Axim Biotechnologies Inc (OTCMKTS: AXIM) is trading close to a critical support level after an impressive start to the year that saw the stock rally by more than 100%. The stock has pulled lower in recent weeks on investors taking profit after the meteoric rise in the first quarter.
AXIM Price Analysis
A pullback lower could as well pave the way for the stock to edge higher on a bounce back from the critical support level. Some of the catalysts poised to fuel the upward momentum form the current support level include the signing of a purchase order for up to 50,000 boxes of the company’s CBD based chewing gum.
In the recent past, the company has also entered into a service agreement with a research firm to commence clinical studies on Dronabinol and CBD chewing gums as it seeks to refine its CBD product line. Axim Biotechnologies receiving a new patent for its topical cream containing cannabinoids is another development likely to strengthen its market sentiments from the current support level.
Should the wave of positive developments support the stock above the $1.20 level, then the stock is likely to bounce back as a pullback play. Above the $1.20 support level, Axim Biotechnologies remains well supported of further upside action.
Conversely, a breach of the $1.20 support level could open the door for short sellers to push the stock back to the $1 critical support level. A violation of the $1 support level, on the other hand, could result in the acceleration of the sell-off, which could result in the stock plunging back to all-time lows of $0.46
What Does Axim Biotechnologies do?
Axim Biotechnologies bills itself as a biotechnology company engaged in the research, development, production, and distribution of pharmaceutical, nutraceutical, and genetically controlled products. The company also engages in the extraction and purification of cannabinoids technologies using proprietary technologies.
The signing of a purchase order for 50,000 boxes of the company’s CBD chewing gum is a development that underscores growing sales. The deal is with a leading direct-to-consumer company that will pave the way for distribution of the company’s CBD chewing gums across the US.
The purchase order supports’ an ongoing relationship between the two companies, and could pave the way for orders of up to 75,000 boxes.
“As a part of our strategic short- and mid-term business plan, we have looked to expand the nutraceutical division of our company as a way to generate revenue and apply it toward furthering our clinical development program, while avoiding seeking out other more expensive funding alternatives,” stated Axim® Biotech CEO John W. Huemoeller II.
The deal builds on an initial purchase order that Axim Biotechnologies signed with Kannaway for 7,500 boxes, containing 225,000 pieces early in the year. The wave of purchase deal should go a long way in presenting new revenue opportunities for the company’s nutraceutical division.
Clinical Studies Push
Even as Axim Biotechnologies continues to sign purchase order as part of its marketing sales campaign, it is also exploring ways of strengthening its CBD product line. The Company has since entered into an agreement with contract research organization QPS Netherlands BV.
Under the terms of the agreement, the two are to conduct comparison studies targeting Dronabinol and CanChew, which are CBD chewing gums containing synthetic tetrahydrocannabinol (THC) and cannabidiol (CBD).
“Reaching this agreement is an important step in our clinical development program as we work diligently on the many stages of trials to get our products to those suffering from a range of symptoms,” said John Huemoeller, CEO of AXIM® Biotech.
Axim Biotechnologies Intellectual Property Portfolio has also received a boost on the US Patent and Trademark Office issuing a Notice of Allowance on a proprietary method of treating atopic dermatitis. The notice of allowance is for the company’s topical cream containing cannabinoids and cannabigerol.
While Axim Biotechnologies has taken a significant hit after a stellar start to the year, one cannot dispute the fact it is on the right track when it comes to CBD product sales as well as innovation. The signing of purchase order deals should go a long way in strengthening the company’s revenue streams and boost the bottom line.
Axim Biotechnologies engaging in clinical studies trials also signals a commitment to innovation of refined CBD products. That said a pullback from this year highs could as well pave the way for the stock to rally, once more, given the solid fundamentals supporting further upside action.
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Disclosure: We have no position in AXIM and have not been compensated for this article.
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