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Investors Who Missed The Pot Stock Boom Might be Getting a Second Chance With Cannabis’ Legal Cousin
By Lee Bellinger
While illegality and unfulfilled promises of profitability from pot stock companies has destabilized the industry, there’s a new “legal green rush” presenting an incredibly rare opportunity for investors
The Truth About Me
The Truth About Investing Insights
By LEE BELLINGER
If you’re reading this advertisement you might be wondering how I came to be an investing expert.
The answer is, I’m not, per se. I’m not a certified financial analyst. But, I learned lot during the time I spent as a legislative assistant to two members of Congress. And, I have been a dogged financial publishing researcher for 33 years, since 1988. So, I have more time in investing research than most people spend in a single job during their careers. And, to be frank, as in this I sometimes do paid endorsements, but only if I really, really like the company.
In fact, HempFusion’s strong emphasis on regulatory compliance is one of the reasons I’m so excited to endorser this project. The company turned an obstacle into a core principle of the company’s focus. A move that can be only be deemed as a leg up over its short-sighted competitors.
I follow and predict trends in the market and on the world stage. This is what I do, day in and day out. I’m relentless in my pursuit of hunting down the best stocks in the best sectors, at the best possible price… then, I pounce.
I believe HempFusion is a unique opportunity, but it is a CBD venture, and every CBD venture– every darned one – is speculation.
This is why, when it comes to investing I urge you to never invest more than you can safely afford to lose.
In the last few years, you’d be hard pressed to find stocks that yielded juicer returns than the cannabis sector. Hopes of legalization and an insatiable appetite for high growth “pot” stocks sparked unparalleled hysteria throughout the industry.
Investors who got in on the ground floor of companies like Tilray (TLRY), Canopy Growth (CGC), and Aphria (APHA) were left sitting on fortunes as these stocks soared as high as 2,000%.
But adept investors like yourself know that timing is everything. Those who bought at the right time and sold into the frenzy are nothing short of very smart, and very rich. Those who chased or continued to hold – well – that story has a different ending.
Many of the highest flying pot stocks have lost two thirds or more of their value as investors begin to realize that the industry is plagued with finite market share, instability, and uncertainty due to federal illegality and heavy state level regulation.
While the pot stock boom has lost its thrust, the entry of a legal derivative of cannabis is stirring up a lucrative industry hiding in plain sight… and it’s likely just getting warmed up.
Your Not so Typical Farm Bill Sparks a Red Hot Legal Cannabis Industry
It’s not everyday the government passes legislation that paves way for a multi-billion dollar industry… But that’s exactly what the 2018 Farm Bill did.
For decades, federal law did not differentiate “hemp” from marijuana; but the 2018 Farm Bill radically changed that. For the first time ever, hemp is no longer looped in with other cannabis plants in the eyes of the law.[1]
The Farm Bill served to define, legalize, and protect hemp… So let’s get the legal definition straight between hemp and marijuana.
In order for a product to be classified as “hemp” and not marijuana, it must contain less than 0.3% THC — the compound in marijuana that produces a high.[2]
Hemp with less than 0.3% THC produces no psychoactive effect, but it still provides powerful pain and stress relieving properties, similar to that of medical marijuana.
As long as hemp derived products are produced in accordance with the law, there are no federal restrictions on the sale, transport, or possession of hemp.[3]
The 2018 Farm Bill catapulted hemp into the spotlight, and ignited a promising new industry still in its infancy state… hemp derived CBD.
Thousands of CBD Companies are Flocking to Meet Rising Demand, but there’s Only One Clear Winner Amongst Them
Due to it’s pain relieving, calming, and stress & anxiety reducing effects — not to mention it’s legality — CBD is rapidly growing in popularity and demand by the day.
A 2020 poll revealed that 33% of Americans are using, or have used CBD; which is more than a 100% increase from 2019 where only 14% of Americans reported to use CBD products.[4]
The evidence is all around you.
There are over 280,000 retail locations in the US that offer CBD products. To put that into perspective for you… For every starbucks you see, there are 8 stores around the block selling CBD products to everyday customers.[5]
Can you think of any other industry stirring up demand on that scale? I can’t.
What’s more is that the CBD industry is nowhere close to the ceiling.
The current market for CBD is valued at $4 billion, and expected to hit $17 billion by 2025. That means the industry is facing a double digit growth curve – a whopping CAGR of 33% – over the next 5 years.[6]
The rise of CBD is undoubtedly meteoric. Thousands of companies are flooding into the industry, hungry to use this booming consumer demand as their own personal ATM’s.
But in a sea of companies cutting corners to make a quick buck, there’s one juggernaut that has positioned itself from the very beginning for total industry domination — HempFusion (CBDHF).
A Subtle Trend Leads HempFusion (CBDHF) to the Most Lucrative Segment Within the CBD Industry
Some of the most successful companies on the planet have one thing in common — they’re founded from struggle, and rooted in passion and vision.
HempFusion (CBDHF) is no different.
The story of HempFusion (CBDHF) starts in 2015 with Jason Mitchell — Naturopathic doctor and the company’s co-founder and present day CEO.
For a majority of his life, Jason was staunchly anti-cannabis in every form. After being diagnosed with a chronic inflammatory disease, realized that conventional treatments did little to help with the debilitating side effects.
He began exploring natural remedies, and that’s when he radically changed his mind about cannabis and yup, you guessed it — CBD.
It’s from Jason’s own experience, and from identifying the subtle trend of millions of Americans ditching western medicine in favor of CBD, that he realizes where the real opportunity lies within the industry — nutraceuticals.
HempFusion’s (CBDHF) diverse lineup includes 48 products on the market from tinctures and capsules helping with sleep, stress, and energy; to to proprietary FDA Drug Listed Over-TheCounter (“OTC”) Topicals for muscle pain, acne, eczema, and more.[7]
The nutraceutical sector on which HempFusion’s (CBDHF) product line was developed is dominating the CBD market.
Nutraceuticals accounted for the highest revenue share of 43% in 2020; and this segment is projected to witness the fastest growth rate within the CBD industry.[8]
The fact that the nutraceutical sector is forecast to become the largest CBD category in terms of US sales — the sector which CBDHF is set to reign — is the first reason investors need to keep a close eye on HempFusion (CBDHF).
Recent IPO is Quietly Beating Out the Industry’s Biggest Competition
HempFusion (CBDHF) was able to amass a whopping $42 million in private investments, and another $17 million in 2021’s IPO — making them the largest US CBD company IPO to date on the Toronto Stock Exchange.[9]
They are 2nd in the industry in a cash position, ringing in at about $30 million, and no debt.[10]
Now, I want to pause for a moment and urge you to read carefully; because I’m about to dive into HempFusion’s colossal competitive advantage…
HempFusion (CBDHF) has spent the last 5 years and invested millions in regulatory compliance in order to carefully and strategically inch themselves into a position that no other CBD company in the WORLD is in.
HempFusion (CBDHF) is one of only 3 companies that have completed all FDA Redbook toxicology guidelines, including on topicals, which no other company has been able to do.[11]
Why does this matter? Because this level of regulatory compliance allows them access to the largest distribution channel by dollar value: FDM (Food/Drug/Mass).
HempFusion (CBDHF) is one of the first hemp-based CBD companies to launch in FDM, which requires incredibly high compliance standards — costing millions and taking 24+ months — to even be considered for product shelving.[12]
FDM retailers are some of the largest out there — think Walmart, Kroger, CVS, and many more.
And it’s all just beginning to pay off…
HempFusion (CBDHF) was recently able to strike a deal with one of the top 5 FDM retailers. Soon after launching their products in store, they quickly moved up the ranks to become #1 across all measured data, including #1 in sales dollars and units sold.[13]
Within this major retailer, HempFusion (CBDHF) is beating out some of the biggest names in the CBD industry including Charlotte’s Web, Med Terra, and Joy Organics.[14]
Achieving full scale within this one major retailer alone, is enough to significantly increase HempFusion’s annual revenue.[15]
It’s a feat in and of itself to gain entry into FDM… but achieving total brand domination indicates that HempFusion (CBDHF) is barreling over the competition, and establishing themselves as a major force to be reckoned with.
Unique Trojan Horse Strategy Provides Leverage to Tear Down Barriers to Entry Into Major Retailers
HempFusion (CBDHF) has yet another ace up it’s sleeve when it comes to a diversified product portfolio and penetrating major distribution channels.
In 2019 HempFusion (CBDHF) merged with Probulin Probiotics — also founded by CEO Dr. Jason Mitchell — making Probulin their wholly owned subsidiary brand.
Probulin Probiotics is one of the fastest growing probiotics companies in the US, and makes HempFusion (CBDHF) the only US CBD company with direct access to the probiotics market; which is set to be a $7 billion global market by 2022.[16]
In addition to using Probulin revenue to grow their CBD business, HempFusion (CBDHF) is geniusly using it as a trojan horse in order to gain access to many significant retailers that may not currently be carrying CBD products.
Probulin combined with proof of product demand within HempFusion’s (CBDHF) current FDM retailer, allows them massive leverage in negotiations with other top retailers. This is evident in the fact that as we speak, HempFusion has deals in the pipeline with another 4 of the top 10 FDM retailers.[17]
If anyone can get the job done it’s CRO John Visser; who’s spearheading HempFusion’s (CBDHF) FDM operation. John is the former Senior VP of Sales at Navaho Inc, where he took the multinational manufacturer from $60 million to $128 million in sales in under 3 years.[18]
John Visser has worked with every one of the top retailers in the US, making him an unprecedented asset to HempFusion (CBDHF) and their near term goal of penetrating deep into the lucrative FDM channel.
If HempFusion (CBDHF) can maneuver these deals through and gain entry into the top 5 FDM retailers, they stand to gain nearly $109 million in revenue annually — a potential 28x annual revenue increase.[19]
Taking the Path Less Traveled Could Lead to Growth of Epic Proportions
HempFusion (CBDHF) is one of the few in the industry dedicated to carrying out a carefully engineered plan developed very early on.
The deeper you dig, the more you’ll realize that the CBD industry is riddled with fly-by-the-night companies, cutting corners anywhere they can to flip a quick profit within the industry.
HempFusion (CBDHF) is a science backed company, unique in its dedication to doing it right.
“Since its inception in 2015, HempFusion’s goal has been to develop and provide consumers with the highest quality products on the market, without compromise. We are meticulous in sourcing the right raw materials, ingredients, and delivery methods to help consumers live a more balanced lifestyle, and the FDM channel provides us with an unprecedented distribution opportunity to help us reach those consumers,” – Dr. Jason Mitchell, CEO [20]
While FDM provides the largest opportunity by dollar volume, it’s only the tip of the iceberg when it comes to HempFusion’s current distribution and sales channels.
Their 5-channel distribution strategy is allowing them to fill the funnel of opportunity to the brim:
- FDM / Big Box
- Natural/Specialty: Curated health food stores
- Convenience Stores: Targeting high volume convenience stores across the US
- Doctor / Practitioner: Targeting Doctors & Practitioners across America
- E-Commerce: Direct to consumer sales
Between FDM, Natural, and Convenience channels, HempFusion (CBDHF) and Probulin products are currently sold in 4,000+ retail locations across 50 states including Sprouts, Vitamin Shoppe, and Whole Foods Market.[21]
If you’re selling milk, eggs, or chicken, this is no impressive feat. But this distribution scale is one that very few in the CBD industry have the time, capital, or wherewithal to reach.
The launch into the Doctor/Practitioner provides a unique opportunity in a highly selective market segment; and is yet another sales channel made available due to HempFusion’s (CBDHF) proprietary products and regulatory prowess.
Penetration into this channel gives HempFusion (CBDHF) direct access to the US prescription cannabinoid sector, which is on track to become a $2 billion dollar market by 2024.[22]
Across all 5 channels — Natural, Ecommerce, FDM, Convenience and Doctor Practitioner — HempFusion (CBDHF) has identified a monstrous $255.7M revenue opportunity annually.[23]
And while HempFusion (CBDHF) is well on their way to becoming one of the biggest CBD companies in the US, why stop there?
Global domination is next on the docket.
HempFusion (CBDHF) Makes Early Moves to Tap into What’s Projected to be a $24 Billion Global CBD Market
When you take a step back and assess all of the moves HempFusion (CBDHF) is making through a wide angle lens, their end goal is clear as day: to become the biggest CPG/CBD company in the world.
Similar to the way HempFusion (CBDHF) is using Probulin Probiotics as a trojan horse to gain access and form relationships with major US retailers; they are brilliantly using Probulin as a bridge for increased international distribution, and to pave the way for entry into what is expected to be a monstrous $24 billion global CBD market by 2027.[24]
HempFusion (CBDHF) and Probulin products will be sold across Europe, and Probulin has purchase orders and/or is selling in the Middle East, South Korea, China, Mexico, and India.[25]
In fact, HempFusion (CBDHF) is launching on Alibaba — the largest ecommerce store in China. This gives them direct access to Alibaba’s $1 billion active annual consumers… more than 3x that of Amazon’s.[26]
But that means nothing if demand for CBD in China is blah, right? Well, a thorough report published by Arcview Group and Asia Horizon indicates quite the opposite.
Their findings point towards China emerging as the world’s largest CBD market, as demand continues to rapidly increase amongst it’s colossal consumption capacity.[27]
Launching on Alibaba will instantaneously give HomeFusion (CBDHF) access to more than 70% of China’s 1.4 billion consumers.
And if the rest of the world begins to echo CBD’s rapid growth in America and China… There’s no telling what international expansion could do for HempFusion’s (CBDHF) bottom line.
All Signs Point to HempFusion (CBDHF) as an Incredibly Rare Opportunity for Investors as Their Business, and the CBD Industry, Enters a Monstrous Growth Phase
Unmatched dedication to regulatory compliance, an industry leading product line, and Probulin Probiotics allows HempFusion (CBDHF):
- Admission into exclusive, revenue multiplying distribution channels unavailable to the competition
- The advantages of having products rooted in the nutraceutical sector — the fastest growing segment within the CBD industry
- To use Probulin as a trojan horse to gain entrance into large retailers within the US and abroad; and cements them as the only US CBD company with direct access to the billion dollar probiotics market
- The ability to thrive and scale in any future regulatory environment
For investors and for businesses alike, timing is everything.
HempFusion (CBDHF) is ahead of the game. They’ve spent the greater part of 5 years building a robust foundation. And now, their growth and expansion phase is coinciding with a rapidly growing CBD industry.
HempFusion (CBDHF) represents a rare opportunity for investors: entry into the ground floor of an industry on the brink of explosion, and exposure to a company mature beyond its years, coming up on what could be the greatest growth phase of its lifetime.
Earlier I revealed my time tested “secret” to investing: finding the best stocks, in the best sectors, for the best possible price.
HempFusion (CBDHF) checks all of my boxes.
The only thing left… is to pounce.
Call your advisors, do your research, talk to your dog (Pet CBD is expected to be a $400 million dollar market), whatever it is you do to verify my research. But get started before it’s too late.
Making your move now will solidify you as one of HempFusions (CBDHF) earliest investors, and potentially, one of the biggest winners.
Lee Bellinger / EdgeOnTheStreet.com
ADVERTISEMENT DISCLAIMER
This is a paid advertisement and is intended solely for informational and educational purposes. The issuer has provided Promethean Marketing, Inc with a total budget of approximately 480,000 USD to cover the costs associated with this advertisement for a period beginning March 2021 and currently set to end 1 May 2021. Promethean Marketing, Inc has paid Lee Bellinger 10,000 USD out of the total budget to endorse this advertisement. Promethean Marketing, Inc will retain any excess sums after all expenses are paid. Edge on the Street has not been paid to host this advertisement. As a result of this advertisement, Edge on the Street expects to receive additional website visitors, advertising revenue, and email subscriptions. Edge on the Street is owned by Summit Publishing Group, Inc. Promethean Marketing, Inc and Summit Publishing Group, Inc have shared ownership. None of Promethean Marketing, Inc, Edge on the Street, Summit Publishing Group, Inc, or Lee Bellinger owns shares of the company mentioned. Lee Bellinger is solely responsible for the contents of this advertisement.
For further information, Edge on the Street has a Full Disclosure Policy which can be read by clicking here.
[1] https://www.brookings.edu/blog/fixgov/2018/12/14/the-farm-bill-hemp-and-cbd-explainer/
[2] https://www.brookings.edu/blog/fixgov/2018/12/14/the-farm-bill-hemp-and-cbd-explainer/
[3] https://www.brookings.edu/blog/fixgov/2018/12/14/the-farm-bill-hemp-and-cbd-explainer/
[4] https://medalerthelp.org/blog/cbd-statistics/
[5] https://www.statista.com/statistics/1075893/cbd-product-availability-by-channel-us/
[6] HempFusion Corporate Presentation 2021
[7] HempFusion Corporate Presentation 2021
[8] https://medalerthelp.org/blog/cbd-statistics/
[9] https://seekingalpha.com/article/4404872-cannabinoid-capital-podcast
[10] https://seekingalpha.com/article/4404872-cannabinoid-capital-podcast
[11] HempFusion Corporate Presentation 2021
[12] HempFusion Corporate Presentation 2021
[13] Call with HempFusion Team
[14] Call with HempFusion Team
[15] HempFusion Corporate Presentation 2021
[16] HempFusion Corporate Presentation 2021
[17] HempFusion Corporate Presentation 2021
[18] Call with HempFusion Team
[19] HempFusion Corporate Presentation 2021
[20] https://www.businesswire.com/news/home/20210309005314/en/HempFusion
[21] HempFusion Corporate Presentation 2021
[22] HempFusion Corporate Presentation 2021
[23] HempFusion Corporate Presentation 2021
[24] https://www.cbdwire.com/hempfusion-wellness-inc
[25] HempFusion Corporate Presentation 2021
[26] https://etaileast.wbresearch.com/blog/amazons-engaged-buyers-drive-social-media-revenue
[27] https://arcviewgroup.com/wp-content/uploads/2020/11/China-A-Rising-CBD-Superpower
