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Tidal Royalty Corp (CNSX:RLTY.U) Battered But Not Yet Out As Fundamentals Improve

Tidal Royalty Corp (CNSX:RLTY.U) Battered But Not Yet Out As Fundamentals Improve
Written by
Jim Bloom
Published on
October 16, 2018
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Just when things were looking gloomy after a series of missteps, Tidal Royalty Corp (CNSX:RLTY.U) has found a way to reinvigorate its long-term prospects. The company has confirmed it is working on rectifying filling delinquencies of its predecessor company. The company has also added a former NBA Player and cannabis entrepreneur to its Advisory Board.In addition, the company has confirmed it is in the process of financing a new manufacturing and distribution facility in California. The announcement came just days after the company confirmed a royal financing deal in Massachusetts.

Tidal Royalty Price Analysis

A string of positive developments, in recent weeks, have helped strengthen the company’s and stock sentiments in the market. Renewed investor interest in the stock is depicted by high turnover in traded shares as the stock continues to show signs of climbing high.The stock remains engulfed in a steep bear trend that began in July. However, with underlying fundamentals showing signs of improvement, it could be a matter of time before the stock bounces from the current lows.A rally followed by a close above the $0.20 mark should reaffirm the emerging uptrend and set the stock on its way back to higher highs. A breach of the $0.20 mark should, in return, open the door for the stock to make a run for the $0.30 mark, seen as the next critical psychological level. Below the $0.15 mark, the stock remains susceptible to further declines.

What Does Tidal Royalty Do?

Tidal Royalty is a company focused on providing royalty finance to legal cannabis companies in the U.S. The company provides such entities with the much-needed financing that they use to grow their businesses. By providing financing services, the company provides investors with exposure to companies poised to form the future of the burgeoning multi-billion cannabis sector.

Sorting Out Listing Deficiencies

Tidal Royalty saw its sentiments and prospects take a hit after the OTC Markets delisted its stock amidst filling deficiencies claims. Delisting appears to have spooked investors fuelling a sell-off wave that has since plunged the stock to all-time lows.The management team has since reiterated its commitment to seeking reinstatement on the OTC market by way of filling a registration statement.

"We are committed to rectifying the filing delinquencies of the predecessor company and to reinstate our listing on the OTC Markets," said Paul Rosen, CEO of Tidal Royalty. "In the meantime, our stock continues to trade on the CSE.”

As part of the ongoing restructuring, the company has also confirmed the addition of AI Harrington into its Advisory Board. The Former NBA Player, as well as the founder of the Harrington Group, should contribute to the company’s growth and success going forward.

Royalty financing deals

The company will look upon Mr. Harrington toy provide the much needed strategic advice as they move to pursue opportunities in the burgeoning cannabis sector

“Cannabis has had an incredibly positive impact on my health and that of those closest to me, which is why I chose to get involved in this industry. With The Harrington Group, I'm looking to develop reliable and safe products for both medical patients and casual enthusiasts," stated Mr. Harrington.

Tidal Royalty has also signed a Letter of Intent with California license operator Palm Desert Cannabis Company. Under the terms of the agreement, Tidal is to finance the licensed operator with up to $5 million for the build-out of a proposed Palm Desert Facility. Palm Desert has agreed to pay back the equivalent of 10% on all net sales generated in California.

"The combination of existing operations, brand partnerships and the strategic foresight of this management team gives us great confidence that, with Tidal Royalty's capital, they will expand their market share,” id Paul Rosen, CEO & Chairman of Tidal Royalty.

The signing of the letter of intent came just days after the company announced the signing a financing agreement in Massachusetts. Under terms of the agreement, Tidal Royalty has agreed to finance Diem Cannabis to a tune of $12.5 million, over the next three years. The investments provide the Company with exposure to one of the fastest growing marijuana markets in the U.S.

Bottom Line

Tidal Royalty is consummating royalty transactions at an impressive rate, expected to generate significant value as the overall industry continues to grow. The signing of deals in Florida, Arizona, California, and Massachusetts underlines the fact that the company’s business model is gaining traction.Recent developments point to a company that is in a robust growth phase. That said, the stock should bounce back from current lows as investors take note of the improving underlying fundamentals.We will be updating our subscribers as soon as we know more. For the latest updates on CNSX:RLTY.U, sign up below!Disclosure: We have no position in CNSX:RLTY.U and have not been compensated for this article.

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