Today, we are presenting a new business that has recently surprised the market by providing interesting returns. It is called ELEV8 BRANDS INC. (OTCMKTS:VATE), which focuses on commercial development of hemp and CBD-based products including hemp coffee, tea, and E-juices.
After an astonishing turnaround in the share price that took place from June to November 2017, the stock price is exploding up on the charts. From $0.01 in June and July, the stock price increased to hit the six-months highs of $0.06 in the month of December.
That’s not all.
The trading volume also picked up. More than 5 million shares changed hands some days, which clearly shows that many market participants seem to be studying this company at this point in time.
Have a look at it:
ELEV8 BRANDS INC. is headquartered in Rockledge, Florida. It specializes in the development and marketing of products for the fitness and wellness markets. The company has been founded with the aim of creating high-quality, sustainable products for health-conscious consumers.
This entity controls the following subsidiaries:
- Elev8 Hemp LLC: its main activity is the development and marketing of hemp-based food, beverages, and health care products including hemp coffee, hemp water, and hemp-based skin care products.
- 02 Breathe: it develops an oxygen bar while bringing in an array of CBD products.
- Hemp Founders: it focuses on reselling and white labeling of existing hemp and CBD product.
- Blue Ridge, Inc.: it was founded in the State of Utah and breeds champion horses.
We believe that the explosion of the share price in the charts is due to the hemp-based products developed by the company. Thus, we will study the announcements related to this part of the business.
If you are not aware of the current opportunity that the marijuana industry is offering to the market participants, please read our articles on the subject. To tell a long story short, after the legalization of some forms of medical marijuana in some states of USA and Canada, the demand for marijuana has increased quite a bit. As a result, the share price of many marijuana stocks has spiked up, so many market participants are rushing to study this sector. Elev8 Hemp seems to be a very good example.
The following are the news that seemed to push up the share price in November and December.
On November 30, 2017, the company released that Elev8’s Hemp Coffee had been approved and is available for customers with Amazon Prime accounts. This is a great news, as the new agreement was said to provide quicker and cheaper delivery times allowing greater penetration into the online market.
Company CEO, Ryan Medico, noted:
“We are excited to now have Elev8 Hemp Coffee available for Amazon Prime subscribers. With both coffee and tea on Amazon Prime we are able to reduce costs and at the same time help eliminate unwanted shipping costs to the consumer.” Source
We believe that having a business partner like Amazon will not only bring new clients, rather, in our opinion, it shows that the company is well-known in the industry and the brand equity is very significant. Well done.
On December 5, 2017, the company noted that Lucky’s Market in Orlando, Florida, has placed a new order for Elev8 Hemp Tea. This was a great news.
But, there is more.
The company said that it is receiving “great feedback regarding its recent release” and online sales keep growing. Check the following words of the Chief Executive Officer, Ryan Medico:
“We have experienced a massive spike in online sales due to our marketing as well as word of mouth. It’s great to see our brand following increase as we continue to bring high quality, premium products, to the market.” Source
Some market participants should be expecting great news from the next quarterly earnings release and may have acquired some shares before it is released.
But, there is more.
It was also said that 02 Breathe, LLC, seems to be increasing its capacity. It is seeking two new store locations to handle the growing demand for the products and services that 02 Breathe brings to market. This is again a great news and shows that the business is growing at a large pace.
On December 12, 2017, the company announced that Elev8 Hemp is interested in increasing efficiency and has decided to bring a new local roaster. The new development could significantly decrease lead time on new inventory as well as reduce cost on shipping, thereby significantly increasing profit margins.
There is more.
Elev8 Hemp, LLC, noted that it had hired Robert Clark, CEO of Kona Gold Solutions Inc. (OTCMKTS:KGKG), to be the new President.
We believe that the news is again very beneficial for the company. Acquiring talent and know-how from other companies is the best way of increasing business growth. In our opinion, the company is working in the right direction and market participants are pushing up the share price as a result.
Currently trading with a market cap of $20 million, VATE is an exciting story among small caps.
There is another feature that some market participants will appreciate: VATE is a low float runner.
With 488,285,396 total outstanding shares and a float of only 64,187,982 shares, we expect a lot of volatility in the share price, which usually is beneficial for the people specialised in volatility plays in the market.
To sum up, this is a company to be followed closely!
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Disclosure: We have no position in VATE and have not been compensated for this article.
Image courtesy of Sonya via Flickr