MediPharm Labs
Cannabis

MediPharm Labs Corp (OTCMKTS:MLCPF): A Buy On Soaring Cannabis Deals

MediPharm Labs Corp (OTCMKTS:MLCPF) has hit a buy zone after signing a groundbreaking $26.38 million cannabis oil deal. The deal comes just weeks after the company signed three similar cannabis oil concentrates supply agreements. The agreements have once again strengthened the company’s prospects in the multi-billion industry.

MediPharm Price Analysis

With the signings, the company is without a doubt on the cusp of a groundbreaking year when it comes to revenue generation. It thus does not come as a surprise that investors have continued to push the stock up the charts, at the back of high turnover in traded shares.

MLCPF Daily Chart

The stock is already up by more than 50% for the year with the upward momentum showing no signs of slowing down. The stock looks set to continue powering high as investors react to the strengthening fundamentals and long-term prospects.

The sky is the limit for MediPharm as it has already skyrocketed past its 52-week highs. After the recent spike high, any pullback should experience strong support at the $1.60 level. Above the critical support level, the stock remains bullish and looks set to continue powering high.

About MediPharm

MediPharm is a pioneer cannabis company that produces Pharma-grade cannabis oil and concentrates. The company also provides cannabis concentrate processing services to licensed producers and growers. It also supplies cannabis oils to other companies for sale under its brand.

Cannabis Sales Agreements

MediPharm is skyrocketing as investors react to a string of cannabis supply agreements that the company has signed in recent weeks. The company says it has entered into sales agreements with a leading licensed producer for the supply of cannabis oil concentrates worth $35 million.

Under the terms of the agreement, the licensed producer is purchase cannabis oil concentrates worth $7.66 million in February. The company is also to purchase concentrates worth $27 million over the course of 12 months starting March 2019.

The $35 million supply agreement affirms the company’s credibility in the cannabis concentrate arena

“As the cannabis industry continues to grow and evolve rapidly, MediPharm Labs has quickly established itself as a dominant player and leading provider of private label cannabis oil concentrates to other Licensed Producers and branded product manufacturers,” said Pat McCutcheon, CEO of MediPharm.

 2019 Outlook

MediPharm has completed four private label wholesale agreements for cannabis oil concentrates this year. In addition, the company has completed bulk purchases and off-take agreements with 13 licensed producers further strengthening its revenue base.

The company is also in the process of securing partnership agreements with additionally licensed producers and product manufacturers. The partnerships are part of a drive to further expand the company’s footprint on the global scene.

MediPharm has emerged as a clear leader in the cannabis extraction category. The first month of sales agreements attest to the company is growing revenue base. Late last year the company completed its first shipment valued at over $10 million.

“Looking ahead to 2019, we continue to build on our momentum as MediPharm is increasingly being recognized as the supplier of choice for high-quality purified cannabis oil as well as for toll processing, particularly among mid-to-large-sized vertically integrated licensed producers, and we see a clear path for continued and sustainable growth in 2019 and beyond,” said Mr. McCutcheon.

Bottom Line

MediPharm has achieved significant milestones in 2019 in the race for sales agreements. The agreements the company has signed so far support the company’s continued growth as a leader in specialized cannabis extraction business. The company has already processed and sold large quantities of cannabis oil affirming a potential breakthrough year when it comes to revenue generation.

There is no doubt the company is in the best shape it has ever been if the number of sales agreement it is signing for cannabis oil concentrates is anything to go by. The company’s extraction capacity has also increased by 50% to 150,000kg, meaning it is well-positioned to meet the ever-growing demand. The company has also secured large volumes of dried cannabis inventory for oil extraction and resale, further strengthening its product line.

MediPharm is well-positioned to continue its solid performance in the market as underlying fundamentals support further movements to the upside.

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

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

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MediPharm Labs Corp (OTCMKTS:MLCPF): A Buy On Soaring Cannabis Deals
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