Veritas Pharma Inc (CNSX:VRT) Due For A Bounce

Veritas Pharma Inc (CNSX:VRT) has finally hit the floor and due for a major bounce back. The stock has started showing signs of bottoming out, as trading activity on the stock continues to gather pace. Improving underlying fundamentals support further movements on the upside after the recent bounce back.

Catalyst Driving Upward Momentum

The stock has taken a huge hit this year, as share price and market cap have continued to edge lower. It is currently trading at all-time lows. However, the serving of groundbreaking catalysts in recent weeks, in our view should go a long way in strengthening investors’ confidence in the stock, going forward.For starters, the company has confirmed it is ready to start clinical trials on its flagship CTL-X unique cannabis strain for treatment of acute pain. The company has also secured additional financing that it plans to use to strengthen its cannabis supply.Veritas has also moved to strengthen its growth metrics in the cannabis sector with a $1.25 million in a cannabis growing facility. In addition, the company has signed a memorandum of understanding for the commercialization of its cannabis products in Puerto Rico.

Veritas Price Analysis

The stock has already started climbing high as investors take note of the improving fundamentals. After bottoming out of the CA$0.100 level, the stock faces immediate resistance at the CA$0.20 level. A breach of the critical resistance level should open the door for bulls to push the stock to the CA$0.35 level seen as a key psychological level.Veritas needs to rise and stabilize above the CA$0.35 level to turn bullish after the recent sell-off. A breach of the psychological resistance level should open the door for the stock to make a run for the CA$0.6 mark.

What Does Veritas Pharma Do?

Veritas Pharma, through its wholly owned subsidiary, Cannevert Therapeutics is in the business of advancing medical cannabis. The company specializes in the development of cannabis strains for the treatment of chronic and acute pain. It also develops cannabis-infused products for addressing nausea and vomiting as well as post-traumatic stress disorder.

Why is Veritas Pharma Due for a Bounce Back?

Veritas Pharma is due for a bounce back after serving a number of catalysts that has once again reaffirmed its long-term prospects. High turnover in traded in shares in the market attests to the fact that investors are slowly taking note of the company’s prospects.The company got investors psyched up in recent weeks after announcing it is poised to commence human trials on its lead cannabis product CTL-X. The cannabis strain mix has already shown prospects of reducing acute pain after two years of pre-clinical testing.In anticipation of the human trials, Veritas Pharma has closed a private placement of its outstanding share. The company raised $1.56 million on the issuance of 8.2 million shares of common stock.

“The closing of this financing and the share consolidation provide Veritas with the opportunity to not only secure clients for its new cannabis testing services, it also will provide the Company with the necessary positive ongoing cash flow for the continued research, development and commercialization of cannabis strains specific to pain management,” said CEO Lui Franciosi.

Strengthening Cannabis Supply Chain

In addition, Veritas Pharma has acquired a 25% interest in a 10,000 square foot cannabis growing facility in Kelowna British Columbia. The building up for construction will accommodate four Micro Grow Licenses with 2,100 square feet growing capacity.The building is already 50% complete and poised to commence cannabis production within the next eight to twelve weeks. The facility has the potential to generate up to $5 million in net income, to be used to repay the investment in the building.

“The investment in this opportunity, provide Veritas with the ability to control the supply of cannabis required for research, and to develop and commercialize the requisite cannabis strains specific to pain management, and eventually to assist in the treatment of other diseases and maladies,” said Mr. Franciosi.

Veritas Pharma has also signed a memorandum of understanding for the commercialization of pharmaceutical products in Puerto Rico. The agreement signals the company’s first entrance into the island in pursuit of shareholder value.

Bottom Line

Veritas Pharma has taken a significant hit this year depicted by an 80% slid in share price. Amidst the underperformance, the stock appears to have hit rock bottom and due for a bounce back. A string of positive development’s, in recent weeks, have once again strengthened investors’ confidence in the stock.For early movers it may be wise to wait for the stock to rise and stabilize above the $0.30 mark, to consider it a bounce back play.We will be updating our subscribers as soon as we know more. For the latest updates on CNSX:VRT, sign up below!Disclosure: We have no position in CNSX:VRT and have not been compensated for this article.