Shares of THC Therapeutics Inc (OTCMKTS: THCT) have taken off on the company receiving a patent for its flagship product dHydronator. A 100%-plus spike in share price attests to growing investor confidence that the dryer will be a crucial driver of value going forward.
THC Therapeutics Price Analysis
The stock has since resorted to trading in an uptrend after coming under immense short selling pressure last year. Price action indicates the stock has turned bullish with the potential to continue surging especially on pullbacks. THCT Daily ChartThe immediate support on any pullbacks is seen at the $10 technical level, above which THC Therapeutics remains bullish. A pullback to the support level could elicit new buying spree that could see the stock surging even higher.However, a breach of the support level on immense short selling pressure could result in the acceleration of the sell-off wave. A breach of the $6 a share mark on pullbacks could see the stock turning bearish with the potential of imploding to all-time lows.
About THC Therapeutics
THC Therapeutics casts itself as a forward-thinking company focused on opportunities in the cannabis sector. Its lead product, for the pursuit of value in the multi-billion sector, is dHydronator. The sanitizing herb dryer is designed to accelerate the drying time of herbs while also destroying surface bacteria and contaminants.The company is also planning to expand its footprint into the business of operating cannabis testing lab facilities as well as the development of cannabis-infused beverages and edible markets.
Why is THC Therapeutics Exploding?
Shares of THC Therapeutics have taken the market by storm following the approval of the company’s patent application for dHydronator. The United States Patent Office has approved all 20 claims associated with the dryer thus providing it with up to 20 years’ worth of protection.The dHydronator is specifically designed for enhancing the drying and sanitization of freshly harvested cannabis, herbs as well as tea. It stands out on its ability to reduce the moisture content of marijuana to 10% in under 14 hours.The dryer also comes with built-in optional Sanitize technology designed to reduce the microbial load on cannabis harvest.
“While we expected patent protection, we did not expect to receive such broad protection on our intellectual property. Many experts in the Cannabis industry liked our technology; however, they expressed serious doubts that we would receive any type of patent protection—much less the protection afforded by all 20 of our claims,” explained CEO, Brandon Romanek.
SEC Reporting Milestone
The dHydronator patent comes on the heels of the company achieving yet another milestone early in the year. THC Therapeutics becoming a reporting company with the Securities and Exchange Commission has also gone a long way in enhancing its sentiments in the market.The approval follows the filling of financial results for fiscal years ending July 31, 2018, and 2017. The company has also confirmed that an auditor will review its quarterly reports before filling with the SEC going forward.
“Our continued growth, transparency by audit and registration of our common stock with the SEC, sets the stage for several significant developments over the coming quarters. THC Therapeutics being fully reporting is a pivotal event for us,” state the CEO.
What Next For THC Therapeutics
THC Therapeutics has achieved significant milestones in its push for opportunities in the cannabis sector. THC Therapeutics has on its hands a valuable asset that it can rely on to generate significant value on sales going forward.Patent approval for dHydronator provides much-needed credibility that the company can leverage as it embarks on a commercialization drive. The fact that the dryer not only helps in the drying but also in the sanitization of freshly harvested cannabis and herbs enhances its applications and usage in the industry.THC Therapeutics has had its fair share of controversies that saw its stock implode to all-time lows. However, a bounce back on huge trading volume underscores growing investor confidence about the company’s long-term prospects.A combination of strong share price action and improving fundamentals suggest that the stock is on the right path and should continue to climb the ladder. For investors who missed out on the initial spike, then pullbacks should provide ideal entry positions as the stock remains well positioned to continue surging.We will be updating our subscribers as soon as we know more. For the latest updates on THCT, sign up below!Disclosure: We have no position in THCT and have not been compensated for this article.
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