Freedom Leaf Inc (OTCMKTS: FRLF) share price is yet to reflect the Company’s tremendous potential. The Company has completed a string of strategic acquisitions as well as expansion into new markets that affirm long-term prospects.
Freedom Leaf Price Action Analysis
The Company has already confirmed the acquisition of ECS Labs LLC, a transaction poised to strengthen its revenue base. The acquisition comes on the heels of the Company making a much-awaited entry into the CBD beverage category with the acquisition of Hemp2o Beverage Company late last year.
In addition, Freedom Leaf has expanded its international footprint by targeting revenue opportunities in South Africa as part of its growth strategy. Amidst the developments, the stock has continued to edge lower after turning bearish last year.
The stock has since plunged to one-year lows from where it is trying to bounce back. A plunge to the $0.14 mark has since elicited some buying pressure waiting to see if it has what it takes to fuel a change in the direction of trade.
Given the underlying descending trend line, Freedom Leaf will have to rally and find support above the $0.18 mark, to turn bullish in the short term. Conversely, a sell-off followed by a close below the $0.14 mark could trigger further sell-offs that could result in the stock edging lower in continuation of the emerging downtrend.
In our view, recent developments have what it takes to strengthen investor confidence that could see the stock making a run for the $0.30 mark, the next substantial support level.
About Freedom Leaf
Freedom Leaf is a vertically integrated hemp and cannabis media company. The Company develops and sells hemp-based, nutraceutical health wellness and longevity products. It markets its wellness products under the Freedom Leaf, IRIE and Hempology brands.
ECS Labs Acquisition
A plunge to all-time lows comes on the heels of Freedom Leaf completing strategic initiatives as it seeks to reinvigorate and strengthen its growth metrics. Acquisitions have come into play as the vertically integrated cannabis play seeks to accelerate inorganic growth.
The acquisition of ECS Labs LLC and its two wholly-owned operating subsidiaries marks an important milestone that affirms the Company’s long-term prospects. With the acquisition, the Company gains access to the Green Lotus premium, hemp oil products.
The acquisition should have a significant impact on Freedom Leaf revenue base, given the robust portfolio of products at stake. ECS Labs also comes into the deal with robust distribution capabilities as well as penetration into attractive emerging markets ideal for accelerating sale growth.
The merger should also bring an expansion of talent and new leadership that Freedom Life can leverage. In addition, it should increase and broaden the combined company customer base.
“In acquiring Green Lotus, we will have added a highly talented management team, and I look forward to supporting Carlos Frias in his new role as CEO of Freedom Leaf The acquisition should transform Freedom Leaf into a leading North American hemp CBD consumer Products Company serving multiple distribution channels across many verticals,” explained Freedom Leaf CEO Clifford J Perry.
South Africa CBD Opportunity
The acquisition follows the confirmation that Freedom Life is poised to expand its footprint into South Africa as it continues to diversify and strengthen its sales channel. The vertically integrated cannabis player has already inked a strategic partnership with a locally based distribution partner poised to make its products available in South Africa CBD market
The distribution partner has placed a $100,000 purchase order to service the national pharmaceutical chain.
“South Africa represents a significant international growth opportunity for Freedom Leaf, and our partner will continue to expand our distribution network in this untapped market aggressively,” stated Freedom Leaf Health’s CEO Cliff Perry.
Expansion into South Africa follows the confirmation that the Company is expanding commercialization of its proprietary BioAlive Water-Soluble Hemp Extract. The firm has since expanded its distribution and marketing plan with a view of capturing a first mover advantage across many leading industries, including beverage food Pharma and cosmetics.
Freedom Life is likely to bottom out after a harrowing plunge over the past few months. Acquisitions, as well as strategic partnerships and expansion into new markets, are potential catalysts that should allow the stock to trade higher.
The pullback in our view presents an ideal entry position as the stock looks set to bottom out supported by improving fundamentals.
We will be updating our subscribers as soon as we know more. For the latest updates on FRLF, sign up below!
Disclosure: We have no position in FRLF and have not been compensated for this article.
for our next MicroCap Runner ahead of the crowd!
spam. No Hidden Fees. Unsubscribe Anytime.
The post Freedom Leaf Inc (OTCMKTS: FRLF) Making A Comeback appeared first on Insider Financial.