Khiron Life Sciences Corp (OTCMKTS:KHRNF) Is A Buy On Solid Fundamentals

Khiron Life Sciences Corp (OTCMKTS:KHRNF) is back to winning ways after coming under pressure in October. The stock has bounced back after a minor correction and now look set to breach a critical resistance level on its way to recording a new 52-week high. The upward momentum has gathered pace affirming the stock’s break out credentials.

Catalysts Driving Upward Momentum

Supporting the upward momentum is a string of positive developments that continue to strengthen investor confidence in the company’s long-term prospects. Mexico announcing new guidelines for the production and importation of medical cannabis products is one of the developments that has strengthened the company’s international prospects.In addition, Khiron Life Sciences has secured an endorsement from a leading palliative care association. It has also inked a string of definitive agreements for the launch of Khiron Clinics as it moves to expand its footprint. The signing of a multi-channel distribution agreement for its flagship cannabis skin product Kuida is another development has once again reaffirmed its long-term prospects.

Khiron Life Sciences Price Analysis

Khiron Life Sciences is currently trading in a steep uptrend, buyers having regained control from bears after a minor correction. After the recent spike higher, the stock is currently flirting with a critical resistance level at the $1.43 level. KHRNF Daily ChartA breach of the $1.43 should open the door for the stock to continue powering high on its way to finishing the year on a high. On the downside, the stock faces immediate support at the $1.2 level, below which it remains susceptible to declines to the $1 a share handle.In our view, Khiron Life Sciences remains well positioned to breach the critical resistance level and record a new 52-week high.

What Does Khiron Life Sciences Do?

Khiron Life Sciences is engaged in the production and distribution of cannabis products for medical purposes. The company has positioned itself to be a dominant medical cannabis company in Latin America. It currently has core operations in Colombia where it is licensed for the cultivation, production, and distribution of Cannabidiol medical cannabis.

Mexico Opportunity

Renewed investor interest in Khiron Life Sciences follows the Mexican government announcement of new guidelines for the production and importation of Medical Cannabis Products. The government is in the process of setting up a framework that would result in a cannabis market of over 120 million residents.The announcement is a big development given that Khiron Life Sciences has previously announced plans to enter the Mexican medical cannabis market.

“Mexico represents an important market opportunity for Khiron. We see today's announcement as significant in progressing towards a fully legalized cannabis market in the country,” said CEO Alvaro Torres.

Latin America Expansion Drive

In addition to the Mexican development, Khiron Life Sciences has signed an exclusive agreement with Colombian Association of Palliative Care. The agreement paves the way for the company to provide doctors and caregivers direct access to specialized e-learning platforms as well as resources and educational materials medical cannabis treatment alternatives.Under the terms of the agreement, Khiron will be the exclusive medical cannabis marketing company marketing for the Colombian Association of Palliative Care. The partnership should provide the company with access to over 4 million people in need of palliative care treatment in Latin America.Khiron Life Sciences has also confirmed the acquisition of the Latin American Institute of Neurology and the Nervous System (ILANS) as it continues to expand its footprint in Latin America. ILANS is one of the largest and most respected neurological clinics in Colombia.With the acquisition, Khiron gains access to a network of over 100,000 patients in Colombia and a company with annual gross revenue of about C$10.5 million.

“With Dr. Jairo Espinoza, ILANS´ founder and one of Colombia´s most respected specialists joining our senior executive management team, we are positioned to leverage the existing ILANS patient base to grow the Khiron Clinics business unit throughout Colombia and across Latin America, in keeping with our clinic expansion strategy,” said Mr. Torres.

In keeping up with the rapid expansion drive, Khiron has also signed a multi-channel distribution agreement in Colombia for Kuida, its first CBD-based skincare brand. The channel partnership paves the way for the company to execute its go-to-market strategy in Colombia’s $5.6 billion skincare market in pursuit of revenues.

Bottom Line

Khiron Life Sciences has strengthened its prospects in the medical cannabis space at the back of a rapid expansion drive. Pursuit of growth opportunities in Latin America burgeoning cannabis market underscores the company’s commitment to pursuing revenues and shareholders value.The stock has already started flying high on investors taking note of the underlying solid fundamentals. Recent price action activity points to a stock that is set to finish the year on a high. That said any pullbacks after the recent surge should act as a buy opportunity especially on the stock rising above the $1.43 critical resistance level.We will be updating our subscribers as soon as we know more. For the latest updates on KHRNF, sign up below!Disclosure: We have no position in KHRNF and have not been compensated for this article.