MedReleaf Stock: Still on the Way Up?
There are few companies that have performed as well as MedReleaf Corp
(OTCMKTS:MEDFF, TSE:LEAF) has over the past three months.
While the marijuana market has, for the most part, had a good run over the past three months since the correction abated, MedReleaf has shown immense growth over that time, soaring over 50%.
There are a number of reasons for that jump, but the main one, of course, is that Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) signed the largest deal in marijuana history to acquire the company.
Chart courtesy of StockCharts.com
The move is yet another one in a series of aggressive buys by Aurora Cannabis in an effort to supplant Canopy Growth Corp (NYSE:CGC) as the top producer in the marijuana industry.
While the Aurora-MedReleaf deal was announced several months ago, the $2.5 billion deal has yet to be completed. However, signs are still positive that the acquisition will go through.
Approval came in from the Canadian Antitrust Bureau, so the deal is well underway. Of course, should it be derailed, then expect a tremor in the MedReleaf stock value. However, there is nothing to indicate that this is the case.
In fact, it appears that while MedReleaf stock remains independent, it is likely to only to continue to rise.
The company is not only benefiting the acquisition but also from a recent announcement that it is part of the group of companies approved to be suppliers for Canada’s third-largest province, British Columbia. (Source: “MedReleaf completes cannabis supply agreement with British Columbia Liquor Distribution Branch,” Cision, July 12, 2018.)
Overall, MedReleaf is in a very dominant position in the marijuana market.
All the news of late has been positive for the MedReleaf stock. The acquisition is drawing a lot of buzz as it will become part of a true marijuana juggernaut when bought out, and investors are very keen on getting a piece of the action before it disappears into Aurora Cannabis stock.
The future of MedReleaf stock—what little of that remains should the deal go through—is a bright one.
There just doesn’t seem to be anything standing in the way of the company’s continued rise until this deal reaches completion.
The caveat being that should the deal flounder in any way, that could be disastrous for the MedReleaf stock value.
But there’s no evidence that this will be the case.
Using the information at hand, MedReleaf stock appears to be a strong stock for the next few weeks.