Over the past week, the Cann American Corp (OTCMKTS:CNNA) stock has been in the middle of a rollicking rally and ended up with gains of as much as 55% amidst heavy interest.
The boost for the stock may be related to the announcement from the company on May 1 with regards to the Binding Letter of Intent that it signed with a fast growing national discount healthcare plan provider. It was announced that Cann American was going to complete the acquisition of Liberty Health Plus through a non-dilutive agreement. It is a deal that is going to allow Cann American to make an entry into the multibillion dollar discount drug and telehealth industries in the United States. Hence, the excitement among investors is perhaps understandable.
Liberty Health Plus is well known for providing a wide range of discounted healthcare services. Some of the services that it provides include dental plans, vision, telehealth, pet care and prescription drugs. It is also important to note that the current market share that is enjoyed by Liberty Health Plus is already worth in millions and hence, it would allow Cann American to own an asset that is already on the ascent.
