Kaneh Bosm Biotechnology Inc. (CNSX:KBB) has been a big disappointment, the stock has lost more than 30% in the market. While the pullback can be attributed to many factors, deteriorating performance cannot be one of them.
The company has made impressive strides over the last two months, backed by a vertically integrated acquisition strategy. By assembling a robust portfolio of licenses for cultivation extraction and distribution of medical cannabis and CBD products, the company has essentially positioned itself for accelerated growth in future.
Amidst the investments, the stock has continued to edge lower at the back of a bear run that seems to be gaining pace by the day. The stock is currently trading at the $0.405 level, close to a critical support level at $0.37. A break followed by a close below the support level could open the door for short sellers to push the stock lower to the sub $0.28 mark.
A rally followed by a close above the $0.5 mark, on the other hand, should open the door for the stock to resume its long-term uptrend as was the case in the first half of the year. Above the $0.5 mark, the stock could rally to the $0.6 mark, seen as the next substantial resistance level.
What Does Kaneh Bosm BioTechnology Do?
Kaneh Bosm BioTechnology casts itself as a diversified cannabis company focused on the production of cannabis as well as other biomedical and therapeutic plants in Canada. It currently offers an automated cannabis retail system dubbed BioCanna ADM system, used for dispensing of cannabis products
The company also offers consultation services on matters pertaining to engineering, procurement, and construction in the cannabis sector.
Kaneh Bosm BioTechnology has set its sights on both European and Latin America cannabis market. It thus comes as a surprise that the stock is trading lower, in the wake of recent developments that seem to have reaffirmed the company’s long-term growth prospects
The company has already amassed 4 licenses that pave the way for it to expand its operations into Greece, Slovenia, Colombia, and Lesotho. It is also in the process of securing at least half a dozen additional licenses, with the hope of expanding the current cannabis business empire in Latin America and Europe.
In Slovenia, the company has acquired 100% of Farmakem Ltd and in the process gained access to a crucial revenue generating, licensed and medical cannabis company. The entity that the company is acquiring is focused on research and development as well as production and distribution of pharmaceutical ingredients and supplements within the hemp/ cannabis industry.
Farmakem also owns licenses for international wholesale as well as import and export of cannabis products. The acquisition thus marks an important milestone in Kaneh Bosm BioTechnology bid to strengthen its European market presence.
“This acquisition provides a vertically integrated product line manufactured in the EU to help build out a robust portfolio of offerings into our network of circa 35,000 pharmacies. The Cebexan and Dronaxan product families within Farmakem, as well as new products utilizing multiple delivery systems, are very exciting,” said CEO Eugene Beukman.
In Colombia, Kaneh Bosm Biotechnology has completed the acquisition of Cannabis Medical Group that holds cannabis cultivation, production and distribution licenses.
“Colombia has become a highly sought after jurisdiction for Cannabis cultivation activities as it has a world-leading combination of broad public and private sector acceptance, ideal growing conditions and a massive addressable market,” Kaneh Bosm Biotechnology in a statement.
Kaneh Bosm BioTechnology has completed the acquisition of the remaining stake in Marathon Global Inc. With the acquisition, the company gains access to a reliable distribution channel ideal for targeting the larger European cannabis/hemp market.
Marathon Global boasts of an exclusive agreement with Cosmos Holdings Inc. that allows it to use the company’s distribution network to distribute medical cannabis products to about 35,000 pharmacies in 16 countries.
The marathon Global-Cosmos Holdings partnership thus opens the door for Kaneh Bosm Biotechnology to supply the overwhelming demand for cannabis and cannabis extracts in Europe. The distribution network should, therefore, act as a reliable revenue stream given the number of pharmacies in need of cannabis supplies.
Kaneh Bosm BioTechnology is headed in the right direction at the back of an aggressive acquisition strategy that continues to expose the company to unique opportunities of growth. The company remains well positioned to be a major player in the marijuana industry given the companies it has acquired.
Business expansion in Europe and Asia is a business aspect that should work to the company’s advantage as it reduces reliance on a single market for sales. Kaneh Bosm BioTechnology has every reason to succeed, and it might be only a matter of time before the stock bounces back after the recent pullback.
We will be updating our subscribers as soon as we know more. For the latest updates on KBB, sign up below!
Disclosure: We have no position in KBB and have not been compensated for this article.