cbdMD: A Star-Studded Company of Firsts
September 5th, 2019
App, Exclusive, News, Top Story
In a dynamic landscape, the CBD industry is booming and all players are looking for an edge to get a piece of the “green rush.” The federal legalization of hemp in the U.S. has not only swept across the country, but also the world. For cbdMD, Inc., a nationally recognized consumer cannabidiol (CBD) brand (NYSE American: YCBD), the recipe for success includes a premium product portfolio, serious marketing power, a long list of A-list athletes and celebrities as Team cbdMD partners, and one “first” after another.
The strategy has the company on track to achieve the kind of “first” investors love to hear about: generating $100 million in annual revenue.
The CBD Company
As the name implies, cbdMD is exclusively focused on CBD, a compound of the hemp plant that does not come with the psychoactive “high” often associated with marijuana. Hemp, which was legalized federally at the end of 2018 with the passage of the U.S. Farm Bill, is defined as cannabis sativa containing less than 0.3% THC (the high-inducing cannabinoid). Through their unique manufacturing process, cbdMD products are considered THC-free and are third-party tested to ensure safety and effectiveness.
Recent, ongoing, research has shown CBD may be helpful for a wide variety of health concerns. cbdMD, the first CBD pure-play to list on the NYSE, offers a full line of CBD products, including CBD tinctures, CBD gummies, CBD topicals, CBD bath bombs, CBD vape oils, and human-grade CBD pet products.
The products have accumulated a list of accolades, including being named “Best CBD Products in America” by High Times, “#1 Best Overall CBD” by CBD School and “Best CBD Veteran & Affordability Programs” by CBD Nerds.
The aforementioned has cbdMD well positioned in a CBD industry that Cowen and Company forecasts to grow from roughly $1 billion in 2018 to $16 billion by 2025. The move into pet products is a savvy one considering there are about 90 million dogs and 95 million cats living in 85 million U.S. households right now, contributing to the $75 billion pet product market. cbdMD has 36 SKUs in its paw cbd franchise with more under development.
cbdMD makes all of its CBD products from U.S. hemp grown using organic farming methods on pesticide-free farms.
Over the last year, the sales breakdown is about 60% retail e-commerce (www.cbdMD.com) and 40% wholesale. Ever growing its sales channels, cbdMD’s products are already in over 3,000 brick-and-mortar retail locations, including grocery stores, pet stores, pharmacies, fitness centers and specialty stores.
Calling cbdMD a “brand to watch,” Brightfield Group made note of the company’s marketing efforts that span traditional, digital, strategic partners, and philanthropic avenues to get in front of consumers and convey a positive brand message.
These initiatives have included cbdMD being the first CBD company to advertise in Times Square in December of 2018. Elsewhere, the company is making CBD mainstream and overcoming any lingering stigmas with ads and feature articles in Rolling Stone, Golf Digest, USA Today, Elle, People, WebMD and many more.
Management has also come to be creative, founding National CBD Day (August 8) and National Hemp Day (February 4), with more coming soon.
cbdMD is also the first CBD company to sponsor a major sports league. The BIG3, founded by producer, actor, and music legend, Ice Cube, is a 3-on-3, half-court, professional basketball league, televised during prime time on CBS. Not only is the cbdMD logo prominently displayed throughout the venue, it is also featured on each player’s jersey.
Furthermore, cbdMD is partnered with Bellator MMA, which puts the logo inside the octagon and on some fighter’s apparel.
For golf fans, check out the trademark visor of Bubba Watson. The company made history yet again by becoming the first CBD company to forge its way into the PGA Tour, with a Top 25 player partnership that took Bubba to the floor of the NYSE to further discuss cbdMD. The World Anti-Doping Agency has already declared that CBD usage is safe among all athletes thanks to its non-habit forming, THC-free distinction.
Although not easily quantifiable as a “first,” cbdMD has assembled a squadron of Team cbdMD partners unlike any other company in the space. The Team cbdMD athletes using cbdMD products is unparalleled, covering a wide array of sports:
(Some listed athletes are former Team cbdMD partners and the list below does not imply current endorsement of cbdMD by any specific athlete. For a current list of Team cbdMD athletes please visit https://www.cbdmd.com/athlete)
Football: former NFL stars Steve Smith, Sr., Jonathan Stewart, and Nate Burleson
Volleyball: Olympian- Kerri Walsh Jennings, Geena Urango, and Sean Rosenthal
Track & Field, Bobsledding: Olympian- Lolo Jones
Golf: Bubba Watson;, Mark Anderson, and Ryan Armour
MMA: Quinton “Rampage” Jackson, Michael Bisping, Tyron Woodley, Yair Rodriguez;, Keith Richardson, Tiki Ghosn, Chael Sonnen, and Chris Weidman
Skateboarding: Ryan Sheckler, and Zion Wright
Wakeboard: Austin Keen, Ashley Kidd, Brian Grubb, and Harley Clifford
Rallycross: Ken Block and Steve Arpin
Surfing: Nathan Florence, Makua Rothman, and Jamie O’Brien
Bodybuilding: James “Flex” Lewis
Motocross/Supercross: Vicki Golden, Tarah Gieger, Nate Adams, Chad Reed, and Robert Haslam
Nitro Circus/BMX/FMX: Jarryd McNeil, Josh Sheehan, Ryan “R-Willy” Williams, Brandon Schmidt, Destin Cantrell, Blake “Bilko” Williams, Kurtis Downs, Jacob Bailey, and Garrett Reynolds
The list of popular endorsements of cbdMD products continues into celebrities and key influencers, with past endorsements from Joe Jonas of the pop rock band the Jonas Brothers and Amanda Cerny, a social media phenomenon with 25.8 million Instagram followers. In his posts Jonas called cbdMD Gummies a “must have” when he gets home from traveling. Cerny was quoted as saying that she tested cbdMD products for months before giving her stamp of approval, now using them every “morning and night and in between.” (Jonas and Cerny are not current endorsers of cbdMD and are listed as historical references only.)
The powerful brand-building management team hasn’t forgotten about the pet community, adding celebrity felines on its team, too. Nala Cat has a stunning 4.2 million Instagram followers, Lil Bub has 2.3 million Instagram followers (and 3 million on Facebook), and Venus, the famous two-toned-face cat, has 3.2 million followers between Instagram and Facebook.
Wall Street Need a Rebalancing?
One place in which cbdMD is not first is in market capitalization compared to their peers. There are no NYSE comparables, but there are a few CBD companies across Nasdaq and the Over the Counter exchange. Apples-to-apples comparisons are always difficult, but a look at a revenue to market cap multiples can be somewhat telling. To lend some clarity, YCBD forecasts calendar 2019 revenue of $37 million. With a market cap of $118 million, that is a revenue multiple (RM) of 3.2X.
CV Sciences (OTCQB: CVSI) has a market cap of $337 million and, with $73 million in estimated sales, a RM of 4.3X. Neptune Wellness Solutions (NASDAQ: NEPT) reported fiscal 2019 revenue of $18 million. With a market cap of $372 million, that is a RM of 20.7X. Charlotte’s Web (OTCQX: CWBHF) has estimated 2019 revenue of $127 million while holding a market cap of $694 million, equating to a RM of 5.5X.
For their fiscal 2020, cbdMD management says it expects revenue to range between $80-$90 million. That would work out to a RM of roughly 1.4X, a multiple too low to be ignored. By comparison, the abovementioned competitors are carrying forward 2020 RM’s of 2.7, 9.7 and 5.8, respectively. If cbdMD management continues to successfully execute, current valuation warrants serious consideration.
CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on https://www.cannabisfn.com(the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
Follow Us on Social Media
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.