Best OTC cannabis stocks: Curaleaf (OTC: CURLF), Charlotte’s Web (OTC: CWBHF), CV Sciences (OTC: CVSI)
The smaller players in the cannabis sector provide an interesting insight into the future of the industry.
While the top players in the booming cannabis market catch media attention with multi-billion dollar acquisitions and partnerships, the activities smaller companies are just as, if not more, interesting. As there is still plenty of room in what could soon become a $146.4 billion industry. What makes smaller companies as Curaleaf Holdings, Inc. (OTC: CURLF), Charlotte’s Web Holdings, inc. (OTC: CWBHF), CV Sciences, Inc. (OTC: CVSI) stand out from the crowd?
National CBD supplier
Curaleaf (OTC: CURLF) is a CBD company operating 42 dispensaries and 12 cultivation sites over 12 states. Their success stems from owning the largest footprint of single-branded retail stores in the U.S. and the company is only going to cement their dominance after its groundbreaking deal with pharmacy chain giant CVS in March this year.
Curaleaf will be the main provider of CBD products to CVS pharmacies, including infused creams, sprays, roll-ons, salves and lotions, which will soon be available in over 800 locations. The acquisition of Nevada-based Acres Cannabis for $70 million and California-based Eureka Investments Partners LLC. for $30.5 million will add more fuel to the fire. Both deals allow Curaleaf to establish a foothold in these strategic markets whilst expanding their production capacity by roughly 100,000 pounds of dry flower.
Acquisitions have helped to drive Curaleaf’s growth, as the revenues from Q4 2018 have risen almost 50% compared to the previous year, totaling at $32 million. Despite net losses of $16.5 million in Q4 of 2018, the recent partnership with CVS and ramping up of their production capacity hold the potential to put that value soon in green numbers.
Bio or bust
Long before the Farm Bill had hit the senate floor Charlotte’s Web Holdings, inc. (OTC: CWBHF) kickstarter the CBD revolution with their proprietary hemp genetics. Almost six years after these events, Charlotte’s Web products are available in 3,680 retail locations and the company has cultivated an impressive following.
Much of the company’s success can be attributed to the reputation CWBHF holds as the top provider of non-GMO, high-quality cannabis products. By operating on family farms and in an FDA-registered facility, Charlotte’s web holds true to their medicinal ideals.
Last year was good for CWBHF as their harvest turned out to be 10x larger than the one from 2017, weighing in at an impressive 675,000 pounds. Investors have good reason to be satisfied too. Since the public debut of the stock in August 2018, its value has gone up 150%. With revenues expected to rise to $23 million in the Q1 of 2019, CWBHF is in a good position to ensnare a big chunk of the market within its web.
Credibility through certification
CV Sciences, Inc. (OTC: CVSI) operates as a supplier and manufacturer of hemp CBD products through its subsidiary – PlusCBD Oil. According to SPINS, PlusCBD Oil is the top-selling brand of hemp-derived CBD in independent retail.
The number of retailers carrying CVSI products increased by 45% over the course 2018, as currently, over 2,200 stores in the U.S. vend CV Sciences’ products. The quality and safety standards of PlusCBD Oil have been certified by U.S. Hemp Authority as one of only thirteen companies on the U.S. market.
Currently, CV Sciences is in the process of certifying their CBD-and-nicotine formulation designed to help individuals stop using tobacco products. Codenamed CVSI-007, it aims to target the unsaturated market of CBD-derived medical products. If the company can secure FDA’s approval, CVS might be looking at much more growth in 2019 than the already impressive 133% they’ve achieved over the course 2018.
According to Google, CBD gummie bears have ranked as No. 3 among the most searched foods in 2018. This helps shed some light upon why PotNetwork Holdings, Inc.’s (OTC: POTN) business model is so effective. By acting through its subsidiary, DiamondCBD, POTN targets overlooked subsets of the CBD market and fills these niches with its 100% U.S.-grown hemp-derived products.
Edibles like jelly bears, CBD-infused coffee or Brain Chill Slushies are rare in the dried flower and oil-dominated CBD industry. This has helped the company stand apart from the competition. With their MediPets Dog Treats – a product designed exclusively for animals – POTN breaks old concepts and has scored a Pet Business Industry Recognition Award.
DiamondCBD has generated over $18 million in revenues in 2018 whilst being a relatively young player on the market. If POTN’s innovative fuel doesn’t run out, established CBD companies might find themselves outmaneuvered in some key sectors by PotNetwork Holdings, Inc. and their unusual line of products.
Online payments for cannabis
Effective financing is key to the success of any business venture. With Marijuana Banking Bill being in discussion, cannabis-oriented companies sometimes find themselves deprived of financial support as banks refuse to work with cannabis companies. That leaves a $9 billion industry without proper financing.
CLIC Technology, Inc. (OTC: CLCI) aims to deliver just what these businesses are looking for. By offering ClicPay – a revolutionary platform that will unlock the immense value gathered in Bitcoin and other blockchain currencies – cannabis ventures will gain access to new funds outside the current financial establishment.
For their customers, ClicPay offers as a safe way to buy legal marijuana for privacy-conscious purchasers. With quick payouts in fiat currencies, along with instant and secure transactions, ClicPay is poised to truly revolutionize the online payment system and become a significant part of the rising $250 billion web-wallet industry.
Bland or branded
As the example of Designer Shoe Warehouse (NYSE: DSW) shows, you don’t need to be a producer if you want to have your own CBD line of products. White Label liquid, Inc. (OTC:WLAB) has already formed numerous partnerships like this one, by offering premium white-labeling services that allow any business to release a wide array of packed CBD-infused goods to the market under their brand.
WLAB’s idea is to empower virtually any enterprise with means to become ready for the conquest of their own niches. With a product range spanning over edibles, creams, oils, pre-rolls, and more, White Label Liquid Inc. allows tapping into basically any target audience with a CBD product that will appeal to them.
In the age of all lab-quality cannabis products on the market, it’s the brand that wins the favor of the customer. Services of White Label Liquid Inc. help to focus solely on establishing the brand, while production and delivery are handled by industry professionals.
The CBD-oriented market appeals to a much wider audience than recreational cannabis, providing space for numerous innovators to find their own place among others. The question is, how long these enterprises will have the capacity to stay competitive only by the power of their innovations.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
(Featured image by EIRoi via Shutterstock)
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