Rafarma Pharmaceuticals
Cannabis

Rafarma Pharmaceuticals Inc (OTCMKTS: RAFA) Explodes Up The Charts

Rafarma Pharmaceuticals Inc (OTCMKTS: RAFA) is exploding higher on huge turnover of traded shares. A 400% share price spike comes on the confirmation that the company is growing at an impressive rate as it continues to make inroads in the cannabis sector.

Rafarma Pharmaceuticals Price Analysis

The Company securing a Cultivation license in Slovenia is one of the developments that continues to prop the stock’s sentiments in the market. The company announcing plans to roll out new products as the race to achieve substantial growth in shareholder value heats up has also got investors excited, consequently fuelling the upswing.

The acquisition of Dartis D.O.O. and Ekopostopek D.O.O is another development that affirms the company’s growth prospects in the cannabis sector. The stock flying high in view of recent developments does not come as a surprise.

Daily Chart

Rafarma Pharmaceuticals is officially bullish and pullback play, as it continues to flirt with levels last seen in 2015. The stock is likely to pull lower on investors taking profits after the meteoric rise. A 38% or a 50% pullback from current highs should provide exciting entry positions as the stock looks set to continue powering high on pullbacks.

What Does Rafarma Pharmaceuticals Do?

Rafarma Pharmaceuticals bills itself as a multi-product pharmaceutical company engaged in the production and sale of drugs generic antibiotics as well as s specialty pharmaceuticals. In the recent past, the Company has expanded its footprint into the Cannabis sector as it continues to diversify its core business.

Recent Developments

Shares of Rafarma Pharmaceuticals are flying high on a huge trading volume, having become clear that the Company is focused on opportunities in the cannabis sector. The Company is fresh from securing cannabis farming license in Slovenia, through its wholly owned subsidiary Green Drop.

With the license, the Company is planning to engage in the cultivation of cannabis in 3,000 square meters land having also acquired an additional 7,000 square meters from partners. The expectation is high that the Company will be able to raise approximately 20,000 seedlings.

Plans are also underway to leverage cannabis harvest from the farms in the production of Rafarma products. The ultimate goal is to come up with unique CBD infused products that can achieve substantial growth and shareholder value.

“Demand for the company’s products with Cannabis increases at an incredible rate. Rafarma has prepared to meet this demand with these new cannabis-growing fields. The company is currently under negotiation to purchase additional land in the surrounding areas” according to Rafarma CEO Srečo Bojt.

Rafarma has since confirmed the hiring of internationally acclaimed professional snowboarder Glorija Kotnik to be the spokesperson and new face of the Company.

Acquisition Drive

Expansion into the Cannabis sector follows the acquisition of Dartis D.O.O. and Ekopostopek D.O.O.  The Slovenian developers and manufacturers will expand Rafarma’s footprint into the production of cosmetics, therapy Creams, Gels, Sprays, and Vitality products.

With the acquisitions, Rafarma is to gain access to a diversified and robust cannabis product line. The company will also gain exclusive rights for the distribution of Dartis and Ekopostopek products in the U.S Canada Europe and Asia

“We are so excited to have merged with Rafarma. The combined strengths of the merged companies will translate to increased development, production, and sales well beyond Eastern Europe. We have many exciting products and announcements to come!,” said Srečo Bojt, Founder of Dartis and Ekopostopek in an interview.

Rafarma Pharmaceuticals has set sights on acquisitions as it looks to reinvigorate its growth prospects and gain a head start in the cannabis sector.  Early this year it merged with Green Drop D.O.O a company set to expand its footprint into the business of producing fresh juices from acacias and cannabis.

Bottom Line

Rafarma Pharmaceuticals has taken a flight on investors taking note of the strategic investments it has made in pursuit of growth opportunities and shareholder value in the cannabis sector. A merger with Green Drop paves the way for the company to venture into the beverage business, mostly focusing on CBD infused beverages.

The acquisition of Dartis D.O.O. and Ekopostopek D.O.O, on the other hand, should allow the Company to ramp up cannabis cultivation and production capacity as the race to come up with cannabis products heats up. Given that the stock is flirting with four-year highs, it might be wise to wait for pullbacks to open new positions in the stock.

We will be updating our subscribers as soon as we know more. For the latest updates on RAFA, sign up below!

Disclosure: We have no position in RAFA and have not been compensated for this article.

Image courtesy of Pexels

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Rafarma Pharmaceuticals Inc (OTCMKTS: RAFA) Explodes Up The Charts
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