Liberty Leaf Holdings Ltd (CNSX:LIB) is already up by more than 20% after a rollercoaster 2018 that saw it shed more than 80% in market value. The rally has come at the backdrop of high turnover in traded shares. However, the big question remains, does the stock have what it takes to continue off the lows?
Share Price Analysis
The stock is currently trading in a precarious position given the lack of clear-cut updates needed to validate further upside action. The last piece of information about the company’s operation came out last year.
Lack of press releases as well as updates have continued to hurt the stock’s sentiments in the market. However, the stock has continued to bottom out mostly because of the bullish momentum in the overall cannabis sector.
Liberty Leaf could struggle to rally past the CA$0.20 level, a critical resistance level. For the stock to continue climbing the ladder, then the company will have to serve groundbreaking catalysts in the form of press releases, affirming business development as well as long-term growth.
Above the CA$0.15 mark, Liberty Leaf remains well positioned to make a run for the CA$0.20 mark. For the stock to turn bullish, in the short term, then it will have to rise and stabilize above the CA$0.20 mark. Below the critical resistance level, the stock remains vulnerable to further drops.
About Liberty Leaf
Liberty Leaf is a diversified Canadian public company focused on building a diversified portfolio of cannabis-sector businesses. The company is involved in the cultivation and production of cannabis for use in CBD pet products. The company’s overall portfolio is made up of 60% interest in Just Kush and 100% in North Road Ventures.
AOR Submission Development
Liberty Leaf is in dire need of new catalysts if it is to continue powering high in line with the bullish momentum in the overall cannabis sector. For starters, the company needs to come out and provide the outcome of its Affirmation of Readiness (AOR) evidence package to health Canada made late last year.
The submission was part of the company’s efforts of obtaining regulatory approval for Cannabis licensing as part of its Just Kush’s strategy. Approval would have paved the way for a build-out and upgrading of a cannabis production facility in accordance with Health Canada’s Cannabis Licensing requirements.
Prior to the AOR submission, Liberty Leaf had completed a build-out of Phase 1 of its upcoming cultivation production facility. The build-out was a major step on the company’s push for a cultivation license. Liberty Leaf intends to use the facility to cultivate premium strains of cannabis for different levels of CBDs and THCs.
“I am very excited with the final result of the completed build out. Coupled with our innovative technologies, what this means is that Just Kush can now officially notify Health Canada that it’s ready for cannabis licensing,” said Will Rascan CEO Liberty Leaf.
The new cannabis production facility will come with an advanced security system as well as a comprehensive inventory management system. It will also feature state of the art aeroponic growing system and detailed care in the design of individual grow rooms.
“On behalf of the Board, we at Liberty Leaf want to thank all of our shareholders for their patience in seeing this project completed. We are all very excited for the future and what it all brings as we submit our AOR evidence package to Health Canada,” added Mr. Rascan.
Liberty Leaf faces an uphill task to continue its solid performance in the market. A 20% plus spike from one-year lows has come even on the company failing to issue clear updates detailing underlying developments.
The fact that the stock remains engulfed in a long-term descending trend line affirms the fact that the odds are against the stock continuing to climb the ladder, especially on the lack of groundbreaking catalysts.
However, the stock could continue its phenomenal run on management coming out and providing updates on the licensing of its cannabis facility under development. With the stock appearing to have reached a bottom, any positive update on operational efficiency and long-term prospects should go a long way in fuelling the upward momentum.
We will be updating our subscribers as soon as we know more. For the latest updates on CNSX:LIB, sign up below!
Disclosure: We have no position in CNSX:LIB and have not been compensated for this article.