Pharmagreen Biotech Inc. (OTC:PHBI) has been making big moves to expand their presence in the cannabis market. As a company focused on the CBD and hemp industries through the production and supply of starter plantlets, PHBI stock is garnering attention once again as the company confirms the closing of an important acquisition showing an 18% increase over the last two days.
PHBI Stock News
Since uplisting to the OTCQB in late December, PHBI has been positioning itself for growth in the US cannabis industry. Given that the OTCQB is the premier marketplace for entrepreneurial and development stage companies. For this reason, PHBI’s CEO Peter Wojcik is confident that this uplisting will “enhance PBHI’s profile within the investment community as well as broaden shareholder base”
More recently, PHBI announced a memorandum of understanding confirming its acquisition of a California-based cannabis company – Long Valley Farms LLC. As a veganic cannabis farm (meaning the hemp is farmed without the use of animal products or by-products), Long Valley Farms LLC. is a strategic acquisition which PHBI has been pursuing since August of last year.
Upon finalizing its agreement, PHBI plans to build a state-of-the-art cannabis flowering greenhouse over the span of 5 months – offering tremendous upside for PHBI. This will allow the company to increase the annual revenue from $500 thousand to $10 million by increasing the number of crop rotations to four each year. PHBI will likely obtain a nursery license as well for the “production and sale of tissue cultured starter plantlets”.
Under this agreement, PHBI is positioned to acquire an additional 120 acres of land – that could be utilized over the next seven and a half years – along with infrastructure and a Cannabis cultivation license – all of which leave the door open for further expansion.
In light of this, Wojcik shared his excitement for the acquisition saying, “We have selected a region that is the largest state economy in the U.S. and ranks fifth in the world and Northern California is considered to be God’s country for cannabis cultivation”. He is not wrong to think so, after all California is widely regarded as the largest legal cannabis market in the world. In light of this, the state appears to be an ideal location for PHBI’s expansion.
Aside from the company’s strategic location, investors are bullish on the acquisition because of its solid management too. Long Valley Farms’ CEO Ethan Styles brings decades of Cannabis cultivation behind him with a “wealth of knowledge in zero cost organic fertilizer formulations as well as proprietary non-solvent based Cannabis processing technologies” Under his leadership and guidance, PHBI could become a prominent Cannabis and CBD products brand.
Supplementing its acquisition plans, PHBI commissioned a commercial campaign which began at the end of September. This 12 month campaign features 1,200 commercials aired on major channels such as Fox News, Fox Business Network, CNBC, Newsmax TV, MSNBC and ESPN. The goal of these commercials is to advertise PHBI’s hemp agricultural products as well as the hemp farming/agricultural sectors the company is involved in.
It appears that despite the long journey to acquiring Long Valley Farms LLC, the reward could be well worth it. The addendum to PHBI’s previous MOU affirms the acquisition transaction and PHBI’s responsibility for the ongoing operational expenses – such as additional Cannabis licenses. In light of this, shareholders may be able to expect another update from the company once it begins its long-term plans for this acquisition.
Media Sentiment
With a relatively low float and recent uplisting, @TaylorB16445829 is bullish PHBI stock could be one of the up and upcoming hemp stock plays
Technical Analysis
Currently, PHBI stock is trading at $.0211 with a support near .0195 and .019. The stock has a primary resistance at .0217 and a secondary resistance at .0243. Accumulation has been experiencing a downward trend but is starting to see an uptick. Meanwhile, the MACD just had a bullish crossover and the RSI is holding at 57.
Investors are clearly bullish on PHBI following its MOU. While accumulation is relatively lower than usual, it is starting to pick up as investors realize the potential PHBI stock could have in the near future.
PHBI Stock Forecast
Investors are speculating PHBI stock could be worth considering in light of its growth potential in California’s cannabis industry. With a nation-wide ad campaign, a lucrative acquisition, and a recent OTCQB uplisting, many investors believe PHBI stock is worth watching. On top of that, both CEOs – Wojcick and Styles -have significant experience in this sector which could help PHBI grow throughout the year. With this in mind, PHBI could be a promising long-term investment, with an attractive risk-reward ratio.
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