Neutra Corp (OTCMKTS:NTRR) stock has been on fire over the course of the past week, and it is about time that investors had a closer look at what is going on with the company. The stock price rallied by an astonishing 900% over the course of the past week to jump to $.0049 a share from $.005 a share, and it remains to be seen if it can continue in its merry ways in the coming days.
Retires Convertible Debt
The company is into research and development, by way of which it creates solutions for a range of industries, starting from nutraceuticals to environmental purification. The company was established back in 2011, and initially, it was primarily involved in the health and wellness space. Later on, it expanded into the potentially lucrative medical cannabis industry as well.
Ultimately, the company aims to become a vertically integrated operation that oversees every stage of production, starting from seed to final sale. One of the reasons behind the rally in the stock could be found in the developments that were reported last week. It emerged that Neutra managed to complete the payments for the remnants of its convertible debt. The paying off the convertible debt demonstrated the financial strength of Neutra and has also set up the company for growth in the future. It is, without a doubt, a significant development for the company, and the reactions in the stock market are not particularly surprising.
The payoff is a major landmark for the company and sets Neutra up strongly as it tries to grow its business in the middle of the coronavirus crisis. Businesses are slowly beginning to open up, and the newly found financial strength is going to be of immense help to Neutra. In addition to that, it should be noted that in April, the company had announced that it was all set to open the doors to a CBD manufacturing and hemp processing unit at Houston.
The announcement was made soon after VIVIS, a subsidiary of Neutra was awarded a license to handle hemp in Texas. Hence, Neutra is going to control the entire process from hemp cultivation to sales, and that is a significant development.
The Chief Executive Officer of Neutra Sydney Jim stated that the opening of the new facility in Houston is going to put the company in a position to record solid growth in the coming years. It will also allow Neutra to enter the CBD space in a big way, and that is a sector that could grow significantly in the coming years. Jim stated that if the United States Food and Drugs Administration does permit CBD to be a dietary supplement, then Neutra is going to be able to step in quickly.
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