Since our last review of Canbiola Inc (OTCMKTS:CANB) – which can be accessed here – there has been a lot which has happened within the firm. The firm has not only been up listed on a new exchange but also worked on numerous agreements which will see them boost their product line.
With this being the case, it is expected that their share price has reflected this activity; however, the share has continued to oscillate between a share price of $.03 and $.08. Despite this mundane share price movement, a look at the firm’s share price history shows that the firm has suffered a bear runs after their share price surged to over $.11 back in September. Since then, the company’s price fell to $.03. This is shown in the chart below:
The last ten days, however, have seen the company benefit from a price increment. The uptick has seen the company’s price rise from $.03 to their current price of $.0589, just shy of a 100% increment. This was accompanied by a corresponding increase in traded share volumes. This price action is seen in the chart below:
The rise in this price is attributable to a number of factors, key which have been pointed out earlier in this piece. In this piece, we evaluate the key drivers of this uptick as well as the company’s performance and assess the term of its effect – short or long.
Who is CANB?
Prior to evaluating the company’s performance, let us, for the sake of first-time readers, first establish the background to CANB.
Canbiola Inc was founded back in 2005 and headquartered in Clearwater, Florida. Back then, the firm operated in the technology sector with an orientation towards software applications. However, their strategy since morphed, leading them to venture into the cannabis sector in a development and distribution capacity. To put this in context, the firm initially – still does – provided to key service: WRAPmail and Bullseye Productivity Suite.
The former is a branding and advertising solution which links customer emails with their logos, letterheads and product offerings while the latter is a cloud-based system which is useful for consolidating office productivity tools such as email, task management tools, project management tools, scanning, closed-loop email, and cloud as well as real-time data use.
After moving to the marijuana sector, the firm has begun the development and sale of cannabidiol based products within the United States. The firm’s products are useful for alleviating pain, amnesia, epilepsy, anxiety as well as nausea and come in oils, moisturizers, creams, gels, vapes as well as chews.
New Product Offerings
In working towards growth in revenue, CANB has been focused more on developing their product offerings. To achieve this, they have partnered with other firms such as The International Spirits and Beverage Group Inc (OTCMKTS:ISBG) which is a renowned brand incubator within the global wines & spirits market to develop a product which will see ISBG venture into the cannabis sector. This followed a recently signed distribution agreement signed by ISBG to sell cannabis products from CANB.
In addition, the firm also signed a manufacturing agreement with Elev8 Brands, Inc (OTCMKTS:VATE). This would also see them commercially develop hemp and CBD-based products for the manufacture of CANB’s new Zoe CBD CryoGel. This all-new vegan, non-GMO, all natural and organic compound – made from 99.9% pure CBD – will provide fast acting pain relief. The two firms continue to appreciate the synergies between them which they will harness over the development phase. According to Marco Alfonsi, CEO of Canbiola:
“With Elev8 Brands, Inc. and Canbiola having many synergies, it makes sense to work together for the expansion of our products and respective brands.”
All in all, CANB’s continued investment in the cannabis sector as well as the partnerships has been the driver of their current value proposition. With the market for cannabis continuously increasing, the firm’s demand side continues to grow therefore the new products will see them provide different solutions to this market, eventually growing their revenue base.
The Up Listing
In mid-November, Canbiola announced that they had received authorization to list on the OTCQB venture market.
Achieving this required the firm to meet strict requirements especially in their disclosures and transparency. Through this listing, the firm seeks to benefit from higher liquidity as well as increased exposure to market participants. Through this, the firm will then ably finance their new growth strategy especially their diversification in product offering as well as aligning themselves with similar firms which can allow for partnerships and foster their growth trajectory.
New Board Entry
CANB’s management was excited to announce the entry of Johnny Mack, Ph.D. to the firm’s new Corporate Advisory Board. His role will be assisting and advising the Board of Directors and Executive in their growth efforts as well as ensuring Canbiola develops in a socially responsible manner. His belief in the fight against opioids presents a strong case for cannabis, one which he believes can be harnessed to promote the alleviation of opioids, especially in the United States market.
Finally, he also brings significant business development opportunities for CANB as stated by the firm’s CEO:
“We believe that Dr Mack will open doors of potential opportunities in government and industry relationships for Canbiola that would not otherwise be available to us… This is a very exciting time in the Company’s focus upon broadening our reach and horizons via professionals like Dr Mack.”
The entry of CANB into the cannabis sector provided the firm with the ability to grow and develop in a green sector, allowing for high returns during the sector’s development phase. In developing these drugs, the firm is slowly carving its niche, one which will see them benefit from a significant market share going forward. Given this as well as the increased access to liquidity, we believe that the firm will continue to produce new products and grow. We are therefore bullish about CANB.
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Disclosure: We have no position in CANB and have not been compensated for this article.