Kona Gold Solutions Inc (OTCMKTS: KGKG) Approaching Bullish Breakout - Insider Financial
Kona Gold Solutions
Cannabis

Kona Gold Solutions Inc (OTCMKTS: KGKG) Approaching Bullish Breakout

Kona Gold Solutions Inc (OTCMKTS: KGKG) shares are edging higher on the company positioning itself to be the fastest growing beverage company in the hemp sector. While the stock is still down for the year, a break out from current lows looms, on strengthening investor confidence and improved market outlook.

Kona Gold Price Analysis

Investors are slowly taking note of the blistering pace at which Kona Gold is growing.  Expansion of the company’s product line has already come into play depicted by the launch of a new hemp energy drink and CBD energy flavor waters.

Kona Gold has also announced new distribution partners in key cannabis markets of Massachusetts, New York, and New Jersey. The distribution deals build on a strategic partnership that the company inked with Anheuser-Busch in Q1 as part of an expansion into Missouri Cannabis marketplace.

After a period of consolidation, the stock has started edging higher an indication of a potential breakout from current lows. Standing in the way of the stock turning bullish and resuming its long-term uptrend is the $0.09 resistance level.

KGKG Daily Chart

A rally followed by a close above the $0.09 technical level could result in bulls coming back into the fray and betting on the stock’s upside action.  The stock stabilizing above the critical resistance level should open the door for further rallies, probably back to 52-week highs of $0.12.

Conversely, Kona Gold will have to stabilize above the $0.07 support level to avoid further slides back to the $0.05 handle.

About Kona Gold

Kona Gold bills itself as a beverage company focused on the development of hemp infused energy drinks as well as energy patches, hemp apparel, and hemp shampoo. The company is also accredited to the industry’s first CBD energy water.

Expanding Hemp Product Line

Kona Gold is a potential breakout play in view of recent developments that affirm underlying growth and long-term prospects.  For starters, the company is fresh from reporting record Q1 revenues of $260,000.

Revenue growth looks set to continue in Q2 especially on the company commencing production of a new Hemp Energy Drink and CBD energy Flavors. The expanded Hemp Energy Drink will include flavors Bubble Gum and Candy Apple.  The HighDrate CBD Energy Waters, on the other hand, will consist of Blue Island Punch and Sour Apple.

“Our Company has been growing at a blistering pace and these added flavors will not only give our brands a larger presence but will add substantial revenue at launch.  This quarter we will see our beverage product offering grow from our current 11 SKUs to 17 SKUs, which is a substantial expansion,” explained CEO Robert Clark.

The unveiling of the new Hemp products affirms the fact that Kona Gold is the fastest growing hemp beverage company.  Over the last six months, the company has signed deals with over 27 distribution partners that has seen it expand its footprint into 16 states. With the expanded footprint, the company remains on course to generating revenue of between $1.5 million and $2 million.

Kona Gold has also set up a robust sales team, with contacts in the beverage industry, ideal for developing connections needed to accelerate sales growth.

Strengthening Sales Network

Distribution partners in Massachusetts, New York, and New Jersey should see Kona Gold popular hemp Energy Drinks finding their way into key markets as part of the expansion drive. Early this year Kona Gold expanded its footprint into Georgia with the signing of a distribution agreement with Clayton Distributing

“We continue to sign a new distribution partner on average of one per week, and with the busy season in the beverage industry around the corner, I anticipate even more growth in the coming months,” stated Chris Selinger, VP of Sales of Kona Gold. “With the addition of these three distributors, Kona Gold and HighDrate continues to expand into exciting retail markets.

What next For Kona Gold

Kona Gold has underperformed the broader cannabis sector if its performance in the first quarter is anything to go by. However, recent developments point to a company destined for greatness on both operational efficiency and revenue growth.

Expansion of the hemp product line should allow the company to meet the needs of a diversified hemp market and in the process generate significant sales. Expansion into new markets should also allow the company to strengthen its sales channels.

That said Kona Gold looks set to bottom out from current lows on investors taking note of its prospects when it comes to sales growth and long-term shareholder value generation.

We will be updating our subscribers as soon as we know more. For the latest updates on KGKG, sign up below!

Disclosure: We have no position in KGKG and have not been compensated for this article.

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Kona Gold Solutions Inc (OTCMKTS: KGKG) Approaching Bullish Breakout
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