The bulls have started taking the fight to the bears, as GB Sciences Inc (OTCMKTS:GBLX) bounce back continues to gather pace. A sell-off wave that had pushed the stock to all-time lows appears to have lost its edge on as bulls continue to stream back.
GB Sciences Price Analysis
After shedding more than 90% in market value, GB Sciences might as well have hit rock bottom and due for a major bounce back. Price action activity in recent weeks has pointed to a stock that is due for a bounce-back supported by improving fundamentals.Fuelling the upward momentum is the company declaring a Research Revolution at its just-concluded cannabis symposium. The company also appears to be on the right track in pursuit of positive cash flows having a touted a gross profit of $0.7 million form its first crop harvest.GB Sciences has also confirmed a strategic partnership with Louisiana State University as it looks to strengthen its pipeline of cannabis products. In addition, the company continues to strengthen its intellectual property portfolio having filed a first of its kind patent application for the treatment of Neuropathic Pain.Amidst the underlying long-term bear trend, the stock is showing signs of turning bullish on renewed investor interest. After the recent spike high, GB Sciences needs to rally and stabilize above the $0.30 mark to affirm suggestions that bulls have regained control. GBLX Daily ChartAbove the $0.30 mark, bulls who have been on the fence, until now could jump in and continue pushing the stock up. Below the critical resistance level, short sellers remain in firm control and could continue pushing the stock lower.
About GB Sciences
GB Sciences casts itself as a technology-focused Cannabis Company. The Company specializes in the conversion of cannabis plants into medicines and treatments of various ailments. The company is also in the process of coming up with technologies in plant biology cultivation and extraction techniques.
Gross Profit Impact
GB Sciences has started bottoming out on strengthening investor confidence in response to improving long-term prospects. For starters, the company’s revenue base appears to be growing at an impressive rate, something that affirms the company’s ability to generate shareholder value going forwardA partnership with Colorado Hemp has already yielded a gross profit of $0.7 million, another development that continues to excite the markets. In addition, the company has gained access to seeds and genetics that it says will strengthen the program as well as the current revenue base.
“For GB Sciences, The Colorado Hemp Project provided unique genetics to explore sourced the land, found the right farmers and the production resources necessary to take the project from seed to sale." Remarked GB Sciences' Chief Science Officer, Andrea Small-Howard.
Louisiana State University Partnership
In addition, the company has struck a Master Research and Development Agreement the Louisiana State University. Under the terms of the agreement, the two are to combine efforts on the research and development of projects with the aim of coming up with Cannabis therapies.The master research agreement grants each party with rights to intellectual property that may arise from the joint research and development agreement. Louisiana University has since tasked GB Sciences Louisiana with the responsibility of cultivating and producing therapeutic cannabis products for medicinal purposes.
Growing Patent Portfolio
The signing of a strategic partnership with Louisa University came on the heels of GB Sciences filling a first of its kind patent for a new treatment for neuropathic pain. The new patent details a new way for the creation of myrcene-containing nanoparticles. The filing stems from a strategic partnership that the company inked with Universidad de Sevilla for the development myrcene -based chronic pain formulations.
"We are proud to be collaborating with world-class nanotechnology researchers at the University of Seville. Together, we will work to bring a new class of cannabis-based medicines through developmental processes, including clinical trials registered with the US FDA, to bring much-needed options for the treatment of neuropathic pain,” said CEO John Poss.
What Next For GB Sciences
A rally from all-time lows could be in the pipeline for GB Sciences if recent price action activity is anything to go by. The stock has bottomed out at the back of high turnover in traded shares, signaling renewed investor interest.GB Sciences moving to strengthen its revenue generation capabilities as well as its product line is a catalyst that will continue to strengthen its sentiments in the market and support the upward momentum.We will be updating our subscribers as soon as we know more. For the latest updates on GBLX, sign up below!Disclosure: We have no position in GBLX and have not been compensated for this article.
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