Simlatus Corp (OTCMKTS: SIML) Bullish Outlook

Simlatus Corp (OTCMKTS: SIML) continues to register impressive gains after bottoming out from all-time lows. With the stock appearing to have hit rock bottom, it is slowly turning out to be a breakout play as investors react to improving underlying fundamentals.

SIML Catalysts Driving Price Action

The stock has been on an impressive run ever since the company expanded its footprint into the cannabis sector with the acquisition of Proscere Bioscience. With the acquisition, the company gained access to a cold-water CBD extraction Technology that presents an exciting opportunity on revenue generation.With the acquisition, the company has gained access to a valuable asset capable of strengthening its revenue base. The company has already set sights on Canada, USA, and Europe as it embarks on aggressive commercialization drive for the cold, water CBD extraction systems.The announcement has helped shore the stock’s market sentiments if recent price action is anything to go by. A 300% spike in share price, in under a month, underscores renewed investors interest in the stock as the company continues to push for value in the multi-billion industry.With the stock currently trading in a steep uptrend, at the backdrop of high turnover in traded shares, the next stop could be the $0.08 mark. The $0.08 mark is the immediate technical level that Simlatus Corporation needs to rise to turn bullish.A rally followed by a close above the critical technical level should open the door for bulls to push the stock back to 52-week highs of$0.30. Conversely, the stock faces support at the $0.02 mark on pullbacks. A sell-off followed by a close below the support level could pave the way for short sellers to push the stock lower, in continuation of the long-term bear trend.

What Does Simlatus Corporation Do?

Simlatus Corporation casts itself as a holding company focused on opportunities in the cannabis space. The Company owns and operates a number of subsidiaries with multiple revenue streams in the CBD industry. Proscere Bioscience is the company’s division focused on the CBD industry.In addition, the company owns a Satel Group, a premier high-rise DirecTV provider in the San Francisco area.

Why is Simlatus Corporation Exploding?

Shares of Simlatus Corporation are exploding on investors taking note of the huge opportunity at stake, following the acquisition of Proscere Bioscience. With the acquisition, the company is poised to engage in the sale of cold-water CBD extraction systems, that have the potential of generating significant revenues for the company.

“Our CBD extraction systems range from $750,000 for a high-end commercial system capable of 3000 gallons per day, to our low-end model costing $400,000. Our distributors have an exclusive 5-year license with sell volume discounts of up to $50M per year,” said CEO Richard Hylen.

Commercialization Drive

The company has since embarked on an aggressive commercialization drive as it looks to sell as many systems as possible. Europe being a fertile market for hemp is one of the markets that the company has set sights on as part of the commercialization drive.The market for the commercial grade cold-water CBD extraction system is wide. In Europe, the company is targeting large pharmaceutical companies that have taken a keen interest in CBD for its medicinal purposes.

“Our European target is the large pharmaceutical companies. Epidiolex, which is CBD based, is used to treat seizures. CBD can be used to help people suffering with a wide range of ailments. From treating pain, inflammation, infections, sleep issues, and mood disorders. CBD is also proven to support the immune system, protects the brain and fights cancer,” Hylen stated.

The management remains confident of generating revenues of up to $225 million over the next five years, solely on the sale of the cold-water CBD extraction system.

What Next For Simlatus Corporation

Simlatus Corporation projecting sales of as much as $225 million over the next five years on the sale of the new CBD extraction system explains the love it continues to receive in the market. The pursuit of opportunities in the cannabis sector is a development that should continue to strengthen the stock’s sentiments among investors.That said the stock is likely to continue edging higher after starting the second quarter with a bang. After a recent spike, pullbacks should present an exciting entry position as the stock continues to climb the cannabis ladder over the long run.We will be updating our subscribers as soon as we know more. For the latest updates on SIML, sign up below!Disclosure: We have no position in SIML and have not been compensated for this article.