Alternate Health Corp

Why Alternate Health Corp (CNSX: AHG) Is Up 40% In Q2

Alternate Health Corp (CNSX: AHG) is exploding higher as investors react to its Pharmaceutical grade CBD product manufacturing strategy. Following the acquisition of Blaine Labs for $20 million, the company has confirmed plans to enter the Latin American CBD market.

Alternate Health Corp Catalysts And Price Analysis

In addition, the company has confirmed the launch of a new comprehensive business management system in California. The comprehensive system will enhance the company’s operations into blockchain transactions as well as distribution in both medical and adult-use cannabis markets.

In March, the company signed an agreement for the launch of operations at a 60,000 square foot cannabis extraction facility in Adelanto California. After coming under pressure in the first quarter, Alternate Health has bottomed out signaling renewed investor interest.

The stock is already up by more than 40%, since the start of the second quarter. The rally has come on a high turnover of traded shares, signaling to strengthen investor confidence about the company’s long-term prospects.

AHGIF Daily Chart

A spike to the CA$0.69 mark has left the stock exposed to the CA$0.75 resistance level. A rally followed by a close above the technical level is what is needed to affirm the stock’s breakout credentials from one-year lows.

Above the CA$0.75 mark, Alternate Health would be bullish with vast prospects of climbing the ladder in continuation of the emerging uptrend. Conversely, failure to take out the CA$0.75 resistance level would leave the stock exposed to trading sideways.

What Does Alternate Health Corp Do?

Alternate Health Corp bills itself as a diversified healthcare company focused on providing cloud-based software solutions in Canada. The company offers practice management and controlled substance management software. In the recent past, the company has expanded its footprint into the cannabis sector as part of the core business, diversification drive.

Blaine Labs Acquisition

Shares of Alternate Health Corp are flying high on Alternate Health confirming plans to acquire Blaine Labs as part of $20 million transactions. With the acquisition, the company will gain access to 23 years, worth of experience on the production of FDA-approved and cGMP-certified medical products.

Blaine Products will also strengthen Alternate Health prospects in the cannabis sector as it is uniquely positioned to manufacture a wide range of CBD products that meet export standards.

“With this acquisition, we are taking another major step in consolidating the global CBD market,” says Howard Mann, CEO of Alternate Health. “We now boast the addition of nation-wide Mexican CBD licenses to our hemp-based medical product assets, including extraction, distribution and product development.”

Latin America Expansion

The company has already signed a joint venture agreement with Alternate Enterprise as it seeks to venture into Mexican cannabis marketplace. Mexico offers tremendous opportunities for growth expansion. Alternate Health is planning to launch its CannaPass Patient Management system in Latin America as part of the medical CBD market expansion drive.

Strengthening U.S Operations

Expansion into Latin America seeks to supplement Alternate Health operations in the U.S where it remains focused on California’s cannabis market. The company has already signed agreements that pave the way for it to launch operations at a state licensed 60,000 square foot extraction facility in the state.

Alternate Health Corp has signed agreements with two California cannabis companies to expand, build out and manage the 60,000 square foot facility. In addition, it has acquired a 55% stake in both companies.

“These agreements give Alternate Health immediate access into high-margin cannabis manufacturing. With 60,000 square feet of production space, Alternate Health is well positioned to be a major player in California’s cannabis extraction industry,” says CEO Mann.

In addition, it is in the process of launching a new comprehensive business management system in California. The new system integrates the company’s Zi App blockchain, tax extraction, and remittance system as well as QuickBooks cloud and desktop accounting applications.

With the new system, the company will be targeting major cannabis producers as well as retailers and distributors. The system is designed to enhance seed-to-sale tracking as well as management of blockchain transactions, tax administration, and cannabis distribution.

What Next For Alternate Health Corp

Alternate Heath Corp market sentiments have improved, a development that supports further upside action in the market. The $20 million acquisition of Blaine Labs should continue to strengthen investor confidence in the stock which should continue to fuel the upside action.

After a recent spike, the stock should be an exciting investment play on pullbacks as a buy on the dips.

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

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Why Alternate Health Corp (CNSX: AHG) Is Up 40% In Q2
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