Investor Ideas #Potcasts; #Cannabis News and #Stocks on the Move:
Interview with David Metzler, CEO of CBD Capital Group
Delta, Kelowna, BC –October 9, 2019 (Investorideas.com
Newswire) www.Investorideas.com, a global news source covering leading sectors
including marijuana and hemp stocks and its potcast site, www.potcasts.ca release today’s edition of Investorideas.com potcastsCM -
cannabis news and stocks to watch plus insight from thought leaders and
experts.
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at https://www.investorideas.com/news/2019/cannabis-potcasts/10091Interview-DavidMetzler-CBDCapitalGroup.asp
In
today’s podcast I interview David Metzler, CEO of CBD Capital Group, where we discussed how CBD Capital Group best
assesses their companies in the CBD space as well as current trends in the CBD
market.
When
asked how CBD Capital Group assesses companies within the CBD market, David
went on to explain some of the key factors they look at first. “We’ve looked,
since we started a year ago, at probably 45 companies and have put out 4 term
sheets out, did our first deal in April of 2019 and in August we got out second
deal lined up and are closing that now. We have a fairly deep understanding of
the marketplace. One of the easiest properties to figure out success is just
revenue, but we believe that’s not enough. We look at a couple different things
in our evaluation framework. We look at what is unique about the product, what
is the product quality like and then we look deeply into the supply chain. We
have relationships within the supply chain, so if we’re not satisfied with
company but their revenue and customer support systems are there, we can apply
our expertise to help them redo their supply chain and get high quality CBD
with better potency and quality. The other factors for us are competency of
manufacturing and delivery of the product to the customers, so we go pretty
deeply into the customer experience.”
David
also went on to discuss how they look at
the different forms of CBD, whether it is CBD isolate, full spectrum or
broad spectrum and where he sees the market heading. “We’re not doing isolate
anymore. One of our board members is part of the Hemp Round Table, and if
you’re on the inside track and watching what the FDA is going to be doing in
the next quarter, most everyone agrees that isolate is going to end up in the
pharmaceutical grade, and thereby cut off from mass consumption and have
patents involved, with GW Pharmaceuticals being the leader in that. So we
believe in full-spectrum CBD. The isolate also adds a lot of chemicals into the
product. So broad spectrum and full
spectrum are where we are focussing, we’re sourcing from \Kentucky and we know
exactly where the farms are.”
David
also went on to discuss the SAFE Banking Act and how that will affect the
industry as well as the ways his company has looked to address these banking
issues early on. “We realized before we started CBD Capital Group, that
merchant processing was going to a problem for a long period of time going
forward. Even with the Farm Bill passed last September, it is still almost a
year later. The SAFE Banking Act is
going to help a lot there. But what we’ve decided to do was focus on
relationships. So all of the companies that we’ve bought and are buying, we
have a company in the space and they are processing at below market rates for
us. We created that relationship early on so that none of our companies and our
money is at risk because we are using this merchant processing solution. For
the industry as a whole, there’s companies paying 5% to 6% for merchant
processing. Our rates are sub 3, so that’s a huge advantage that we have and
our companies have. We’re still super excited that the SAFE Banking Act will
pass, because it will only mean that more banks will open up and more banks in
the space means that more institutional capital will come into the space.”
David
went on to discuss some of the investor trends he and CBD Capital Group have
noticed in the market so far as well as some of the largest red flags and
opportunities to be aware of moving forward in the industry.
CBD Capital Group announced back in July that it had acquired Medix CBD, a natural medicine and
wellness company.
“After
evaluating the potential of many U.S.-based cannabidiol (CBD) brands, we are
proud to announce the acquisition of Medix CBD for a multitude of reasons
including profitability, the company’s unique SEO model and a strong founding
story that aligns with our values,” said CBD Capital Group Co-Founder and CEO
David Metzler. “We look forward to growing alongside Medix CBD as we combine
our ability to raise capital and business guidance with the company’s vast
potential and high-quality offerings.”
The
CBD Capital Group management team has created or managed over $1 billion over
the course of their combined careers. The Company’s primary goal is to become
an attractive acquisition target or IPO at a $400 million to $800 million
valuation. CBD Capital Group plans to achieve this by acquiring profitable CBD
companies ranging from $1 million to $10 million in annual revenue. Though
these lifestyle companies typically have limited exit opportunities by
themselves, their combined value is highly attractive to mega brands, Private
Equity (PE) firms, or in an IPO. After each acquisition, CBD Capital Group
supports these businesses and their respective existing leadership teams
through expertise in operations, recruiting, finance, marketing, supply chain
optimization, retail distribution, and legal strategy.
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disclosures on the
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