansion given its rapidly growing patient population and increasing social acceptance of medical cannabis,” said, CEO William Gildea.
In March, the company secured two important licenses that pave the way for it to strengthen its cannabis operations in Maine. With the licenses, the company can engage in industrial hemp cultivation in its Amity and Hersey farms.
The other license allows the company to engage in cannabis processing through its Belfast processing facility.
“Our success and leadership in 2018 uniquely position Future Farm to continue as one of the leading growers of high-quality hemp-for-wellness products in the Northeast,” said Mr. Gildea.
What Next For Future Farm Technologies
While Future Farm Technologies is languishing at all-time lows, one cannot dispute the fact that the company is destined for growth given the underlying developments. Expansion into Florida as part of a hemp research drive is a development one cannot take for granted.
The company has also secured a substantial amount of funding crucial for pursuing strategic initiatives for accelerating growth. The company has also moved to strengthen its cannabis cultivation and production capacity in Maine.
That said the stock is an ideal bounce-back play as underlying developments affirm the company’s long-term prospects in the cannabis sector.
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Disclosure: We have no position in FFRMF and have not been compensated for this article.