VIVO Cannabis Inc (OTCMKTS:VVCIF) has bounced back from the brink of collapse. The stock has continued to climb the ladder in 2019, after losing more than 70% in market value in 2018. The plunge came on the stock coming under immense short selling pressure.
Catalysts And Share Price Analysis
Fast forward, 2019 is slowly turning out to be an inflection year as the stock continues to bottom out. A 50% plus spike from all-time lows could as well signal a change in the direction of trade, the sell-off wave having lost momentum.
The rally has come on investors reacting to the company’s drive to reinvigorate growth metrics. For starters, Vivo Cannabis has expanded its product line as it looks to address the needs of medical cannabis patients as well as adult-use consumers.
The company has also strengthened its leadership hierarchy with the appointment of a new Chief Medical Officer. The appointment comes on the heels of the company engaging the services of National Capital Markets, to provide investor relations services.
The stock has turned bullish in the short term as the upward momentum continues to gather pace. After the recent spike, the stock needs to rally and stabilize above the $0.90 mark, to affirm the emerging uptrend.
Above the $0.90 mark, the stock should make a run for the $1.50 mark, the next substantial resistance level. For the stock to turn bullish, given the underlying long-term bear trend, it needs to rally and stabilize above the $1.50 mark.
Below the $0.90, Vivo Cannabis remains vulnerable to further drops given the underlying long-term bear trend and the fact that bears remain in control. The immediate support after the recent pullback is at the $0.60 level.
About Vivo Cannabis
Vivo Cannabis is a cannabis-focused company that manufactures and distributes medical cannabis. The company operates excellent indoor cannabis cultivation and processing facilities, supported by proprietary plant-growing technology. The company also boasts of a robust cannabis product line made up of premium brands such as Beacon Medical, FIRESIDE, Canna Farms, and Lumina.
Vivo Cannabis has started bottoming out in response to improving fundamentals as well as the company’s long-term prospects. The company is fresh from securing a cannabis oil, sale license through its wholly owned subsidiary ABcann Medicinal Inc.
The approval from Health Canada paves the way for the company to expand its product line to target more consumers in the medical cannabis space as well as in adult use. The addition of the company’s cannabis oil products to Beacon Medical is an important step as part of the company’s push to target a broader audience in pursuit of sales.
“The addition of cannabis oil products to our premium medical and adult-use brands will provide consumers with medical-grade products of the high-quality VIVO customers have come to expect. Looking forward, the sales license is expected to accelerate product innovation, leading to a broader product offering for our customers,” said CEO Barry Fisherman.
Chief Medical Officer Appointment
The approval follows the appointment of Dr. Richa Love as the company’s Chief Medical Officer. He joins the company as a Medical doctor at Harvest Medicine. She is also the CEO of CannU, which is a cannabis education and training resource.
Dr. Love is to play a pivotal role in helping guide Vivo Cannabis product development and innovation units, as the company looks to come up with new cannabis products to address growing demand.
“In this role, I will support VIVO as the Company continues to develop a best-in-class medical cannabis offering, applying the rich insights I have gained through, my research into cannabinoid-based therapies and through the thousands of consultations I have had with patients seeking medical cannabis treatment,” Dr. Love in a statement.
What Next For Vivo Cannabis
After a plunge to all-time lows, Vivo Cannabis is slowly turning out to be an attractive bounce back play. The stock appears to have hit rock bottom as short selling pressure continues to lose its edge. With the upward momentum picking up some steam, now may be the best time to pay close attention to the stock.
Vivo Cannabis could offer investors some solid gains on rallying and stabilizing above the $1 a share level, as the cannabis sector gathers strength.
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Disclosure: We have no position in VVCIF and have not been compensated for this article.