Neutra Corp (OTCMKTS: NTRR) is banking on a rapid expansion drive in the hemp industry to reinvigorate its growth prospects. The company has shifted its focus from the nutraceutical market to focus on the hemp-based cannabidiol CBD market.
The announcement that the company is on its way to becoming a vertically integrated company focused on cultivation, manufacturing, and formulation of hemp products explains why the stock has started surging.
Neutra Corp Price Analysis
The stock has bottomed out from all-time lows on the back of high turnover in traded shares. The bounce-back signals renewed investor interest as the company moves to pursue opportunities in the multi-billion-dollar CBD industry. A move to acquire Vivis, an emerging retail brand on hemp-based health and nutritional products all but affirms the company’s push for growth.
While the stock has shed more than 80% in market value since the start of the year, improving underlying fundamentals, continue to fuel a bounce back. Price action activity indicates Neutra Corp is making a run for the $0.01 psychological level.
The stock needs to rally and find support above the $0.01 level to affirm its break out credentials after the recent slump. A rally followed by a close above the $0.02 level could give bulls a reason to come back in ahead of the stock making a run for the $0.04 level.
What Does Neutra Corp Do?
Neutra Corp casts itself as an early-stage research and development company. The company is focused on innovative technologies within the Nutraceuticals, food, drug, and environmental purification industry. In the recent past, the company has diversified its business empire in pursuit of opportunities in the hemp industry.
Hemp Industry Opportunity
Neutra Corp has started bottoming out from all-time lows on making it clear that its future lies in the hemp industry. A shift of focus from Nutraceutical opens the door for the company to flex its muscle on the sale of hemp-based products whose market size could reach $22 billion over the next three years.
In pursuit of opportunities on the sale of hemp-based products, Neutra Corp is planning to become a vertically integrated company focused on cannabis cultivation, manufacturing and formulation of products.
According to the Chief Executive Officer, Sydney Jim, plans are underway to come up with quality and potent products to meet growing demand in the hemp industry. The company is also in the process of developing business networks that will help support its hemp-based CBD products made up of supplements and creams.
The signing of letter intent for the acquisition of Vivis further affirms how committed the company is about opportunities in the hemp industry. The Chief Executive officer expects Vivis to provide Neutra Corp a greater market presence in the hemp industry.
“Vivis’ hemp-derived CBD (cannabidiol) products are third-party certified as containment-free and of consistent quality and potency. Consumers are increasingly looking for this certification when they buy hemp-based CBD products. With Vivis as the new retail face of Neutra, we’re expecting greater interest in the other products we’re bringing to market,” Explained Mr. Jim.
The acquisition of Vivis comes hot on the heels of Neutra Corp inking deal to acquire J3 holdings. With the acquisition, the company further strengthened its prospects into becoming a vertically integrated hemp focused company.
J3 Holdings provides Neutra Corp with access to a robust cannabis cultivation operation. In addition, the company also owns a warehouse as well as licenses for the processing of hemp.
“This is a big acquisition and a great demonstration of the continued evolution of our company. This shows we are moving forward with our plans to become a serious player in the ever-growing CBD market. CBD products are rapidly gaining mainstream acceptance said at the time,” said Mr. Jim at the time.
While Neutra Corp poor market performance over the past year is a point of concern, the future is certainly looking brighter now. The company has shown it has what it takes to become a vertically integrated cannabis player. The acquisition of Vivis and J3 Holdings all but signals the company is more than ready to spend some cash all in the effort of strengthening its position in the booming CBD market.
Neutra Corp appears to have hit a bottom as it has started to correct higher. The stock rallying and finding support above the $0.01 mark should affirm its break out credentials. Overall, NTRR looks to be a discount entry opportunity at current levels.
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Disclosure: We have no position in NTRR and have not been compensated for this article.