Zenabis stock has had a disastrous 12 months, collapsing from a peak of $3.76 in early March 2019 to currently trade at just $0.10. Driven down by a variety of issues that have plagued pot stocks across the board, many investors are now left asking the question—is there any way back for Zenabis Global (TSX:ZENA) (OTCPK:ZBISF)? With the Vancouver-based cannabis firm set to launch its range of HYTN infused beverages, perhaps there may be.
Zenabis's struggles, like many of its compatriots, have arisen from spending huge amounts of capital in preparation for the legal pot market, only for that market to underperform massively and leave pot firms in cash crunch crises. Zenabis shares were further dragged down by a C$20 million rights offering, which had a dilutive impact on the stock and was met with some resistance from investors.
However, Zenabis Global announced last week that it plans to launch its range of pot-infused drinks in Q2, which would make it the first Canadian producer to go to market with these highly anticipated products. Canopy Growth (TSX:WEED) (NYSE:CGC), the largest cannabis firm in the world, was forced to delay the launch of its beverages last month due to the aluminum lining of the cans affecting the THC content, so it's clearly good news to see a much smaller firm in Zenabis beat one of the big hitters to the punch.
Being the first to market infused beverages is not the only reason these products are good news for Zenabis stock. Analysts at Technical420 are arguing that "HYTN represents a differentiated play on this vertical and we are favorable on the products that fall under its umbrella. Going forward, we believe that HYTN is well-positioned for growth and expect the relationship with Zenabis to serve as a catalyst for growth."
With Zenabis stock currently valued at just $0.10, it could represent a real bargain as the cannabis 2.0 market begins to pick up the pace.
What do you think?
Featured Image: Canva