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A number of stocks had ended up with significant gains on Monday and one of those was the Cann American (OTC:CNNA) stock. The stock was in considerable focus yesterday and clocked gains of as much as 20% amidst heavy interest on 1.50X its average volume. Moreover, the stock is trading above its 20-Day and 50-Day moving averages.
The company was established back in 2015 and initially, it had been focused on the development of infrastructure for the legal cannabis industry project in Northern California. Nowadays, it is a publicly listed company and operates through its subsidiaries. Cann American has managed to expand its focus towards the development of therapeutics from across a number of sectors starting from regenerative medicines to CBD.
On May 1 Canna American had been in the news after it announced that it had entered into a Binding Letter of Intent with an emerging leader in the national discount healthcare plan-providing company. The company would get into a non-dilutive agreement by way of which it would complete the acquisition of Liberty Health Plus and turn it into a fully owned subsidiary unit. Liberty Health Plus is a company that is involved in providing a wide range of discounted healthcare services.
The services that it offers include pet care, vision, prescription drugs, and dental plans among others. The acquisition could prove to be a significant one since it would bring the company into the $35 billion United States telehealth space and the $80 billion United States discount drug industry. It remains to be seen if the stock adds to its gains today.