MedReleaf Corp (OTCMKTS:MEDFF) shares appear to have found key support on Wednesday, vaulting higher by nearly 10% following a near test of the stock’s 200-day simple moving average. The move powered the stock back up through the key $12.50 per share level, which represented a test of support from its early February low. This support level roughly corresponds with about a 50% pullback from the stock’s highs in late December around $25 per share.
To help drive the move, the company recently announced the appointments of Umar Syed as Senior Vice President of Corporate Development and Andy Duncan as Vice President of Engineering. According to the release, “in addition to these appointments, Eitan Popper has stepped down from his position as President of MedReleaf, effective immediately. These senior leadership team changes add depth and experience from the pharmaceutical industry as part of MedReleaf’s global strategy.”
MedReleaf Corp (OTCMKTS:MEDFF) promulgates itself as a company that “sets The Medical Grade Standard & trade for cannabis in Canada and around the world.”
The first and only ICH-GMP and ISO 9001 certified cannabis producer in North America, MedReleaf is an R&D driven company dedicated to patient care, scientific innovation, research and advancing the understanding of the therapeutic benefits of cannabis.
Sourced from around the world and perfected in one of two state-of-the-art facilities in Ontario, MedReleaf delivers a variety of premium products to patients seeking safe, consistent and effective medical cannabis.
According to company materials, “MedReleaf sets The Medical Grade Standard™ for cannabis in Canada and around the world. The first and only ICH-GMP and ISO 9001 certified cannabis producer in North America, MedReleaf is a R&D-driven company dedicated to patient care, scientific innovation, research and advancing the understanding of the therapeutic benefits of cannabis. Sourced from around the world and perfected in one of two state of the art facilities in Ontario, MedReleaf delivers a variety of premium products to patients seeking safe, consistent and effective medical cannabis.”
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As noted above, shares of the stock have been keying off critical technical support involving a key chart level along with the stock’s 200-day simple moving average. The company’s ability to attract new talent in key VP positions may be a testament to its staying power as a top-tier play in the cannabis patch.
“As MedReleaf enters its next phase of growth and development, international medical cannabis opportunities are coming to the forefront and this plays to our core strengths,” said Neil Closner, CEO of MedReleaf. “Our ability to attract executive talent of this calibre, from these leading pharmaceutical companies, is a testament to MedReleaf’s position as a top employer in what is clearly an industry that has matured and gained mainstream acceptance. I’m very pleased to welcome Umar and Andy to the team and look forward to their contributions in executing on our strategy.”
Mr. Closner added, “On behalf of everyone at MedReleaf and the Board of Directors, I want to thank Eitan for his significant contributions in helping to build MedReleaf from our early days into one of Canada’s largest and most respected licensed producers.”
Traders will note 10% added to share values of the stock over the past week of action, but that move comes in the context of a larger bearish trend. What’s more, the name has seen interest climb, with an increase in recent trading volume of 11% beyond its prior sustained average level.
At this time, carrying a capital value in the market of $1.1B, MEDFF has a significant war chest ($114.6M) of cash on the books, which stands against about $1M in total current liabilities. MEDFF is pulling in trailing 12-month revenues of $42M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 8.9%. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $MEDFF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $MEDFF, either long or short, and we have not been compensated for this article.