Shares of Khiron Life Sciences Corp (OTCMKTS:KHRNF) are skyrocketing on the company closing a $28.84 million bought deal. Investors have continued to push the stock up the charts as a portion of the funds will go towards financing the expansion of the company’s cannabis production facility.
The company has also confirmed plans to carry out equipment purchases as it also eyes future acquisitions to accelerate growth. Khiron Life Sciences is also targeting commercial and product expansion as part of its sales effort.
In addition, the company has formed a joint venture with Dixie Brands (USA) Inc. (OTCMKTS:DXBRF) paving the way for it to strengthen its prospects in Latin America cannabis market. The two are joining forces to expand their sales effort with the unveiling of more than 100 proven products in one of the fastest growing cannabis markets in the world.
KHRNF Share Price Analysis
The pursuit of sales opportunities in Europe, Italy to be specific, also explains the love the stock continues to receive in the market. The stock is already up by more than 120% as it continues to trade in a steep uptrend in the market.
Pullbacks from higher highs have so far acted as buy opportunities from where the stock has continued to edge higher. The stock is currently trading close to a critical resistance level at $3 a share level. A rally followed by a close above the resistance level should set the stage for the stock to continue climbing the ladder up, in continuation of the uptrend.
Failure to breach the critical resistance level could leave the stock susceptible to further drops probably to the $2.30 handle. Above the $2.30 level, Khiron Life Sciences remains bullish. However, a breach of the support level could open the door for short sellers to push the stock to the $1.90 level, which is the next support level.
About Khiron Life Sciences
Khiron Life Sciences is a cannabis-focused company, seeking to become a dominant integrated player in Latin America. The company has core operations in Colombia where it is engaged in the cultivation, production, and distribution of medical cannabis. In addition, the company is involved in the distribution of cosmeceutical and nutraceutical products.
Why is Khiron Life Sciences Exploding?
Khiron Life Sciences flirting with record highs in the market does not come as a surprise. Instead, it comes on the company reiterating its long-term prospects, as it continues to push for market share in Latin America burgeoning cannabis market.
The company is fresh from inking a strategic partnership with, Dixie, a leading cannabis consumer goods company, to strengthen its prospects in Latin America. The formation of a joint venture paves the way for the two to introduce more than 100 proven cannabis products in pursuit of market share in a market set to be worth $12 billion by 2028.
The joint venture will leverage the two company’s strengths to enhance the manufacturing and distribution of infused cannabis products in Latin America. The ultimate goal is to capture the first mover advantage in the burgeoning marketplace.
“Our marketing and regulatory teams have analyzed the opportunities and requirements across the region, and we are completing detailed business plans to secure ‘first mover’ advantage. By leveraging our existing infrastructure, intellectual property, expertise, and distribution channels, we are moving quickly to introduce products to selected markets,” said CEO Chuck Smith.
In addition to Latin America, Khiron Life Sciences has also set sights on global expansion. The company has already introduced its Colombian CBD cosmeceutical brand, Kuida, in Italy as part of its expansion drive.
The company took part at the just concluded Cosmoprof Worldwide expo, in Bologna Italy, where it targeted an array of global retail buyers. Kuida is a wellness brand designed to offer benefits of cannabidiol as a skin and body care product.
Khiron Life Sciences is using the product to target the multi-billion global skin care market expected to be worth $131 billion by the end of the year.
“CBD-based products are rapidly taking center stage on the global skincare market. With our proven product development and marketing experience it is important for Kuida® to participate in the industry discussion on product innovation,” states Elsa Navarro, Skin Unit Director, Khiron life Sciences Corp.
Khiron Life Sciences is a fundamentally attractive investment. However, given that the stock is flirting with record highs it might be wise to wait for pullbacks before entering long positions. Longer term, the stock remains well positioned to continue surging as the company continues to expand its footprint in Latin America and Europe.
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Disclosure: We have no position in KHRNF and have not been compensated for this article.