Australis Capital Inc (OTCMKTS: AUSAF) is threatening to breakout out of a tight trading range, in response to improving underlying fundamentals. After a stellar start to the New Year, the stock found its upside action limited to a $0.70 to $1 trading range from where it is trying to bounce back.In the recent past, the stock’s upside action has received a significant boost on improved market sentiments.
AUSAF Catalysts And Share Price Analysis
The company announcing the launch of a mobile app based on a decentralized international network of dispensaries is one of the developments propping the stock's sentiments. In addition, the company’s entrance into California cannabis marketplace following the acquisition of cannabis brand Mr. Natural productions is another catalyst fuelling the upward momentum.Amidst the string of positive developments, price action is staring at the $1 mark, as the immediate resistance level. A rally followed by a close above the $1 technical level should affirm the emerging uptrend, setting the stage for Australis to complete its bounce back from all-time lows. AUSAF Daily ChartAbove the $1 mark, the next resistance level is seen at $1.30 level, a breach of which would pave the way for the stock to make a run for 52-week highs of. Conversely, below the $1 mark, Australis Capital remains vulnerable to further drops given the engulfing long-term bear trend that affirms short seller’s control.As it stands, the stock remains well positioned to power through the $1 technical resistance level as the upward momentum gathers pace.
What Does Australis Capital Do?
Australis Capital is a company focused on investments in cannabis and real estate assets in the U.S. The investments are not limited to equity or debt acquisitions among other securities of both public and private companies.
Why is Australis Capital a Potential Breakout Play?
Australis Capital is a potential breakout play from one-year lows on completing major investments poised to expand it’s footprint into California. The acquisition of Mr. Natural Productions for $1.3 million strengthens the company’s business empire as well as long-term prospects in a market with vast opportunities for growth.Mr. Natural Productions is an award-winning medical and recreational cannabis brand based in California. The firm has built an iconic brand focusing on natural medical cannabis. A merger with Australis Capital paves the way for the company to pursue new opportunities and leverage additional growth capital to strengthen brand recognition with US patients and consumers.
“The new partnership with Australis will see the Mr. Natural brand expand where legalities permit, with a line of premium products, including cinnabars, rosin, and pre-rolls, slated for launch in Nevada later this year,” Australis in a statement.
Coil App Unveiling
Australis Capital has followed the investment in California with the unveiling of a new mobile cannabis app through its wholly owned subsidiary Rthm Technologies. Coil is the new iOS and Android app designed to enable cannabis dispensaries select, engage, reward and retain customers through relocation-based incentives. Built on proprietary biometric algorithms, the app should educate cannabis patients and reward consumers for shopping at safe, regulatory compliant cannabis dispensaries.The app also networks cannabis dispensaries into a single mobile base loyalty program as a way of benefiting regulatory compliant vendors.
"As the United States cannabis industry evolves with increased competition from traditional retailers, new distribution portals and as new laws such as the States Act are enacted, COIL like Rthm before, will have significant leverage in driving traffic to partner dispensaries while building a valuable data set,” states Scott Dowty, CEO of Australis Capital.
Separately, Australis Capital has confirmed the amendment of its equity compensation plan. Under the new plan, the company may grant stock options as well as share units that do not exceed a maximum of 15% of issued shares.
Bottom Line
Australis Capital imploded in 2018 on a gloomy outlook and on the broader cannabis sector turning bearish. Fast forward, market sentiments have improved, and the company has made significant progress on its push in the multi-billion-dollar industry.Strategic investments, especially in California, should continue to strengthen the company’s growth metrics. The unveiling of a mobile app for cannabis dispensaries also underscores the company’s focus on innovation key to strengthening long-term prospects.That said the stock is likely to continue its resurgence from current lows as fundamentals continue to strengthen investor sentiments.We will be updating our subscribers as soon as we know more. For the latest updates on AUSAF, sign up below!Disclosure: We have no position in AUSAF and have not been compensated for this article.
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