Liberty Health Sciences Inc (OTCMKTS: LHSIF) is a potential bounce-back play after bottoming out from this year’s lows at the back of high turnover in traded shares. Recent developments are increasingly fuelling the upward momentum on renewed investor confidence in the company.
Liberty Health Sciences Price Analysis
A rapid expansion drive in pursuit of opportunities for growth in Florida is one of the catalysts fuelling the upward momentum. The expansion drive has resulted in the opening of the 13th dispensary in the state as the company continues to expand its footprint in the state.The company has also secured approvals to dispense flower products in the state another milestone that continues to excite investors. Liberty Health Sciences inking strategic partnerships with the likes of Werc Shop paves the way for it to start offering sophisticated cannabis terpenes technology to patients in the state.After hitting critical support at the $0.63 mark, the stock has once again started edging higher after taking out the $0.70 mark. The emerging uptrend is staring at the $0.91 mark, the short-term resistance level standing in the way of the stock turning bullish. LHSIF Daily ChartAbove the $0.91 mark, price action indicates that the stock could make a run for the $1.20 mark, the next critical resistance level. Below the $0.91 mark, the stock remains susceptible to further drops given the engulfing bearish trend and the fact that short sellers appear to be in control.
What Does Liberty Health Sciences Do?
Liberty Health Sciences engages in the production and distribution of medical cannabis products. The company has also inked a strategic partnership with Veterans Cannabis Project to support research projects for the development of cannabis medications for addressing trauma among other medical conditions.
Florida Expansion Drive
Liberty Health Sciences has started bottoming out on investors reacting to a string of developments that affirm the company’s prospects in the burgeoning Florida cannabis market. The company has expanded its dispensary footprint in the state with the opening of its 13th location, further strengthening its retail network.With the increased number of dispensary networks, the company should be able to address a broader target market when it comes to medical cannabis product sales. In March, the company opened its 12th dispensary in Gainesville, which is also home to its 228,000 square feet cultivation space.The company has since opened its 13th dispensary in Bonita Springs as its expansion streak in the state continues to gather steam. The opening of the 13th dispensary also coincides with regulatory approval form the Florida Department of Health for the use of an additional 80,000 square feet at the Liberty 360 Innovation campus.
"We continue to aggressively pick up momentum we had in the tail end of 2018, and in 2019 we have announced the opening of three dispensaries, marking this the fourth to open this year. Our Gainesville location will be designed like all of our other sites to bring a contemporary wellness environment with focus on premium patient service,” said Victor E. Mancebo, interim Chief Executive Officer of Liberty.
Cannabis Pre-Roll Approval
Liberty Health Sciences has also achieved a significant milestone in becoming the first company to provide pre-roll and whole flower smokable products to patients in the state. The company has since started offering pre-rolls of cannabis in a variety of strains and potencies.Separately the company has entered into an in-license agreement with The Werc Shop. Under the terms of the agreement, The Werc Shop, renowned for terpenes based formulations, is to help Liberty Health Systems provide superior, standardized and consistent medical cannabis products in Florida.
“Cannabis compositions created by The Werc Shop have long been market leaders on the West Coast, and we are excited to bring this technology and expertise to Florida. With access to this team and their intellectual property, Liberty will rapidly advance on our efforts to deliver the best cannabis products to the patients of Florida," stated Mr. Mancebo.
Bottom Line
Liberty Health Sciences has started bottoming out after experiencing wild price swings in the first quarter. Favorable underlying developments, as well as favorable technicals, suggest that the stock is on the right path as it continues to bottom out from this year’s lows.Recent price gains have coincided with an uptick in market sentiments that suggest a potential breakout to higher prices.We will be updating our subscribers as soon as we know more. For the latest updates on LHSIF, sign up below!Disclosure: We have no position in LHSIF and have not been compensated for this article.
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