As the hemp, cannabis, and CBD space comes roaring back in recent months, representing what appears to be a long-term cyclical bottom following the 2018-2020 sector bear market, investors will be tasked with the mission of scoping new leaders as they emerge from the rubble. In the current health crisis, flexibility and innovation will be key advantages. One company making an increasingly interesting case right now is CBD Life Sciences Inc. (OTCMKTS:CBDL), which launched a CBD+CBG hand sanitizer product in mid-April to much fanfare.
CBDL is an overarching structure that holds a primary operating subsidiary called LBC Bioscience Inc., a CBD-based products company that has developed a full line of cannabidiol based organic products, including CBD hemp drops, pain relief creams, anxiety and sleep supplements, brain booster coffee, weight loss coffee, an anti-aging skin line, and a full line of CBD infused supplements for pets.
CBD Life Sciences Inc. (OTCMKTS:CBDL) distributes these products through its own online ecommerce presence as well as wholesale through other distributors.
This lines the company up with some very strong structural tailwinds, as the CBD market is anticipated to grow at a striking CAGR of over 22% to reach $23.6 billion by 2025 according to a new study by Grand View Research. Inside of that trend, the market for CBD pet products, itself, is expected to grow from $31M in sales in 2018 to $1.7B in 2025.
Clean and Healthy
CBDL’s hand sanitizer product is a proprietary 100 mg CBD + CBG hand sanitizer infused with Vitamin E. Based on prior communications, commercial quantities are in stock and available through the company’s ecommerce channel. The gel sanitizer is available as a 4 oz bottle containing CBD (cannabidiol) and CBG (cannabigerol) ingredients being marketed as “CBG+CBD Hand Sanitizer Gel Infused with Vitamin E Oil ” is now available for purchase.
Based on research released in May, initial sales of the company’s hand sanitizer product have been very robust. This is also supported by data from the company noting that the LBC Bioscience Inc. facility sent out over one thousand units within a week after announcing that the product was available for sale.
The company’s most recent direct communication advancing the public narrative around its hand sanitizer product was its announcement of a donation of 100 units of its 100 MG CBD + CBG with Vitamin E Oil Hand Sanitizer Gel, with 50 units going to the Andara Retirement Home/Assisting Living and 50 units going to the Solterra Senior Living in Scottsdale, Arizona.
This past week, the CDC announced that fully 43% of all case fatalities related to the outbreak have been in senior care facilities.
In that release, management noted that it was grateful to be in a position that allowed the company to make a difference where it was most needed in its surrounding community. The company also noted that it was marking down its hand sanitizer product to 20% off to help those most in need gain access to this important product.
Tethered to Growth
As discussed above, CBD Life Sciences Inc. (OTCMKTS:CBDL) is producing a selling a hand sanitizer gel containing CBD, CBG, and Vitamin E. This makes it one of the few publicly traded companies carrying CBG products. According to Cresco Labs materials, CBG works to fight inflammation, pain, nausea and works to slow the proliferation of cancer cells.
Analysts anticipate CBG sales to follow CBD sales higher in the quarters ahead.
As stated at the outset, the ability to innovate and adapt to changing conditions, but maintain strong ties to the major secular growth wave powering the cannabis, hemp, and CBD markets will help to define the emerging leadership in the space as the new bull cycle gains traction.
Based on its current broad array of premium CBD products across multiple categories and its ability to innovate and fill a strong marketplace need with its new CBD + CBG with Vitamin E Oil Hand Sanitizer Gel, CBD Life Sciences has demonstrated important features that suggest shares are potentially sharply undervalued at current levels, and hold the potential to react with force as operations begin to produce clear signs of meaningful topline growth in the weeks and months ahead
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