Medicine Man Technologies
Cannabis

Medicine Man Technologies Inc (OTCMKTS:MDCL) Bullish After MedPharm Acquisition

Medicine Man Technologies Inc (OTCMKTS:MDCL) is a potential breakout stock on the formation of a double bottom on share price activity. The stock is trying to make a comeback after shedding a substantial amount of market share over the past year.

Medicine Man Technologies Price Analysis

The formation of a double bottom is fuelling suggestions that the sell-off wave has lost its momentum and it is time for the stock to bounce back. The emerging uptrend has received a significant boost on the company pursuing organic growth as it seeks to strengthen its prospects in the cannabis sector.

Medicine Man Technologies continues to elicit strong interest in the market depicted by high turnover in traded shares in the market. Investors’ confidence appears to have ticked higher on the company announcing plans to acquire MedPharm. In addition, the company has carried out a string of management changes as part of an ongoing restructuring.

After a bounce-back from all-time lows, the stock appears to be making its way to a key resistance level at the $1.80 level. A breach of the key resistance level should fuel sentiments that the stock has turned bullish opening the door for bulls to continue pushing the stock higher. Above the $1.8 level, the stock should be on its way to the $3 a share level is seen as the next resistance level.

MDCL Daily Chart

Below the $1.80 level, the stock remains susceptible to further drops on the continuation of the bear trend. Any sell-off in the short term could experience strong support at the $1 a share level, below which the stock will resume its bear run.

What Does Medicine Man Technologies Do?

Medicine Man Technologies is a cannabis-focused company that provides cultivation and consulting services on matters pertaining to growing technologies and methodologies. The company also engages in retail operations of cannabis products.

MedPharm Acquisition

Medicine Man Technologies has caught the attention of investors on announcing the acquisition of MedPharm. With the acquisition, the company gains hold of an asset that has the potential to strengthen its cannabis empire.

MedPharm should strengthen the company’s consulting business given that it has made a name for itself in furnishing clients with marijuana extraction expertise. The company also provides cannabis grade dosage forms, for pre-formulation and formulation development.

MedPharm should strengthen the Medicine Man Technologies product line as it comes into the deal with Aliviar. The medically focused product line consists of a blend of cannabinoids, essential oils, noisome, and terpenes.

In addition to the product line, MedPharm will provide Medicine Man Technologies access to two cannabis licensees. MX LLC based in Colorado and MedPharm based in IOWA. The two are both engaged in the extraction ND processing of marijuana.

MedPharm is also in the process of expanding its footprint, having set sights on new markets in South America. The company is currently evaluating opportunities in other continents as well. The company is to use its diverse product line to strengthen its relationships worldwide in pursuit of revenue streams.

“This planned acquisition of MedPharm Holdings LLC brings world-class processing, research, and pharmaceutical-grade products to the Medicine Man Technologies’ portfolio. This is a significant step in becoming a dominant global operator, filling a key gap in our current products and services,” said CEO Andy Williams.

Management Changes

It is turning out to be a pivotal year for Medicine Man Technologies both on the operational and management front. The company has already conducted a series of management changes as it looks to position itself to take advantage of the emerging opportunities in the cannabis sector.

For starters, the company has confirmed the appointment of Mr. Joe Puglise as the Chief Operating Officer. The appointment comes at a time when the company is planning to enter new verticals across the cannabis sector. Mr. Puglise is to assist the interim CEO in ensuring the company operates efficiently. The company has also confirmed the appointment of Paul Dickman as the chair of the board, replacing Mr., Williams who has assumed the role of CEO.

Bottom Line

Medicine Man Technologies is not yet out of the woods even on bouncing from one-year lows. However, the stock has started surging on investors taking note of the company’s efforts in strengthening its prospects in the cannabis industry.

The acquisition of MedPharm is a development that affirms the company’s growth metrics given what it is bringing to the table. The stock should continue climbing on investors taking note of the improving fundamentals.

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

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

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Medicine Man Technologies Inc (OTCMKTS:MDCL) Bullish After MedPharm Acquisition
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