As you can see, CPMD was very recently trading in the $2.00-$2.50 range. A HUGE bounce could be in the works for CPMD in the short-term.
During mid-August, CPMD hit a high of $2.60. From Friday's close of $.63, that gives this profile upside potential of 312% to that high.
Now, I'm not saying that CPMD is going to go rushing to that level on Monday, but it's important to see the reversal potential in the bounce idea.
According to Investopedia, "A reversal is a change in the price direction of an asset. A reversal can occur to the upside or downside. Following an uptrend, a reversal would be to the downside. Following a downtrend, a reversal would be to the upside. Reversals are based on overall price direction and are not typically based on one or two periods/bars on a chart."
Now, because of certain oversold leaning technicals that Barchart is reporting, CPMD could be ripe for a healthy reversal in the short-term.
Here are the key technical indicators to watch:
- 9-Day Relative Strength Index - 35.37%
- 14-Day Relative Strength Index - 35.06%
- 14-Day Raw Stochastic - 26.00%
- 14-Day Williams %R - 74.00%
These technicals will be important to watch moving forward.
Your No. 2 Potential Catalyst For CPMD
CannaPharmaRx Secures $3Mn Investment to Accelerate Expansion
CALGARY, AB / ACCESSWIRE / August 18, 2020 / CannaPharmaRx, Inc. (OTC PINK:CPMD) a future leader in ultramodern, highly efficient CB production facilities in Canada, today announced it has secured up to a $3Mn investment from Triton Funds.
Triton Funds, coupled with the support of of its advisory board and alumni, is a San Diego based student-run investment fund focused on creating a greater sense of community through investments in companies, entrepreneurs and philanthropy.
The new funding will allow the company to fast-track its business priorities related to CB cultivation operations in California and Canada.
"We believe that Triton not only serves as a favorable funding source, but equally as important, a partner that will grow with our organization, says Nick Colvin, CEO of CannaPharmaRx. With the level of experience and network that Triton and its advisors provide, we feel that the relationship will allow the company to quicken its goal in becoming the leader in the specialized CB industry," added Colvin.
Your No. 3 Potential Catalyst For CPMD
CannaPharmaRx Engages Global Advisory and Investment Banking Firm Teneo Capital
CALGARY, AB / ACCESSWIRE / July 28, 2020 / CannaPharmaRx, Inc. (OTC PINK:CPMD) a future leader in ultramodern, highly efficient CB production facilities in Canada, announced today it has recently engaged Teneo Capital ("Teneo") to help strategically guide the company through its next growth phase.
Teneo is a New York-based 900-professional global advisory firm that works with the world's largest and most complex companies providing strategic counsel across a full array of disciplines including investment banking, restructuring and consulting. It has a nationally recognized investment banking platform which includes specialization in the CB industry. It has global transaction experience, having completed $525Bn in Merger and Acquisition transactions in more than 40 countries. Teneo launched its program for CannaPharmaRx on July 22, 2020.
"We are excited to begin our work with such a well-respected firm like Teneo which should allow us to reach many significant benchmarks in the coming months. Led by a strong and experienced senior leadership team that is used to working closely with CEO's of Fortune 100 companies, we are confident we made the right choice to aid us in achieving our milestones quickly," said Nick Colvin, CEO CannaPharmaRX.
Your No. 4 Potential Catalyst For CPMD
CannaPharmaRx Agrees to Acquire CA CB Facility
Company Agrees to Purchase River Road Production Campus from Bristol Capital InvestorsCALGARY, AB / ACCESSWIRE / July 7, 2020 / CannaPharmaRx, Inc. (OTC PINK:CPMD) a future leader in ultramodern, highly efficient CB production facilities in Canada, announced today it has signed a letter of intent to purchase a CB production facility located in Cathedral City, California.
The purchase price will be $10Mn. The acquisition is anticipated to close during the next 45 days, subject to CannapharmaRx receiving appropriate funding. The property will need approximately $20Mn in upgrades to become fully functional according to CannaPharmaRx's standards. While no assurances can be provided, the Company believes it has secured financing for this project via a senior credit facility. Upon completion of upgrades, which are expected to take approximately 6-7 months, the production facility is expected to generate up to 50,000 kilograms of CB per year.
"Completion of this acquisition will be a significant milestone for our Company. We are hopeful that it is the first of many transactions we are able to close this year in order to commence grow operations during the first half of next year," said Nick Colvin, CEO of CannaPharmaRx.
Your No. 5 Potential Catalyst For CPMD
CannaPharmaRx Announces its Plan to Move From the Pink Open Market to OTCQB
CannaPharmaRx Anticipates its Application Will be Submitted This Quarter
CALGARY, AB / ACCESSWIRE / June 16, 2020 / CannaPharmaRx, Inc. (OTC PINK:CPMD) a future leader in ultramodern, highly efficient CB production facilities in Canada, announced today that the Company has begun the process to move from the Pink Open Market to the OTCQB. The OTCQB Venture Market is for early-stage and developing U.S. and international companies. To be eligible, companies must be current in their reporting and undergo an annual verification and management certification process.
"We are excited for the possibility of advancing to the OTCQB from the Pink Open Market," said Nick Colvin, CEO of CannaPharmaRx. "We believe that this uplist will further validate our presence as a publicly traded company. We have already been following most of the criteria for OTCQB eligibility, but we look forward to formally being listed as an OTCQB company. While there are no assurances that OTCMarkets will approve our application, we are working diligently to ensure that we meet all of the necessary requirements for approval," added Colvin.
CPMD Reports Key Operation Highlights Recently
- Activities to date have been primarily focused on two projects: the Hanover Project and the Great Northern Project. Other additional acquisitions are being pursued as well. The company anticipates closing one or more of these additional purchases during the current quarter.
- The company has continued to acquire an ownership position in GN Ventures, Ltd. (aka Great Northern Canada, Ltd.), a company also involved in the production of CB in Canada. Based upon various discussions that have taken place, the company anticipates additional purchases during the remainder of 2020. GN owns a 60,000 square foot CB cultivation and grow facility located on 38 acres in Stevensville, Ontario, Canada. GN estimates total production capacity from the facility to be up to 12,500 kilograms of CB. On July 5, 2019 the company received a license to cultivate from the Canadian Ministry of Health. As a result, in October 2019, GN began cultivation activities with the initial harvest in Q1 2020. Additionally, GN intends to increase production by further developing adjacent land.
- The facility purchased as part of the Alternative Medical Solutions (the Hanover Project) acquisition is a 48,750 square foot CB grow facility built on a 6.7 acre parcel of land located in Hanover, Ontario, Canada. The exterior construction of the building has been completed. No interior construction has begun. Upon full completion, the facility will provide an annual production of 9,500 kilograms of CB.
- CannaPharmaRx continues towards their goal of reviewing and researching multiple new acquisition and development opportunities within the area of cultivation and genetics. "As mentioned in a prior release, management believes we are entering our revenue growth phase and the company is beginning to make progress towards becoming a leader within the CB production and extraction industry. We anticipate many developments to materialize during Q4 and believe that we further validate ourselves with the closing of additional acquisitions," stated Nick Colvin, CEO of CannaPharmaRx.
"Green Wave" Profiles Could Be In For A Major Second-Half 2020 Rebound
CannaPharmaRx Inc. may start getting recognized by Wall Street for its production facilities and plans in Canada.
According to BNN Bloomberg, for every 1 gram of CB priced at $10 in Canada, producers are estimated to earn $3.60. In addition, it is estimated that the private sector will generate close to $1Bn in EBITA with 85% coming from production and the rest from retail.
The loosening of government regulations has resulted in strong demand for the CB industry. In addition, the passing of the CB Act and CB 2.0 being rolled out in Canada have created a strong opp. for industry producers such as CannaPharmaRx, Inc.
CPMD could become one of Canada's biggest and most important companies in the CB market and is worth watching at current levels.
Coverage is initiated on CPMD immediately.