BYND Cannasoft Enterprises Inc. (NASDAQ: BCAN) experienced a rollercoaster ride in Friday's trading session, initially dropping by 2.8%. However, the real action happened after hours, as BCAN surged an astonishing 36%. This surge is even more impressive when considering the average trade volume of less than 500,000 shares, as BCAN traded 2.4 million shares during this period.
BYND Cannasoft Enterprises is an Israeli-based integrated software and cannabis company. It owns and markets "Benefit CRM," a proprietary customer relationship management software product designed for small and medium-sized businesses. The company is also developing an innovative CRM platform for the medical cannabis industry, aiming to create a more organized, accessible, and price-transparent market.
Table of Contents
Toggle- Technical Assessment
- Strategic Announcements
- Insider Ownership and Broader Optimism
Technical Assessment
The recent price movement in BCAN is also significant from a technical analysis perspective. The stock is approaching a breakout point, with the potential to fill a previous gap created when BCAN dropped from $1.26 to $0.95 last month during extended hours trading. This gap has caught the attention of many traders who anticipate a strong surge in BCAN's price.
The sudden spike in BCAN's price is notable, especially given the absence of any news to explain this surge. Some market watchers fear that this rapid increase could lead to a profit-taking dip in the coming days. Despite this concern, bullish investors are currently enjoying the ride.
Strategic Announcements
Two weeks ago, BCAN's management announced a strategic shift in focus. Despite significant fundraising in the past month, the company has decided to suspend plans for the construction of a medical cannabis growing facility. Instead, BCAN intends to use its funds to penetrate the developing global Femtech sector and acquire companies in the CBD and Femtech businesses.
The decision to suspend the construction of the medical cannabis facility was driven by several factors. These include significant negative changes in the medical cannabis market, particularly in Israel, where the economic viability of cannabis farms has decreased. The ongoing conflict involving the State of Israel and the proximity of the cultivation area to the Gaza border also influenced this decision.
Insider Ownership and Broader Optimism
BCAN's insiders currently own 72.27% of the company, indicating a strong alignment of interests between management and shareholders. This significant insider ownership is generally seen as a positive sign for shareholders.