#Cannabis
#Stocks to Watch (OTCQB: $SING) (OTC: $HEMP) (TSX: $CWEB.TO) (OTCQX: $CWBHF)
(TSX: $ACB.TO) (NYSE: $ACB)-US #Hemp Industry Continues to Boom amidst
Pandemic: COVID-19 Vs #CBD
Point
Roberts WA, Delta, BC – May 28, 2020 – Investorideas.com, a leading investor
news resource covering hemp and cannabis stocks releases a special snapshot
reporting on the continued growth in sales and product offerings in the US hemp
industry and how this traction is beginning to attract outside investment.
Read this news
featuring SING in full at https://www.investorideas.com/news/2020/cannabis/05281SING-HEMP-CWEB-ACB.asp
Earlier
this month, SinglePoint Inc. (OTCQB:SING) started
their Q2 with strong numbers
achieving over $1,000,000 in sales throughout Q1 a 309% increase and a focus on
continued growth. After evaluating reports for Q2, SinglePoint’s Hemp vertical
has been on track to double sales in its second quarter alongside the launch of
1606 Hemp six-pack counter top display. 1606 Hemp has seen a sales growth rate
of 133% this quarter over the previous, a 233% growth in sales up to this point
of the month compared to the previous month at the same point. The company has placed a focus on
self-generated in-store placement by hiring professional sales representatives
to acquire new stores for the sales of its products over the next four weeks.
1606’s goal is to grow by more than 250 retail accounts throughout multiple
states, which the Company surpassed in the first couple weeks by placing
product in over 400 stores throughout 20 states.
According
to management, stores are selling through product quickly and many have already
reordered additional 1606 Hemp inventory.
As
the company continues to see success, management believes 1606 Hemp will be
able to provide approximately $2,750,000 to $5,500,000 in revenue selling to
just 1,000 stores. “As the roll out is
successful and we achieve our goals over the next four weeks, 1606 Hemp will
bring on additional individuals to scale up to as many as 2,500 stores as
quickly as possible in order to achieve reorders from 1,000 stores. Management
believes the current total addressable market is approximately 125,000
locations or more.”
“I've been trying
to get friends and family to make the switch to hemp for years, your product is
changing a lot of hearts. Thank you”
-
Al, 1606 Hemp Customer
1606
Hemp is working to become the leading recognized brand in the combustible hemp
market which is the second fastest growing market in the hemp category. The big
differentiator for 1606 Hemp is the ability to place a countertop display unit
at retailers across the nation. “While others are working to dominate the
online market, we have a general belief this type of consumable product will
continue to be bought in convenience stores, smoke shops and bodegas throughout
the nation.” However, the company provides an amazing online experience for
consumers to purchase 1606 Hemp and has amassed an online following through
social channels reaching over 17,000 followers on Instagram and driving traffic
to its online site at 1606Hemp.com
BDS
Analytics and Arcview Market Research project that the collective market for
CBD sales in the US will surpass $20 billion by 2024 while New York-based
investment bank Cowen & Co, estimates that the market could pull in $15
billion by 2025. The combustible hemp market currently represents approximately
2% of the overall CBD market, but with a 250% growth from 2017 to 2018,
Brightfield Group, a Chicago-based cannabis market research firm, identifies
dried and combustible hemp flowers as one of the fastest-growing segments of the
CBD market. With the passage of the 2018
Farm Bill and the mainstreaming of CBD hemp, the market is growing rapidly.
There is a significant need for reliable suppliers with the capacity to move
products.
SinglePoint
Inc. (OTCQB:
SING) Greg Lambrecht CEO
and Chairman discussed
the
1606 Hemp in a new video update – watch it here: https://www.youtube.com/watch?v=D6FxKUxQo6Y
Hemp, Inc. (OTC:
HEMP) has also been
showing strong growth, having announced
recently that sales to date
from their premium hemp flower, Pre-98 OG Bubba Kush, have surpassed their
$1,000,000 groundbreaking milestone. The
Company has reached $1,035,817.04 (up $55,000 from sales reported in its last
press release). That’s a total of $1,035,817.04 over the past ten weeks and six
days ($265,200 during the first quarter and $770,617.04, to date, in the second
quarter). The Company expects to hit groundbreaking milestones each week (maybe
even $1,000,000 a week) due to the explosive demand for its high quality hemp
flower. The premium Pre-98 OG Bubba Kush is just one of the many bio-diverse
hemp products the Company produces, among hemp for bioplastics and LCM (Lost
Circulation Material).
Hemp, Inc.’s CEO,
Bruce Perlowin, admits it was very frustrating and full of delays with sales
for about two months due to the COVID-19 pandemic but says the Company is now ‘full
speed ahead’. “Our Pre-98 OG Bubba Kush
hemp flower is exploding. We’re in full
swing and are on track to be able to sell our King of Hemp™ pre-rolls in all 50
states. We’re also beginning our mass marketing campaigns so I’m certain we
will have revenue in the millions to report for the second quarter and beyond.
At this point, I wouldn’t be surprised if we hit $1,000,000 weekly. It’s
definitely possible.”
Hemp Inc has
bi-coastal processing centers, including the 85,000 square foot multipurpose
industrial hemp processing facility on 9 acres in Spring Hope, NC, a 55,000
square foot state-of the art local processing center in White City, Oregon, a
500-acre hemp growing Veteran Village Kins Community in Golden Valley, Arizona,
two model “Small Family Hemp Farms” in North Carolina and Arizona, a pre-roll
blending manufacturing facility in Las Vegas, NV, and a 5,000 square-foot
retail store (The King of Hemp Store™) in Kingman, Arizona, Hemp, Inc. has a
few more infrastructure footprints to create but other than that, it’s full
speed ahead for the Company.
Charlotte's Web (TSX:CWEB) (OTCQX:CWBHF), one of the most well known CBD companies in the US, has
also achieved another milestone in its continued commitment to innovation and
consistency in hemp genetics. The Company has earned US utility patent U.S.
10,653,085, its second US patent for hemp genetics. This patent is for
'CW1AS1', a new hemp variety created by company co-founder Joel Stanley and Sr.
Director of Cultivation R&D, Bear Reel.
The patent takes Charlotte's Web's premier proprietary genetics to the
next generation, and builds a strong wall of protection around it, and the
products made from it.
"This
'CW1AS1' patent gives Charlotte's Web the highest level of protection for our
proprietary genetics and ensures that Charlotte's Web products will continue to
be available to the thousands who use them in a form that is consistent and
provides the same user experience time and time again," said Deanie
Elsner, Charlotte's Web CEO and President.
Patents
on hemp genetics are a new frontier, and very few patents in this sector have
been issued to date. Charlotte's Web,
the world's largest vertically integrated hemp company, has been at the
forefront of this new frontier in hemp patents and will continue to invest in
its breeding program and in the science of hemp to ensure a consistent and
high-quality supply is available.
"This
patent recognizes the progress our breeding program has made to assure our
farmer partners that the plants they grow will yield better and have a high
level of phytocannabinoids," said Reel.
Charlotte's
Web's flagship Original Formula was the first CBD wellness product to be sold
nationally to consumers. Before Charlotte's Web was officially founded in 2013,
there was a waiting list of more than 15,000 individuals for Original Formula,
which uses the same proprietary phytochemical profiles produced by the now
patented 'CW1AS1' hemp variety.
Aurora
Cannabis
(TSX:
ACB)(NYSE:
ACB)
has seen a massive stock jump in the last few weeks, climbing more than 30 per
cent last Thursday following the announcement of a deal to expand the company’s
reach south of the border.
The Edmonton-based
company is set to acquire all issued and outstanding membership interests of
the Massachusetts-based CBD brand Reliva for US$40 million. The deal also
includes a potential earn-out of up to US$45 million in cash or stock based on
performance.
Aurora
Cannabis Inc. and Reliva, LLC announced that
they have entered into an agreement pursuant to which Aurora will acquire all
of the issued and outstanding membership interests of Reliva. Under the terms
of the agreement, members of Reliva will receive approximately US$40 million of
Aurora common shares. The transaction
also includes a potential earn-out of up to a maximum of US$45 million payable
in Aurora shares, cash or a combination thereof, over the next two years
contingent upon Reliva achieving certain financial targets. The structure of
the earn-out is designed to align risk and reward between Aurora shareholders
and Reliva management to focus on continued strong operational and financial
execution. The transaction is expected to close, subject to customary closing
conditions, in June 2020. It is anticipated that the transaction will be
immediately accretive to Aurora on an Adjusted EBITDA basis, consistent with
Aurora's
objective is to drive towards Adjusted EBITDA profitability in its fiscal first
quarter of 2021. The transaction will combine Aurora's leading Canadian
recreational brands, and Canadian and European medical market position with the
leading U.S. hemp-derived CBD brand in retail stores. Consistent with the
announcement of Aurora's business transformation plan in February 2020, the
Company has aligned its US investment strategy with the goals of the
transformation plan, namely: financial discipline, operational focus, and
strong execution. The transaction represents the culmination of a multi-month
strategic evaluation of the US hemp-derived CBD industry. Reliva stood out
among a lengthy list of potential partners for its: (1) focus on regulatory,
testing and compliance protocols; (2) proven management team with extensive
experience selling and marketing regulated consumer packaged goods; (3) deep
relationships with critical trade partners that provide a US national
distribution footprint; and (4) financial discipline and track record of growth
and profitability. Together with Reliva, Aurora is expected to be positioned as
a meaningful player in the United States, the world's largest cannabinoid
market.
Aurora said it
expects the American CBD market could reach US$24B by 2025. However, the
company’s move south comes at a time of regulatory uncertainty following the
federal decision to loosen restrictions on hemp production two years ago.
The US Food and
Drug Administration is treading a cautious path. Currently companies are not
allowed to add CBD to food, drinks or cosmetics. The agency has been cracking
down on companies that do so. That hasn’t stopped a wide range of edible and
beverage products targeting wellness-minded consumers from gaining mass
popularity.
“The consumer CBD
industry faces temporary challenges in the U.S., but the industry has long-term
upside, valuations have pulled back, and we think Reliva has a unique channel
and price positioning that allowed it to perform quite well pre-COVID,” Cantor
Fitzgerald analyst Pablo Zuanic wrote in a note to clients on Thursday.
“Aurora has the
ability to start building its infrastructure out to capitalize on the potential
for a more benign FDA environment on CBD and THC legislation that makes it
federally permissible to operate domestically,” Cowen analyst Viven Azer wrote
in a research note.
As more companies
continue to see strong sales, high consumer demand and focus more on premium
high quality products, there is no doubt that CBD/hemp will continue to
flourish, even amidst regulatory uncertainty.
Research
more cannabis stocks with the investor ideas stock directory
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