Cannabinoids are still a new marketplace. Even though weed has been around for a long time, and everyone knows it on some level, the notion of a class of compounds with a variety of different potential uses for people on an everyday scale is still something investors are getting used to.
But the growth data in the space is undeniable. And it may just be the tip of the iceberg. CBD is the huge star right now in terms of future growth potential, with THC actually trailing by a length according to analysts – because not everyone wants to get “high”.
However, there are a host of other potential stars on the way, including Tetrahydrocannabinolic Acid (THCA), Cannabidiolic Acid (CBDA), Cannabinol (CBN), Cannabigerol (CBG), Cannabichromene (CBC), Tetrahydrocannabivarin (THCV), Cannabidivarin (CBDV), and others.
Companies already with an edge in the CBD space may be the best candidates for transitioning into other cannabinoids if and when they catch fire. With that in mind, we take a look at a few of the most interesting and compelling names in the CBD space, including: Cronos Group Inc (NASDAQ:CRON), cbdMD Inc (NYSEAMERICAN:YCBD), Cannabis Global, Inc. (OTCMKTS:CBGL), and Neptune Wellness Solutions Inc (NASDAQ:NEPT).
Cronos Group Inc (NASDAQ:CRON) casts itself as an investment firm in the biopharmaceutical space, with a strong emphasis on medical marijuana and cannabis-related research and products. In short, the company seeks to invest in other companies, either licensed or actively seeking a license, to produce medical marijuana pursuant to Canada’s Marijuana for Medical Purposes Regulations (MMPR).
The firm typically invests in companies based in Canada. The firm is primarily an equity investor, may also advance debt as appropriate. It seeks to make minority investments with appropriate governance and shareholder rights. The firm seeks board representation consistent with the size of the investment but does not need control.
Cronos Group Inc (NASDAQ:CRON) distributes its products across five different continents. The company drives several brands in the space, including PEACE NATURALS, COVE, Spinach, 2 adult-use brands, Lord Jones, and PEACE+, and 2 hemp-derived CBD brands.
If you’re long this stock, then you’re liking how the stock has responded to the announcement. CRON shares have been moving higher over the past week overall, pushing about 0% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 13% in that time on strong overall action.
Cronos Group Inc (NASDAQ:CRON) pulled in sales of $11.3M in its last reported quarterly financials, representing top line growth of 184%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.9B against $286.8M).
cbdMD Inc (NYSEAMERICAN:YCBD) just announced that it has filed a new patent application with the U.S. Patent and Trademark Office which will allow it to pursue patented protection in several key areas, including novel formulations and delivery systems, as well as methods of manufacturing and use.
According to the release, the recent submission by the company is part of its ongoing intellectual property strategy to ensure appropriate protection around its product lines and to be forward-thinking as to the direction of the CBD market.
cbdMD Inc (NYSEAMERICAN:YCBD) 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. The company distributes its products through an e-commerce Website, wholesalers, and various brick and mortar retailers in the United States.
The context for its recent announcement is a bit of a bid, with shares acting well over the past five days, up about 11% in that timeframe. Shares of the stock have powered higher over the past month, rallying roughly 46% in that time on strong overall action.
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).
Cannabis Global Inc (OTCMKTS:CBGL) is a more speculative name, but one with strong IP in place, including a number of provisional patents in process at the USPTO. The company was formerly known as MCTC Holdings, Inc. (OTC PINK:MCTC), dba Cannabis Global Inc., a cannabinoid and hemp extract science forward company developing infusion and delivery technologies.
Earlier this week, it got word from FINRA that the name and ticker changes were approved, bringing the company’s overall market identity into a much more coherent and cohesive form, which is more important than you might think.
“We have come a long way in only one year,” commented Arman Tabatabaei, chief executive officer. “During this year we have reorganized the Company, instituted a robust cannabinoid-oriented R&D program, filed six provisional patents on the developed technologies, all while developing a host of consumer and industry products utilizing the inventions. We are very pleased to announce our corporate name change to Cannabis Global, Inc., and the new CBGL trading symbol.”
Cannabis Global Inc (OTCMKTS:CBGL) also noted in the release that it plans to continue its focus on hemp extract products based on unique infusion technologies. Over the coming months, the Company expects to launch a series of innovative products in the areas of beverages, foods, and food company functional ingredients. The Company’s focus on honey-bee hemp infusions and rare cannabinoids, such as Tetrahydrocannabivarin (THC-V) and Cannabinol (CBN), will continue, as will its focus on scientific studies relating to the infusion technologies.
The company’s most recent breakthrough move is its THCV mouse study now underway, which could produce critical data that advances our understanding of this unique cannabinoid and its potential as a diet and weight loss supplement. If that study produces compelling results, the company could gain in value since it may be the only commercially scalable source of THCV.
Cannabis Global Inc (OTCMKTS:CBGL) had no reported sales in its last quarterly financial data. But it appears to be closing in on commercial-stage operational gains for shareholders and has a strong IP edge in the industry.
Neptune Wellness Solutions Inc (NASDAQ:NEPT) frames itself as a company that operates as a health and wellness products company. The company operates through two segments, Nutraceutical and Cannabis. The Nutraceutical segment offers turnkey solutions, such as raw material sourcing, formulation, quality control, and quality assurance for omega-3 and hemp-derived ingredients under different delivery forms, including softgels, capsules, and liquids.
The Cannabis segment provides extraction and purification services from cannabis and hemp biomass. The company also offers formulation and manufacturing solutions for value added product forms, such as tinctures, sprays, topicals, vapor products, edibles, and beverages. It offers its products under the Forest Remedies and Ocean Remedies brand.
Neptune Wellness Solutions Inc (NASDAQ:NEPT) just announced the appointment of Eric Gharakhanian , Ph.D. as Director of Product Development, Health & Wellness Innovations. According to the release, Dr. Gharakhanian will be responsible for developing and building Neptune’s portfolio of health and wellness products across personal care and homecare, with a focus on sustainable and natural plant-based sanitization wipes, hand sanitizers and other innovations.
And the stock has been acting well over recent days, up something like 4% in that time. NEPT shares have been relatively flat over the past month of action, with very little net movement during that period.
Neptune Wellness Solutions Inc (NASDAQ:NEPT) managed to rope in revenues totaling $9.5M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 68.3%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($16.6M against $17.2M, respectively).