One recent piece of research (Industryresearch.biz) for strictly CBD oil shows growth expectations at a CAGR of roughly 32.0% over the next five years, to reach over $1.25 billion by 2024, up from $311.8 million in 2019. These numbers are smaller simply because this is the market for CBD by itself.
The market for CBD-based products is much larger, and will grow to be many times this size over the same period, with analysts calling for $15-25 billion in sales by 2025. Grand View Research, for example, puts the global cannabidiol-based products market at a value of $4.6 billion already by 2018. Their research suggests it will grow by over 22% CAGR from 2019 to 2025 to reach nearly $19 billion.
CBD is benefitting from “mainstreaming” growth: the engine behind this extraordinary boom in growth is the process of a small niche market gradually becoming a mainstream household product category. This is boosted along the way in a feedback loop because of the increasing presence in high-traffic consumer areas, more marketing and media penetration, and a rising appreciation of the health and wellness benefits that are increasingly understood as part of the equation with CBD-based products.
With that in mind, we take a look at a selection of active CBD stocks, including: GrowGeneration Corp (OTCMKTS:GRWG), Neptune Wellness Solutions Inc (NASDAQ:NEPT), Tauriga Sciences Inc (OTCMKTS:TAUG), Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF), and cbdMD Inc (NYSEAMERICAN:YCBD).
GrowGeneration Corp (OTCMKTS:GRWG) owns and operates retail hydroponic and organic gardening stores in the United States. GrowGen also operates an online superstore for cultivators. In short, GRWG is a pick-and-shovel play for hemp cultivators, which makes it, in theory, one of the biggest potential beneficiaries of the long-term mainstreaming growth trend in CBD-based products.
GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.
GrowGeneration Corp (OTCMKTS:GRWG) has been advancing its capital base in the process of pushing growth. The company announced the pricing of an underwritten public offering of 7,500,000 shares of its common stock at an offering price of $5.60 per share. GrowGen expects the gross proceeds from the Offering to be approximately $42.0 million, before deducting the underwriting discount and other estimated offering expenses.
According to the company’s release, the Offering was upsized from the previously announced offering size of $35.0 million of common stock. GrowGen has also granted the underwriters a 30-day option to purchase up to an additional 1,125,000 shares of common stock offered in the public market. The Company expects to close the Offering on or about July 2, 2020, subject to the satisfaction of customary closing conditions.
Even in light of this news, GRWG has had a rough past week of trading action, with shares sinking something like -17% 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. Shares of the stock have powered higher over the past month, rallying roughly 74% in that time on strong overall action.
GrowGeneration Corp (OTCMKTS:GRWG) pulled in sales of $43.5M in its last reported quarterly financials, representing top line growth of 123%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($14.8M against $18.8M, respectively).
Neptune Wellness Solutions Inc (NASDAQ:NEPT) 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. The company has a strategic collaboration with International Flavors & Fragrances Inc. to co-develop hemp-derived CBD products for the United States market.
Neptune Wellness Solutions Inc (NASDAQ:NEPT) recently 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.
Even in light of this news, NEPT has had a rough past week of trading action, with shares sinking something like -3% 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. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -7%.
Neptune Wellness Solutions Inc (NASDAQ:NEPT) generated sales of $21.4M, 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 124.2% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($25.5M against $22.9M).
Tauriga Sciences Inc (OTCMKTS:TAUG) is an interesting more speculative play in the space that has started to make waves as the only pure-play option for delivering supplements like CBD and CBG through chewing gum.
The company is commercial-stage and generating revenues as a diversified life sciences company, with a proprietary line of functional “supplement” chewing gums (flavors include Pomegranate, Blood Orange, Peach-Lemon, Pear Bellini, Mint, and Black Currant) as well as two ongoing Biotechnology initiatives.
Tauriga Sciences Inc (OTCMKTS:TAUG) just announced additional features available on its e-commerce Website (www.taurigum.com), through its relationship with Shopify. Enhanced features include: Rewards Program, E-Gift Cards, Real Time Blog, Educational Articles, and Multi-Media Customer Reviews. As a result, the Company has already experienced a substantial increase in user traffic on its e-commerce site.
According to the release, the Company continues to generate strong results from its highest margin e-commerce business segment. Additionally, the Company is excited about providing more details soon on its two major upcoming product launches – including the launch of its Rainbow Deluxe Sampler Pack (exclusively through its E-Commerce platform). The Company has also established E-Gift Card Denominations for Tauri-Gum™ available through its e-commerce portal.
Following a recent series of strong catalysts, TAUG shares have been finding support and gradually pushing higher, up about 10% over recent days.
Tauriga Sciences Inc (OTCMKTS:TAUG) is really just starting to seriously ramp up commercial-stage operations. The company has already started to pull in cash from operations. But recent headlines suggest the lion’s share of success for this name is ahead of us.
Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) bills itself as a company that 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. is a 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 Holdings Inc (OTCMKTS:CWBHF) just announced that the Company will be relying on the temporary 45-day extension to the filing deadline granted by the Ontario Securities Commission in response to COVID-19 pursuant to Ontario Instrument 51-505 (“OI 51-505”) – Temporary Exemption from Certain Corporate Finance Requirements with Deadlines during the Period from June 2 to August 31, 2020, and similar extension periods provided for by the Canadian Securities Administrators in the other provinces of Canada, for filing of a business acquisition report (“BAR”), which would otherwise be due August 25, 2020.
The BAR relates to the Company’s acquisition of all of the issued and outstanding shares of Abacus Health Products, Inc., which closed on June 11, 2020. Circumstances related to the COVID-19 pandemic have resulted in the Company requiring additional time to complete the BAR filing. The Company expects to file the BAR in September.
The stock has suffered a bit of late, with shares of CWBHF taking a hit in recent action, down about -3% over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -5%.
Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) generated sales of $28.9M, 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 -4.2% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($75.5M against $42.2M).
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 its pet CBD brand, Paw CBD, has seen an approximate 64% increase in net sales from its March 2020 quarter of approximately $750,000 to approximately $1,229,000 for its June 2020 quarter.
“Paw CBD was launched less than one year ago, and now it is one of America’s leading CBD pet brands,” said Ken Cohn, CMO of cbdMD, Inc. “Sales metrics are all moving in the right direction, with Paw CBD now trending at over a $7mm annualized run rate, and cbdMD’s overall direct-to-consumer (DTC) sales making up over 70% of the brand’s revenue. We are seeing the DTC power of cbdMD.com translating into significant growth for PawCBD.com.”
The stock has suffered a bit of late, with shares of YCBD taking a hit in recent action, down about -4% over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -14%.
cbdMD Inc (NYSEAMERICAN:YCBD) generated sales of $10.6M, 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 13.2% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($15.1M against $4.4M).
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