ParcelPal Technology (CNSX:PKG) is flying high in the market after underlining plans to pursue opportunities in the cannabis sector. The company expanding its footprint into Alberta and receiving more than $1 million in new cash are other developments that continue to excite investors.
ParcelPal Price Analysis
The stock has turned bullish after underperforming in the first half of the year. After rallying to record highs of $0.54 a share, ParcelPal came down tumbling on soaring short selling pressure. The stock plunged to the $0.20 level, where it remained subdued for the better part of the first half of the year.
However, with the overall cannabis industry turning bullish in recent weeks, ParcelPal is one of the stocks that has bounced back nicely and now on the cusp of finishing the year on a high. Given the strength of the upward momentum, it could be a matter of time before the stock bounces back to its 52-week highs.
The stock faces immediate resistance at the $0.45 mark on the continuation of the emerging uptrend. A breach of the resistance level should open the door for bulls to push the stock back to its 52-week highs. On the downside, the stock faces immediate support at the $0.30 level. A breach of the support level could see the stock plummeting back to the $0.20 handle another crucial support level.
After a closer look at recent price action activity, it is clear that ParcelPal is back to winning ways and set to finish the year on a high.
What Does ParcelPal Do?
ParcelPal casts itself as a logistics-driven company that connects customers to the goods they love. The company offers on-demand delivery services for various items. The company has already partnered retailers, restaurants as well as medical marijuana dispensaries to provide delivery services on purchased items.
ParcelPal stock has shone to life in the market in the wake of the company announcing plans to take advantage of the burgeoning marijuana market. The company has already opened discussions with various provincial government regulators as it looks to execute its strategy on recreational and medical marijuana.
The company has also confirmed it is in active discussions with various licensed producers to ensure a consistent supply of marijuana products. Providing delivery services for both medical and recreational marijuana products is a niche area, the company intends to focus on, as part of its expansion strategy.
“This is a critical time for the cannabis industry as a whole. We are setting a standard in Canada for accessibility, safety, and professionalism. I believe attention from the investment community will shift from production to those who are supporting production and all things distribution,” said CEO Kelly Abbott.
The company has already made its presence felt in the multi-billion cannabis business, with the signing of a distribution agreement with Vancouver based Choom Holdings. Under the terms of the agreement, the company is to offer distribution services for Choom Holdings products from various retail outlets.
ParcelPal Expansion Strategy
The two are also to work together on the development of an optimal roadmap for distribution of recreational marijuana across various provinces. ParcelPal intends to sign similar agreements with other companies as part of its cannabis distribution and delivery strategy.
In addition to eyeing delivery service opportunities in the Marijuana sector, the company has also embarked on an aggressive expansion drive. As part of the national rollout plan, the company has already set foot in Calgary Alberta.
Expansion into Calgary is part of the company’s strategy of making its mobile on-demand delivery service available throughout Canada. For the past one year, the company has mostly been operating from Vancouver. Expansion into other provinces is now top on the agenda.
ParcelPal has already received over $1 million in gross proceeds from Warrant Exercises before their expiry. The company’s cash position has since skyrocketed to over $2 million sufficient for supporting its expansion strategy that targets opportunities across the country.
Expansion into the cannabis sector is a spark that continues to strengthen ParcelPal sentiments in the market. The fact that the company operates in a niche market that entails distribution of marijuana products explains the love it continues to receive in the market.
ParcelPal has essentially diversified its revenue streams by venturing into the cannabis sector. The company should see an increase in revenue going forward something that should continue to excite investors. That said the stock should continue climbing high as sentiments in the overall cannabis sector turns bullish.
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Disclosure: We have no position in CNSX:PKG and have not been compensated for this article.