Agraflora Organics International Inc (OTCMKTS:PUFXF) Bulls Spring Back To Action
Agraflora Organics International Inc (OTCMKTS:PUFXF) is an attractive fundamental investment if the pursuit of growth opportunities in Europe is anything to go by. The company has also made considerable progress on transitioning from an AMCPR applicant to an innovative, high-quality licensed cannabis producer. After a rollercoaster 2018, the company is bracing itself for a breakthrough year when it comes to revenue generation.
Its wholly owned subsidiary AAA Heidelberg Inc. has also moved to acquire high-quality cannabis strains to begin cultivation in an 8,800 square foot facility in Ontario. In addition, AgraFlora Organics spinoff company, Nature Hemp, is moving forward with plans to come up with hemp-based coffee creamer.
Recent developments explain why the stock has bottomed out after taking a significant hit last year. The stock has bottomed on huge traded volume, alluding to renewed investor interest. As the upward momentum continues to gather pace, so is AgraFlora Organics turning out to be a breakout play.
PUFXF Daily Chart
A rally followed by a close above the $0.30 mark should open the door for the stock to turn bullish after a long period as a bear. Above the $0.30 mark, the stock could make a run for the $0.60 level, which happens to be the next substantial resistance level. Below the $0.20 mark, the stock remains susceptible to further drops given the long term underlying bear trend.
What Does AgraFlora Organics Do?
Headquartered in Vancouver Canada, AgraFlora Organics casts itself as growth-oriented and diversified international cannabis company. Formerly PUF Ventures, the company is focused on the cultivation production and distribution of cannabis
Why is AgraFlora Organics Bottoming Out?
AgraFlora Organics has started bottoming out in response to a string of positive developments that continue to affirm its growth prospects in the cannabis sector. For instance, the company has set sights on the European market for growth. The company has engaged good manufacturing practices manufacturing facility experts as it seeks to design post-production cannabis exports for the European market.
The company has also opened talks as it eyes supply agreements and product development partnerships as part of its expansion plan in the European market. Expansion into Europe is part of the company’s push for new markets for its products given that a 250,000 square feet cultivation space at Delta Greenhouse Complex is poised to go online mid this year.
“We have taken steps to establish our domestic distribution network and have initiated discussions with multiple Pharma companies based in the European Union to establish an export market. We expect to make a further announcement regarding domestic and export supply and product development agreements in the first half of 2019,” said CEO Derek Ivany.
In line with the expansion drive, the company’s wholly-owned subsidiary AAA Heidelberg has commenced cannabis cultivation in an 8,800 square foot facility in Ontario. AgraFlora Organics remains well positioned to start generating significant revenues before the end of the year given the harvest expected from the facility
According to the CEO, AgraFlora Organics International will soon have more than 250,000 square feet of growing cannabis area. It is for this reason that the company has set sights on the European market.
“We are also focusing on improving our extensive genetic library by adding unique cannabis genetics from Latin America. I have been in Colombia for a number of weeks sourcing exotic cannabis genetics/strains and will have more to announce in the near future,” said Mr. Ivany.
Bottom Line
The progress the company has made so far on the cultivation of cannabis should soon pay off given the more than 250,000 square foot production area. A transition into a revenue-generating entity is insight, given the progress the company has made when it comes to cannabis cultivation and production.
The company projecting cannabis revenues before the end of the year, explains why the stock has started bottoming out. Expansion into Europe is another development that affirms the company’s focus when it comes to the pursuit of opportunities in the multi-billion sector.
A bounce back from all-time lows should continue to gather pace as investors take note of AgraFlora Organics improving fundamentals in the cannabis sector. For long-term cannabis investors, PUFXF is the right stock to own.
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Disclosure: We have no position in PUFXF and have not been compensated for this article.
