Data Bridge Market Research recently released a new Global CBD Oil Market research report, which may be the most recent comprehensive forecast analysis of the entire CBD marketplace in play right now, and probably the only major research project to take into account some perspective that incorporates the COVID-19 pandemic health crisis.
According to the report, the CBD Oil Market is expected to grow at a CAGR of 31.9% from 2020 to 2027. This research suggests the longer-term mainstreaming dynamic remains in place as the central thesis.
If true, that could imply that the pure-play stocks in the space should have tremendous growth potential in front of them, especially given the culling in the space that has taken place through the vicious bear market that lasted from 2018 until mid-March of 2020.
With this in mind, we take a closer look at some of the more active names in the CBD space, including: CV Sciences Inc (OTCMKTS:CVSI), Medical Marijuana Inc (OTCMKTS:MJNA), MCTC Holdings Inc (OTCMKTS:MCTC) aka Cannabis Global Inc. (OTCMKTS:MCTC), and cbdMD Inc (NYSEAMERICAN:YCBD).
CV Sciences Inc (OTCMKTS:CVSI) managed to rope in revenues totaling $8.3M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -44.5%, as compared to year-ago data in comparable terms.
However, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($7.6M against $12.5M, respectively).
CV Sciences Inc (OTCMKTS:CVSI) bills itself as a company that operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD; and, a consumer product division focused on manufacturing, marketing and selling plant-based CBD products to a range of market sectors.
Moreover, CV Sciences, Inc. operates as a life science company. It operates through two segments, Specialty Pharmaceuticals and Consumer Products. The company focuses on developing and commercializing prescription drugs utilizing synthetic cannabidiol (CBD) as the active pharmaceutical ingredient. Its initial drug candidate is CVSI-007 that combines CBD and nicotine for the treatment of smokeless tobacco use and addiction.
CV Sciences Inc (OTCMKTS:CVSI) also just announced the publication of two research studies demonstrating the safety and health benefits of PlusCBD™ products. Both studies were published in the Journal of Dietary Supplements.
Published on May 25, 2020, “Post Marketing Safety of Plus CBD™ Products, a Full Spectrum Hemp Extract: A 2-Year Experience,” this study adds to the growing body of literature that supports the safe use of hemp derived CBD as a dietary supplement. The data confirm a low rate of adverse effects in millions of consumers taking PlusCBD™ products over a two-year period. A noteworthy finding was the absence of any reports of liver toxicity, which has been described in studies using high doses of CBD as a prescription drug.
Medical Marijuana Inc (OTCMKTS:MJNA) managed to rope in revenues totaling $16.9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a declining rate of top line growth of -4.2%, as compared to year-ago data in comparable terms.
Its products range from patented and proprietary based cannabinoid products to seed and stalk or isolated high value extracts manufactured and formulated for the pharmaceutical, nutraceutical, and cosmeceutical industries. The company licenses its proprietary testing, genetics, labeling and packaging, tracking, production, and standardization methods for the medicinal cannabinoid industry.
MJNA engages in the research and development of cannabinoid-based pharmaceuticals; and marketing and distribution of cannabidiol hemp oil-based products. In addition, the company provides management support and services to cooperatives, collectives, health and wellness facilities, and medical clinics; and consulting and securities services to businesses and individuals in the legal cannabis industry.
Further, it focuses on the treatment of pain and other medical disorders with the application of chewing gum-based cannabis/cannabinoid medical products. Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. MJNA shares have been relatively flat over the past month of action, with very little net movement during that period.
Medical Marijuana Inc (OTCMKTS:MJNA) just announced that Raul Elizalde, co-CEO of its subsidiary HempMeds, has been invited to speak on Endeavor’s expert digital panel, “Cannabis in Mexico: The Debate and Opportunities for an Emerging Industry,” which was held on June 24.
“Raul pioneered the cannabis industry in Mexico and played an integral role in helping us find a pathway to legally selling CBD in several Latin American countries,” said Dr. Stuart Titus, CEO of Medical Marijuana, Inc. “We stand behind him in his legislative advocacy efforts and believe that he will add great value to this event.”
MCTC Holdings Inc (OTCMKTS:MCTC), now doing business as Cannabis Global, Inc. (MCTC), just announced the launch of its newest line of branded products, Hemp & Booch Super Premium hemp-infused Kombucha, a revolution in the Kombucha beverage market built on the finest ingredients available and powered by the Company’s Hemp You Can Feel infusions.
“Hemp & Booch not only sets the standard for taste and purity, but also for the relaxing effect provided by the Company’s patent pending Hemp You Can Feel™ infusions,” commented Arman Tabatabaei, Cannabis Global CEO. “Our new line is based on the best all-natural ingredients available, and we believe this comes across in the taste of the products, which are now available in sample quantities.”
According to the release, the product line, which targets the high end of the craft inspired Kombucha market, is infused using a unique honey bee hemp extract technology. Rather than using hemp extracts produced in a laboratory, like all other manufacturers, Cannabis Global has based its 100% natural product line on extracts of hemp produced by providing hemp extracts to honey bees, which in turn naturally process the extracts into a unique and naturally water-soluble infusion technology.
Management believes the market opportunity in the Kombucha space is underappreciated, especially given the Company’s built-in advantages in hemp infusion technology. According to Grand View Research, the global kombucha market is anticipated to reach USD $7.05 billion by 2027, growing at a CAGR of 19.7% over the forecast period, with growth driven by rising consumer consciousness around healthy dietary inputs.
The Company will be initially introducing three Kombuchas powered by Hemp You Can Feel – Concord Grape & Vanilla Bean, Pineapple Mint, and Kalmbucha, a special nighttime blend based on an exotic, caffeine-free organic African tea.
Given the growth trends in both Kombucha and hemp-based cannabinoid products, and the company’s existing infusion technology and distribution footprint, this could be an explosive move for the stock.
cbdMD Inc (NYSEAMERICAN:YCBD) promulgates itself as a company that produces and distributes various cannibidiol (CBD) products.
It owns and operates the consumer hemp-based CBD brand, cbdMD. The company’s product categories include CBD tinctures, capsules, gummies, bath bombs, topical creams, and animal treats and oils. It also offers pet related CBD products under the Paw CBD brand name.
cbdMD Inc (NYSEAMERICAN:YCBD) recently announced its financials for the quarter ended March 31, 2020. The Company reported net sales of $9.4 million, a year-over-year quarterly increase of approximately 67%, as well as a significant shift in online sales as an overall percentage of net sales, with direct to consumer e-commerce online sales reporting 72% of overall sales, up from 67% from the prior quarter.
It was solid data set and the note was obviously a precursor of likely even more dramatic shifts to come as the coronavirus pandemic set the tone from March forward.
The company distributes its products through an e-commerce Website, wholesalers, and various brick and mortar retailers in the United States.
cbdMD Inc (NYSEAMERICAN:YCBD) generated sales of $9.4M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -7.4% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($14.9M against $5.8M).