Shares of Acreage Holdings Inc (OTCMKTS:ACRGF) are on their way back to 52-week highs, after a minor correction, if recent price action activity is anything to go by. The upward momentum has started picking up the pace, in line with the bullish momentum in the overall cannabis sector.
Catalysts And Share Price Analysis
The multi-state cannabis operator has been on an impressive run since the broader stock market bottomed out, late last year. The stock has since rallied by more than 50%, from all-time lows as bulls remain in firm control.The rally has come on the company attaining a string of milestones as it continues to affirm its credentials as a multi-state cannabis operator. The company has already expanded its exposure to institutional investors with listing in the Frankfurt stock exchange. In line with the listing, the company has also received approval for Depository Trade Clearance Settlement services.Operation efficiency has also inched higher the company having expanded its footprint in the industry in pursuit of opportunities for growth. Its strategic partner Greenleaf Apothecaries LLC is fresh from opening one of a kind Botanist medical cannabis dispensaries in Canton Ohio.In addition, Acreage Holdings has completed the acquisition of Nature’s Way Nursery, further expanding its operations into Florida. Recent developments have helped shore the stock sentiments in the market, consequently fuelling a bullish run after a minor correction. ACRGF Daily ChartWith the stock trading at the $20 a share level, next stop is the $24 a share level, which happens to be the immediate resistance level. A breach of the critical resistance level should affirm the long-term uptrend, setting the stage for the stock to continue powering high.On the downside, Acreage Holdings faces immediate support at the $20 a share level. A breach of the critical support level, could give short-sellers a reason to come back, and continue pushing the stock lower in continuation of the emerging downtrend.
About Acreage Holdings
Acreage Holdings casts itself as a vertically integrated multi-state cannabis operator. The company owns cannabis licenses and assets in 19 states. The company specializes in providing equity capital to existing license holders and cannabis license operators. It is also the seventh largest publicly traded cannabis company in the world
Frankfurt Listing
Acreage Holdings has started rallying after a minor correction, having become clear that the company boasts of huge prospects for growth in the multi-billion industry. The company is fresh from expanding its footprint into Europe, a key market it is eyeing opportunities in the cannabis sector.Listing in the Frankfurt Stock Exchange should open the door for the company to gain access to institutional investors, as it continues to pursue additional capital to strengthen its operations. The company securing a Depository Trade Clearance settlement services is another milestone that continues to strengthen the stock’s sentiments among institutional investors.
Nature’s Way Acquisition
Completion of the acquisition of Florida based Nature’s Way Nursery Miami is a milestone that affirms the company’s growth prospects. The acquisition paves the way for the company to get a head start in one of the fastest growing cannabis markets in the world, expected to generate up to $1.1 billion in retail cannabis sales by 2022.Nature’s Way joins Acreage Holdings with 30 medical cannabis dispensaries that the company intends to leverage to build out robust cannabis cultivation and retail operation in Florida.
"The combination of policy and demographics in Florida makes it one of the largest growth cannabis markets in the U.S. and we could not be more pleased to close this deal," said Kevin Murphy, Founder, Chairman, and Chief Executive Officer of Acreage.
In pursuit of growth opportunities, the company’s partner Greenleaf Apothecaries LLC has opened a Botanist medical cannabis dispensary. The company maintains a Management Services Agreement with Greenleaf.
Bottom Line
Acreage Holdings is an ideal investment play as it provides a sure way of gaining exposure of the broader cannabis sector across the U.S. The company boasts of licenses in 19 states where it possesses diverse operations right from serving patients to construction as well as the development of cannabis infrastructure.Acreage Holdings is still a buy despite coming under pressure in recent weeks. A pullback from all-time highs might as well have presented a perfect buying opportunity as the stock looks set to continue climbing the ladder over the long-term.We will be updating our subscribers as soon as we know more. For the latest updates on ACRGF, sign up below!Disclosure: We have no position in ACRGF and have not been compensated for this article.
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