Although the Allied Corp (OTCMKTS:ALID) stock fell sharply on Wednesday and ended the day with a decline of as much as 8%, the company did make a fairly positive announcement. Hence, despite the fall in the stock price, it might be a good idea to look into it a bit more closely.
On Wednesday, ALID stock fell 7.62% to $1.94 with 13K shares, compared to its average volume of 48K shares. The stock has moved within a range of $1.8400 – 2.1200 after opening trade at $2.11.
On November 24, the company announced that that it had inked a supply contract for the calendar year of 2022 and further. It was also announced that the company will be exporting cannabis eventually but only after it gets the necessary permissions from the government of Colombia.
In addition to that, the company also noted that it would only be exporting cannabis flowers to those nations in which it is legal. The company announced that it had signed a contract with Veterans For Healing back on November 18, 2021. Veterans For Healing is an organisation which is focussed on healing veterans.
The contract in question was for supplying 4000 kilos of Colombian cannabis per month. It was also announced that the flowers would have CBD strength of more than 20%. It is a significant deal for the company and it remains to be seen if the Allied Corp stock manages to bounce back or not.
ALID stock is trading below the 20-Day and 50-Day Moving averages of $2.01 and $2.01 respectively. However, the stock is trading above the 200-Day moving average of $1.30. The stock is up 70% over the past 3-month.