A sell-off wave that had plunged Global Consortium Inc (OTCMKTS:GCGX) to all-time lows has lost its edge. Bulls are slowly taking the fight to bears, consequently triggering a bounce back. An uptick in bullish momentum in recent weeks follows the announcement that the company is closing in on the opening of a first of its kind cannabis mall.
Share Price Analysis
The stock’s sentiments have also received a boost on Global Consortium subsidiary Infused Edibles inking a deal for an edible's joint venture. Investors have also continued to push the stock up the charts on the confirmation that the company has inked a deal, poised to inject up to $50,000 in revenues a week.Recent price action activity indicates that the stock could power through a tight trading range of $0.02 and $0.04, thanks to the improving fundamentals. After a recent spike higher, the stock is staring at the $0.04 level, seen as the immediate resistance level. GCGX Daily ChartA rally followed by a close above the $0.04 mark should give bulls a reason to continue pushing the stock higher. The stock needs to rise and stabilize above the $0.04 level to turn bullish and have any chance of making a run for its 52-week highs of $0.11.Conversely, a sell-off followed by a close below the $0.02 level could leave the stock susceptible to further drops given the underlying long-term downtrend. However, given that the overall industry has turned bullish, Global Consortium stands a higher chance of climbing the ladder after the recent resurgence.
What Does Global Consortium Do?
Global Consortium is a diversified cannabis company, building a first of its kind Cannabis Mall. When completed the facility will house cultivation, manufacturing, distribution as well as delivery and retail operations. It will become the largest manufacturing facility for THC and CBD distillate in the U.S.
Cannabis Mall Development
Global Consortium is a potential break out play as it has served a number of groundbreaking catalysts that should continue to trigger investor interest in the stock. For starters, the company is on course to become the biggest manufacturer of cannabis products in the U.S, thanks to its one of a kind Cannabis Mall under development.The Cannabis Mall is currently undergoing a power upgrade to make it capable of housing all machinery needed to operate various licenses. In addition, the company is installing a testing lab in the facility that is to be used by outside vendors as well. Global Consortium intends to lease out to third parties distribution space in space for a 50% share of revenues.
Expanding Product Line
Even as the company continues to work on the cannabis mall, it also continues to strengthen its product line as well as cannabis distribution channels in pursuit of revenues in the multi-billion industry. The company’s wholly-owned subsidiary Infused Edibles has signed a letter of intent that paves the way for it to receive an exclusive license for the manufacture and distribution of marijuana and CBD-infused products under the Half Baked Brand
“With the Half-Baked™ name, it will simply be easier to attract new consumers at the critical point of purchase. We’ve already got an amazingly broad line of fast-selling products, but we see value in having the rights to Half-Baked™ as we work towards our goal of building a leading brand on the national stage,” said CEO Matt Dwyer.
The company has turned to strategic partnerships as it seeks to build on revenues of $2million generated last year. The use of the Half-Baked name according to the CEO could significantly increase the company’s sales to the $3 million level.The Infused edibles deal comes just weeks after Global Consortium inked an agreement for a weekly order worth a minimum of $50,000 per week. The deal paves the way for the company to become the chief supplier of infused edibles, indulge oils among other products in the Lake Tahoe area.
Bottom Line
A wave of good news in recent weeks should act as a catalyst in fuelling the upward momentum as Global Consortium continues to bottom out. Development of a first of its kind Cannabis Mall is another development that underscores the company’s growth metrics.The signing of supply agreements also opens the door for the company to strengthen its revenue streams as it looks to build on the 2018 sales growth momentum. That said the stock should continue bottoming out as investors take note of the company’s sales growth prospects.We will be updating our subscribers as soon as we know more. For the latest updates on GCGX, sign up below!Disclosure: We have no position in GCGX and have not been compensated for this article.
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