Green Growth Brands Inc (OTCMKTS: GGBXF) has struggled for direction after seeing its proposed takeover of Aphria Inc (NYSE: APHA) fall through. The stock has been the subject of wild swings after starting the year on a roll, rallying to highs of $4.5. The stock did tumble as uncertainty over the proposed takeover continued to cause havoc.
Catalysts And Share Price Analysis
However, the stock has shown signs of resurgence, in recent weeks, depicted by a bounce back in share price. The bounce back has come even on the Company confirming its deal for Aphria has expired resulting in a charge of $89 million on a repurchase of shares.
Even on the Aphria setback, Green Growth Brands has continued to strengthen its prospects in the cannabis sector by making strategic moves. Expansion into Milwaukee with the opening of a first Seventh Sense CBD shop has already come into play.
The Company has also set sights on Indiana and Kentucky cannabis marketplaces with the opening of two new CBD shops as it continues to expand its retail network.
While the stock did take a hit on the Company failing to seal a deal for Aphria, it has once again started surging in continuation of a bull trend that began late last year. A bounce off the $2.80 level has opened the door for the stock to make a run for this year highs.
The immediate resistance standing in the way of the emerging uptrend is the $4 mark, above which the stock should be able to make a run for 52-week highs. Conversely, a sell-off followed by a close below the $2.80 mark could result in Green Growth Brands plunging back to the $2 a share level.
What Does Green Growth Brands Do?
Green Growth Brands is a company seeking to dominate the cannabis market with a portfolio of emotion-driven brands. The Company boasts of a robust portfolio of cannabis products that it is using to target the broader cannabis market in the U.S.
Green Growth Brands market sentiments did take a hit after it became clear it would not be able to secure a deal to acquire Aphria. The takeover bid failed to meet the statutory minimum conditions prompting its termination. The Company had already entered into a definitive agreement to accelerate the termination of certain arrangements for consideration of $89 million payable in future
Under the terms of the deal, Green Growth Brands is to repurchase 27.3 million of its common shares held by GA opportunities. The shares are to be paid through a combination of cash and secured promissory note.
“We are bringing our offer to an end on good terms with Aphria and are excited to turn our focus to our CBD personal care and retail cannabis businesses. We are actively continuing to review other partnerships and M&A opportunities to accelerate the build-out of our Company,” said Peter Horvath, CEO of Green Growth Brands.
Retail Network Expansion
While Aphria blow is a big setback, Green Growth Brands remains well positioned for robust growth in the cannabis sector. The Company is increasingly expanding its retail footprint by expanding into new markets with vast opportunities for growth.
The Company has already set foot in Milwaukee with the opening a Seventh Sense Botanical Therapy CBD shop at Mayfair Mall. The new store brings to six, Seventh Sense Shop opened so far across the U.S. According to the CEO, Physical shops are the Company’s strongest marketing assets. Plans are underway to have at least 100 CBD shops by mid-summer.
The new store in Milwaukee will retail high-quality botanical therapy infused care and beauty products. On offer at the store will also be CBD-infused body lotions as well as muscle balm, body wash, and bath salts.
While Green Growth Brands is still reeling from the Aphria disappointment, one cannot dispute the fact that its long-term prospects are as solid as ever. Expansion into new markets allows the Company to diversify its retail footprint ideal for reducing reliance on a particular market.
The stock bouncing after a steep pullback also attests to renewed investor interest as the Aphria dust continues to settle. The stock is likely to continue surging after a recent bounce back as there is a lot of ground to cover ahead of 52-week highs.
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Disclosure: We have no position in GGBXF or APHA and have not been compensated for this article.
Terra Tech Corp (OTCMKTS: TRTC) A Bounce Back Play As Net Loss Narrows And Gross Margins Expand
Terra Tech Corp (OTCMKTS: TRTC) has retraced lower ever since it clocked 2019 highs at the end of the first quarter. The stock has crumbled under soaring bearish pressure. Amidst the steep pullback, the stock is a potential bounce-back play as it is currently trading at the lower end of a tight trading range.
Terra Tech Price Analysis
A plunge to the lower end of the $0.63 to $1 trading range leaves the stock in a precarious position. A plunge lower could elicit further selling pressure while a bounce back could result in the stock making run for this year highs.
In our view, the stock could bounce back on investors reacting to a string of positive developments that affirm the Company’s prospects. For starters, Terra Tech is fresh from launching a legal cannabis delivery services as it continues to pursue growth opportunities in California.
The Company is also fresh from delivering impressive financial results that indicate gross margin expansion as net loss from operations continues to narrow. The sale of Blum Desert is another development poised to strengthen the company’s financial position.
Terra Tech commencing cannabis sales to the adult use market should continue to excite investor’s, ideal for fuelling an upswing in the stock’s price action activity. With the stock appearing to have hit the floor after the recent pullback, a correction higher could be in the offing at the lower end of the trading range.
Namaste Technologies Inc (OTCMKTS: NXTTF) A Bounce Back Play On Robust Revenue
Namaste Technologies Inc (OTCMKTS: NXTTF) has had to contend with wild price swings, as investors reacted to delays in the filling of audited financial results and ousting of Sean Dollinger as the CEO. That could soon change, as the Company has come through and filled results that affirm robust revenue growth.
Namaste Technologies Price Analysis
However, concerns over widening net loss could hurt the stock’s sentiments in the market, at a time when it is in dire need of, groundbreaking catalysts to avert further slides. While the stock has bottomed out, it remains engulfed in a long-term bear trend.
The descending trend line could attract short selling pressure on the filling of negative news that arouse concerns about the Company’s long-term prospects. A spike to the $0.65 level essentially means the stock is at a critical resistance level.
Failure to rally and find support above the resistance level could elicit some form of selling that could see the stock trading sideways. Immediate support on any pullbacks from current highs is seen at the $0.40 mark.
A sell-off followed by a close below the $0.40 mark could result in Namaste Technologies resuming its downtrend, as has been the case for the better part of the past year. Conversely, a rally followed by a close above the $0.66 mark should pave the way for the stock to make a run for the $1.20 mark, seen as the next…
Cannex Capital Holdings Inc. (OTCMKTS: CNXXF) A Long-Term Play Despite Price Slump
A strategic merger with 4Front coming on the heels of Pure Ratios holding acquisition affirms why Cannex Capital Holdings Inc (OTCMKTS: CNXXF) prospects can only get better despite the recent price slump. The transformational events expand the Company’s operations into six U.S states signaling push for market value in the burgeoning cannabis sector.
Cannex Price Analysis
While Cannex has taken a significant hit in the market, it is still up for the year after an excellent start that saw it rally by more than 200%. The stock has since pulled lower in what appears to be a correction phase.
The ongoing pullback has since exposed the stock to a crucial support at the $1 a share level. A breach of the support level would leave the stock susceptible to further drops probably back to the $0.80 mark, a critical technical level.
For the stock to resume its uptrend, it first needs to rise and stabilize above the $1.20 mark, the immediate resistance level. The stock rallying and finding support above the $1.2 mark would open the door for bulls to fuel a rally back to 52-week highs.
Cannex is a diversified company that leases real estate properties and sells supplies to cannabis cultivators. The Company also offers financial services as well as branding and IP services to licensed cannabis operators. It is also focused on premium indoor cultivation extraction and branding of edible…