CBDD Making Waves in Resurgent CBD Boom

Date : July 21, 2020

New Opportunity:  CBD of Denver Inc. (OTCMKTS:CBDD)

 

The cannabinoid products market continues to represent one of the most dramatic growth opportunities of any market theme over the next 5 years. That has been the conclusion of scores of analysts and researchers in recent years. And it continues to be the dominant view in the analyst community today, with new research released in May 2020 by Industryresearch.biz.

The new report calls for the worldwide market for Cannabidiol (CBD) to grow at a CAGR of roughly 32.0% over the next five years, to reach over $1.25 billion by 2024, up from $311.8 million in 2019. These numbers are smaller simply because this is the market for CBD by itself. The market for CBD-based products is much larger, and will grow to be many times this size over the same period, with analysts calling for $15-25 billion in sales by 2025.

Grand View Research, for example, puts the global cannabidiol market at a value of $4.6 billion already by 2018. Their research suggests it will grow by over 22% CAGR from 2019 to 2025 to reach nearly $19 billion.

Whatever research you turn to, the basic gist of the situation is clear: CBD is undergoing “mainstreaming” growth, which may be the most explosive type of growth phenomenon that can grip any industry. Think about what happened when vitamins went from being a small niche market used by a few people to being a mainstream household product. We are seeing something similar happening here with CBD.

In other words, the engine behind this extraordinary boom in growth is the process of a small niche market gradually becoming a mainstream household product category. This type of growth is augmented by increasing presence in high-traffic consumer areas, more marketing and media penetration, and a rising appreciation of the health and wellness benefits that are increasingly understood as part of the equation with CBD-based products.

However, even with this dynamic market theme already cemented by reems of analyst research and data, there aren’t very many pure-play stocks targeting this thesis. That’s why it’s extremely important to note relatively new players as they start to get noticed by the market.

In this case, today, we take a closer look at CBD of Denver Inc. (OTCMKTS:CBDD) as it jumps onto the CBD equity market radar with a number of very strong recent catalysts and a promising foundation for growth ahead.

 

Symbol:  CBDD
Company:  CBD of Denver Inc.
Quote:  http://finance.yahoo.com/q?s=CBDD
Latest News: 
http://finance.yahoo.com/q/h?s=CBDD+Headlines
Company Website:
www.cbdofdenver.com

cbdd, CBDD Making Waves in Resurgent CBD Boom
cbdd, CBDD Making Waves in Resurgent CBD Boom

The following report is based on our independent research of  CBD of Denver Inc. (OTCMKTS:CBDD)  ,   from publicly available information, including information from the company’s website and investor relations material, as well as news, disclosures, press releases, and other material relevant to understanding the company and its operations and assets. We have been engaged to disseminate our findings from that research process along with our opinion about CBD of Denver Inc. (OTCMKTS:CBDD) ,  based on that research.

cbdd, CBDD Making Waves in Resurgent CBD Boom

Who is CBDD

cbdd, CBDD Making Waves in Resurgent CBD Boom

CBD of Denver Inc. (OTCMKTS:CBDD) engages in developing and commercializing cannabidiol (CBD) products. It is involved in the research, development, and distribution of premium hemp extract products. CBD of Denver Inc. operates as a subsidiary of Swiss Industry Ventures AG.

CBDD is focused on using equity to acquire profitable Swiss assets at attractive valuations to create value for shareholders.

CBDD offers a superior CBD product that is full spectrum without depending on THC to activate the benefits of the cannabidiol. Black Pearl CBD has 0% THC, resulting in a product that is the finest in the industry and are available at www.blackpearlcbd.com.

cbdd, CBDD Making Waves in Resurgent CBD Boom
cbdd, CBDD Making Waves in Resurgent CBD Boom

According to company materials, CBDD was created to offer the consumer a unique and new perspective on the unorganized and confusing CBD industry. CBD of Denver, Inc. is the only company to release a comprehensive CBD Social Network (www.cbdsocialnetwork.com). The idea of the network is to connect CBD users from America and around the world to interact and discuss CBD uses, treatments and products. The site has been active for 3 months and already receives 2000-2500 hits a day.

The internet is full of misinformation and unsubstantiated health claims surrounding the CBD market. In the future, CBDD will be offering in-depth informational reports supported by studies and assessments via the medical industry. Information that you can trust, to make knowledgeable decisions on which products to purchase.

CBDD is predicated on a mission to deploy research, development, and multi-state distribution of premium hemp extract products. The company’s products are unique in the industry, and are all organic full spectrum-whole plant CBD extracts containing 0% THC.

The CBD industry is currently a Billion-dollar industry and is expected to increase tenfold in the coming years, and CBDD wants to be an integral part of that growth.

cbdd, CBDD Making Waves in Resurgent CBD Boom

Recent Catalysts

Last month, CBDD announced that it had acquired Rockflowr GmbH, a Swiss cannabis wholesale operation.
According to the release, CBD of Denver, Inc. is excited that it has taken another step towards its business goals and is proud to announce that it has acquired Rockflowr GmbH, a cannabis wholesale operation in Switzerland. This business is responsible for wholesale sales of CBD oil, cannabis biomass, cannabis flower and other products sold at retail outlets. These products are sold to retail and wholesale operations throughout the French, German, Italian and central parts of Switzerland as well as in EU countries that allow sales of CBD. The company is well positioned in these areas with successful on-going operations and has exclusive partnerships with cannabis farmers throughout the region. In the prior 3 months, Rockflowr has generated revenue of over 1,000,000 Swiss Francs (approximately US$1,040,000). The company will also sell flower and biomass grown by our most recent acquisition, Welt 24 GmbH. CBDD is now involved in all aspects of the Swiss cannabis business and is poised to take advantage of the expected growth in the Swiss cannabis market.
CBDD’s CEO, Marcel Gamma, explains, “We are very excited about this acquisition, which will add to our revenue base and contribute to future acquisitions. We expect to see increasing revenues from Rockflowr.”
The announcement was followed by the further update that this new subsidiary (Rockflowr GmbH) has access to a proprietary process to reduce the THC level in cannabis flowers.
According to that update, in order to sell our flower to other European countries, which mandate a .2% or less THC content, Rockflowr runs the flower through a proprietary process that washes the flower and reduces the THC level. Only after the flower is retested and has a certificate of analysis can it then be shipped outside of Switzerland.
CEO Gamma noted, “Our business is growing, and our delivery trucks are extremely busy delivering flower, biomass, cuttlings, and other wholesale products. Our flowers — Indoor, Greenhouse and Outdoor — are finely selected and rigorously tested and analyzed to maintain a 1.0% or less THC content that is mandated by Swiss law.”
More recently, the company put out news that Rockflowr GmbH has signed a purchase agreement which lead to its largest sale to date.

cbdd, CBDD Making Waves in Resurgent CBD Boom
cbdd, CBDD Making Waves in Resurgent CBD Boom

According to that release, on June 30, Rockflowr GmbH entered into an agreement for 24 months with a Swiss company for the sale of bulk CBD flower.  The first purchase by the customer was signed on July 7, for 500 kgs (more than half a ton) of Hybrid Indoor CBD Flower. This one sale amounted to 341,500 CHF or approximately $363,000 USD in revenue. If the purchaser is satisfied with the product, they have agreed to purchase an additional 1,000 kgs per week for an initial 3-month trial period. Total revenue per week could exceed 680,000 CHF or 2,728,000 CHF per month.

“This is the largest sale in company history, and we are very excited to be able to share this information with our current and future investors,” said Gamma.

Just before that, the company put out a corporate update on several topics.

Included there was news that Rockflowr GmbH has started to sell flower to a company in Barcelona, Spain. The company has agreed to send a test shipment and, if successful, it expects to expand this relationship. Rockflowr GmbH is exploring the possibility of applying for a license in either Luxembourg or Belgium to allow sales of CBD flower in other parts of the EU and to fulfill order interests. Each European country has their own set of requirements and obtaining these licenses will allow further expansion of the business.

In addition, also of note was news that CBD of Denver, Inc. with the help of its accountants in Switzerland, is working hard to get company financials posted ahead of schedule. “We have received phone calls and emails from investors asking if we are going to post our financials on June 30. June 30 is the end of the quarter and regulators require filing 45 days after the end of the quarter. We understand that investors are eager to see the results from the acquisitions we have announced and hope to file as quickly as possible.”

You know things are going well when an OTC stock gets financials out early. That’s a very good rule of thumb for small-cap investors.

Technical Analysis

Shares of CBDD just put in a “higher-low” base, as technicians like to call them – or a secondary base. In any case, the stock broke out higher in May to test the $0.002 area, before falling back in what now appears to be a healthy, constructive process of consolidation that found support at juts the right spot, bring the 61.8% Fibonacci level into confluence with prior/broken resistance – now used as support, which is just what you want to see a new bullish trend.

Also playing a role on an intraday basis was the 200-day “trend” moving average, which held during a midday selloff earlier this month.

Forming the technical context for this chart is now also a beautiful MACD Bullish Divergence on the histogram, which helps to frame the pullback as potentially exaggerated in depth, but still part of a higher low that marks out the entire pattern as potentially part of a new bullish trend now entering a potential next leg higher.

cbdd, CBDD Making Waves in Resurgent CBD Boom

About CBDD

CBDD (CBD of Denver Inc.) engages in developing and commercializing cannabidiol (CBD) products. It is involved in the research, development, and distribution of premium hemp extract products. CBD of Denver Inc. operates as a subsidiary of Swiss Industry Ventures AG. CBDD is focused on using equity to acquire profitable Swiss assets at attractive valuations to create value for shareholders.

CBDD offers a superior CBD product that is full spectrum without depending on THC to activate the benefits of the cannabidiol. Black Pearl CBD has 0% THC, resulting in a product that is the finest in the industry and are available at www.blackpearlcbd.com.

CBDD is predicated on a mission to deploy research, development, and multi-state distribution of premium hemp extract products. The company’s products are unique in the industry, and are all organic full spectrum-whole plant CBD extracts containing 0% THC.

The CBD industry is currently a Billion-dollar industry and is expected to increase tenfold in the coming years, and CBDD wants to be an integral part of that growth.

Key Points:

  • CBDD just closed the biggest sale in its history, booking over $360K in a single transaction, with the potential for regular orders of that scale going forward
  • CBDD is making real money, with trailing revs already coming in, but the scale of its cash flows may be on the cusp of growing exponentially based on recent deal flow
  • CBDD has a new Swiss subsidiary (Rockflowr) that is starting to ink big sales and expand across the EU, including Spain
  • CBDD is moving to put out financials ahead of schedule, which suggests strong momentum and big catalysts ahead
  • CBDD is coming off an RSI trough under 40, pointing to a massively oversold stock now heading back the other way.
  • CBDD just recorded a MACD Bullish divergence at major MA/Fib/chart support, suggesting the stock could be gearing up with a technical tailwind in play
cbdd, CBDD Making Waves in Resurgent CBD Boom

 

Conclusion

There may be no greater growth market on the planet over the coming half-decade than CBD-based products. Stocks in the space were torched in a bear market that appears to have formed a secular “generational” low in March. That event, along with the months that preceded it, sharply thinned the herd, and now there are relatively few companies competing over the riches to come.

CBDD is lined up with strong growth under its belt over recent months, including a massive sale just logged in recent days that may be followed up by a new level of business for the company and its shareholders.

The chart shows a new bull market trend potentially underway, with a striking confluence of key support levels coming into play over recent days, fueling the base launching pad for what comes next.

cbdd, CBDD Making Waves in Resurgent CBD Boom

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