A 350% spike in a single session caught many investors by surprise. The spike capped yet another excellent start to the year, as Thc Therapeutics Inc (OTCMKTS:THCT) bounce back from all-time lows continues to gather pace.
Share Price Analysis
The stock is already up by more a 1000% for the year in what is turning out to be an inflection year, for a stock that was under immense short selling pressure last year. However, the rally has come about in unclear circumstances, given that the company is yet to serve any groundbreaking catalysts to fuel such a massive spike.It is highly unlikely that the announcement that THC Therapeutics is now a reporting company has everything to do with the meteoric rise from all-time lows. It is also unlikely that the broader cannabis sector turning bullish could have triggered the massive spike. THCT Daily ChartTHC Therapeutics is currently trading in a steep uptrend, having rallied to one-year highs. With the stock currently flirting with the $9 a share level, price action activity indicates it could make a run for the $10 a share level, which happens to be the next resistance level. On the downside, support on sell-offs is seen at the $6 a share level, below which the stock could drop back to the $3 a share mark.
What Does THC Therapeutics Do?
THC Therapeutics is a publicly traded company with operations in the cannabis industry. The company is currently working on a patent-pending product dubbed dHydronator that seeks to accelerate the drying time while sanitizing cannabis.
OTCQB Uplisting
A 350% spike in share price comes weeks after the company announced it is in compliances with Securities and Exchange Commission requirements, thus making it a reporting company. The company has also confirmed plans to uplist on the OTCQB market as part of an ongoing restructuring.
“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,” said Brandon Romanek Founder & CEO.
Blockchain Ambitions Uncertainty
The announcement comes a year barely after the company announced it was changing direction to focus on blockchain technology. In the announcement, the company confirmed it was changing its name to Millennium Blockchain in line with its new mission.The announcement followed a confirmation the company was in the process of developing decentralized systems and distributed technologies. It is still unclear whether THC Therapeutics has foregone its Blockchain ambitions.
dHydronator Ambitions
According to the company’s official website, the company is currently working on dHydronator, a sanitizing herb dryer. The device is specifically designed to enhance the drying and sanitization of freshly harvested cannabis as well as herbs, flower, and tea leaves.
“The dHydronator is proven to reduce the drying time from 10-14 days to less than 14 hours. THC Therapeutics plans to get involved in cannabis testing lab facilities and personal wellness centers. The Company is seeking partnerships, mergers, and acquisitions in the cannabis, health and healing industries,” THC Therapeutics in a statement.
The dHyrdonator is the first of the many products that the company will be developing as it pursues new opportunities for growth. The company has also confirmed it is eyeing mergers and acquisitions as it seeks to accelerate growth in the burgeoning cannabis sectors.In addition, THC Therapeutics has confirmed that optimization of the quality and availability of holistic health and wellness services as part of its agenda. In line with this drive, the company plans to develop a state of the art wellness facilities and transformational wellness programs.
Bottom Line
While THC Therapeutics has shown signs of spiking higher, it is still unclear the catalysts behind the upward momentum. Regulatory filings indicate that the company has incurred net losses of -$9.8 million since inception. The fillings also show the company requires additional capital to finance contemplated operational and marketing activities, to continue operating as a going concern.While the stock is showing no signs of slowing down after the recent spike, a little bit of caution is necessary until it becomes clear the catalyst behind the rally.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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