Radient Technologies Inc (OTCMKTS:RDDTF) is on its way to disrupting the cannabis sector thanks to a new extraction process. The new extraction technology has already caught the attention of Aurora Cannabis Inc (NYSE:ACB), and in the process helped strengthen the stock’s sentiments in the market as well as share price.
Price And Catalysts Analysis
Health Canada has already granted the company a standard processing license for the new technology. The technology provides a new way of extracting cannabis and hemp in large volumes, without risking the quality of the plant.
The breakthrough is the latest catalyst behind renewed investor interest in Radient Technologies. The stock has since bounced back after plummeting to one-year lows on shedding more than 60% in market value in 2018.
Since the start of 2019, the stock has rallied by more than 80% on increased trading volume in the market. After the recent spike high, the stock is staring at the $1 a share level, which happens to be the immediate resistance level.
Radient Technologies needs to rally and stabilize above the $1 a share level, to turn bullish and reaffirm the emerging uptrend. Above the critical resistance level, the stock would be on its way back to 52-week highs of $1.38.
On the downside, the stock faces immediate support at the $0.60 mark. Any sell-offs followed by a close below the critical support level could give short sellers a reason to continue pushing the stock lower.
About Radient Technologies
Radient Technologies casts itself as a research and development company focused on the development and commercialization of technologies for the extraction, isolation, and purification of soluble products. It boasts of a microwave assisted and processing technology, used for selective and localized heating.
Cannabis Extraction Technology Milestone
Shares of Radient Technologies have started bottoming out, from one-year lows, on investors reacting to the company’s new technology for cannabis extraction. The technology has the potential to be a game changer in the multi-billion industry, having already elicited interest from Aurora cannabis.
A partnership with Aurora cannabis according to Radient Technologies CEO Denis Taschuk is key to uncovering the actual value of the new extraction technology.
“Our partnership with Aurora has been instrumental these past two years toward achieving this milestone,” the CEO said. “We look forward to executing on our partnership with Aurora on a global scale.”
Under the strategic partnership, Aurora COO Allan Cleiren is to join Radient Technologies board of directors. Cleiren is a valuable addition to the board as he joins the company with nearly three decades of leadership experience. His experience and connection should of great help as the company embarks on commercial production of cannabinoid extracts and products.
“With the transformative grant of their processor license, Radient will now transition from technology development to commercial operations, which requires a shift in focus. Our two companies will now execute jointly on our early mover advantage in the global Hemp and Cannabis derivative markets, as we believe Gradient’s technology is a game changer for our industry,” Aurora CEO, TERRY Booth in a statement.
Expanding Cannabis Production Capacity
The company has already secured a standard processing license that allows it to process cannabis for sale to federal license holders. Plans are already underway to commence cannabis processing in a recently completed manufacturing facility in Edmonton Alberta. At full capacity, the plant should be able to process up to 200 kilograms of cannabis a day.
Production at the facility should allow the company to meet the ever-growing demand for cannabis. The company will also be able to sell its produce to Aurora its strategic partner. The Edmonton facility is dedicated towards cannabinoid extraction and product development. The facility should be able to produce up to 1,000kg a day of medical cannabis and more than 10,000 kg of industrial hemp.
Radient Technologies has also embarked on an international expansion drive, having set sights on Germany. The company is in the process soft setting up a processing facility in the country expected to be ready for production early 2020.
Radient Technologies solid performance that began early in the year looks set to continue. The development of an effective cannabis extraction technology is a milestone that affirms the company’s ability to generate value going forward.
The fact that the company is already in partnership with Aurora Cannabis, which is a heavyweight in the industry all but affirms its long-term prospects. The stock has already started to bottom out as investors react to improving fundamentals.
For early movers, Radient Technologies is an ideal play for gaining exposure to the cannabis sector, as it is currently trading at a discount considering its growth potential.
We will be updating our subscribers as soon as we know more. For the latest updates on RDDTF, sign up below!
Disclosure: We have no position in RDDTF or ACB and have not been compensated for this article.