 is up by 6.68% on Monday after the medical cannabis company enjoyed a mini-surge over the past few days.){kind=link}
Kanabo Share Price
The Kanabo share price (LON:KNB) is up by 6.68% on Monday after the medical cannabis company enjoyed a mini-surge over the past few days. The last five days saw the Kanabo share price rise by 28.06%. It came following a broad sell-off in cannabis stocks, which led to the Kanabo share price spending eight weeks in the red. Nonetheless, the company has made significant progress since its IPO in February which it will hope can see it through any temporary downturns. This article will analyse where the company is at and the outlook for the Kanabo share price.
Progress
Kanabo has made strides in generating sustainable revenue streams by selling its medical cannabis cartridges in the UK. It also intends to expand its plans to sell across Europe.
The medical cannabis company has signed a host of supply deals, including its partnership with Hellenic Dynamics S.A, a medical cannabis cultivation company with a substantial cultivation facility in Northern Greece.
Kanabo also signed a production agreement with Pure Origin and its affiliates to utilise their significant expertise in best practices for EU GMP manufacturing.
However, investors appear not to appreciate the significant of the deals, as the share price didn’t react too favourably.
This could bode well for the Kanabo share price in the long-term, as it makes strides forward, while potentially remaining undervalued.
Cannabis Market
Despite the sell-off in the cannabis market mentioned above, the long-term outlook for the industry remains bright.
According to reports by Emergen Research, the global medical cannabis market is expected to get to $47.15bn in 2027 at a compound annual growth rate of 16.9%. Specifically market revenue growth can be attributed to the rising use of medical cannabis to treat diseases and conditions. Additionally, with regulations being relaxed, there could be a spike in legal demand. One of the companies to benefit from this trend is Kanabo.
In the short-term the immature nature of the cannabis market could be vulnerable to oncoming regulations which could cause volatility in the Kanabo share price.