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Lifestyle Delivery Systems Inc (CNSX: LDS) Climbing The Cannabis Ladder

Lifestyle Delivery Systems Inc (CNSX: LDS) Climbing The Cannabis Ladder
Written by
Jim Bloom
Published on
April 23, 2019
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A flurry of positive developments from enhanced cannabis cultivation capacity to cannabis dispensary approvals as well as the signing of supply agreements affirms Lifestyle Delivery Systems Inc (CNSX: LDS) recent market gains. The stock has taken the second quarter by storm after a long period of consolidation in Q1.

Lifestyle Delivery Systems Price Analysis

The confirmation of the availability of the company’s flagship product, CannaStrips, in more stores, is another development that continues to excite investors as it affirms prospects of higher sales, at the end of the quarter.The stock’s sentiments have also inched higher following the signing of a lease agreement for a 20,000 square foot warehouse facility in Adelanto California.An 80% plus spike since the start of Q2 could as well affirm renewed investor interest in the stock after a breakout from the $0.25 to $0.31 trading range. As it stands, Lifestyle Delivery Systems is gunning for higher highs ahead of the $0.54 resistance level. LDSYF Daily ChartA rally followed by a close above the $0.54 level should pave the way for the stock to make a run for the $0.79 critical resistance level. The stock needs to rise and close above the $0.7 level, to turn bullish, and stand a chance of making a run for 52-week highs of $1.15.Pullbacks after the recent spike face strong support at the $0.35 level from where the recent spike began. Above the critical support level, Lifestyle Delivery Systems remains well supported for further upside action. Conversely, a breach of the support level could result in the stock plunging back to 52-week lows of $0.18.

About Lifestyle Delivery Systems

Lifestyle Delivery Systems manufactures and sells cannabis-infused strips. The company also provides consulting services on matters pertaining to facility identification, nursery preparation, and cannabis equipment acquisitions. Its lead cannabis product is CannaStrips, designed to provide patients with non-intrusive and nonsmoking alternatives.

California Cannabis Cultivation Boost

Shares of Lifestyle Delivery Systems are surging high as investors react to a flurry of positive developments that point to a bright future in the multibillion-cannabis industry. Through its wholly owned cannabis company, Core Isogenics, the company is fresh from contracting a licensed California cannabis farm.Under the terms of the agreement, Core Isogenics is to provide expertise seedlings and nutrients to the licensed cannabis farm with two acres of outdoor cultivation and one acre of canopy cultivation.Casey Fenwick, President of LDS, stated. “The contract cultivation on this farm will enable us to compete against black market pricing and still remain profitable. It is becoming apparent that to be competitive in the current cannabis market, companies will need to produce their own biomass on a large scale.

Highway 395 Dispensary Breakthrough

The licensing agreement comes just days after Lifestyle Delivery Systems secured environmental approvals for the construction of its Highway 395 dispensary. The proposed dispensary once completed will allow the company to access a potential traffic count of more than 120,000 vehicles a day, ideal for growing sales in Adelanto. According to CEO, Brad Eckenweiler, Highway 395 dispensary will mark the final step in the creation of a vertically integrated cannabis company.Lifestyle Delivery Systems should be able to furnish Highway 395 Dispensary with top-notch cannabis products having signed a five-year lease agreement for a 20,000 square feet warehouse. The facility in Adelanto California will act as the company’s transportation and distribution hub. Situated close to the Adelanto manufacturing facility, the facility will eliminate the need to engage third-party transportation services.The expansion drive has also seen Lifestyle Delivery systems sign agreement that paves the way for the company’s flagship CBD products CannaStrips to be readily available in over 200 stores.

"The immense traction we are getting with CannaStrips has been as we expected. And we are certain that the marketing campaign the Company is currently working on will further propel the growth of our brands and helps us to roll out the CannaStrips to a larger client base,” explained Mr. Eckenweiler.

Bottom Line

Lifestyle Delivery System is enjoying an excellent run in the market that looks set to continue given the underlying developments that point to a bright future. Expansion of cannabis cultivation capacity, as well as the signing of CannaStrips distribution agreement, affirms the company’s prospects in the sector.After a harrowing crash in 2018, the stock is slowly recouping losses accrued, a trend set to continue given the improved underlying fundamentals.We will be updating our subscribers as soon as we know more. For the latest updates on CNSX: LDS, sign up below!Disclosure: We have no position in CNSX: LDS and have not been compensated for this article.

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