PALM BEACH, Florida, Nov. 19, 2019 /PRNewswire/ -- International support for CBD has been explosive. At the moment, one in seven Americans say they personally use cannabidiol-based products, says a recent Gallup poll, which has only proliferated since the passage of the U.S. Farm Bill. However, those numbers are likely to increase as more CBD makes its way on to shelves. In fact, the Brightfield Group estimates the U.S. CBD product market alone to be worth over $23.7 billion by 2023, as CBD finds its way into a variety of consumer product categories including food and beverage, pharmaceuticals, cosmetics, and health and wellness. In Europe, one in six Europeans surveyed by New Frontier Data reported using CBD. In addition, nearly half of Europeans reported having a positive impression of CBD. That's leading to a wide range of opportunity for companies including CBD Global Sciences, Inc. (CSE: CBDN), OrganiGram Holdings Inc. (TSX-V:OGI)(NASDAQ:OGI), Zenabis Global Inc. (OTCPK:ZBISF)(TSX:ZENA), KushCo Holdings Inc. (OTCQB:KSHB), and cbdMD Inc. (NYSE:YCBD).
CBD Global Sciences, Inc. (CSE: CBDN) BREAKING NEWS: CBD Global Sciences, Inc. announced the expansion of its Aethics Hydration product line, launching an all new lineup comprised of infused CBD Balance Sparkling Water in 3 flavors ? Grapefruit, Berry, and Lemon Lime. With today's launch of the expanded Aethics Hydration product line, CBD Global Sciences' aim is to increase its market share in the rapidly growing market segment for hemp-derived CBD sports water. CBD-infused beverages are considered to be the fastest growing segment in the overall market. According to market research firm, Zenith Global, the U.S. cannabis-infused drinks market will reach an estimated $1.4 Billion by 2023. CBD Global Sciences' water line can be viewed and purchased online at https://aethics.com/products/cbd-sparkling-water-for-athletes-by-aethics-h20-balance, and is available through retail outlets nationwide.
The Company's Sparkling Water is a 12-ounce cannabis infused with 10mg of CBD and flavor extract. The H2O Balance Sparkling water uses a refined full-spectrum formulation to preserve the full range of the hemp-plant's beneficial components. Brad Wyatt, CEO & President, states " Our company continues to demonstrate its ability to be timely and innovative in creating multiple varieties for our hydration lines that will enhance the consumer's ability to find a product that they will enjoy as a refreshing way to rehydrate with a full spectrum compliment of CBD and other supportive cannabinoids."
Other cannabis-related developments from around the markets include:
OrganiGram Holdings Inc. (TSX-V:OGI)(NASDAQ:OGI) announced details for its fiscal fourth quarter ended August 31, 2019 and full year 2019 conference call. The Company is scheduled to report its fourth quarter and full year earnings results for its fiscal year ended August 31, 2019 on Monday, November 25, 2019 before market open. For the fiscal full year 2019, the Company expects to report year-over-year growth in net revenue of approximately 547% to about $80.4 million as well as positive adjusted EBITDA for the year. Net revenue (after excise taxes) for Q4 2019 is expected to be approximately $16.3 million, which reflects about $20.0 million of shipments in the quarter and about $3.7 million in provisions for product returns and pricing adjustments. Lower Q4 2019 net revenue (compared to third quarter net revenue of approximately $24.8 million) and about $1.6 million of packaging and inventory adjustments (charged to cost of sales) in the quarter are expected to contribute to negative adjusted EBITDA for Q4 2019.For Q4 2019, the Company also expects to report sequential improvement in the cost of cultivation per gram and overall harvested volume as its yield per plant returned to normalized levels following a temporary decline in the third quarter of fiscal 2019 ("Q3 2019"). As first discussed in its third quarter earnings report, the cannabinoid content in Organigram's harvested flower and sweet leaf has continued to reach all-time highs and the Company has identified what it views as an optimal balance of high yields and high cannabinoid content. "While Q4 2019 did not meet our overall expectations, we have not only emerged as one of the national leaders in the industry with significant growth expected in net revenue and strong market share, we expect to report positive adjusted EBITDA for the year," said Greg Engel, CEO. "And we remain relentlessly focused on running a profitable business which earns attractive returns on investment for our shareholders over the near and long term. We are encouraged by Ontario's recent announcement to expand the retail network and believe this should be an important catalyst to drive further growth for us and the industry as a whole."
Zenabis Global Inc. (OTC:ZBISF)(TSX:ZENA) CEO Andrew Grieve stated, " "In this quarter, Zenabis substantially expanded its licensed capacity and cultivation yields, raised $65 million in new financing, and submitted further license amendments that, once approved, will increase annual cultivation capacity by over 300% compared to the second quarter of 2019. These license amendments at Zenabis Altholville and Zenabis Langley, expansion into the Ontario market, and the launch of a new value brand Re-Up meaningfully improved our competitive position for the fourth quarter and beyond." Mr. Grieve added, "We continue to make substantial progress toward achieving our planned licensed annual production capacity of 143,200 kg. By the end of 2019, we expect to have 111,200 kg of capacity licensed or submitted for licensing. In addition, we resolved our packaging challenges in September of 2019. As a result, October provincial recreational shipments increased by 93% to 830 kg versus 430 kg in September of 2019, and primary dried flower packaging output per day increased by 101% to an average of 10,636 units per day in October 2019 versus 5,282 units per day in September 2019. Over the first 10 days of November, this figure increased to an average of 18,099 units per day."
KushCo Holdings Inc. (OTCQB:KSHB) Co-founder, Chairman and Chief Executive Officer, Nick Kovacevich commented, ""Since we became a public company in 2016, we have more than doubled our annual revenue in each of the last four fiscal years, with revenue for fiscal 2019 increasing 186% year-over-year to a record $149.0 million, helping us achieve our guidance of between $145 million and $150 million in revenue. Substantially all of this robust growth was organic, driven primarily by our continued success in penetrating both new and existing markets and cross-selling deeper into our 6,000+ strong customer base with our significantly expanded offerings. Perhaps more importantly, we have supplemented this solid topline growth with increasing margins, as we have driven further improvements and efficiencies in our business. In fact, our gross margins have been increasing every quarter since we started fiscal 2019 from 13% in fiscal Q1 to 20% in fiscal Q4. Given that we are continuing to gain scale and efficiency in our core business, while launching and ramping up higher-margin service offerings, we expect to see continued gross margin enhancement in the near future."
cbdMD Inc. (NYSE:YCBD) announced today that in tandem with its strong sequential sales growth recently reported, the company has also been ranked the highest in several key categories within the CBD industry. "We are excited to announce that according to the Brightfield Group, one of the leading predictive analytics and market research firms for the legal CBD industry, in a newly released survey conducted by Brightfield of more than 3,500 CBD users, cbdMD ranked the highest in terms of overall consumer satisfaction as well as the highest in unaided consumer awareness of any of the top 20 CBD brands. In addition, according to media intelligence and monitoring company Meltwater, cbdMD had the highest "share of voice" throughout the entire CBD Industry for the three months ended September 30, 2019," said Martin Sumichrast, Chairman and co-CEO of cbdMD, Inc. "We believe that this clearly shows that our brand building and marketing efforts are leading the CBD industry. This data should accelerate our push into retail as more and more retailers are getting onboard with our brand. Our goal has always been to have the leading brand in the space, with the best products and industry leading customer service. I believe that we are delivering on that promise everyday."
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