Abattis Bioceuticals Corp (CNSX:ATT) Is a Bounce Back Play On Revenue Growth Prospects

After feeling the full effects of a strong bear run, Abattis Bioceuticals Corp (CNSX:ATT) has bottomed out after a recent spike from all-time lows. The spike which has come at the back of a high turnover of traded shares comes on a backdrop of a series of positive developments that appear to have strengthened investor confidence in the stock.Abattis Bioceuticals Price ActionIn recent weeks, the stock has rallied by more than 80%. The rally follows the announcement that the company is on track to enjoy significant revenue growth. The biopharmaceutical company has a made a string of investments that seem to have strengthened its growth prospects in the cannabis business.The stock is currently trading at the $0.15 handle, waiting to see if the upward momentum has what it takes to push the stock above the $0.18 key resistance level. A rally followed by a close above the critical resistance level should assert the emerging uptrend, which could see the stock making a run for the $0.24 level, seen as the next resistance level.Abattis Bioceuticals faces immediate support at the $0.07 level on any sell-off. A sell-off followed by a close below the critical support level could see the stock plummeting to the sub $0.03 level.About Abattis BioceuticalsAbattis Bioceuticals cast itself as a diversified cannabis company specializing in the growth, extraction, testing, and distribution of cannabis products. The company also operates a retail vaporizer business that offers 10 unique branded SKUs online and across the country.The cannabis company has made a string of key acquisitions in recent years that now appear to be fuelling the upward momentum in the stock price.Why is Abattis Bioceuticals Trading High?Investor’s confidence in the stock appears to have ticked higher on Abattis Bioceuticals announcing it expects significant revenue growth in the fourth quarter. The diversified cannabis company is basing its estimate on recent investments as well as the opening up of Canada’s marijuana recreational market in October.Abattis Bioceuticals expects revenues to start streaming in, from the sale of cannabis flower as well as oils and vaporizers. Completion of an oversubscribed private placement, as well as the sale of Northern Vine Canada stake, should allow the company to gain access to much-needed capital ideal for pursuing opportunities in the recreational market.The company sold its 35% stake in Northern Vine Canada Inc. in exchange for $2 million in cash as well as $4 million tradable shares of Emerald Health Therapeutics. Abattis Bioceuticals is also entitled to a $4 million payout on, Northern Vine and Emerald grossing revenues of more than $10 million on the sale of products introduced by Abattis.A Master license agreement with Northern Vine paves the way for the company to enjoy preferential access to a licensed lab as it continues to progress its research and development partnership with the University of British Columbia.The company’s wholly-owned subsidiary Gabriola Green Farms is currently working on a cultivation and extraction facility as it seeks to secure a licensed producer status. The subsidiary provides a way for Abattis Bioceuticals to control its own raw material production, a key to enjoying economies of scale with the expansion of the cannabis marketplace.Abattis Bioceuticals expects this initiative to drive growth through increased market presence and awareness.Cannabis Lab OpportunityTalk of the company completing an investment in XLABS Therapeutics for the launch of a new cannabis laboratory Belleville is another development that appears to have caught investors’ attention. The investment affirms the company’s ambitions of positioning itself as a fully-integrated service cannabis company.

“Although we continue to have a working preferred services agreement with Northern Vine’s laboratory in Langley, BC, we are looking to aggressively expand our service offerings with the Belleville Facility, including through key services such as industrial-scale extraction,” said CEO Rob Abenante.

The development of the new laboratory is set to strengthen Abattis Bioceuticals footprint and prospects in Ontario. In addition to being one of the most populous provinces in Canada, the province should act as a reliable marketplace for the company’s products especially on the opening up of recreational saleBottom LineThe recent spike in share price does not come as a surprise given that Abattis Bioceuticals has shown it has what it takes to control and profit from Canada’s cannabis industry. The company has done a nice job in developing and advancing all the aspects of its business plan, a development that investors have started taking note of.The bear run that had hit the stock at the start of the year has lost momentum on Abattis Bioceuticals serving catalysts that have eased negative sentiments in the market. A surge in trading volume underlines the fact that the stock has hit rock bottom and is now due for a major bounce back. Given the strong fundamentals, the stock should continue powering high in the second half of the year.We will be updating our subscribers as soon as we know more. For the latest updates on ATT, sign up below!Disclosure: We have no position in ATT and have not been compensated for this article.