AGRA stock continued to drop today, despite AgraFlora Organics Intl (CSE:AGRA) (OTCPK:AGFAF) announcing it has commenced discussions with one of Canada's largest food retailers to create and distribute a branded range of CBD products across stores.
The Ideal Partner
AgraFlora Organics is a growth-oriented and diversified international cannabis company headquartered in Vancouver, which boasts the world's second-largest cannabis cultivation operation under glass. The company did not name the Canadian Food Retailer that it is in discussions with; however, the retailer operates brick and mortar stores across Canada under a variety of recognized retail banners.
"This Canadian Food Retailer is the ideal potential partner for AgraFlora throughout our pursuit to achieve significant shelf space for our innovative suite of cannabinoid-infused cosmetics, edibles and beverages. This proposed partnership with one of Canada’s most respectable and influential food retailers will function as a beachhead towards the capture of material market share," said AgraFlora in Thursday's statement.
Underwhelming Response
The announcement comes a week after the company released a positive update on its proprietary technology, which saw AGRA stock rise 17%, the company's largest share price jump in over a month. However, investors have not greeted today's announcement with quite as much optimism, as AGRA stock slid 2% this morning, marking the third consecutive day it has fallen.
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Today's announcement comes on National CBD Day, August 8, and the slightly underwhelming response from investors could be due to an overflow of news surrounding CBD products.
Future Potential
The non-binding discussions are aimed at investigating the potential of AgraFlora Organics producing CBD-based products such as edibles, cosmetics, beverages, and even pet products to be placed on shelves of the unnamed retailer's stores across the nation. While today's announcement did not have quite as an uplifting effect on AGRA stock prices as the company may have hoped, the success of these discussions could represent a positive future for AGRA shares.
AgraFlora's CEO is Brandon Boddy, co-founder of Auxly Cannabis Group (TSXV:XLY) (OTCQX:CBWTF), one of Canada's largest cannabis company's. Today, Auxly stock soared following a major investment from tobacco company Imperial Brands PLC in July.
In other news, AgraFlora Organics today also announced the changing of its OTC ticker from "PUFXF" to "AGFAF," starting immediately.
Featured image: Canva
