Trimax Corp (OTCMKTS:TMXN) stock is finally showing signs of ticking higher, after a long period of consolidation. Investor sentiments on the stock have strengthened after the company announced a massive purchase order from Walmart Inc (NYSE:WMT) in addition to pursuing growth opportunities in the cannabis space.Recent price action suggests that the stock could trade higher as trading volumes have picked on easing selling pressure. In our view, the stock has the potential to trade higher from current levels, given recent developments on the business execution front. With trading volumes having surged above the 10 million mark, the stock needs to close above the $0.025 mark to affirm the emerging uptrend.On the downside, Trimax Corporation faces immediate support at the $0.01 mark, below which it could drop to its 52-week lows. TMXN Daily ChartBefore we look at the catalysts that have strengthened our bullish thesis, let’s first have a look at what the company does in pursuit of shareholder value and growth.Trimax Corporation Business Description Trimax Corporation bill itself as a holding company with operations in the beauty products business. The company through its wholly-owned subsidiary, Saavy Naturals, manufactures body care products. It also offers natural skin care products such as body creams, body scrubs, shampoos, and conditioners.In the recent past, the company has sought to diversify its core business, buoyed by growth opportunities, in the legal cannabis industry.Marijuana Diversification Strategy Investor confidence in Trimax Corporation has strengthened in the recent past on the company announcing the signing of a Letter of Intent, for the acquisition of assets of online business Omega Tech.The acquisition marks the company first step into the multi-billion legal marijuana business. Omega Tech, also known as Recreational Dispensaries, is an online portal that connects consumers with rated cannabis dispensaries and storefronts, based on geographic location.Omega Tech strives to simplify the process of buying and getting cannabis products at people’s doorstep, in a fast secure manner. Licensed medicinal and recreational cannabis shops can log into the company’s website and create their own storefront profile.What Next According to the Chief Executive Officer, Hugo Saavedra, the acquisition of Omega Tech will go along in way of diversifying and generating multiple revenue streams for the company.
“We are strong believers that diversification is the key to success and are extremely pleased to announce our intent to diversify into the fast-growing marijuana sector with an e-commerce company that brings a leading edge mobile technology platform to the forefront of this billion dollar industry.” He also stated,” said Mr. Saavedra
Recreational Dispensaries is in the process of setting up shop in California, a cannabis market that has received a major boost with the legalization of recreational use. However, the big plan is to expand into each and every state that has legalized medicinal and recreational use.Omega Tech acquisition comes just days after Trimax Corporation confirmed the introduction of a new line of luxurious CBD body care lotions, as it continues to make inroads in the cannabis space. The new product line should go a long way in strengthening, Saavy product line in addition to acting as a reliable revenue stream.In addition, the CEO has confirmed that they are working to bring to market a new line of CBD infused lotions soaps and shampoos in trying to keep up with growing demand for such products.
“With the success of our hemp body care product online, we look forward to capturing our fair share of this exceeding popular and fast-growing niche industry,” said Mr. Saavedra.
Walmart 60,000 Purchase order Even as Trimax Corporation continues to pursue sales opportunities in the cannabis space, it also remains focused on its other business which has been a key driver of growth to date. The company has already signed a purchase order agreement with Walmart, for the delivery of 60,000 Saavy Naturals Everyday Bath Bombs.
“The recent purchase order received from Walmart ® is an accumulation of hard work and dedication from all parties involved, in order to address the needs of big box consumers looking for 100% all-natural alternatives for their body care needs,” Trimax Corporation in a statement.
The products are to be distributed in Walmart’s 3,600 locations, a move that should broaden the popularity of Trimax Corporation brands. The company has already appointed US Merchants as its exclusive representative for branding, marketing, and distribution in Walmart stores across the U.S.Trimax Corporation Investment Prospects It is an exciting time to be an investor in Trimax Corporation given the huge opportunities for growth. Unlike other beauty products companies, the company has, successful diversified its product portfolio as it looks to generate more sales and shareholder value.A deal with Walmart underscores the company’s long-term prospects as its beauty care products will now be available nationwide. Expansion into the marijuana sector is another development that affirms the company’s growth metrics as it continues to diversify its revenue stream.We believe the stock is destined to trade higher from current levels, especially after the recent bounce back.We will be updating our subscribers as soon as we know more. For the latest updates on TMXN, sign up below!Disclosure: We have no position in TMXN and have not been compensated for this article.
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