Shares of iAnthus Capital Holdings Inc (OTCMKTS:ITHUF) are picking up steam as they continue to trade in a steep uptrend, after a roller coaster 2018. The stock is already up by more than 40%, in what is turning out to be a transformative year as heralded by management.
Share Price Analysis
A spike in share price, as well as market activity, comes on the heels of iAnthus Capital completing the acquisition of MPX Bioceutical. With the acquisition, the company has essentially expanded its multistate operation into 11 states consequently forming super-regional footprints.The opening up of dispensaries across the United States is another development that continues to strengthen the stock’s sentiments in the market. In return, investor’s interest in the stock has inched higher, depicted by huge trading volume in the market.iAnthus Capital has since resorted to trading in a steep uptrend, in line with the bullish momentum in the overall cannabis sector. After the recent spike, the stock appears to have hit a strong resistance level at the $6 a share level. ITHUF Daily ChartWhile pullbacks in the recent past have acted as buy opportunities, the stock looks set to power through the resistance level. A rally followed by a close above the resistance level should affirm the emerging uptrend, setting the stage for the stock to make a run for 52-week highs of $7.27.On the downside, short sellers should experience strong support at the $4.80 level. A breach of the critical support level could open the door for short sellers to push the stock back to this year’s lows of $3.80.If recent price action activity is anything to go by, then iAnthus Capital looks set to hold above the $4.80 level on its way back to 52-week highs.
About iAnthus Capital
iAnthus Capital is a licensed cannabis operator that owns and operates cannabis cultivation processing and dispensary facilities across the U.S. The company also strives to provide investors diversified exposure to the U.S regulated cannabis sector.
MPX Acquisition
Shares of iAnthus Capital received a boost on the company completing the acquisition of MPX Bioceutical. With the acquisition, the company has consequently expanded its footprint into 11 states in pursuit of opportunities for growth.Investors have continued to push the stock up the charts on the confirmation that the acquisition will allow the company to operate 63 retail locations as well as 15 cultivation/processing facilities, the merger also gives rise to a $1.6 billion businesses combination.
"2019 will be a transformative year for iAnthus, with the closing of our business combination with MPX being a crucial step forward. As demonstrated with our 2018 acquisitions in Florida and New York, and now with the closing of our MPX transaction, the iAnthus team continues to demonstrate its focus on growing its platform and operations," said Hadley Ford, CEO of iAnthus.
Expansion Drive
iAnthus Capital sentiments in the market have also received a boost on the opening of third dispensary locations in Florida. With the opening, the company has once again affirmed its commitment to pursuing growth around medical marijuana.The new dispensary in the City of Lake Worth paves the way for the company to service the needs of an underserved market when it comes to cannabis treatments. The company is to offer a range of vaporizer cartridges as well as oral cannabis tinctures and oil syringes in the new location.The expansion drive has also resulted in the opening of a 2,600 square foot dispensary in Wappinger Falls, dubbed Captiva Hudson Valley dispensary.
“2019 will be full of catalysts and exciting developments for Captiva, including the much-anticipated completion of our cultivation facility in Warwick, New York, and the opening of dispensaries in Staten Island and Chemung County,” Mr. Ford in a statement.
The aggressive expansion continues to strengthen investor confidence in the stock something that has prompted a ‘buy’ rating from Seaport Global.
What next for iAnthus Capital
iAnthus Capital looks like a solid buy at current valuation levels, given the strength of the upward momentum backed by improving fundamentals. The rapid expansion drive into new markets in pursuit of revenue opportunities has already prompted a buy rating from an equity firm.That said the stock should continue to edge higher on the company reaping the rewards of its expansion drive in the form of revenues from its cannabis dispensaries.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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