The Daily Buzz: A Fresh Look at the CBD Space (BILZF, ISWH, CWBHF)

Benjamin Roussey - September 25, 2019

Ignite International Brands Ltd (OTCMKTS:BILZF) is a new and visible way to play the cannabis and CBD theme. The stock has taken flight in recent days and should be hitting a ton of radars right now.

According to its latest release, “OTC Markets Group is the operator of financial markets for 10,000 U.S. and global securities. Ignite upgraded to OTCQX from the Pink market. Ignite officially began trading on September 3, 2019 on OTCQX under the symbol “BILZF.” U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcmarkets.com. The Company also confirms that, as of September 18, 2019, it has received approval from the Depository Trust Company (DTC) to become full service eligible, which will allow for electronic trading.”

Ignite International Brands Ltd (OTCMKTS:BILZF) trumpets itself as a company that operates in the cannabis industry in the United States and Canada. It offers joints, drops, and vape products under the IGNITE brand name. The company is based in Toronto, Canada.

Ignite International Brands Ltd is a Canadian Stock Exchange listed company operating in CBD and cannabis industries as permissible by the laws in each respective jurisdiction.

The stock has been launching in recent days as it gets its first taste of serious volume. And that’s important because the float here is tiny — less than 11M shares. That has important consequences when avg volume is increasing. Basic supply and demand.

“We are pleased to be trading on the OTCQX Market as it allows U.S. investors an opportunity to support Ignite as it continues to execute on its strategy of building a premium global brand,” said Jim McCormick, President of Ignite.

 

International Spirits & Wellness Holdings Inc. (OTCMKTS:ISWH) has is an extremely interesting sub-penny stock. If you are looking for distressed-asset type deep value in the CBD space, this is probably a stock to take a close look at. According to company materials, this could even be turning a profit on an EBITDA basis in Q3 with 4-digit percentage revenue growth. So, the tape is a perceptual issue. But it may be given the lie and some shorts may be punched in the face if we see some traction here.

As noted, the company’s Home Health Care segment is in a boom, demonstrating tangible financial performance in the space, leading to EBITDA profitability and 6,400% sales growth. That defines the company’s Q2 and Q3 of 2019. But Q4 is likely going to be defined by the company’s resumption of high volume sales of its P19 branded nano-infused CBD-based wellness products.

As noted in its most recent press release, after a period of reconfiguring its CBD supply chain and strategic relationship with BioPulse Labs, ISWH just announced that sales of its line of branded P19 CBD-Based Wellness products is resuming. This could put an enormous charge into the stock as investors start to look forward to a new narrative defined by profitability and strong growth heading into the final quarter of the year.

“Growth estimates for the overall CBD market are in the process of being revised sharply higher as mainstream consumer adoption dramatically outperforms prior baseline expectations for 2019,” commented Terry Williams, ISWH CEO. “It’s a perfect time for our diverse array of hemp-derived CBD products to resume live sales and distribution. This is a principle reason we have had to mark up our financial expectations heading into Q4.”

According to the company, ISWH is eager to restart sales given recent upward adjustments to forecasts for growth in CBD demand over coming quarters. Brightfield Group, a leading market and consumer intelligence firm for the legal CBD and cannabis industries, recently increased its own growth forecast for the CBD market, published analysis calling for a 706% year-over-year CBD product sales jump in the US in 2019 to around $5 billion in total sales, with sales expected to reach $23.7 billion by 2023.

 

Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) must be reckoned with by players in the CBD space.

The company develops and distributes hemp-based cannabidiol (CBD) wellness products. Its products include CBD hemp oils, capsules, topicals, and pet products that feature CBD hemp oil extracts.

Charlotte’s Web Holdings, Inc. sells its products online as well as through distributors, and brick and mortar retailers.

The company was formerly known as Stanley Brothers Holdings Inc. and changed its name to Charlotte’s Web Holdings, Inc. in July 2018. The company was incorporated in 2018 and is headquartered in Boulder, Colorado.

Charlotte’s Web Holdings, Inc. is the market leader in the production and distribution of innovative hemp-based cannabidiol wellness products. Founded by the Stanley Brothers, the Company’s premium quality products start with proprietary hemp genetics that are responsibly manufactured into whole plant hemp extracts naturally containing a full spectrum of phytocannabinoids, including CBD, terpenes, flavonoids and other beneficial hemp compounds. Industrial hemp products are non-intoxicating.

Charlotte’s Web current product categories include tinctures (liquid products), capsules, topical, as well as pet products. Charlotte’s Web hemp-based whole plant extracts are sold through select distributors, brick and mortar retailers, and online through the Company’s website.

With CBD forecasts boiling over as US mainstream consumer adoption accelerates, the stock is set to potentially benefit if the company is able to effectively take advantage.

Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) pulled in sales of $33.5M in its last reported quarterly financials, representing top line growth of 50.6%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($67.2M against $18.3M).

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Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing. http://www.facebook.com/ben.rouss

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