Pervasip Corp. (OTC: PVSP) is focused on developing and investing in companies in high value emerging markets – with a particular focus on operations in the growing cannabis industry. After showing impressive financial performance in Q1, PVSP stock jumped into the spotlight and has seen a 106% increase over the last ten days. Now that federal decriminalization of cannabis has been passed by the House, PVSP stock could be one to watch in 2022 thanks to its position in Washington’s thriving cannabis market.
PVSP Stock News
Artizen
Through its subsidiary Artizen, PVSP owns an impressive portfolio of in-demand cannabis products. Considered to be the 9th largest cannabis consumer brand in North America, Artizen is well-known for delivering quality cannabis products to its wide customer base in Washington. Given that Artizen is one of Washington’s original cannabis brands, the subsidiary’s products are the fourth best-selling in Washington and its flower products are the all-time, third best-selling in the state.
Considering the quality and popularity of Artizen’s products, the subsidiary generated over $69 million in sales by distributing its products through more than 200 retailers – leading to over $200 million in retail value since the company started operating. As more and more states decriminalize cannabis, Artizen intends to expand its business to include the major cannabis markets of California and Oregon. If the subsidiary delivers on these plans, PVSP could be well-positioned to significantly increase its revenues.
In light of Artizen’s success in Washington, the company received the Washington State 2022 Dockside Cannabis Cup for its Dutchberry strain. This award and Artizen’s continual growth across the state has clearly cemented Artizen’s position as a leader in Washington’s cannabis industry. But this will also help establish Artizen in new markets as well. With plans to roll out its products in a number of other states, this award will help introduce Artizen to new markets despite being a newcomer. With this in mind, many investors are watching PVSP stock expecting it to reflect the company’s growth as it expands.
Zen Asset Management
In addition to Artizen, PVSP’s portfolio of subsidiaries includes Zen Asset Management (ZAM) which focuses on developing and supporting cannabis operators with consulting, IP licensing, and other long-term services. At the same time, ZAM manages Artizen’s assets and applies the expertise it gained from growing it to its other clients which include four cultivation facilities and one processing facility so far.
In this way, ZAM leverages these partnerships to provide Artizen with the infrastructure and relationships necessary to improve its production. ZAM already has 200,000 square feet for its growth operations and a 30-person distribution center under its management, but ZAM clearly has bigger things planned. Setting its eyes on Arizona’s thriving cannabis market as well as the rest of the West Coast, Artizen and ZAM appear positioned to become national names in the US cannabis market.
Utilizing ZAM’s reputation, PVSP partnered with Full Spectrum Advisors (FSA) – a cannabis cultivation group – to provide the company with $5 million annually over the next two years. FSA has a great deal of experience in the industry having designed and operated 7 million square feet of indoor canopy as well as engineered advanced crop steering techniques. PVSP is hopeful this partnership will enable it to upgrade its facilities and increase its harvest yields – thereby increasing its revenue generating potential.
But investors are watching closely for the details of PVSP’s strategic partnership which the company hinted at on April 20th. According to the company, it is in the final phase of closing the deal and its management believes the partnership will add “an enormous amount of revenue to our bottom line”. With the promise of more details coming soon, its not surprise that PVSP stock shot up over 80% on the news.
Queench, Inc.
In addition to this, PVSP holds a 5% interest in KRTL Biotech Inc. – a U.S. based research and development company working in South Korea, Canada, and the US. Currently undergoing a change of control, Queench Inc. (OTC: QENC) works to develop treatments for debilitating physical and mental ailments using progressive pre-formulations related to CBD, psilocybin, and other plant-based products.
Looking to capitalize on the legalization of psychedelics which is expected to create a massive market optimal for early entrants into the industry, QENCH already has terpene blends that are not regulated which the company plans to take to market internationally. Additionally, South Korea has given QENCH its permission to conduct psilocybin research and after trials, KRTL Biotech will look to partner with existing and certified mental health clinics, treatment centers and more. The company expects that these medical experts will one day be the target market for psilocybin and psychotropic substances legally produced by KRTL Biotech once approved and legalized.
It appears the PVSP is also connected to Here to Serve Holding Corp. (OTC: HTSC) which has a 15% interest in KRTL Biotech Inc. through its Transcendence Age Corp. subsidiary.
PVSP Stock Financials
According to its Q1 report, PVSP has shown impressive growth in a number of key metrics. In terms of assets, PVSP reported $18.1 million – a 60% increase from the previous quarter. This increase is largely the result of PVSP increasing its inventory to $4.1 million. The company also reported $3.8 million in revenues for Q1 but it yielded higher gross profits than the previous quarter due to a $641 thousand reduction in its cost of services. With $1.2 million in gross profit, PVSP was able to reduce its loss from operations from $990 thousand to $358 thousand. But reported a total net loss of $553,874 for the quarter.
However, PVSP took the opportunity to convert a $1.5 million debt into 150 million restricted shares. This valued the company at $50 million – a significant increase from PVSP’s market cap of $17 million. In light of this, PVSP could be positioned to record a net profit for 2022 as it expands its operations. Considering that the company has no plans for a reverse split, PVSP stock could be a profitable long-term investment as the tides of legislation turn in favor of legalization.
Media Sentiment
@WZ_420 points out that PVSP has investments in psilocybin ventures as well
Technical Analysis
Currently trading at $.0033, PVSP stock shows a resistance at .0037 and a support at .0029 with a stronger support level at .0018. PVSP stock shot up roughly 88% after announcing its potential strategic partnership. The MACD is currently bearish but approaching a crossover and the RSI is climbing up from 54. Meanwhile accumulation is showing an uptick after a drop with profit-taking.
PVSP has an AS of 8.97 billion and an OS of 5.15 leaving a float of roughly 3.8 billion. The stock appears prepped to continue its run which could be fueled by interest in its strategic partnership which its expected to significantly bolster its bottom line. With a number of catalysts lined up, bullish investors could take a starter position or wait for it to drop to its support. Considering that PVSP typically trades between .0029 and .0037, its recent dip to .0016 was unexpected and the stock could break through its resistance with positive news regarding its strategic partnership.
PVSP Stock Forecast
Utilizing its subsidiaries, PVSP has been successful in positioning itself as a leader in Washington’s cannabis market. Given that the company has ongoing plans to expand down the West Coast and into Arizona, PVSP’s quality products and expansion could help the company realize a net profit by EOY.
With this in mind, PVSP’s management has big future plans for the company which could lead PVSP stock to soar. By 2023, PVSP intends to complete its audits to uplist to the OTCQB. Following this uplist, the company aims to move to the OTCQX before uplisting to the NASDAQ. In this way, long-term investors willing to take the risk could see PVSP stock reach $2 or $3. Whereas, in the near-term, PVSP is in the final stages of closing a major partnership which the company expects to add significant revenues to its operations. In light of this, PVSP stock is one to watch for more news.
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