This post first appeared on Micro Cap Daily
Valens Groworks Corp. (OTCQB: VGWCF) stock price has been doing exceptionally well in the last six months. It had seen its first big surge in early September 2018, when it jumped from below $1 to around $2.5, but this growth was only an indication of things to come. The initial growth did not last for very long, and by the time mid-September arrived, VGWCF price started dropping back towards $1. However, this time, this level started acting as a support, as opposed to its previous role as resistance. For the remaining months of 2018, VGWCF price was mostly fluctuating between $1 and $1.5
Things started changing in the final days of December, with the stock price starting a steady growth — one that took it from $1 to $2.5 by the end of February. During the first day of March, the price saw a minor correction that knocked it back a bit and took it down to $2. However, it soon climbed back to $2.5, which still acted as a major resistance. However, things changed once again in early April, when the company’s stock surged anew, breaching not only the resistance at $2.5, but also the one at $3, and it came very close to reaching $3.5.
What does Valens Groworks Corp. do?
Valens Groworks Corp. is a publicly traded, research-driven Canadian cannabis firm that focuses on downstream secondary extraction methodology, but also on distillation and cannabinoid isolation, and finally, its purification. The company has three subsidiaries located in and near Kelowna, BC. The first one, Valens Agritech, has a license to grow cannabis, produce cannabis oil, and conduct various tests and analysis.
This particular subsidiary already has a number of supply and extraction processing agreements with multiple large producers in Canada. Then, there is the company’s second subsidiary, Valens Labs, which is licensed by Health Canada, and which has a cannabis testing lab that provides sector-leading analytics services.
Finally, there is Valens Farms, which is currently on its way of becoming a purpose-built facility in compliance with the EU Good Manufacturing Practices standards. In other words, this subsidiary will have permission to ship its products to any part of the world where cannabis is allowed by law.
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Valens Groworks’ massive success in 2019
As mentioned, Valens’ growth started even before 2019, although it was relatively weak compared to the new surge. Not only that, but it lasted much shorter. The company started seeing real success after signing a multi-year cannabis extraction agreement with Canopy Growth, in mid-December 2018.
As the news spread, the company’s stock started seeing growth, and as soon as the new year came, the hype had fully surrounded the firm. Valens started signing multiple multi-year agreements with various firms, including Sundial Growers, and Organigram.
As time went on, the firm saw more and more success, and this became a time when cannabis was advancing extremely rapidly in agritech. By mid-February, Valens increased its extraction capacity to 240 tons and signed additional cannabis and hemp extraction agreements with Tilray, as well as The Green Organic Dutchman. This type of rapid advancement made it one of the largest extraction companies in Canada, and its success was mirrored by its stock price, which surged from $1 to nearly $3.5 in less than four months.
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The current largest resistance that the company’s stock price is facing sits at $3.5, which caused a minor correction that is still on-going at the time of writing. Right now, the VGWCF stock price sits at $3.059, with $3 acting as its major support. It is unlikely that the stock price will go below this level, but even if it happens, it will soon return to these, and potentially entirely new heights. The price correction is actually a good thing for investors, as they can use this unique opportunity to purchase the firm’s stock at a discount. It is certainly an idea worth considering, as the company is well on its way to greatness. We will be updating on Valens Groworks when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with Valens Groworks.
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Disclosure: we hold no position in NaturalShrimp 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