Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Shares of Kanabo Group PLC (LON: KNB) have fallen 70.3% from their post-IPO highs of 50.75p amid a broader selloff in cannabis stocks and are currently trading near their all-time lows. Can they reverse course?
Firstly, the medical cannabis company has taken significant steps towards generating revenues, having started selling its medial cannabis cartridges in the UK with plans to expand distribution across the rest of Europe.
However, its shares do not reflect its positive milestones since its IPO, including signing various supply deals, including a recent deal with a Greek cannabis cultivation company.
Kanabo signed a production agreement with Prue Origin to create a dedicated production line for its CBD Wellness formulas using Kanabo’s equipment, production protocols and IP. its shares barely moved after the important announcement.
Many cannot figure out why Kanabo’s shares can’t rally despite its positive milestones. However, I believe that the medical cannabis company’s time shall come, and when it does, investors who bought shares at current prices will be happy.
Kanabo’s fundamentals are pretty strong given its unique trademarked VapePod product is targeted at the underserved medical cannabis market projected to grow significantly over the next few years.
While nobody can predict with any degree of accuracy when Kanabo shares shall rally again, I am looking forward to the company’s first earnings results, which could be the right trigger for the next rally phase.
*This is not investment advice.
Kanabo share price.
Kanabo shares have fallen 70.34% from their post-IPO high of 50.75p to their current price of 15.05p.
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