Sproutly Canada Inc (OTCMKTS: SRUTF) is pulling lower after an excellent start to the second quarter that saw it rally by more than 100%. The stock has since pulled back and now looks set to trade sideways, in a range, having bounced off a fundamental support level.
A rally to all-time highs came on the company confirming a strategic partnership with Ogilvy Canada as part of an effort of developing strong brands. In the recent past, the company has also inked a strategic partnership with Moosehead Breweries, resulting in the formation of a joint venture to launch cannabis-infused beverages.
Sproutly has also achieved significant progress on its bid to deliver a safe and consistent whole plant experience for cannabis, on securing processing license from Health Canada. The stock pulling lower in response to recent developments could as well indicate minor correction pending continuation of the emerging uptrend.
The $0.50 mark is the immediate support level supporting Sproutly uptrend that began in March. Above the critical technical level, the stock remains well supported for further upside action as a bounce-back play. Conversely, a breach of the support level would leave the stock susceptible to further drops, probably back to the $0.36 level, seen as the next support level.
A close below the $0.36 support level would bring to an end the bullish momentum consequently exposing Sproutly to further drops, probably back to 52-week lows. However, as it stands Sproutly is likely to edge higher after the recent correction.
What Does Sproutly Canada Do?
Sproutly Canada is a cannabis-focused company seeking to become a leading supplier to the cannabis beverage and edibles market. With its Toronto-based facility, the company cultivates
Shares of Sproutly have pulled lower after a meteoric rise as of the end of the first quarter. The pullback could as well be because of investors taking profits after the recent spike high. The company moving to strengthen its cannabis product line is a development that continues to prop the stock’s market sentiments.
The formation of a joint venture in partnership with Moosehead Breweries opens the door for Sproutly to strengthen its cannabis product line, with the launch of a new line of cannabis-infused beverages. The two are joining forces to develop, produce and market non-alcoholic cannabis-infused beverages using naturally produced water-soluble cannabinoids.
“Moosehead is a truly iconic brand, and we are very excited to partner with a company that possesses such deep-rooted Canadian heritage and over 152 years of history in the beer industry. Partnering with a company of this caliber is a strong validation of APP Technology and Infuz20,” commented Keith Dolo, Chief Executive Officer and Director of Sproutly.
In addition to the Moosehead partnership, Sproutly has hired Ogilvy Canada as its integrated brand development firm. The award-winning creative agency is tasked with the responsibility of delivering excellent creative and impactful communications strategies to promote the launch of Sproutly brands in Canada.
Sproutly Canada is in the process of building a robust brand and partnership strategy ahead of the legalization of edibles and beverages in October.
“With award-winning creativity and a deep understanding of our consumers, Ogilvy will be a valuable partner in helping Sproutly to launch into the beverage and edibles market with a brand and strategy that uniquely delivers the rapid onset benefits of our APP proprietary technology,” said Melise Panetta, Vice President, Marketing and Sales, for Sproutly.
The company is leveraging the Aqueous Phytorecovery Process technology to come up with new products, as it is capable of producing naturally water-soluble cannabinoids. Sproutly has also secured a Health Canada license that allows it to move forward with the production of cannabis oil and other related products.
The processing license also marks an important milestone on the company’s bid to commercialize cannabis beverages and other edible products.
What Next For Sproutly Canada
While Sproutly Canada has pulled lower from this year highs, underlying fundamentals are as solid as ever and set to support further upside action. The stock is likely to resume its upside action after the recent correction lower.
The pullback presents an exciting entry position given the company’s tremendous potential in the multi-billion-dollar industry.
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Disclosure: We have no position in SRUTF and have not been compensated for this article.
What Do Investors See In Medical Marijuana Stock (OTCMKTS:MJNA)?
Medical Marijuana Stock (OTCMKTS:MJNA) has emerged as one of many investor’s favorite pot stocks in the legal cannabis universe in 2020. The stock is already up about 10% in 2020, demonstrating how investors have warmed up to the stock early on in the New Year.
Following a disastrous 2019, cannabis investors lost money but have also learned that their best bets are stocks with strong fundamentals. They are looking for companies that have positioned themselves well in the cannabis industry and have what it takes to go for the opportunities. That is why MJNA stock is catching a lot of investor attention in 2020 because of how it has positioned itself in the cannabis market.
Robust revenue growth and strong financial position have also helped put MJNA on the radar of investors hunting for quality cannabis stocks. Revenue at MJNA more than doubled from $26.5 million in 2017 to $60 million in 2018. MJNA is also not in financial distress as may be the case with other cannabis companies out there. The company finished the third quarter, the most recent reported period, with $5.5 million in cash reserves.
Moreover, MJNA has recently taken steps to expand into new international markets and invest in companies that are leaders in their segments. These prudent actions are helping lift Medical Marijuana stock as more investors learn about them.
About Medical Marijuana stock
Is Tilray Inc (NASDAQ:TLRY) A Buy Or Sell?
For Tilray Inc (NASDAQ:TLRY) and the rest of cannabis stocks, 2019 was no doubt a bad year. But 2020 is shaping up to be a promising year for the stock. To start with, Tilray stock has already gained 8.35% year-to-date. If that says anything, it shows following the broad selloff in Tilray stock last year, we’ve got to a point where sellers are giving way to buyers in the stock.
There are several catalysts that should continue driving NASDAQ:TLRY as you’re about to see. First, below is a brief profile of the company we’re discussing.
Tilray is a Canada-headquartered global cannabis company. It is engaged in activities of cannabis cultivation and processing as well as marketing and distribution of cannabis products. Tilray already has several cannabis products brands to its portfolio. It operates across five continents through subsidiaries in Canada, Australia, Germany, and Portugal.
Following the broad collapse of cannabis stocks in 2019, investors are looking for cannabis stocks that can make a positive impact on their portfolios in 2020. Tilray stands out as an attractive cannabis stock pick in 2020. Here are some of the exciting things about the company.
Tilray CEO sees a bright future for the cannabis industry
On January 25, Tilray CEO Brendan Kennedy spoke on Bloomberg. In that interview, Kennedy framed a rosy outlook for the…
Is Cronos Stock (TSE:CRON)(NASDAQ:CRON) A Buy?
Cronos Stock (TSE:CRON)(NASDAQ:CRON) stock fell 9.22% on January 24, marking its steepest decline so far in 2020. The stock plunge followed an important disclosure that you would only expect from a company that is trying to be straight and transparent with investors. Here’s what happened.
On January 22, after market close, Cronos made a regulatory filing detailing changes in its executive team. In that SEC filing, Cronos revealed that David Hsu and William Hilson have stepped down as its chief operating officer and chief commercial officer, respectively. Unfortunately, some investors read bad news in the executive exits and sold their shares in Cronos.
But a careful reading of the filing doesn’t seem to raise any red flags. Therefore, the big stock plunged points to investors panicking to the degree of responding to a mosquito bite with a missile.
There is no doubt that 2019 was a difficult year for cannabis stocks and Cronos Stock is no exception. But before the uncalled for reaction to Cronos’s regulatory filing, we had been at a point where sellers were starting to give way to buyers in Cronos stock. The stock has gained about 8.0% in the past one month. It had gained more than 13% year-to-date before the January 24 big selloff.
About Cronos Stock
Cronos Stock is a Canada-based global cannabis company. Cronos operates through subsidiaries and…