This post first appeared on Micro Cap Daily
Valens Groworks Corp. (OTCQB: VGWCF) stock price has been performing rather well in 2019. The company’s stock in 2018 had mostly seen stability at the low price of $0.8. However, things changed in early September when a massive surge tripled the price, taking it all the way up to the resistance level at $2.5 per stock. The resistance turned to be too strong to be breached at that time, and it caused a massive correction instead.
The correction gradually took the price back down over the span of three months. While the price of $1 started acting as a massive support level, it was breached on more than one occasion. Then, in late December, the price finally started surging yet again. The surge was gradual, and it continued throughout January and February, once again reaching the resistance at $2.5 by early March. Unfortunately, the resistance once again proved to be too strong to be breached, and it caused another correction, albeit much weaker this time. The price sank to $2, but it quickly returned to $2.3, sitting there until early April. Then, another massive surge took the price even higher, finally breaking the old resistance, and reaching the next one, at $3.5.
Who is Valens Groworks Corp?
Valens Groworks Corp. is a research-driven, publicly traded cannabis company, headquartered in Canada. The firm focuses on downstream secondary extraction methodology, as well as on distillation, isolation, and purification of cannabinoid. The company also has three subsidiaries dedicated to associated quality testing.
The subsidiaries are located in and out of Kelowna, BC. The first one, known as Valens Agritech, is in charge of cannabis cultivation, and the production of cannabis-based oil. It also has a license to do analytical testing. The company already has supply agreements with multiple Canadian leading producers.
Then., there is Valens Labs, which is an accredited cannabis testing lab, licensed by Health Canada. This one also provides sector-leading analytical services and is partnered with Thermo Fisher Scientific. The goal of the partnership is the development of a Centre of Excellence in Plant-Based Science.
Finally, the third subsidiary, Valens Farms, is dedicated to becoming a purpose-built facility that would act in compliance with EU’s GMP standards. Achieving this would allow the company to ship its products all over the world, to every destination that has legalized cannabis for medical or recreational purposes.
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Valens Groworks rapid growth
As mentioned, Valens Groworks stock price performance was relatively uneventful until September 2018, when it surged from below $1 to $2.5. One of the reasons for this was the company’s earlier ISO 17025 accreditation. However, the surge did not last long, and the price quickly started dropping, which did not change even after the company finalized listing on the OTCQB in mid-November.
Things finally started changing once the firm signed a multi-year cannabis extraction agreement with Canopy Growth in mid-December. The firm’s stock price started seeing steady growth, which continued throughout 2019. In January, the company signed two more mučti-year cannabis extraction agreements, first with Sundial Growers, and then with Organigram.
As cannabis continued to advance in the field of agritech, so did the company’s stock price. Another multi-year agreement came in February, with Tilray, followed by another one in March, with The Green Organic Dutchman. The company became one of the five largest cannabis extraction firms by April, which is exactly the kind of attention that it needed. Its’ stock price surged yet again, and it hit $3.5 resistance level by mid-April.
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These days, the price is seeing another correction. However, just like with the previous ones, this one is likely only temporary, and the price is likely to start growing once more, soon. Investors who might be interested in the firm should not get discouraged by the current state of things. On the contrary, the price’s current behavior should be taken as an opportunity, as it provides a significant discount for those looking to purchase the company’s stock now. 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