x min read

Cannex Capital Holdings Inc (OTCMKTS:CNXXF) A Buy On Dips

Cannex Capital Holdings Inc (OTCMKTS:CNXXF) A Buy On Dips
Written by
Jim Bloom
Published on
March 11, 2019
Copy URL
Share on LinkedIn
Share on Reddit
Share on Twitter/X
Share on Facebook
InsidrFinancial

Expansion into the multi-billion-dollar cannabis market is one of the reasons why Cannex Capital Holdings Inc (OTCMKTS:CNXXF) is skyrocketing, after struggling for direction last year. The stock has taken the market by storm as investors react to the spending of $8 million to kick-start the company’s push for value in the CBD space.

CNXXF Catalysts And Share Price Analysis

The company is to acquire San Diego-based Pure Ratio Holdings to affirm its push for growth opportunities in the lucrative CBD industry. The acquisition comes months after the company inked a deal to merge with 4front Holdings resulting in a combined company with operations in the cultivation, manufacturing, and branding of CBD products.Investors have continued to push the stock up the charts in response to the company’s expansion drive into the cannabis sector. The stock is already up by more than 150% for the year, on strengthening investor confidence about the company’s prospects in the cannabis sector.With the stock having powered through key resistance levels, pull back should emerge as buy opportunities from where the stock looks set to continue powering high. Immediate sell-offs should experience support at the $1.30 level, which happens to be a previous resistance level. CNXXF Daily ChartAbove the $1.3 level, Cannex Capital Holdings remains a solid buy in line with the bullish momentum in the overall sector. A breach of the $1.30 level on sell-offs would leave the stock vulnerable to further drops back to the $0.80 level, seen as the next support level.

What Does Cannex Capital Holdings Do?

Cannex Capital Holdings leases real estate properties to cannabis cultivators, processors as well as dispensaries. The company is also involved in the provision of turnkey real estate as well as cannabis growing real estate consulting services.

Why is Cannex Capital Holdings Exploding?

Shares of Cannex Capital Holdings are exploding in response to the company moving to acquire Pure Ratio Holdings as it continues to expand its footprint in the multi-billion industry. The $8 million transaction will see the company gain access to an entity focused on holistic wellness products based on CBD.The acquisition is also poised to strengthen Cannex Capital Holdings with new CBD and wellness brands. Pure Ratio has made a name for itself on combining hemp-derived CBD with additional Chinese medicines.

“As we look at potential acquisitions, Pure Ratios instantly struck us as a unique opportunity with a core and complementary product focus. We look forward to utilizing Cannex’s existing competencies to helping Pure Ratios scale and to drive further growth the closing of our pending transaction with 4Front Holdings,” said Anthony Dutton, Cannex CEO.

4Front Holdings Merger

Pure Ratio’s Holdings Acquisition follows a merger with 4front holdings late last year. The merger has resulted in a combined company, with a standard for operational excellence under one umbrella in the cannabis sector. The combined company also boasts of a strong business development team expected to identify new opportunities it support market growth.

“This is an exciting and transformational step as 4Front and Cannex come together to realize our common objective of building a premier cannabis business focused on operational excellence and integrity across the value chain. The operations and leadership that Cannex has demonstrated in Washington, one of the most competitive cannabis markets in the world, are unlike anything I've seen in the industry," said Josh Rosen, co-founder and CEO of 4Front.

With the two acquisitions, Cannex Capital Holdings has gained a head start as it seeks to become an industry leader in the cannabis sector. For instance, the company already owns two sizeable indoor cultivation facilities and production facilities in Washington. Its wholly owned subsidiary Northwest Cannabis Solutions boasts of strong cultivation yields that produce top-selling flowers.4front, on the other hand, owns and operates five medical cannabis dispensaries across four states. A merger with Cannex Capital Holdings paves the way for it to expand its footprint into five more states in the first half of the year. The combined company will boast of six cultivation and production facilities across Washington.

What Next For Cannex Capital Holdings

Cannex Capital Holdings looks set to continue powering higher as acquisitions continue to strengthen its sentiments in the market. Expansion into the cannabis sector is a development that affirms the company's growth metrics as it continues to diversify its revenue streams.Investor confidence should continue to inch higher as the company moves to generate value from the cannabis sector through the acquisitions already integrated. That said Cannex is an ideal play on pullbacks from current highs.We will be updating our subscribers as soon as we know more. For the latest updates on CNXXF, sign up below!Disclosure: We have no position in CNXXF and have not been compensated for this article.

Discover Hidden Gems

Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.