Shares of NutraNomics Inc (OTCMKTS:NNRX) are trading at two-year highs after a spike of more than 400%. The rally comes after a long period of consolidation that saw the stock implode to all-time lows. Reduced trading activities, due to a lack of clarity on the company’s long-term prospects have been the order of the day.
Catalysts Behind 300% plus Surge
The spike came on the company announcing a merger with GenOne12 Biomedical Farming & Extraction and Hidden River Hemp Corp, both based in Maine. Investors pushed the stock up the chart on confidence that the mergers will strengthen the company’s prospects in the multi-billion hemp industry.
In October of last year, NutraNomics announced plans to begin the development of a new line of CBD products. Expansion into the cannabis business is part of the company’s push to diversify streams of revenues as it continues to explore ways of supplementing its line of nutraceutical offerings.
The company is currently exploring strategic partnerships that will allow it to source cannabis raw materials as it seeks to develop high-quality CBD products.
NutraNomics Price Analysis
The spike has catapulted the stock to the $0.002 level, waiting to see if recent developments have what it takes to continue pushing the stock higher. Amidst the spike, NutraNomics is still languishing near all-time lows. However, a resurgence in trading activity, as well as trading volume, could help reinvigorate investor interest on the stock.
After the recent spike, the stock needs to stabilize above the $0.002 level, if it is to continue climbing the ladder. Any sell-off followed by a close below the $0,002 level, could attract shot sellers who will continue pushing the stock lower.
NutraNomics is a development stage company engaged in the research, development, and sale of nutritional food products. The company boasts of a pipeline of 480 nutritional supplements. In the recent past, the company has sought to diversify its operations having set sights on the Hemp and cannabis sectors.
Why Did NutraNomics Explode?
A resurgence in trading activity of NutraNomics shares follows the announcement of a merger between the company and GenOne12 Biomedical Farming & Extraction and Hidden River Hemp Corp. The president of the two companies William Waldron is to join NutraNomics as part of the transactions.
NutraNomics is relying on Mr. Waldron to supervise the company international expansion drive while also overseeing operations at the Hemp Genetics program. The merger should strengthen the company’s executive power as focus shifts towards spreading health and wellness through plant-based formulations.
With the merger, NutraNomics gains access to over 6,000 acres of hemp crop up for harvest this year. In addition, the company will have on its hand a sales division tasked with the responsibility of selling raw materials such as organic hemp biomass.
In response to the mergers, NutraNomics is planning to add CBD to its nutraceutical formulations as it makes its entry into the cannabis sector.
“The shared vision that our organizations have is inspiring. Our infrastructure allows us the very best genetic hemp-based plants, which will coincide with NutraNomics’ science team to fight against diseases, clinical diagnosis and addictions. This will be the primary focus which positions us to continue to be a leading-edge nutraceutical company,” said Mr. Waldron.
A merger with GenOne12 comes months after NutraNomics confirmed a strategic partnership with Tempus Biotechnologies. The partnership is for the development of improved products for the supplement market.
The company inked the strategic partnership in a bid to gain innovative expertise, necessary for improving its supplement formulations and delivery systems. Tempus Bio Technologies comes with experts in bio and Nanotechnology.
“This partnership expands us into smart, strategic alignments that are anticipating our services in not only CBD but also other plant-based ingredients, textiles, materials, ointments, and creams. We look forward to providing new and enhanced products that will be on the market in 2019,” states NutraNomics CEO and President, Jonathan Bishop.
NutraNomics might as well have turned the page if the recent spike is anything to by. While the stock faces an uphill task to continue powering higher, recent developments should continue supporting further movements on the upside.
Above the $0.002 level, the stock looks set to continue edging higher. However, a drop below the psychological level could spell disaster for bulls. For the stock to continue climbing higher, the company will have to serve new groundbreaking catalysts to strengthen investor’s confidence in the company’s long-term prospects
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Disclosure: We have no position in NNRX and have not been compensated for this article.