Maricann Group Inc (CNSX:WAYL) appears to have hit rock bottom, as it is starting to show signs of bottoming out. Trading activity is slowly picking the pace, depicted by high turnover in traded shares. A string of positive developments in recent weeks appears to have strengthened the stock’s sentiments in the market.
Maricann Group Price Analysis
The company is fresh from announcing plans for a first retail location in Switzerland, days after confirming its first ever CBD shipment to Germany. The company is also in the process of rebranding itself to Wayland Group in support of its ongoing global expansion drive.
The rebranding drive appears to have caught investors’ attention if recent price action activity is anything to go by. The stock is currently trading at the CA$1.8 level after turning bearish at the start of the year. Any bounce back from current lows faces strong resistance at the CA$2 a share level.
A breach of the CA$2 a share resistance level, should open the door for the stock to trade higher on affirming the uptrend. On the downside, a breach of the CA$1, a share, on the other hand, could draw in short sellers who might continue pushing the stock lower, in continuation of the long-term downtrend.
About Maricann Group
Headquartered in Burlington Canada, Maricann Group produces and sells marijuana for medical purposes. The company’s pipeline of products is made up of dried marijuana, cannabis oil as well as cannabis seeds and clones. In addition, the company plans to enter the business producing and distributing recreational cannabis.
Renewed investor interest in Maricann Group comes on the heels of a corporate rebranding drive that has once again reaffirmed the company’s long-term prospects. The company is in the process of changing its name to Wayland Group having already changed its ticker symbol to WAYL. The name change is subject to certain conditions including shareholders’ approval at the end of the year.
According to the Chief Executive, Ben Ward, the name change marks an important step as the company looks to position itself as a global brand. The name change reflects the company’s expansive portfolio as well as the direction, and it is set to pursue.
“Our roots in medical cannabis establish us as leaders on the world stage, and the tremendous work our team has done building our production facilities, entering into provincial supply agreements and cultivating European partnerships has put us in this extraordinary position that we’re in today,” said CEO Ben Ward.
Europe Expansion Drive
The name change follows the confirmation that the company is set to open its first retail location in Zurich early next year. The pursuit of sales opportunities in Switzerland comes on the heel of Haxxon AG acquisition, in May. The company is planning to leverage the acquisition’s production facilities in the country, for the production of high CBD cannabis plants.
Switzerland is not the only country the company has set sights on in pursuit of sales opportunities in Europe. Maricann Group has already made its first shipment of Mariplant CBD capsules in Germany. The company has made two shipments, one to the city of Munich and the other to the greater Cologne region.
Cannabis Shipments in Germany mark a significant milestone in the company’s European expansion strategy. In addition to the shipments, Germany consumers will also be able to purchase the company’s marijuana products online. The company is also planning a large scale roll out of pharmacy distribution, to cater for the growing demand in the region.
“Our vision is to enhance lives through cannabis, and with our products now accessible in the German market, we’re achieving our vision. This is no longer a concept, but reality,” stated Mr. Ward.
In addition to German and Switzerland, Maricann Group has also set sights on Malta’s Cannabis market. The company has already submitted an application for a license of operation in the country. The company intends to invest at least €9.5 million to finance operations in the country.
Shares of Maricann Group are languishing near all-time lows, the stock having turned bearish in recent months. However, if recent price action is anything to go by, then the stock could up for a bounce back as underlying fundamentals show signs of improvement.
The company affirming its commitment to pursuing growth opportunities in Europe is one of the developments that continues to strengthen the stock’s sentiments in the market. The expansion drive underlines the company’s commitment to pursuing robust growth at all costs.
That said, now may be the best time to maintain a close watch on Maricann Group. A rally followed by a close above the CA$2 a share should make the stock an exciting long-term play.
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Disclosure: We have no position in CNSX:WAYL and have not been compensated for this article.