Maricann Stock Is Trading in “Oversold” Territory
Marijuana penny stocks are becoming the most sought-after investments of today as large-cap marijuana stocks fly out of reach for average investors. While penny stocks are rightfully deemed risky, many times you’ll find stunning rewards.
There’s one top marijuana penny stock I’m eyeing right now, whose price has tumbled to bargain levels and is now worth a second look.
Maricann Group Inc (OTCMKTS:MRRCF, CNSX:MARI) stock has shed more than half the altitude of its all-time highs, just because of some recent bad news that had little to do with the company’s core business and more to do with ongoing political drama in its C-suite.
Chart courtesy of TradingView.com
A regulatory probe by the Ontario Securities Commission (OSC) recently forced two of Maricann’s directors to take an exit, and the CEO to take the far end of the C-suite (although for a completely different reason). Meanwhile, an interim chairman of the board has taken the helm in order to get the company back on track.
All this drama unfolded after Maricann’s bought deal fell through with its underwriters. The offering could have raised the company roughly $70.0 million to finance its expansion plans. But the deal blew up when the underwriters backed out at the last minute.
Obviously, the market overreacted to the news, as if the deal was a make-or-break scenario for Maricann, even though CEO Ben Ward has assured that the company has enough funds to, albeit slowly, continue its expansion plans.
The small pot grower is currently in the process of ramping up production ahead of Canada’s legalization of recreational marijuana, which is expected to bring in hordes of new customers.
Maricann is awaiting Health Canada’s approval (which, I believe, should be on its way soon) to begin building a 942,000-square-foot facility, in addition to its existing cannabis production site in Langton, Ontario.
Meanwhile, Maricann also has a significant presence in the fast-growing marijuana market of Germany, which is a gateway to the rest of Europe. The company is building a similar facility in Germany in a bid to secure a share of the country’s booming market.
So ask yourself, should you rule out this fast-expanding pot grower on the back of the mini-hindrance it faced last month? I think not.
Furthermore, there’s a peculiar piece of speculation that’s keeping this penny stock afloat, in addition to these forward-looking promises.
In November 2017, the company revealed that it had entered into an agreement with one of the largest pharmacy chains in Canada, whereby the two companies would partner to raise awareness about medical marijuana. This was the point when the stock truly picked up steam.
Obviously, speculators took this disclosure to mean that Maricann was going to be selling to thousands of patients referred to it by this leading pharmacy—all across Canada. But until more details are revealed about the nature of this pharmacy deal, there is only speculation to be made.
Marijuana penny stock prices are highly speculative, and their performance hinges on how successfully they deliver on the speculation.
Regardless of what happens with the pharmacy deal, Maricann’s ongoing local and international growth is a good reason to be bullish on this stock.
As the dust surrounding the OSC probe and the failed bought deal settles, MRCFF stock may see another pop. I expect this marijuana penny stock to more than double, particularly if the pharmacy deal turns out to be as big as expected.