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Why CBD is the Real Future of Cannnabis (CRON, YCBD, CBDD, NEPT)

The CBD space is more and more receiving attention as perhaps the real bloom on the flower of the cannabis movement in terms of economic and financial opportunities. It’s just a fact: most people aren’t ever going to be interested in smoking pot. But everyone wants to feel better, more healthy, more relaxed, and to have more tools for subjective well-being, without “getting high” necessarily being part of the equation.

The cannabis plant has been the focus of research – both anecdotal and formal – that has started to establish a number of positive benefits. CBD is the path that harnesses those positive factors without forcing one to engage in the psychoactive elements that come with the THC package.

That very directly represents a larger total addressable market.

As the stigma attached to the cannabis plant inevitably drops away, we are left with this big market opportunity – essentially, the process of a transition from a small niche market worth maybe $50 million in sales 6-8 years ago to a monster global juggernaut worth as much as $25-50 billion according to some estimates over coming years.

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), CBD of Denver Inc. (OTCMKTS:CBDD), and Neptune Wellness Solutions Inc (NASDAQ:NEPT).

Cronos Group Inc (NASDAQ:CRON) has 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) just announced its 2020 second quarter business results. “In the second quarter of 2020, we continued our progress despite unprecedented shifts in our industry and the global economy. We officially entered the Israeli medical cannabis market, with Cronos Israel commencing the sale of PEACE NATURALS™ branded dried flower products to medical patients. During these extraordinary times, it is very encouraging to see that we are making progress against our strategy across our global footprint,” said Mike Gorenstein, CEO of Cronos Group.

“While following safety guidelines, our employees are finding new and creative ways to keep our production, manufacturing, and R&D facilities operating, and we are bringing new products and brands to markets across the globe. Cronos Group was founded on the mission to improve people’s lives by unlocking the full potential of cannabis and our Company is very proud to be at the forefront of providing safe access and high-quality products to patients and consumers around the world.”

The stock has suffered a bit of late, with shares of CRON taking a hit in recent action, down about -17% over the past week.

Cronos Group Inc (NASDAQ:CRON) generated sales of $13.7M, 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 20.7% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.8B against $320.4M).

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.

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.

Even in light of this news, YCBD has had a rough past week of trading action, with shares sinking something like -7% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way.

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).

CBD of Denver Inc. (OTCMKTS:CBDD) engages in developing and commercializing cannabidiol (CBD) products. It is involved in the research, development, and distribution of premium hemp extract products. CBD of Denver Inc. operates as a subsidiary of Swiss Industry Ventures AG. CBDD is focused on using equity to acquire profitable Swiss assets at attractive valuations to create value for shareholders.

The company just put out a powerful corporate update that noted that CBDD’s Rockflowr, GmbH subsidiary, just purchased a new vacuum packaging machine for flowers and is in the process of shipping sample packs to CBD stores throughout Europe.  Rockflowr is also pleased to announce it opened its first account in France. The first sale was for more than 52,000 CHF (approximately $57,00) and we received an additional order for 72,500 (approximately $79,000).  We have also been contacted by several other buyers and hope to be able to sell more product to France in the near future. 

CBD Welt 24, GmbH, is on schedule to have harvests every month.  CBD Welt just sold its harvest from July to the same group that purchased the prior month’s harvest. We are currently working on a new website for CBD Welt 24 and will have online live cameras for each facility.  When we finish with our updates, we will link the website to the CBD Corporate website.

CBD of Denver Inc. (OTCMKTS:CBDD) is developing 3 new products for their Black Pearl CBD website.  The first product is a CBN/CBG gel cap which will be sold in 30 count per bottle.  Reports show that CBN and CBG can help with sleep and relaxation.  The second product is a CBD pain stick containing 3.8% full spectrum CBD and the third product, which will be introduced last, is a CBD lotion, to help skin look younger and relieve pain.

CBDD offers a superior CBD product that is full spectrum without depending on THC to activate the benefits of the cannabidiol. According to company materials, CBDD was created to offer the consumer a unique and new perspective on the unorganized and confusing CBD industry. CBD of Denver, Inc. is the only company to release a comprehensive CBD Social Network (www.cbdsocialnetwork.com). The idea of the network is to connect CBD users from America and around the world to interact and discuss CBD uses, treatments and products. The site has been active for 3 months and already receives 2000-2500 hits a day.

CBD of Denver Inc. (OTCMKTS:CBDD) just posted a net profit in Q2, which is the first time in the company’s history that it has achieved that milestone, which the company rightly sees as an indication of being on the right course in terms of providing value for its shareholders.

Neptune Wellness Solutions Inc (NASDAQ:NEPT) 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).

Published by Fiona Gibson

Fiona is a finance graduate and an expert in analyzing market trends.



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