WeedMD Inc (CVE:WMD): Buy Low and Sell Very High

Canada has this week become joined the list of countries which have legalized recreational use of marijuana. Since then, the country has been enjoying the continued rise in the prices of cannabis stocks. Companies continued to generate high revenues during the first day with subsequent states reporting millions of dollars in cannabis having been sold on the first day alone. The expected high demand associated with the product accompanied by the continued research into more efficient methods of farming has given rise to a booming industry which investors expect to have a valuation of a few billion dollars.It thus comes as a surprise when one of the cannabis stocks operating within the same region dips in share price.WeedMD Inc (CVE:WMD) has suffered a plummeting share price over the past few days. This follows a period of continued decline since mid-September which has negatively affected the firm. During this period, the firm’s share price has fallen from a price of $2.5 to its current price of $1.69, an over 30% decline in prices. Furthermore, the number of shares traded during this period also rose to nearly 2 million per day, significant of a sell-off of shares by investors.Readers can review the above price action in the chart below: WMD Daily ChartThe decline in prices has been attributed to a number of issues akin to the firm. As a result, we opted to take a look at the firm and evaluate its future prospects in a bid to see how and whether the firm will recover from the above decline.

A Brief Look at WMD

WeedMD Inc was founded back in 2014 and is headquartered in Aylmer, Canada.The firm operates within the healthcare sector, specifically in the production and sale of medical marijuana. Its sales include different cannabis options such as cannabis oil, marijuana plants, and seeds which are sold across Canada. Moreover, through its research and development collaboration with Revive Therapeutics Limited, the company further conducts its research into cannabis as a solution to different ailments.Until now, the cannabis player has over 73 employees and amassed a market capitalization of over $180 million.

Recent Developments

As previously stated, the company has been experiencing a continued period of decline. However, during this period, there has been an increase in the positive information emanating from them. This information has been pivotal in shaping our bullish outlook toward the firm. Below is a snippet into this analysis.

The OTCQX Acceptance

After a period of continued trial, WeedMD Inc finally got received news on its eligibility to operate within the OTCQX market. The company will trade under the ticker symbol (“WDDMF”) within the United States.Their eligibility to trade on this platform places them on a pedestal as there are a number of requirements the firm needed to have met to reach this level. Trading is vetted by the DTC – a subsidiary of the Depository Trust & Clearing Corporation. The body manages all electronic trades and settlements varied out through its platform. For a company to be allowed to trade their shares here, they need to have met strict disclosure, legal and reporting requirements; all which WMD have met.This venture will allow the firm to venture into the United States and provide them with the opportunity to tap into both their deep financial market as well as their continuously growing cannabis market.

Management Shakeup

As a result of the growing need to solidify their position within different segments, WMD opted to add new individuals to their management. The firm’s goal to be a leader in the cannabis sector played a critical role in seeing this shakeup come to fruition.The resulting change saw them change the management in different fields. At the top was Nichola Thompson who was appointed as the interim Chief Executive Officer. Other appointments would see changes to all segments of the business including the Senior Vice President positions for human resource, sales and marketing, operations, patient & client experience as well as communications & corporate affairs which were taken up by Josephine DesLauriers, Brett Moon, Dan Healey, Robert Gora, and Marianella de la Barrera respectively.According to the firm’s CEO, Keith Merker,

“We are adding bench-strength and top-talent to capture the many market opportunities as we look to diversify our innovative product lines; introduce new brands in the recreational market; secure our position in the medical cannabis space; amplify the WeedMD name on a national and global level, and continue to build stellar teams.”

Source:The above move will see the firm be driven by a strong team which will set them up for a more solid position going into the future.

Cannabis Shipments

Late last month, WMD completed its first adult-use cannabis shipment. The company announced that it had delivered its first WeedMD-branded cannabis to contractual parties. This is especially important for the company given that they have been ramping up their production capacity over the past few months. The move proves to shareholders that WMD has a ready market for their produce, speaking to expected revenues to the firm going forward.

Conclusion

As seen in this piece, WMD has been making progress in its bid to grow. As such, the firm’s continued downturn presents investors with the opportunity to buy low and sell high. This is further backed by the continued legalization of cannabis both by states in the United States and federally in Canada. With more demand will come more value and this is bound to drive the firm’s price even higher.We will be updating our subscribers as soon as we know more. For the latest updates on WMD, sign up below!Disclosure: We have no position in WMD and have not been compensated for this article.