VIVO Cannabis

VIVO Cannabis Inc (OTCMKTS: VVCIF) Bulls Eyeing Comeback

VIVO Cannabis Inc (OTCMKTS: VVCIF) seems steady and destined to shoot higher after a minor correction from this year highs. The stock is once again showing signs of breaking out after a stellar start to the New Year that saw the stock rally by more than 30%.

Catalysts And Share Price Analysis

Fuelling the upward momentum is the confirmation that the company has secured a municipal approval for phase 5 expansion of a production facility in British Columbia. The expansion is poised to strengthen the company’s cannabis cultivation and production capacity.

Commencement of Australian observational trial, as part of a study analyzing the use of cannabinoids as a therapy for chronic pain, is another development that continues to strengthen the stock’s market sentiments.

In March, Vivo Cannabis unveiled one of the largest integrated online shopping platforms as part of commercialization drive for medical cannabis. The opening is poised to strengthen the company’s sales streams, ideal for growing the bottom line.

Operations in Canada are also increasingly gaining traction the company’s wholly-owned subsidiary ABcann Medicinal Inc. having secured approval from Canada to commence sales of cannabis oil.

In response to recent developments, the stock’s price action activity has gained momentum, helping fuel a rally from all-time lows. After a minor correction back to the $0.60 level, Vivo Cannabis has once again started showing signs of edging higher.

The major obstacle standing in the way of the stock turning bullish, in the short term, is the $0.90 resistance level. Vivo Cannabis rallying and closing above the resistance level should bring to an end a sell-off wave that had plunged it to all-time lows.

VVCIF Daily Chart

Above the $0.90 mark, the stock would be well positioned to make a run for the $1.40 mark, the next substantial resistance level.  Below the $0.90 mark, the stock remains vulnerable to further downside action given the underlying bear trend.

What Does Vivo Cannabis Do?

Vivo Cannabis is a cannabis-focused company engaged in the manufacturing and distribution of medical cannabis. The company holds production and sales licenses from Health Canada that allows it to operate excellent indoor cannabis cultivation and production facilities. The company also boasts of a collection of premium brands targeting unique customer segments.

Recent Developments

Vivo Cannabis market activity has picked pace in recent weeks as it moves to expand its British Columbia production facility. The Company’s wholly owned subsidiary has secured regulatory approval from Health Canada for Phase 5 expansion of the production facility in Hope British Columbia.

The new facility will consist of 10,000 square feet of cultivation space that would boost internal production capacity to 13,500 kilograms by 2020.

“This expansion will further increase Canna Farms’ production capacity to help meet the significant market demand for premium B.C. dry bud. This project represents a strategic deployment of a minor portion of our strong cash position as the Company continues to invest to drive future growth,” said Barry Fishman, Chief Executive Officer of VIVO.

Australia Research Program

In Australia, Vivo Cannabis has commenced observational study on the use of cannabinoids as a therapy for chronic pain. The study, which is taking place in Melbourne, seeks to evaluate the efficacy of medical cannabis on the treatment of pain.

Data generated from the studies are of great importance as it will form the basis for the development of future cannabis products, for addressing specific health and wellness needs. In partnership with the Australian Medical Cannabis service, Vivo Cannabis is planning to create cannabis-based medications targeting Australian patients.

E-Commerce Platform

Separately, Vivo Cannabis has launched a new online platform that will spearhead e-commerce operations for cannabis products. The integrated online medical cannabis website will feature industry-leading brands as well as internally produced products.

“In addition to offering award-winning Canna Farms and Beacon Medical brands, the site will serve as a marketplace for products from other licensed producers who share VIVO’s commitment to delivering premium products and services focused on health and wellness,” said Daniel Aflame, President of Canna Farms.

Bottom Line

Vivo Cannabis price action activity does not paint an accurate picture of a company with tremendous potential. Expansion of cannabis production capacity is one of the developments that underscore the company’s long-term prospects as it moves to address the growing demand for cannabis products.

The launch of an integrated e-commerce platform provides yet another reliable channel for accelerating sales growth. As the company continues to strengthen its prospects in the multi-billion-dollar sector, so should the stock continue to tick higher.

We will be updating our subscribers as soon as we know more. For the latest updates on VVCIF, sign up below!

Disclosure: We have no position in VVCIF and have not been compensated for this article.

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VIVO Cannabis Inc (OTCMKTS: VVCIF) Bulls Eyeing Comeback
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