Harvest One Cannabis Inc (OTCMKTS: HRVOF) Primed For Gains After Correction

Harvest One Cannabis Inc (OTCMKTS: HRVOF) enjoyed an excellent start to the year that saw it rally by more than 100% in the first quarter. However, the stock has been spiraling lower since the start of the second quarter, even amidst strengthening fundamentals.

Harvest One Cannabis Inc Price Analysis

For starters, the company is fresh from signing a supply agreement with Shoppers Drug Mart, poised to strengthen its sales channels. The company has also completed its first shipment to the retail store as it continues to strengthen its distribution network.In the recent past, the company has a signed a distribution agreement with Health House International set to take its cannabis products to international markets. In a bid to strengthen access to high-quality greenhouse grown cannabis, Harvest One has completed the acquisition of a 52% interest in Greenbelt Greenhouse Ltd.Amidst the string of positive developments, the stock has continued to edge lower in what could be attributed to investors taking profits after a meteoric rise in the first quarter. The stock has since pulled back from highs of $0.80 to lows of $0.56. HRVOF Daily ChartThe pullback is staring at support at the $0.47 level. A breach of the critical support level could result in the acceleration of the sell-off wave, where the stock is likely to turn bearish. Above the $0.48 mark, Harvest One Cannabis remains bullish and likely to continue edging higher.

About Harvest One Cannabis

Harvest One Cannabis bills itself as a global cannabis company engaged in the development and distribution of innovative, lifestyle and wellness products. The company’s diverse range of products is designed to enhance the quality of life.

Distribution Agreements

While Harvest One Cannabis has taken a significant hit in the market, it continues to work round the clock to safeguard its prospects in the highly competitive sector. The signing of distribution agreements is top on the agenda as the company seeks to strengthen its sales channels in a bid to accelerate sales growth.The signing of a supply agreement with Shoppers Drug Mart has set the stage for what could be a record-breaking quarter when it comes to sales. Under the terms of the agreement, the company is to supply Drug Mart with Satipharm branded medical cannabis products.The products are to be sold online, marking the first time that the products are available for purchase.

"We see this supply agreement as a further step towards fulfilling our vision of being a vertically integrated house of brands in the cannabis health, wellness, and self-care sector. We continue to expand our capacity to support our growing brand portfolio which includes our recently announced transaction with Delivra as well as our existing brands Dream Water, Satipharm, Royal High, and Captain's Choice,” stated Grant Froese, CEO of Harvest One.

In addition to the Drug Mart deal, Harvest One has also entered into a distribution agreement with renowned medicinal cannabis wholesale business Health House International. Under the terms of the agreement, the company is to supply Satipharm CBD 50mg Gelpell capsules.The Health House International distribution agreement is poised to expand Harvest One footprint into Australia, New Zealand and Asia opening the door for more sales.

"We are committed to delivering the highest quality cannabinoid-based products globally. As further regions become available, we will endeavor to put agreements in place that will allow us to meet the needs of our patients,” stated Mr. Froese.

Greenbelt Greenhouse Acquisition

Given the growing demand for cannabis products, Harvest One has acquired an initial 52% interest in Greenbelt Greenhouse. With the acquisition, the company is poised to gain access to high-quality greenhouse grown cannabis, the supply should go a long way in expanding the company’s infused health, wellness, and self-care cannabis products.Greenbelt Greenhouse acquisition should help compliment Harvest One’s other existing production facilities and expansion planned for the year. The facilities should ensure adequate supply, which should allow the company to meet the growing cannabis products demand and generate significant value in the process.

Bottom Line

Harvest One Cannabis Inc has dropped significantly from this year's highs. While the drop is a point of concern, it does not paint an accurate picture of the company’s underlying development as well as long-term prospects. With recent developments indicating that the company’s core business is growing at an impressive rate, the future looks more bright than ever.A drop in share price might as well have presented an opportunity to buy Harvest One at a discount, given its tremendous potential in the cannabis sector.We will be updating our subscribers as soon as we know more. For the latest updates on HRVOF, sign up below!Disclosure: We have no position in HRVOF and have not been compensated for this article.