This is potentially big news because shares of ISWH have been under intense pressure, dropping to bargain-basement levels in recent action. And now this comes out: the announcement of the full execution by all parties of a partnership between ISWH and BioPulse Labs, a well-known top player in nano-infusion and CBD-based product brand development.
According to the press release out this morning, BioPulse will step in as ISWH’s exclusive manufacturing and marketing partner for the launch of five CBD-based wellness products, which will include a comprehensive branding refresh for the Company’s P19 CBD-based products brand, with all CBD-based products formulated and produced in FDA compliant and registered facilities.
Don’t overlook the last statement in the paragraph above. It’s becoming an increasingly important point: a lot of CBD is out there on the market. But a lot of it is thrown together in someone’s garage or basement. And regulatory agencies are starting to catch on. Investors will want to steer far clear of these basement brewers in the CBD space.
Here’s a good rule of thumb: if they don’t talk about the manufacturing process, assume the worst.
In this case, all of ISWH’s CBD-based products will be formulated and manufactured in fully FDA compliant and registered facilities. This is a professional branded approach to attacking a high-growth market opportunity.
The BioPulse Deal
This is a sweeping agreement that looks like it may represent a major catalyst for ISWH shareholders given that it presents a strong path to rapid expansion for the company’s CBD segment.
Terry Williams, CEO of ISWH, commented, “BioPulse has the experience and capability to step in and help take our CBD-based products segment to a new level as we navigate this critical stage and transform enormous potential into accelerating revenue growth. This step will position our P19 brand as a differentiated product, both in terms of product quality through superior bioavailability and in terms of brand recognition, given BioPulse’s nationwide marketing and distribution footprint.
According to the release, “BioPulse will provide ISWH with procurement of five (5) trademarks, five (5) brand custom websites (each with online sales and payment processing system), five (5) brand social platforms (namely Facebook, Instagram, and Twitter), five (5) brand POP, POS sales & marketing guides, five (5) brand opening inventories, and continued marketing support following launch. In addition, two of the five brands will feature compatible formulization and placement on Amazon.com.”
In other words, the products will be taken from root materials to end-market consumers, with marketing support and placement in the world’s most frequently used ecommerce portal. Even the trademarking comes with this deal.
What Does it Mean?
You would never know it by the stock’s behavior over the past two months, but a turnaround of sorts has been well underway for ISWH for some time. The company has been reporting massive top-line growth numbers for the past two quarters, and recently guided up significantly for an even more impressive story to tell for Q4. And you know it’s real because they are also setting up to provide fully-audited financials at year-end.
But this growth has been mostly concentrated in the company’s non-CBD segments, home healthcare and spirits. The BioPulse deal suggests the picture is about to get a whole lot more robust, particularly when looking at 2020.
Mr. Williams continued, “This is really an extraordinary partnership that will create a ton of value for our shareholders. The CBD market continues to exist in a context of high-powered growth. We believe the key to delivering that growth to our shareholders will be about differentiation and exposure. Simply having an ecommerce portal isn’t enough. The product has to be differentiated on a quality level and you have to get it in front of consumers. This partnership agreement delivers on both of those objectives.”
That about says it all. Keep this one on the radar today and in the days and weeks ahead.