Marijuana Company Of America Inc (OTCMKTS:MCOA) has been trending lower since early April and sideways for the last 2 weeks. Will today’s announcement where MCOA, along with Cannabis Global Inc, will collaborate to create, finance, and eventually operate a cannabis laboratory be enough to get the stock moving?
MCOA as of 11:45 is trading up slightly at .0062. Volume is 43 million shares and looks like it will easily surpass its 30 day average of 50 million shares a day. MCOA has been trading in a tight range today between .006 and .0065. Potential pivot points to keep an eye on are .0063, .0066 and .0071 above and .0058 .0056 and .0051 below.
The laboratory, which is going to be located in Lynwood, California, will be operated by Natural Extract Plant of California, a subsidiary of Cannabis Global. The news did give MCOA a little boost and it initially rallied by 15% at the open but so far has not held on to its gains.
As per the agreement that has been signed between the two parties, the Marijuana Company of America is going to commit a total of $250,000 towards the project. Of that, $135,000 is going to be allocated towards the purchase of extraction equipment and other items that are vital for production.
Cannabis Global CEO Arman Tabatabei commented, “This new venture is about using technical know-how to create corporate synergies. By producing cannabis concentrates in-house we will not only be able to enter one of the hottest cannabis consumer markets but also lower our costs by producing concentrates for our own brands, rather than purchasing from outside. We look forward to working even more closely with the team at MCOA.”
MCOA continues to bounce around the .006 area which has provided support for the stock for the last few weeks. The stock really needs to break above .0066 and hold for any type of rally to begin.