Sproutly Canada Inc (OTCMKTS: SRUTF) finds itself in a crucial juncture after skyrocketing to all-time highs. While engulfed in an ascending uptrend the stock has resorted to trading sideways. The big question now is whether the upward momentum has what it takes to continue pushing the stock higher.
Sproutly Canada Price Analysis
The consolidation at all-time highs could as well be as a result of investors taking profits after a 100% spike from one-year lows. The spike came on the stock’s market sentiments inching higher on the confirmation of a processing license from Health Canada.
The management confirming that Sproutly is on course to becoming a global cannabis beverage and Edibles Company has continued to prop the stock’s market sentiments. Product line expansion, as well as the signing of distribution agreements, are the latest developments underscoring underlying growth as well as improved operational efficiency.
Price action activity indicates that the $0.81 is the immediate resistance level standing in the way of Sproutly surging higher and registering a new 52-week high. After the recent spike, the stock is likely to trade sideways awaiting a buildup of upward momentum to register another leg higher.
The $0.60 to $0.81 is the tight trading range in which the stock is likely to continue trading as part of the consolidation phase. A violation of the 0.60 support level, on pullbacks, could result in the stock plunging back to the $0.50 level, the next substantial support level.
As it stands, Sproutly remains well supported for further upside action, especially above the $0.60 mark.
What Does Sproutly Do?
Sproutly is seeking to become a leading supplier of cannabis beverages and edibles in the burgeoning sector. Supported by a production facility in Toronto, the company cultivates pharmaceutical grade cannabis used in the production of cannabis products.
Shares of Sproutly are exploding on the confirmation that the company has made significant progress on its plan to become a global beverage and edibles company. According to the Chief Executive Officer Keith Dolo, they have established an excellent cannabis beverage and infused product line since going public mid last year.
The company has also acquired exclusive rights to Infusion Biosciences APP technology paving the way for the production of naturally water-soluble cannabinoids. Sproutly has also completed two harvests of high-quality small batch cannabis that support plan to ramp up production with an eye on ramping cannabis products sales.
“This is a tremendous milestone for the company, as these harvests are the first step towards our production objectives. We are on track to meet our calendar 2019 production targets and expect multiple successful harvests as we continue to build on this initial success,” said Bryan Semkuley, President of Sproutly.
Health Canada License Milestone
In the recent past Sproutly has secured a cannabis-processing license from Health Canada marking yet another important milestone. With the license, the company can now engage in the production of cannabis oil as well as other related products. Plans are also underway to advance formulation work at one of the company’s production facility while gearing up for cannabis beverage legalization later in the year.
“In addition to the anticipated launch of our cannabis beverages utilizing Infuz2O, we are equally excited about commercializing products containing our Bio Natural Oils, which provide substantially different characteristics than other oil-based products on the market today,” commented Dr. Arup Sen, Chief Science Officer & Director.
Ahead of the much-awaited legalization of edibles later in the year, Sproutly has started developing a brand and partnership strategy with respect to its newly acquired APP technology. The company is exploring strategic partnerships with existing brands as part of its marketing strategy going forward.
Sproutly exploding to all-time highs signals strengthening investor confidence about the company’s long-term prospects as it seeks to become a global CBD beverage company. Expansion of production capacity leaves the company well positioned to come up with a diversified cannabis product line for the growing demand.
The company is also working on a commercialization strategy ahead of the legalization of CBD edibles and beverages as it seeks to transition into a revenue-generating entity. The future can only be bright in view of recent developments.
That said Sproutly is likely to continue powering higher given the underlying bullish trend and the fact that bulls appear to be in control.
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Disclosure: We have no position in SRUTF and have not been compensated for this article.