Mar 27, 2020 (Stock Market Press via COMTEX) -- The CBD sector in stocks is jumping. In yesterday's rally (Thursday, March 26, 2020) Abacus Health Products, Inc. /zigman2/quotes/203441701/delayed ABAHF -0.60% , takeover target of Charlotte's Web, rose +33.6% to $3.34; Aurora Cannabis Inc. /zigman2/quotes/210559470/composite ACB +0.26% +21.30% to $0.90; CBD Unlimited (OTC PINK: EDXC) +9.11% to $0.0599; Canopy Growth /zigman2/quotes/200603886/composite CGC +9.15% +8.44% to $15.16; and Organigram Holdings Inc.(NASDAQ: OGI) grew +10.17% in after-hours trading to $1.95. M&A activity is hot in CBD, too, as the category explodes.
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 +1.91% , 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).
CBD Stocks Jump, Including Acquisition Target Abacus Health +33.6%, Aurora Cannabis Inc. +21.30%, CBD Unlimited +9.11% And Canopy Growth +8.44%
The stock market rally yesterday featured industries in line to get federal relief from a new $2 Trillion bill passed by the Congress and signed by President Trump. These CBD stocks jumped even though this classification is not due to receive federal payments in the near future. Although national online sales of CBD spiked online by 230% before coronavirus quarantine orders, the Small Business Administration (SBA) was reported to have told CBD and cannabis-related firms applicants for relief that they were ineligible because while they might be legal by state or local governments, they were not approved federally.
CBD Or Cannabis Companies Not Eligible For SBA Relief Loans?
CBD and cannabis customers stocked up on product prior to being shut-ins at home during the coronavirus crisis. CBD companies may be ineligible for federal relief loans. Several websites said that CBD and cannabis-related companies -- growers, dispensers, retailers -- will not be eligible for SBA business relief loans from the impact of the coronavirus. According to one local article, an SBA spokesperson said even if a business is legal under local or state law it would not be eligible for the federal relief loans because the product is not permitted under federal law.
All of that makes the rally in CBD stocks yesterday even more remarkable because it was not relief loan-driven, as perhaps investors saw them for other industries. The jump in price for Abacus Health Products /zigman2/quotes/203441701/delayed ABAHF -0.60% came after the company was named an acquisition target by Charlotte's Web (OTC: CWBHF), marketer of hemp-derived CBD wellness products. That stock deal, with an implied equity consideration of C$99 million, was announced March 23, 2020. CBD stocks jump, including acquisition target Abacus Health +33.6%, Aurora Cannabis Inc. +21.30%, CBD Unlimited +9.11% and Canopy Growth +8.44%.
CBD Unlimited, Inc.'s (OTC PINK: EDXC) Sees Growth In CBD Future
The rally in CBD stocks and spike in CBD M&&A activity is positive for CBD Unlimited, Inc. (OTC PINK: EDXC). The company is strengthening its Board, acquiring industry-related companies and planning to achieve growth. The company's products are available at large national mass market and pharmacy chains such as Walgreen's or online on its own site. CBD stocks jump, including acquisition target Abacus Health +33.6%, Aurora Cannabis Inc. +21.30%, CBD Unlimited +9.11% and Canopy Growth +8.44%.
CBD Unlimited, Inc.'s (OTC PINK: EDXC) high quality product, a healthy alternative for home-bound consumers, is important for consumers who see health as especially significant today. Just as they seek personal purification from 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 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 Is Not A Cure For Coronavirus, But Its Properties Address Key Elements
CBD is not a cure for coronavirus although its properties address key elements. It is known to offer anti-viral, anti-inflammatory and anti-bacterial properties. It also acts as an effective treatment for nausea and vomiting, which can be induced by the coronavirus in humans.The calming benefits of CBD is receiving more media coverage than in the past because it can play a role in reducing anxiety of house-ridden consumers, worried about catching the coronavirus.
CBD Unlimited, Inc. (OTC PINK: EDXC) Strengthens As It Adds To Board; Acquires Kush, Inc.
In all of this, CBD Unlimited, Inc. (OTC PINK: EDXC) is continuing to be aggressive and grow. It recently named to its Board both Peter Governale, a veteran of the wine and spirits industry, and Dr. Daniel S. Brandwein, D.P.M., F.A.C.F.A.S., who is a Florida board certified foot and ankle surgeon. Both are proponents of the benefits of CBD for health and wellness.
CBD Unlimited, Inc., (OTC PINK: EDXC) earlier acquired New York-based marketing and branding company Kush, Inc. Kush builds brands through strategic marketing. It will operate Kush as a new wholly-owned subsidiary. Also, Charlie Mohr, president and founder of Kush, will join CBD Unlimited full time.
CBD Unlimited, Inc. (otc pink:EDXC) Reports 101% Annual Increase
The company reported growth in 2019 with a 101% annual increase in revenues over the prior year. Todd Davis, CEO and Chairman, said CBD Unlimited, Inc. (otc pink:EDXC) is 'on track' to meet its upward growth trajectory and surpass YOY guidance and goals. A reason for that is omni-channel marketing from this company that is innovative and aggressive.