Body and Mind Inc (OTCMKTS: BMMJ) Targeting Fresh Highs

Body and Mind Inc (OTCMKTS: BMMJ) is a fundamentally attractive investment after a minor correction. The stock has been on an impressive run after an excellent start to the year that saw it rally by more than 400%. The stock has since corrected lower in what appears to be as a result of investors taking profits.

BMMJ Stock Price Analysis

The stock has once again started showing signs of bouncing back to 52-week highs on renewed investor interest. The upward momentum has received a boost on the company securing a C$10 million financing through private placement financing.

With the new finances, the company remains well positioned to expand production capacity as well as build out dispensaries. The management has also confirmed plans to expand operations, a development that continues to excite the markets.

The company has already set foot in Arkansas after inking a strategic partnership with in-state partner Comprehensive Care. Ohio is another cannabis marketplace that the company has set sights on having already launched retail cannabis operations.

While the stock has pulled lower in recent weeks, investors reacting positively to recent developments could as well indicate the stock is on its way back to 52-week highs. A bounce back from the $1.40 level has opened the door for the stock to make a run for the $2.7 level, seen as the immediate resistance level, standing in the way of further upside action.

A breach of the $1.40 support level on further sell-offs would leave Body & Mind vulnerable to additional drops in continuation of the downtrend.

What Does Body & Mind Do?

Body & Mind is a development stage company engaged in the production and distribution of medical and recreational marijuana. The Company’s cannabis product line is made up of dried flower, edibles topical as well as extracts and Lucid Mood offerings.

Why is Body & Mind a Bounce Back Play?

Body & Mind is a potential bounce-back play after a solid start to the year. The stock has rallied by more than 400%. A recent correction lower continues to attract bulls especially those who missed-out on the initial spike.

The company inking a deal for a $10 million financing means it is well financed to pursue initiatives that have the potential to accelerate growth crucial to strengthening market sentiments. The multi-state operator has already signed an agreement that paves the way for it to relocate its production facility close to the Pepper Lane cultivation facility.

The 7,500 square feet facility should be up and running within 90 days, poised to strengthen Body & Mind cannabis production capacity before the end of the year. With the new finances, the company intends to introduce new mechanization as well as automation equipment to support current product lines as well as SKUs and efficiencies.

Body & Mind has already started testing new edible, oil and extraction products that will be produced at the new facility once it is up and running.

“This is an exciting development for BaM as our production output has been limited by space constraints. The new facility will enable us to meet the increased demand for our products, allow us to serve our distribution partners better, and allow us to introduce new products,” stated Robert Hasman, President of Nevada Medical Group LLC and board member of Body and Mind.

The inking of a strategic partnership with Comprehensive Care paves the way for the company to open medical marijuana as part of an effort of expanding the retail network. Body & Mind has also submitted drawings and engineering of a proposed retail store that it intends to construct in the state as part of its growth and expansion strategy. Plans are underway to have the store up and running by the third quarter.

After commencing retail operations in Ohio, in February, Body & Mind has continued to register increased sales as margins also continue to improve on optimization efforts gaining traction.

What Next for BMMJ stock?

After a solid start to the year followed by a spiral downwards in recent weeks, BMMJ is likely to resume its uptrend. Recent developments signal a company in a phase of robust growth with tremendous potential that continues to excite investors.

As it stands, bulls are likely to continue buying on the dip as underlying fundamentals support further upside action in line with the long-term uptrend.

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