Dewmar International BMC Inc (OTCMKTS:DEWM) Finally Breaks Out

We covered for the first time Dewmar International BMC Inc (OTCMKTS:DEWM) in this piece, wherein we explained that the company had put out numerous interesting news. Additionally, we noted that the share price was on the verge of a possible breakout.

"However, as of late, shares have been quietly ticking higher. This signals to us that something is brewing and that shares could be out to get on a run." Source

Well, it took more than a year, but the breakout finally happened. The company jumped on news that the company put out on May 16, 2017. According to a report, we could find in the SEC filings of the company that DEWM will be working with Wal-Mart Stores in Texas, Louisiana and Oklahoma. Have a look at the recent share price reaction.SourceBusiness and Recent DevelopmentsDEWM was founded in 2009. It is a Nevada corporation, operating in wide range of industries including consumer goods, wholesale trade, pharmaceuticals, and health sciences. The company makes use of several subsidiaries to distribute products in the U.S. markets and internationally through licensing agreements, e-commerce platforms, fee-for-service arrangements, and distribution contracts.The most outstanding news identified by the team was the contract with Wal-mart, which we found here. The company explains the rationale of the new agreement in the following way in this other document:

"Over the previous 3 years, the Company had a Direct-Store-Delivery Supplier Agreement whereas its employees or distribution agents had to personally deliver each case of product to the 21 Walmart locations in Louisiana, Arkansas and Mississippi. Now, under the terms of this new Agreement, which covers a larger variety of stores, the Company has been upgraded to a Central Distribution Supplier whereas the Company ships multiple pallets of its product to two different central distribution centers operated by Wal-Mart Corporation, who in turn delivers the products to stores on a daily basis for direct shelf modular placement by Walmart employees." Source

Another interesting news was received some days later. On May 18, 2017, the company filed form 15. This is a "formal suspension of duty to file reports under Sections 13 and 15(d) of the Securities Exchange Act of 1934". In our opinion, it is a necessary step and the company should have done it before. Paying lawyers to report the exact forms for the SEC is quite costly, and DEWM needs to allocate capital for other more important activities. Obviously, the company will keep sending its annual report and preparing its accounts, but investors will be able to find its documents on the OTC Markets website like many other successful websites that we assess everyday. The CEO, Dr. Marco Moran, offered large amount of reasons. But, we believe that the most important are the following ones:

"1) To focus our resources and capital on several immediate business growth opportunities including Walmart product placement expansion. 2) To deliver substantial cost savings to the Company's bottom"

SourceAdditionally, he said the following:

"We believe these necessary steps are in the best interest of our shareholders, reallocate management's focus on revenue generating tasks and helps drive increased operational efficiency." Source

Entered into the Cannabis business recentlyAccording to its website, the company sells several hemp-based products. Now that the cannabis industry is increasing its demand due to the recent legalization of the medical marijuana in the United States, this is such a great move. The following are the brands noted on the website:

• C+Swiss Hemp Ice Te
• Lean Slow Motion Potion
• Canna Energy
• Chillo

In addition, the company is currently developing a hemp brownie and several products made of CBD.ConclusionThere are several interesting points in this company that traders seemed to appreciate recently. The most important is the agreement with Wal-Mart, which made the stock price jump. Additionally, the company seem to be looking to reduce the costs of reporting directly to the SEC and will do it now to OTC Markets. In addition, in this article, we informed about the new hemp-based brands that the company commercializes. We believe that readers will appreciate the exposure of the company to this growing market. To sum up, DEWM has put out good news recently, and we believe that it may continue to move higher, thus try to be alert. We will be updating our subscribers as soon as we know more. For the latest updates on DEWM, sign up below!Disclosure: We have no position in DEWM and have not been compensated for this article.