Shares of Kali Inc (OTCMKTS:KALY) have bounced back to a one-year high, on the company delivering a string of groundbreaking catalysts. Renewed investor interest in the stock comes on the announcement of a $300,000 contract for the production of Hemp-Derived CBD extract for Puration Inc (OTCMKTS: PURA).
Kali Price Analysis
Kali is also the center of attention, in the cannabis sector, on announcing a new cannabis pharmaceutical and concentrates business plan. The acquisition of NCM Biotech a developer and owner of patented cannabis extraction process also appears to have strengthened investor confidence in the stock.
After an extended period of consolidation below the $0.01 mark, Kali has skyrocketed to one-year highs above the $0.01 mark. Price action activity indicates that the stock could continue powering high given the strength of the upward momentum.
The stock faces immediate resistance at the $0.02 mark as part of the emerging uptrend. A breach of the critical resistance level could open the door for the stock to rally to two-year highs. The stock looks set to finish the year on a high, taking into consideration recent developments that affirm growth prospects.
What Does Kali Do?
Kali designs, markets and distributes apparel under the VLOV band. However, in the recent past, the company has expanded its footprint into the cannabis sector. The company is now entirely focused on leveraging Cannabis on research and development all in the effort of coming up with pharmaceuticals for treating various illnesses and chronic pain.
Why is Kali Skyrocketing
Kali is skyrocketing in the market on announcing a $300,000 contract from Puration. The contract is for the production of custom hemp-derived CBD extracts. The contract comes just days after the company completed the acquisitions of a patented cannabis extraction process.
“With the legalization of hemp farming on the near horizon as drafted into the pending 2018 Farm Act, the floodgates are about to open for Kali-Extracts. I am already receiving daily inquiries to formulate custom hemp-derived CBD extractions,” said Frederick Ferri, the founder of NCM Biotech.
The $300,000 hemp contract builds on a long-running partnership between Kali and Puration. In addition to the partnership, the two companies in collaboration with other partners have formed a joint venture dubbed U.S Cannabis Health. The joint venture is for the production of cannabis extracts for pharmaceutical applications. The Joint Venture has already signed its first agreement.
CBD Product Line
In pursuit of revenue opportunities in the burgeoning cannabis sector, Kali has continued to strengthen its product line. The company is fresh from launching a new line of hemp-derived CBD infused candies and vapes under the brand name Hemp4mula.
The company is on course to receive a wholesale order upon completing the production of the Hemp4mula gum. Plans are also underway to commence the production of hemp-derived CBD infused mints and gums upon hemp4mula gum production.
NCM Biotech Acquisition
Product line expansion comes on the heels of Kali signing letter of intent for the acquisition of NCM Biotech. With the acquisition, the company is poised to gain access to a vital patented cannabis extraction process. The extraction process in question has already been engaged in a number of medical and pharmaceutical research and development projects.
Kali intends to pursue pharmaceutical and other commercial applications with the patented extraction process.
“I have received doctor feedback from more than one of our research initiatives that extracts coming from NCM Biotech’s patented process are superior in purity and quality to any other available cannabis extracts,” Mr. Ferri in a statement.
Kali is also the subject of renewed investor interest on announcing a new business plan. According to the Chief Executive Officer, focus now shifts towards the development of pharmaceuticals to treat various illnesses diseases as well as chronic pain.
The diversified company also intends to concentrate on the development of health and wellness therapies. The new business plan seeks to enhance the company’s pursuit of market share in the cannabis pharmaceutical market poised to reach $50 billion by 2029.
A spike in share price has not come merely on speculation; it has come on renewed investor interest and growing confidence about the company’s long-term growth prospects. The signing of a $300,000 contract with Puration attests to the company’s focus on opportunities in the cannabis sector.
Strengthened investors sentiments also come on the company announcing a new business plan that affirms pursuit of opportunities in the multi-billion cannabis pharmaceutical industry. The stock has since climbed high through critical resistance levels. Initial indication is that the stock will continue to climb high on pullbacks, heading into 2019.
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Disclosure: We have no position in KALY and have not been compensated for this article.