Weekend Unlimited Inc (OTCMKTS:WKULF): A Fundamentally Attractive Investment

Shares of Weekend Unlimited Inc (OTCMKTS:WKULF) continue to experience wild swings, even on the company announcing plans to expand into new markets in pursuit of cannabis opportunities. After registering a 180% spike, the stock has come down tumbling, in what could be attributed to investors taking profits.

Catalysts and Share Price Analysis

A spike to record highs came on the company announcing a new retail license for its Northern Lights Supply subsidiary. Investors also continued to push the stock higher on the management affirming they have established solid pillars for strengthening the current brand portfolio.

Backed by vertically integrated operations in California, Weekend Unlimited has also set sights on Canada, a key market where it plans to pursue cannabis opportunities. In addition, the company is also eyeing cannabis opportunities in Jamaica.

WKULF Daily Chart

The swings in the market have come on renewed investor’s interest in the stock, depicted by huge trading volume. However, a steep pull back from record highs of $0.22 is a point of concern for bulls. With the stock currently flirting with $0.13 level, it needs to hold above the $0.10 mark if it is to continue powering high.

Above the $0.13 mark, Weekend Unlimited stands a better chance of climbing the ladder back to 52-week highs. Below the critical support level, the stock could attract more short selling pressure that could see it plunge back to this year’s lows of $0.07.

What Does Weekend Unlimited Do?

Weekend Unlimited is a cannabis-focused company that is capitalizing on vast industry relationships to establish premium cannabis products. The company also scales small medium brands in the categories of extracts and edibles.

Distribution Deal

Weekend Unlimited pull back from record highs could as well be a minor correction, given that underlying fundamentals, support further movements on the upside. Expansion into a new market is one of the developments that affirms the company’s long-term prospects.

The company through its Canna Candy’s subsidiary is fresh from signing an exclusive distribution deal with Infinity One LLC. The agreement paves the way for the company to introduce its cannabis products beyond California into new markets across Northeast, Midwest and southeast regions.

The deal with Infinity 1 will commence with the rollout of 1 million Gummies per month. The initial purchase order is valued at about $350,000.

“This is an exciting step for Canna Candy’s and Weekend. It represents the first of many deals to expand into new markets with our products. The first order is for Canna Candy’s, 5 mg 99.6% Hemp Oil extract (0% THC) mixed fruit gummies in gummy packs containing 20 servings,” said Mr. Paul Chu, Weekend President, and CEO.

A deal with Infinity 1 is of great importance for Weekend Unlimited, given that the company boasts of a retail chain store of up to 400 retail locations. The retail locations should allow the company to target a wider audience in pursuit of sales.

Expansion Drive

In addition to pursuing cannabis sales opportunities in the U.S, Weekend Unlimited has also set sights on Canada’s burgeoning cannabis sector. The company has so far inked a deal for the acquisition of 49% stake Northern Lights Supply.

The deal paves the way for the company to leverage Northern Lights Supply retail cannabis locations in Edmonton International Airport. The entity has also secured a retail cannabis sales operating license for operations in Alberta.

“We are passionate about this new store and aim to be at the forefront of education within Alberta… Our store model has been designed to be replicated in Alberta as additional opportunities to expand arise, and the partnerships we build in the community are essential to do so in a sustainable way,” said Mr. Derek Shields Northern Lights Supply President.

Bottom Line

Weekend Unlimited is a fast growing company focused on both wellness and recreational cannabis applications. The company has embarked on a disciplined growth strategy, focused on CBD and THC business lines. The multifaceted operator has also implemented a centralized service capability as it seeks to reduce costs while streamlining efficiency from production to sales.

A spike in share price to record highs came on the company affirming its growth prospects by pursuing revenue opportunities in the U.S and Canada. Conversely, a pullback from record highs might as well have presented a perfect opportunity to buy the stock at a discount, as it looks set to continue powering higher.

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

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Weekend Unlimited Inc (OTCMKTS:WKULF): A Fundamentally Attractive Investment
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