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Analysis: M&A Activity In CBD market Is A Smart Strategy To Grow Market Sales, Market Cap

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Apr 01, 2020 (Stock Market Press via COMTEX) -- Analysts see the active M&A activity in the CBD market as a great strategy of growing market sales and extending market cap. As the market matures and grows, larger firms will benefit from the consolidation. For example, the move by Charlotte's Web /zigman2/quotes/205374221/composite CWBHF -7.44% , marketer of hemp-derived CBD products, to buy Abacus Health Products /zigman2/quotes/202856776/delayed CA:ABCS -5.96% , a leader in OTC hemp extract topicals, will result in a new entity with an estimated $190 million in sales in 2020 and a market cap of some $450 million.

The global impact of the coronavirus has intensified coverage of companies that market CBD and other health-related products. Media firms such as stockmarketpress.com feature coverage of CBD and health-related stocks such as CBD Unlimited, Inc. (OTC PINK: EDXC), Johnson & Johnson (NASDAQ: JNJ), Procter & Gamble /zigman2/quotes/202894679/composite PG -0.84% , Canopy Growth Corp. (NYSE: CGC), New Age Beverages Corp. (NASDAQ: NBEV), GW Pharmaceuticals PLC (NASDAQ: GWPH), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT). Aurora Cannabis Inc. (NYSE:ACB) and OrganiGram Holdings Inc. (NASDAQ: OGI).

Analysis: M&A Activity In CBD market Is A Smart Strategy To Grow Market Sales, Market Cap

Not only can M&A activity in CBD mean more sales and market cap in a consolidated business, but it can also mean the entry into the industry of mainstream names, For example, the recent move by mainstream firm Colgate Palmolive /zigman2/quotes/200774077/composite CL -0.39% to acquire Hello Products and its line of oral hygiene products -- CBD-infused toothpastes, toothbrushes, mouthwashes and lip balms. Colgate Palmolive is a trusted, mainstream and established brand. Its entry into CBD-infused product in the oral hygiene area raises the profile of CBD on the shelf. The Hello Products line consists of seven products: three CBD-infused toothpastes, two mouthwashes and two lip balms. Hello Products is an oral care brand based in New Jersey.

The move comes amid the frenzy in CBD M&A activity. PepsiCo /zigman2/quotes/208744353/composite PEP -1.07% is buying Rockstar Energy Drink to solidify its place in the functional beverage market. Charlotte's Web /zigman2/quotes/205374221/composite CWBHF -7.44% , marketer of hemp-derived CBD products, is buying Abacus Health Products /zigman2/quotes/202856776/delayed CA:ABCS -5.96% , a leader in OTC hemp extract topicals. CBD Unlimited, Inc. (otc pink:EDXC) joined the CBD M&A activity by buying Kush, Inc. Analysis: M&A activity in CBD market is a smart strategy to grow market sales, market cap.

Colgate Palmolive's entry into CBD oral care is intriguing because it reinforces a new classification and widens the acceptance of CBD as a mainstream-accepted product. Its CBD-infused products offer topical application, inflammation-reduction and may be used to treat the pain of toothaches through the inflammation-reduction properties. Hello Products are in more than 40,000 retail stores and Ultra Beauty /zigman2/quotes/210513442/composite ULTA -0.58% stores and online nationally. It is the largest beauty chain in the U.S. As of February 20, 2020, the Ultra Beauty chain operated 1,254 retail stores in all 50 states.

CBD Unlimited, Inc. (otc pink:EDXC) Joins CBD M&A Activity By Buying Kush, Inc.

CBD Unlimited, Inc. (otc pink:EDXC) recently acquired Kush, Inc., a New York based media driven entity that builds brands and also owns kushwear.net . The CBD Unlimited, Inc. (otc pink:EDXC) acquisition of Kush, Inc., expands the lines of CBD Unlimited, Inc. (otc pink:EDXC) and positions the company to extend its product pipeline into clothing brands under the Kushwear name, the company said. It hired Charlie Mohr, president and founder of Kush, Inc., who will now work full time at a new wholly-owned subsidiary of CBD Unlimited, Inc. (otc pink:EDXC). Analysis: M&A activity in CBD market is a smart strategy to grow market sales, market cap.

CBD Unlimited, Inc. (otc pink:EDXC) Reported A 101% Annual Increase In 2019 Sales

Todd Davis, CEO and chairman of CBD Unlimited, said the company plans to expand its product lines. In 2019, CBD Unlimited, Inc. (otc pink:EDXC) reported a 101% annual increase in revenues over the prior year. Davis said the company is 'on track' to meet its upward growth trajectory and surpass YOY guidance and goals. By retaining Charlie Mohr, CBD Unlimited, Inc. (otc pink:EDXC) recognized the value of his knack for branding lines and maintaining relationships as a successful entrepreneur.

CBD Unlimited, Inc. (OTC PINK: EDXC) Makes An In-Demand, High Quality Product

CBD Unlimited, Inc.'s (OTC PINK: EDXC) high quality product, a healthy alternative for coronavirus-mandated, home-bound consumers, is important for consumers who see health as significant today. Just as they seek hand sanitizer to prevent coronavirus, they want quality in all foods they ingest. CBD is also seen globally as a product which needs to be top quality and healthy for the body.

Consumers are now buying and sometimes hoarding essentials and top quality products. If they see CBD as a calming agent, they look for brand and companies that offer consistency and pure products. Firms such as CBD Unlimited, Inc. (OTC PINK: EDXC) continue the mission to expand product lines, enter into new classifications and acquire innovative and entrepreneurial companies.

CBD Unlimited, Inc. (otc pink:EDXC) Uses Seed-To-Shelf Strategy To Achieve Quality Control

CBD Unlimited, Inc. (OTC PINK: EDXC) ensures its CBD products are highest quality, American-manufactured and tightly controlled by a corporate seed-to-shelf manufacturing strategy. Its hemp is certified and grown in Colorado and Kentucky. It has premium genetics and superior quality, the company said in its recent Corporate Presentation. Its extracts in processing are rich in phyto-cannabinoids and terpenoids which are non-psychoactive. Product is cGMP Certified (Good Manufacturing Practice Certification).

Source: Stock Market Press

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COMTEX_364073755/2617/2020-04-01T08:26:46

/zigman2/quotes/205374221/composite
US : U.S.: OTC
$ 5.48
-0.44 -7.44%
Volume: 628,875
May 29, 2020 2:34p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$618.11 million
Rev. per Employee
$229,925
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/zigman2/quotes/202856776/delayed
CA : Canadian Securities Exchange
$ 6.00
-0.38 -5.96%
Volume: 12,819
May 29, 2020 2:29p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$137.67 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/202894679/composite
US : U.S.: NYSE
$ 115.09
-0.97 -0.84%
Volume: 2.76M
May 29, 2020 2:51p
P/E Ratio
65.20
Dividend Yield
2.74%
Market Cap
$287.32 billion
Rev. per Employee
$727,304
loading...
/zigman2/quotes/200774077/composite
US : U.S.: NYSE
$ 71.81
-0.28 -0.39%
Volume: 2.11M
May 29, 2020 2:50p
P/E Ratio
24.54
Dividend Yield
2.45%
Market Cap
$61.75 billion
Rev. per Employee
$450,551
loading...
/zigman2/quotes/208744353/composite
US : U.S.: Nasdaq
$ 130.87
-1.42 -1.07%
Volume: 2.96M
May 29, 2020 2:51p
P/E Ratio
25.49
Dividend Yield
3.11%
Market Cap
$183.55 billion
Rev. per Employee
$242,172
loading...
/zigman2/quotes/205374221/composite
US : U.S.: OTC
$ 5.48
-0.44 -7.44%
Volume: 628,875
May 29, 2020 2:34p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$618.11 million
Rev. per Employee
$229,925
loading...
/zigman2/quotes/202856776/delayed
CA : Canadian Securities Exchange
$ 6.00
-0.38 -5.96%
Volume: 12,819
May 29, 2020 2:29p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$137.67 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/210513442/composite
US : U.S.: Nasdaq
$ 241.91
-1.40 -0.58%
Volume: 1.65M
May 29, 2020 2:50p
P/E Ratio
32.52
Dividend Yield
N/A
Market Cap
$13.70 billion
Rev. per Employee
$193,562
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