Preferred Dental Technologies Inc (CNSX: PDTI) is flying higher on reaching an agreement set to expand its toes into the multi-billion-dollar cannabis industry. A 200% plus spike on huge turnover of traded shares could as well signal an inflection point, after the underperformance of the past year.
Price Action Analysis
The Company has also shone to light after a long period of inactivity on confirming a new patent that covers 3D applications for the creation of custom dental abutments for dental implants. Investors have reacted by pushing the stock up the charts, consequently bringing to an end a sell-off that had plunged the stock to all-time lows.The stock is currently flirting with levels last seen in 2018 having become clear that it could be on its way back to 52-week highs. Given the strength of the upward momentum, Preferred Dental Technologies is likely to make a run for the $0.10 mark, seen as the next substantial resistance level.After a recent spike, Preferred Dental Technologies needs to take out and find support above the $0.08 mark. Below this crucial resistance level, the stock remains susceptible to further drops, as has been the case for the better part of the past year. A rally followed by a close above the $0.10 mark should reaffirm the stock’s break out credentials setting the stage for bulls to assume full control.
What Does Preferred Dental Technologies Do?
Preferred Dental Technologies is a company engaged in the development and commercialization of technologies in the dental implant industry. Headquartered in Winnipeg, Canada, the Company offers custom dental abutments for dental implants.[embed]https://www.youtube.com/watch?v=xBK9-mrBnS0&t=1s[/embed]
Why is Preferred Dental Technologies Flying Higher?
Shares of Preferred Dental Technologies are flying high on the confirmation that the Company has reached an agreement for the formation of a joint venture as part of a seed to sale CBD enterprise. The Company has negotiated terms of a joint venture with Gillespie Farmer’s Delight Company Ltd, which is in the process of establishing 240-acre hemp growing and CBD extraction facility in Jamaica.Under the terms of the agreement, Preferred Dental Technologies is to exchange 5 million of its common shares for a 22.5% stake in GFDCL. The investment will allow the Company to enjoy the supply of high-quality low-cost spot hemp at the best price.The investment comes with a fair share of synergies key among them being the use of shares valued at $0.13 to secure an asset that has the potential to generate significant long-term shareholder value. Preferred Dental Technologies also stands to generate a significant amount of net share profits based on its investments.The Company will also gain access to white labeled CBD products at the best price. In addition, Preferred Dental Technologies will be able to leverage the ability to introduce specialized produces for the dental market after assembling an advisory board of dental experts.
“We have worked very closely with founders and their advisory team and feel strongly that a successful conclusion of this JV in the near future will be part of a continuing set of strategic partnerships to bring shareholder value to PDTI. Certainly, in examining similar operations, the potential for future growth is huge, and GFDCL has many options for expansion,” stated CEO Erik Siegmund.
Patent Approval
The investments come high on the heels of Preferred Dental Technologies strengthening its patent portfolio on securing an additional patent from the United States Patent Office. The new patent covers 3D applications for creating custom dental abutments for dental implants. The Company has already expanded the patent protection to the European Union as it also awaits patent approval in Brazil.
“The importance of this revolutionary breakthrough is not limited to the huge savings in time offered by 3D printing technology, but more importantly results in decreased production costs of individual abutments. Custom abutments can now be prototyped and manufactured in house with minimal capital cost,” Preferred Dental Technologies in a statement.
Bottom Line
After a long period of subdued market activity, Preferred Dental Technologies has bounced back nicely on renewed investor interest. The unveiling of a joint venture that expands the Company’s footprint into the cannabis sector looks set to continue boosting market sentiments.A strengthening patent portfolio is another development that continues to excite investors. That said the stock looks set to continue climbing the ladder given the strength of the upward momentum.We will be updating our subscribers as soon as we know more. For the latest updates on CNSX: PDTI, sign up below!Disclosure: We have no position in CNSX: PDTI and have not been compensated for this article.
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