Green Growth Brands Inc (OTCMKTS: GGBXF) is spearheading the consumer-led CBD craze given the rate at which it is opening CBD-focused retail locations. The opening of a sixth Seventh Sense Botanical therapy shop highlights how focused the company is, on strengthening its retail network.
Green Growth Price Analysis
The company has also inked several high-impact partnerships as it looks to leverage the first mover advantage in a bid to dominate the CBD retail space. Green Growth Brands is also positioning itself to become a leader in branding and marketing as part of its growth strategy.
Penetrating the retail network with a robust and diversified product line affirms the company’s long-term prospects in the sector. Backed with two cultivation facilities and licensed for additional stores, Green Growth Brands is slowly becoming a force to reckon with in the cannabis sector.
However, its share price is yet to paint an accurate reflection of the company’s credentials as well as long-term prospects. The stock has come under immense pressure in recent weeks amidst concerns about the company’s ability to finalize a deal to acquire Aphria Inc (NYSE: APHA).
After an excellent start to the year that resulted with a spike to the $4.50 mark, the stock has come down tumbling back to the $2.88 mark. The pullback faces immediate support at the $2.80 mark, a breach of which could result in the stock plummeting to 52-week lows.
Green Growth Brands needs to hold above the $2.80 support level if it is to bounce back to 52-week highs. As it stands, the stock has what it takes to bounce back after a steep pullback as underlying fundamentals support further upside action.
About Green Growth Brands
Green Growth Brands is a cannabis-focused company that seeks to dominate the industry with a portfolio of emotion-driven brands. Led by a high caliber of team, the company seeks to position itself as a leader in the retail sector as well as in branding and marketing of cannabis.
Aphria Acquisition Blow
Aphria rejecting Green Growth Brands hostile takeover could as well explain why Green Growth Brands has come under pressure in recent months, resulting in a plunge in share price. In rejecting the bid, the Canadian company reiterated that the all-stock deal significantly undervalued it.
With the takeover, Green Growth Brands had hoped to create an unparalleled North American player. The acquisition would also have expanded the company’s operations into Canada, a crucial market in the wake of recreational use legalization. As it stands, the hostile takeover is unlikely to occur, seen as one of the reasons why the stock’s sentiments have taken a hit.
Expanding Retail Network
While Green Growth Brands has paid a hefty price on tabling the hostile takeover, there is no doubt that its long-term prospects are as solid as they can be. The company has continued to strengthen its retail footprint with the opening of new locations as part of its growth strategy.
In the recent past, the company has opened the Seventh Sense Botanical Therapy CBD shop at Mayfair Mall in Milwaukee. The opening brings to six the number of botanical shops the company has opened in the recent past as it eyes more than 100 by the end of the year.
Green Growth Brands has so far set foot on Indiana and Kentucky as it continues to eye more retail markets to strengthen sales channel.
“Physical shops are our strongest marketing assets, and our presence in the new location will drive hundreds-of-thousands impressions with consumers. As we gear up to open over 100 CBD shops by mid-summer we are pleased with early signs of conversion, repeat purchases and building engagement with our current shops and online with ShopSeventhSense.com,” CEO Peter Horvath explained.
While Green Growth Brands has underperformed in recent months, one cannot dispute the fact that it is a unique play in the cannabis sector. Backed by a team of highly experienced and accomplished retail executives, the future remains bright as the company continues to expand its CBD retail network.
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Disclosure: We have no position in GGBXF or APHA and have not been compensated for this article.