This post first appeared on Micro Cap Daily
Valens Groworks Corp. (OTCQB: VGWCF) stock price has seen steady growth throughout 2019 so far, with one or two mild price corrections on occasion. The company’s stock price remained around $1 for the large part of the past 12 months, particularly in mid-2018. Then, in September, it experienced a significant surge which led it to $2.5. However, the resistance at this level proved too tough to be breached back then. Instead, it rejected the price, forcing it back down, and the stock value found itself just above $1 once again.
The price mostly remained between its’ support level at $1, and its’ resistance at $1.5 in October, November, and December 2018. However, the final days of December brought the change which allowed the price to start growing in months to come. Throughout January and February, the price saw steady growth which once again led it to $2.5. The resistance was, once again, too strong to be breached. While it did cause another decline, this one was much weaker than the last, and the price drop was stopped at $2. In early April, the surge continued, but this time, it breached the resistance with ease, and it even reached $3.5. This level, however, brought new difficulties, and it caused another correction — one that the price is experiencing right now.
What you need to know about Valens Groworks
Valens Groworks is a publicly traded, research-driven cannabis company that focuses on downstream secondary extraction methodology, distillation, and cannabinoid isolation and purification. The company also deals in quality testing, and it features three subsidiaries, all of which are, like Valens Groworks itself, based in Canada.
The first of its subsidiaries, Valens Agritech, known as VAL, has a license to cultivate cannabis and use it for the production of oils. It is also known for conducting analytical testing for the entire industry.
Then, there is Valens Labs, which was licensed by Health Canada and allowed to operate a cannabis testing lab, which provides the best analytical services in the sector. This subsidiary is also known for its partnership with Thermo Fisher Scientific, with which it currently works on the development of Centre of Excellence in Plant-Based Science.
Finally, There is Valens Farms, which grows cannabis, and is currently working on becoming a purpose-built facility that would be in full compliance with the European Union Good Manufacturing Practices standards. When it succeeds, it will have permission to export its good to any cannabis-friendly location around the world.
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Valens Groworks sudden growth in 2019
As mentioned, Valen Groworks went through a period of stagnation in 2018, which ended in early September, a few months after the company announced ISO 17025 accreditation. However, its price kept on dropping after a sudden surge, and the drop continued even after the firm joined OTCQB in November.
Luckily for the company, things started to change soo, after it signed a multi-year cannabis extraction and product R&D agreement with Harvest One. Another big event for the company was the expansion of its research collaboration with Thermo Fisher Scientific, as well as another multi-year cannabis extraction agreement with Canopy Growth. This move kickstarted the stock price’s growth, and new partners started coming in much greater numbers.
In January 2019 alone, Valens entered cannabis extraction agreements with Sundial Growers and Organigram, and it announced strategic secondary purchase and sale traction. As cannabis continued to push its way in agritech, Valens soon saw an increase in its extraction capacity, which went up to 240 tons.
In late February, the company signed another extraction agreement with Tilray and yet another with The Green Organic Dutchman in mid-March. It soon became one of the five largest cannabis extraction firms, and its stock went through the roof. Q1 of 2019 brought it around $2.2 million in revenue, and the firm received organic certification for cannabis oil production.
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As mentioned, this is now one of the largest cannabis extractors in the industry, and as such, it can only be expected to grow even further up. Investing in Valens Groworks now is one of the best moves investors can make, as the current price decline is about to end soon, and likely lead to another resistance being breached. We will be updating on Valens when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with Valens.
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Disclosure: we hold no position in Valens either long or short and we have not been compensated for this article.
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This post first appeared on Micro Cap Daily