Sproutly Canada Inc (OTCMKTS: SRUTF) has been on an impressive run as heavy trading volumes and positive price action signal strengthening investor trust. The stock is up by more than 80% for the year, despite pulling lower after a meteoric rise to record highs.
Sproutly Catalysts And Price Analysis
The pullback has presented an opportunity to buy the stock at a discount as price action activity, signals further upside action back to 52-week highs. One of the catalysts fuelling the upswing is the confirmation that the Company has made progress on the launch of, CALIBER, a new premium cannabis brand for the recreation market.
In the recent past, the Company, through its wholly-owned subsidiary Toronto Herbal remedies, has secured a Health Canada license paving the way for it to start producing cannabis oil and other related products in the country.
As it stands, Sproutly Canada has made significant progress as it seeks to become a global cannabis beverage and edibles company. It thus does not come as a surprise that the stock is flying high at the back of huge trading volumes in the market.
A spike past the $0.60 resistance level should pave the way for bulls to push the stock back to the $0.70 handle, the next resistance level standing in the way of further upside action. A rally past the $0.70 technical resistance level should open the door for the stock to post another leg higher, in continuation of the strong uptrend.
The $0.50 mark is the immediate support level above which Sproutly Canada remains bullish and likely to continue powering high. A breach of the $0.50 support level could elicit further short selling pressure that could see Sproutly Canada tanking back to the $0.40 level.
About Sproutly Canada
Headquartered in Vancouver Canada, Sproutly Canada is a Company focused on the production and selling of cannabis and its products in Canada. The Company is seeking to become a leading supplier to the cannabis beverage and edibles market.
Why is Sproutly Canada Surging?
Shares of Sproutly Canada are surging on investors taking note of the progress that the Company has made on its bid to become a global cannabis beverage and edibles Company. The acquisition of Biosciences APP technology leaves the Company well positioned to commence the production of soluble cannabinoids.
“We are making steady progress towards achieving Sprout’s mission of delivering a safe and consistent whole plant experience from cannabis, with a lead position in the beverage market. The Processing License grant is a major milestone towards the path to commercializing our cannabis beverages and other edible products,” said CEO Keith Dolo.
In addition, a Health Canada License paves the way for Sproutly Canada to start producing cannabis oil and other related products through its wholly owned subsidiary Toronto Herbal Remedies. The Company also intends to commence research and development activities as it eyes formulation of proprietary beverage products.
The launch of CALIBER a premium cannabis brand for the recreational market underscores Sproutly Canada innovation drive. The new brand is designed for the cannabis connoisseur. The new brand is to be produced at the THR facility using state of the art production and climate control technology.
“Every element of the CALIBER brand is being curated with the cannabis connoisseur in mind. With a high-quality manufacturing process, award-winning genetics and distinct premium packaging, it is our belief that the CALIBER brand will deliver a superior cannabis experience, every time,” said Melise Panetta, Vice President Marketing and Sales.
Sproutly Canada solid start to the year is likely to continue after the recent correction lower. A spike higher is a possibility, as underlying fundamentals have turned bullish and continue to strengthen investor confidence in the stock.
The Company achieving significant progress on the development of cannabis-infused beverage is another milestone that underscores long-term prospects. The unveiling of CALIBER should allow the Company to diversify its streams of revenues ideal for growing shareholder value.
Heavy trading volumes, as well as positive price action, signals renewed investor interest in the stock, likely to fuel further upside action after a minor correction. For cannabis investors, Sproutly Canada is an ideal long-term play as it continues to trade in a steep uptrend.
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Disclosure: We have no position in SRUTF and have not been compensated for this article.