Phivida Holdings Inc. (CNSX:VIDA) Breakout Confirmed On Easing Short Selling Pressure

Phivida Holdings Inc. (CNSX:VIDA) has bottomed out after hitting the floor coming under immense pressure from short sellers. Even though the stock is still trading in a steep downtrend, recent developments point to further movements on the upside. Supporting the current rally is the announcement of an exclusive National agreement, set to strengthen the company’s sales channel.The stock has already broken a critical resistance level at the $0.60 level, affirming the emerging bull trend. With the stock currently trading at the $0.65 mark, it looks set to power to the $0.80 level, seen as the next substantial resistance level. PHVAF Daily ChartOn the downside, Phivida Holdings faces immediate resistance at the $0.49 level, below which the stock will continue hitting lower lows.In our view, the stock remains well positioned to continue edging higher especially on the company being offered an opportunity to sell its products in a chain of over 2,400 retail location with a market value of over $4.1 billion.What Does Phivida Holdings Do?Phivida Holdings purchases, packages and sells holistic hemp infused products. The company is also a supplier of hemp oil extracts, targeting manufacturers of consumer packaged products, cosmetics pharmaceuticals as well as pet supplements.Why Did Phivida Holdings Spike Higher?Phivida Holdings spiked higher, from all-time lows, as investors reacted to the signing of an exclusive national agreement with Acosta Company Natural Specialty Sales NSS. Under the terms of the agreement the company’s soon to be launched OKI brand is to become NSS exclusive CBD infused beverage brand and health supplement product.The distribution agreement paves the way for Phivida Holdings premium CBD products to be the first one to cross-over to the mainstream distribution sector. Natural Specialty Sales comes with a network of 2,400 retail stores, spread across the U.S. The network includes some high profile companies such as Whole Foods Marketer and National Coop Grocers.Phivida Holdings and NSS are currently working on an extensive retail sales and in-store marketing campaign that will target 25,000 conventional grocery supermarkets. The campaign will target in-store merchandising, assortment pricing as well as display and retail sales promotions.According to Chief Executive Officer, Jim Bailey, the national agreement presents a major growth opportunity and a significant milestone in Phivida Holdings push to strengthen its sales channel.

“Our partnership with NSS gives our premium products direct access to a growing national market of 2,400 total stores across the United States. In the short time, we have worked with the NSS team, we have been impressed with the great people they have working there and are proud to partner with such a professional organization,” said Mr. Bailey.

Corporate Update The issuance of a positive corporate update for the third quarter also appears to have strengthened Investor confidence in Phivida Holdings further affirming its break out credentials. According to the management team, the company remains on track to enter the mainstream commercialization sector in the quarter, backed by a strong balance sheet and capital structure.Phivida Holdings balance sheet as of the end of the third quarter had over $15 million with no debt or loans. The robust capital structure essentially means the company is well financed to transition into a commercialization player.In addition, the company is in the process of developing a new line of lifestyle branded beverages made up of flavored water and iced tea formulas. The launch of the new product line is part of the company’s push to venture into the health and wellness segment, in pursuit of new opportunities for growth.

“We have made great strides in the past quarter by developing the board and executive, assigning new dedicated operational roles, commissioning consumer research, new product, and brand development and preparing for a major shift into mainstream national distribution across the USA,” said Mr. Bailey.

What Next For Phivida Holdings The future can only be bright as the worst is behind Phivida Holdings depicted by a recent spike in share price. There is no doubt that the company is headed in the right direction as it continues to focus on growth markets as well as lifestyle and aspirational trends.While the stock has underperformed the overall industry for the better part of the year, things are starting to look up as the company transitions into a cannabis commercialization entity with the new exclusive national agreement. The stock can only continue to climb higher as there is a lot of room to run after the steep pullback.We will be updating our subscribers as soon as we know more. For the latest updates on VIDA, sign up below!Disclosure: We have no position in VIDA and have not been compensated for this article.