Following a hot January, many pot stocks cooled off a bit in February. AgraFlora Organics International (CSE:AGRA) (OTC:PUFXF) is up nearly +20% today and is one of the hottest pot stocks on the market. The Vancouver-based cannabis company recently released a corporate update that caused its stock to shoot up +90%. Today, we’ll explore why investors bought up the pot stock so quickly.
AgraFlora Organics Up +90%
On February 28th, Vancouver-based AgraFlora released a corporate update that seemed to impress investors. In the update, AgraFlora highlighted its milestones from the last four months of operations. Investors began to take notice of the stock after the release, and it became a hot pot stock moving into March.
The biggest accomplishment at that time for AgraFlora surrounded the signing of its supply agreement with Namaste Technologies (TSXV:N) for up to 25,000,000 grams of cannabis. This supply agreement was originally announced in mid-December 2018. The cannabis supplied in the Namaste agreement would come from AgraFlora’s greenhouse operations in Delta, BC. The Delta Greenhouse Complex is set to be fully operational by 2021 and is anticipated to produce roughly 250 million grams of high-quality cannabis a year.
In addition to the Namaste Supply Agreement, AgraFlora Organics received a $20 million investment from Delta Organic Cannabis Corp. The original investment was an equity participation and earn-in agreement for up to $40 million at a price of around $0.45 per share, announced back in October 2018.
Most of these updates aren’t new, but it seems investors may have just now caught wind of what AgraFlora is working on operationally and wanted to get on board. At this time, the company’s website isn’t fully operational but says it is coming soon. The pot stock may be gaining its footing with its greenhouse operation not fully completed yet, but the company is making moves in the Canadian cannabis space. Due to its recent supply agreement signings and investments secured last quarter, it remains high on the hot pot stocks moving into March.
Hot Pot Stocks: Daily Stock Movement
According to Yahoo Finance, AGRA is trading at $0.59 a share on the CSE. In the last 30 days, the pot stock has risen +97%. On the OTC, PUFXF is trading at $0.445 a share, up +$0.06 (+17.75%). In the last 30 days, PUFXF is up +91.8%.
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