Neptune Technologies stock on an uptrend
Over the last one week, Neptune Technologies and Bioressources (NEPT) has risen ~94%. On June 19, the stock jumped ~34%, while the stock rose ~38% yesterday. The rise in the company’s stock was triggered by the news of the company entering a multiyear agreement with Canopy Growth (CGC) to supplement its extraction, refinement, and extract product formulation capacity. The agreement could advance Neptune’s aim to expand its footprint in the cannabis industry.
On June 19, Canopy Growth stock rose ~4%, registering a further rise of ~6.4% yesterday on June 20.
Neptune’s strategy to advance in cannabis sector
Neptune Technologies and Bioressources has been executing its plan to establish itself as one of the leading companies in the extraction, purification, and formulation of cannabis products, as discussed by the company during its Q4 2018 earnings call on June 3. The company is a well-established wellness products company with scientific, technological, and innovative expertise, which the company expects to leverage to develop unique extraction and value-added differentiated products in high growth potential markets such as cannabis. Consequently, the company is divesting its krill business to focus on the growth and expansion of its cannabis business.
The company is looking at its MaxSimil and some other compounds for use as carrier oils for cannabis’s active ingredients. The company aims to prove the bioavailability-based value-added differentiation of these products. Neptune Technologies plans to commercialize its cannabis business in the second half of 2019. The Cannabis Act, which legalizes the recreational use of cannabis, was approved at the beginning of June 2018. For details, read Cannabis Stocks Rose Last Week on Approval of Cannabis Act.
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