iAnthus Capital Holdings Inc (OTCMKTS:ITHUF) is making the case as to why it is one of the best early-stage cannabis plays. A rally of more than 100% at a time when the overall industry has been under pressure all but affirms its credentials in the burgeoning sector.
iAnthus Capital Holdings Price Action
A spike through the $6 a share level has not come on mere speculations, but positive developments that continue to affirm long-term growth prospects. Stellar financial results in a recent quarter is one of the catalysts driving the stock up the charts.However, it also appears investors are slowly taking note of the fact that the company has built out a meaningful portfolio when it comes to cannabis production and distribution of cannabis. The fact that the company operates in many of the less popular states means it has minimal exposure to competition, something that should work to its advantage going forward.The stock has been trading in a steep uptrend since the start of the year, with pullbacks acting as solid support from where buyers have come in and pushed the stock higher. After a recent spike to the $7.77 level, the stock has pulled back in what appears to be profit taking play. ITHUF Daily ChartWith the upward momentum showing signs of gaining pace by the day, the stock could as well break out after the recent pullback. On the downside, the stock faces immediate support at the $5.50 level below which it remains susceptible to declines to the $4.50 level seen as the next substantial support level.
What Does iAnthus Capital Holdings Do
iAnthus Capital Holdings is a company that seeks to provide investors diversified exposure to best in class cannabis cultivators, processor as well as dispensaries. In addition to owning and operating marijuana licenses, the company has partnered other license holders in pursuit of cannabis opportunities in critical states.
Why is iAnthus Capital Holdings Surging
iAnthus Capital Holdings has been surging for the better part of the year. However, the rally appears to have gained momentum having become clear it is a force to reckon with in the marijuana space. For starters, the company holds one of only 13 cannabis licenses in Florida. The license provides it with exposure to a key market that is growing at an impressive rate.In addition to Florida, the company also has operations in New York through its subsidiary Citiva. In the state, it has one of only 10 licenses that allow it to engage in marijuana production and retailing. The company also has operations in Massachusetts whereby it has a 36,000 square feet cultivation and processing facility.In Vermont, it operates a 6,900 cultivation and production facility. In the recent quarter, the company generated revenues of $4.9 million a testament that operations in key states are slowly bearing fruit
“We continued to make significant investments in scaling our operations, including breaking ground on a state-of-the-art cultivation facility in New York State. Acquiring additional space adjacent to our flagship dispensary in Brooklyn, expanding our Florida cultivation and processing facility,” said CEO Hadley Ford.
The value of the company assets have since ballooned to $142.2 million from $45.8 million, as of the end of last year, a testament of the robust underlying growth.In a bid to accelerate revenue growth the company is planning to open its first dispensaries in Florida. iAnthus Capital Holdings has already made significant investments at its Lake Wales Cultivation facility as it looks to scale up production to service the skyrocketing demand for cannabis products.Florida being the fourth largest market when it comes to patients in dire need of cannabis products essentially presents an opportunity worth pursuing at all costs. The company is thus targeting 15 signed leases before the end of the year having already signed leases in West Palm Beach, Brandon, Tampa, Orlando, and Sarasota.Next year the company plans to open two dispensaries, per quarter, all in the effort of pursuing new revenue streams
Bottom line
The fact that iAnthus Capital Holdings operates in less popular states means it remains well positioned to enjoy robust revenue growth without spending much on marketing. The company has already raised a $50 million investment which puts it in a good position to expand its footprint in the four states in pursuit of new growth opportunities.iAnthus Capital Holdings was among the top performing cannabis stocks in the first half of the year. The trend is poised to continue given the solid fundamentals that continue to strengthen investor confidence. That said, any pullback should act as a good buying opportunity as the stock looks set to continue climbing high.We will be updating our subscribers as soon as we know more. For the latest updates on ITHUF, sign up below!Disclosure: We have no position in ITHUF and have not been compensated for this article.
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