CBD Infused Products Popularity Rising Fast in Over-the-counter Retail Stores
Financialnewsmedia.com News Commentary
PALM BEACH, Florida, July 9, 2020 /PRNewswire/ -- As medical and recreational legalization of cannabis continues to make cannabis products more mainstream, more consumers are shifting their views on the plant, and retailers are taking notice. Cannabis — and, in particular, cannabidiol (CBD), is poised to become one of the most popular and financially successful sectors of consumer processed goods. An article by Weed Maps says that most experts project its potential well into billions of dollars. The article stated that: "As CBD continues to rise in popularity, more over-the-counter (OTC) retailers are getting on board — and shifting their strategies to accommodate this new market. "A lot of the products that are widely available in OTC stores have been available for 10 to 15 years, so [CBD] brings new solutions to the space and...new interest, which has been well received by the retailers," said Dustin Sullivan, chief operating officer of (a CBD industry company) and a veteran retail business development professional." The article continued: "It's only been very recently that CBD products, such as topicals and tinctures, have been sold at over-the-counter retailers… it's a welcome change — and consumers are embracing the shift towards hemp-derived CBD products, particularly when it comes to using CBD for medicinal purposes. Mentioned in today's commentary include: HEXO Corp. (NYSE: HEXO) (TSX: HEXO), Rapid Therapeutic Science Laboratories, Inc. (OTCPK: RTSL), cbdMD, Inc. (NYSE: YCBD), CBD Unlimited, Inc. (OTCPK: EDXC), Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF).
As CBD becomes more widely available at over-the-counter retailers and legalization becomes more likely, consumers are considering cannabis as an alternative treatment for health issues, including chronic pain. According to the Nielsen survey, 40% of all headache and migraine sufferers, 40% of all arthritic pain sufferers, and 41% of all back and neck pain sufferers are interested in consuming cannabis as an alternative pain treatment. The survey notes that while there are a few exceptions, the majority of those surveyed with chronic pain are currently using OTC or prescription treatments.
Rapid Therapeutic Science Laboratories, Inc. (OTCPK: RTSL) Breaking News: Rapid Therapeutic Announces Major Contract is Increased by 150% to 250,000 Metered Dose Inhalers - Rapid Therapeutic Science Laboratories (the "Company" or "RTSL"), a fully-reporting, early stage, emerging biotech company focused on aerosol delivery of cannabinoids in the legal hemp and cannabis space using Metered Dose Inhalers (MDIs), announced today that RTSL has received an additional commitment of 150,000 units under a 100,000 unit wholesale order of its Rxoid™ brand 5.0 mg proprietary CBD/CBG formulation which delivers a 98% bioavailable dose of CBD directly to the systemic blood stream.
Donal R. Schmidt, Jr., Chairman and CEO stated, "Our customer that specializes in sales directly to health practitioners has increased their commitment from 100,000 to 250,000 units. The primary reason given was the quality and relief their clients' patients were receiving from our product. Undoubtedly, our customer clients see the efficacy and value of our delivery method for a pure, clean product. All of these orders will be built in our new ISO 13485 compliant facility. Physicians understand the importance of this lab and it is being reflected in their view of our product."
Mr. Schmidt continued, "Our Rxoid™ CBD Inhalers are currently being sold through doctors' offices and in pharmacies across the United States and we are extremely pleased about our products' acceptance throughout the medical community. I expect this trend will continue to expand as word spreads about the quality of our products and our compliance with GMP standards." Read the full Press Release and more for RTSL at: https://www.financialnewsmedia.com/news-rtsl
In other active company news in the markets this week:
HEXO Corp. (NYSE: HEXO) (TSX: HEXO) recently announced that it completed the previously disclosed sale of its Niagara, Ontario facility for proceeds of approximately $10.25 million on June 15, 2020. The Company had determined to market the facility for sale following a strategic review by the Company of its cultivation assets in March 2020, in which it determined it no longer expected to re-commence operations at the Niagara facility due to an excess of cultivation capacity in the market and estimated forecast demand for cannabis products, as result of slower than expected market development. The sale of the Niagara facility included land and greenhouse facilities, as well as certain equipment.
cbdMD, Inc. (NYSE: YCBD) recently reported its second fiscal 2020 quarter ended March 31, 2020 results, as well as some significant development. "We are pleased to report strong second quarter results, as well as provide a mid-quarter update on operations. We reported $9.4 million in quarterly net sales, a 67% increase over the same quarter last year. Our gross profit margin remains strong at 67% year-to-date and 70.9% for the quarter. Our overall direct to consumer e-commerce sales for the March fiscal quarter were $6.8 million or 72% of our total net sales, an increase of $2.5 million or 58% from the prior year's quarter.
Our B2B brick and mortar sales were $2.6 million or 28% of our total net sales, an increase of $1.2 million or 85% from the prior year's quarter. Direct to consumer e-commerce sales for the six months ending March were $13.6 million or 70% of our total net sales, an increase of $8.9 million or 189% from the prior year period. Our B2B brick and mortar sales were $5.9 million or 30% of total net sales, an increase of $4.5 million or 321% from the prior year period. Our operating expenses for the March quarter were $12.2 million, of which approximately $665,000 was non-cash expenses, resulting in a cash use of $4.2 million for the quarter. Year to date our operating expenses were $24.8 million, of which approximately $1.5 million was non-cash expenses, resulting in a cash use of approximately $9.1 million for the six months ending March 31, 2020," said Martin Sumichrast, Chairman and co-CEO of the Company
CBD Unlimited, Inc. (OTCPK: EDXC) a lifestyle company focused on the intersection of science, compliance, and formulation of innovative phytonutrient-based food and nutritional products, recently announced the e-commerce launch of RubyBees™ Hemp Infused Honey. RubyBees™ is now available in 950mg and 120mg jars for purchase on CBD Unlimited's website.
Peter Boyer created RubyBees Hemp Honey when he was first introduced to CBD Unlimited's hemp-derived CBD, an active ingredient derived directly from the hemp plant that exhibits soothing properties, as a way to ease the symptoms of his daughter. Longtime Endexx shareholder, Richard Steinhart, has long believed in the therapeutic benefits of CBD and suggested Boyer consult his daughter's doctor about trying CBD sublingual oil alongside the medication she already takes for her cerebral palsy and epilepsy.
Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF) recently announced that it has executed a definitive agreement with DutchCanGrow Inc. ("DCG"), a Netherlands-based cannabis enterprise, to become one of six equal shareholders in DCG owning just under 16% each, with a seventh shareholder owning 5%. DCG is pursuing the opportunity to become one of a limited number of licensed cannabis growers (up to a maximum of 10) when the Dutch government permits the first legal recreational cannabis market in Europe under its 10-city Experiment to Investigate Closed Cannabis Supply Chains (the "WECG").
If successful in receiving a license from the Dutch government when awarded later this year, DCG plans to construct and operate a specialized cannabis greenhouse facility in the Netherlands and develop, produce and market a variety of safe, high-quality cannabis products to supply this new legalized market. Since 1976 in the Netherlands, a cannabis policy has been in effect regarding cannabis, under which the sale of cannabis at "coffee shops" is tolerated but the cultivation of cannabis is illegal. In 2019, in response to concerns around product safety (ingredients, additives, contaminants) and increasing criminal involvement related to cannabis cultivation, the Netherlands' House of Representatives approved the WECG as an intermediary step to address the lack of quality standards and societal impact of crime related to cannabis.
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