Liberty Health Sciences (CSE:LHS) (OTCQX:LHSIF) has been in the doldrums in 2019. As such, it's a hard stock to call right now. But at $0.96 USD, up almost 8% at the time of writing on the CSE, the company is certainly showing signs of revival. With positive news pouring in, prospects are changing for Liberty and investors should take note.
Is it a good enough opportunity though?
Liberty Health Sciences
Liberty faced a start to the year like no other. Its CEO and CFO resigned amidst insider board members jumping ship. Then an even bigger blow came when Aphria (TSX:APHA) (NYSE:APHA) decided to divest its entire interest in the company in February.
With management in disarray, shares fell, and investor trust waned. After all, what signals are you sending out when your top management leave?
But 2019 is truly underway, and in spite of the drama, Liberty Health Sciences has made significant operational strides not to be overlooked.
It also received approval from the Florida Department of Health (DOH) for "additional use of 80,000 square feet of enclosed greenhouse space at the Liberty 360 Innovation campus in Gainesville."
This means a total cultivation space of 228,880 sq ft in Gainesville. With increased output comes increased growing capacity.
Further, this news comes hot on the heels of another approval Liberty received only last week. A new bill (SB 182), recently signed into law, means smokable medical marijuana is now legal in Florida. With that, Liberty Health Sciences is one of the first companies to be granted sales of pre-roll and whole flower smokeable products to patients.
Having an early market share of smokeable marijuana may give Liberty Health Sciences a nice advantage over competitors. No doubt others will soon be granted license also, but establishing relationships with customers early is one way to keep them.
For under $1 at present, LHS stock could be a risk worth taking. The shaky start to 2019 is hard to overlook—especially when, in the same period, so many of its peers saw skyrocketing gains. However, the Florida medical marijuana market is set to hit $250 million USD in 2019. Also, with US sentiments warming to the idea of cannabis as a whole, this projection may actually be tame.
With that projection, even a small company in this market could pull in significant revenues and profits for investors.
Liberty Health Sciences may never be the biggest cannabis company (then again, who really knows?) but with 13 dispensaries and growing in Florida, it must be in line for a decent market share.
What do you think about Liberty Health opening its 13th dispensary in Florida?
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