Point Roberts WA, Delta, BC -- May
28, 2020 -- InvestorsHub NewsWire -- 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.
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.
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