Business to business cannabis consultancy services firm American Cannabis Company Inc (OTCMKTS:AMMJ) saw its stock go on a rollicking rally on Tuesday as it ended the day with gains of as much as 54% amidst heavy interest. In this situation, it could be a good move for investors to take a look at the announcement from the company yesterday.
Market Reaction
On Tuesday, AMMJ stock surged 54% to $0.0585 with more than 404k shares, compared to its average volume of 563K shares. The stock moved within a range of $0.0380 – 0.0599 after opening trade at $0.0380.
American Cannabis Company, Inc. and KORcannabis Aim to Advance the Cannabis Industry with Newly Formed Strategic Alliance
American Cannabis Company announced yesterday that it had been successful in establishing a strategic alliance of high impact meant for bringing about revolutionary change in the cannabis industry. The company noted that the changes were going to be brought about by way of clinical research, innovative agricultural processes and new age technology.
The company decided to establish this strategic alliance with company KORcannabis, a highly advanced company which owns seed to sale operations in multiple states. It could well prove to be one of the more impactful alliance for the two companies and for the cannabis industry at large. Hence, the wave of positivity with regards to the stock was perhaps understandable. It now remains to be seen if the stock can hold on to its momentum and manage to add to its gains over the course of the coming days or not.
Key Quote
“Our strategic alliance with ACC stems from trust due to their vast experience in the field of cannabis. Ellis Smith and his team have years of industry knowledge throughout the US, which has culminated in their development of a state-of-the-art platform ranging from business development, licensing strategies, cultivation, extraction to facility design. I am excited to execute the plan developed by Ellis and work hand in hand with his team,” said Scotty Branch, co-owner of KORcannabis.
Traders Review
AMMJ stock is trading below the 20-Day and 50-Day Moving averages of $0.0534 and $0.0551 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0849.
