Kali Inc (OTCMKTS: KALY) is once again showing signs of microcap runner after tumbling on a gloomy outlook early in the year. The unveiling of RespRX CBD formulation targeting a $14 billion market opportunity is one of the catalyst fuelling a bounce back. The announcement that the company is developing therapies targeting $170 billion in market potential continues to strengthen market sentiments.
KALY Price Analysis
In recent weeks, the stock has rallied on huge turnover of traded shares. The stock, taking out the $0.01 mark might as well as signal a change in the direction of trade. For the better part of the year, the stock has been trading in a downtrend, with bounce backs acting as sell-opportunities. However, in the recent past, bulls have resumed control as they continue to take the fight to short sellers.
After a recent spike higher, the $0.02 is the immediate technical level standing in the way of Kali extracts recording new one-year highs. A rally past the $0.02 resistance level should reaffirm the stock’s break out credentials, setting the stage for more momentum players to come into the stock.
Similarly, failure to rise and find support above the $0.02 level would leave Kali Extracts susceptible to renewed selling pressure, given the underlying long-term downtrend.
About Kali Extracts
Kali Extracts is a company engaged in the research and development of cannabis treatments targeting various illnesses. The company is currently working on therapies targeting chronic pain. In addition, the company is engaged in the distribution of pharmaceuticals, cannabis extracts, and wellness products.
Why Is Kali Extracts Surging?
Renewed investor interest in Kali Extracts, stems from the announcement that the company has made significant progress on the development of a CBD formulation for treating Chronic Obstructive Pulmonary Disease. The company has developed the formulation using its patented cannabis extraction process.
The company has since filed for a new patent application for the formulation which it says addresses symptoms associated with COPD and other respiratory conditions.
“The resulting intellectual property portfolio and the established regulatory and manufacturing expertise have created a significant opportunity. KALY now has a deep pipeline of cannabinoid product candidates including four distinct compounds listed here,” said CEO Frederick Ferri.
RespRX is the formulation that the company intends to use to target the COPD treatment market poised to reach $14 billion in 2025. According to the Chief Executive officer, the future can only be bright as they continue to execute on a number of business lines.
KALY 2019 Outlook
Kali Extracts is currently executing on simple CBD extraction business strategies as part of an effort of sustaining its biopharmaceutical development objectives. Following the acquisition of NCM Biotech four years ago, the company has established a leading position on the development of cannabinoid therapeutics. The company boasts of a robust pipeline of product candidates that affirm its long-term prospects as a cannabis biopharmaceutical company.
In addition to operating as a biopharmaceutical company, Kali Extracts is also looking to diversify its business empire in pursuit of opportunities in the industry. Its patented cannabis extraction process also looks set to be a key driver of the bottom line going forward.
The company has already leveraged the technology to introduce CBD infused consumer food products. In the recent past, the company has signed $15 million worth of cannabis extraction contracts with hemp farming operations. The hemp harvest season fast approaching, promises to provide many opportunities for the company to generate significant revenue while leveraging its patented extraction process.
Buoyed by the development on the cannabis extraction front, Kali Extracts is projecting robust revenue growth in the second half of the year. Management remains optimistic of signing $20 million worth of CBD extraction contracts before the end of the year.
KALY has raced higher as investors take note of the progress made in positioning the company as a biopharmaceutical company. The company making impressive strides in developing cannabis therapies for various medical conditions also continues to strengthen investor confidence.
The company moving to leverage its patented cannabis extraction process is another development that should continue to excite investors. With the company projecting revenues of as much as $20 million before the end of the year, the stock look sets to continue higher.
In our view, KALY is firing on all cylinders and the latest bull run looks to be just getting started.
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Disclosure: We have no position in KALY and have not been compensated for this article.