We have made the case that we believe the bottom formed in the cannabis space in March of this year represents a cyclical bottom in an ongoing long-term structural bull expansion trend that has potentially decades in front of it. From that perspective, investors will be looking for opportunities to find early-stage long-term winners in the space now that could grant access to powerful returns over the long run.
With that basic framework in place, we take a look today at Cannabis Global, Inc. (OTCMKTS:CBGL), a leading cannabinoid products company with a number of interesting catalysts recently announced, imminently coming to fruition, and brewing under the hood.
“It’s been approximately one year since we reorganized the Company toward cannabinoid technologies and products,” commented CEO, Arman Tabatabaei. “We have made substantial progress in our selected technology areas, and based on these innovations, we have designed a revolutionary set of products, which are now rolling out into the marketplace. I am pleased to offer our investors and the industry the following summary of activities and insight into our direction for this new fiscal year.”
That brings us to the four key avenues of expansion we see right now in CBGL.
The company recently put out an update that covers its most important developments over the past year.
One key point was its recent acquisition of a key stake in a fully licensed cannabis manufacturing and distribution business operation located in Lynwood, California, operating under the name Natural Plant Extract of California, Inc. (“NPE”).
This move gives the company exposure to a Type 7 California Manufacturing License as well as a California Distribution license. The stake cost them just over $2 million and stands to grant them a solid channel of financial performance, while diversifying the company’s exposure to the cannabis plant as a business commodity, including direct access to current revenue growth, which is important given the company’s current positioning.
In addition, as noted in the release, the acquisition represents a strategic horizontal expansion of the company’s core technologies beyond hemp and CBD into California’s legal recreational and medical cannabis sectors.
Cannabis Global, Inc. (OTCMKTS:CBGL) has also been busy on the R&D side, developing important IP and proprietary technology.
To that end, in the past year, the company filed six provisional patent applications. In its release, the company noted that it feels the most important of these provisional patents have to do with new methods to produce highly loaded polymeric nanoparticles, powderization technologies for hemp extract containing honey, and the single-serving tableting technology for beverage infusion.
That technology sets the stage for the company’s recent expansion in products, including coffee pods and alcohol-substitute cocktail mixers.
In addition, the company also discovered a proprietary process to produce Tetrahydrocannabivarian (THCV) in commercial quantities, and it is currently involved in research to add to the evidentiary profile of THCV with a study using mice. Progress here could give CBGL something like a near monopoly on a potentially very marketable cannabinoid with big things ahead. As noted in its release, “During the year, the Company developed new methods to produce nanoparticles of THC-V and other cannabinoids filing provisional patents on both the methods and the particles produced.”
Cannabis Global, Inc. (OTCMKTS:CBGL) is also continuing its R&D program in the area of tablet technology for single-serving beverages having recently filed a provisional patent relative to these areas. As noted in its release, additional filings are expected over the coming weeks.
The company has also been very aggressive with the development and commercialization of new products in the hemp, cannabis, and CBD marketplace.
For example, during the year, the Company developed Hemp You Can Feel technology based on powdered water-soluble preparations developed by the Company. Marketed in cocktail mixers, the Company believes this is the industry’s first real alcohol replacement technology. We are in the process of placing the alcohol mixers in a major distribution company to maximize our exposure to customers.
In addition, based on the technology innovations developed through the previous fiscal year, Cannabis Global has developed multiple innovative products with coffee, Kombucha, and cocktail mixer products currently being marketed. Additionally, the Company is in production for both its hemp-based sweetener products and its highly innovative THC-V tea product line.
Finally, Cannabis Global, Inc. (OTCMKTS:CBGL) is marching toward expanded distribution for its expanding stable of commercially available products.
According to the company’s release, “Moving into the newly commenced fiscal year, the major emphasis of the Company is expanding distribution channels for the highly innovative product lines. To this end, the Company has recently begun an affiliate marketing campaign and is now offering products on the Amazon and RXLeaf platforms. The Company plans to also begin marketing its alcohol-free cocktail mixers on Amazon with two cocktail mixers SKUs delivered to Amazon this week.”
That suggests the R&D has an outlet in the form of new products ready for market, and those products have an outlet in the form of an expanding connection with interested end-market consumers.
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Published at Mon, 21 Sep 2020 06:13:58 +0000