ISODIOL INTERNATIO COM NPV (OTCMKTS:ISOLF): Potential Outlined

ISODIOL INTERNATIO COM NPV (OTCMKTS:ISOLF) is company in the legal cannabis sector. Arcview Market Research forecasts that legal cannabis revenues in North America alone will reach $20.2 billion by 2021, up from an estimated $6.7 billion in 2016. In this review we examine the prospects ISOLF of in the legal cannabis industry in light of the announcements we’ve heard from the company.We’ll get into that shortly. But first, take a look at the ISOLF’s stock price action. ISOLF Daily ChartLegal cannabis or legal marijuana industry is broad – and continues to expand. Before we begin examining the prospects of ISOLF in this industry, we’ll see what role the company plays in this industry to understand how it generates revenue for a better understanding of its prospects.BusinessISOLF is headquartered in Vancouver, Canada. It develops and manufactures pharmaceutical and consumer products based on cannabidiol (CBD) – an extract of cannabis plants. CBD can also be extracted from certain non-cannabis sources – we’ll talk a little bit more about this shortly.ISOLF’s consumer products have a broad range of use cases, such as anti-aging luxury skin care and nutraceuticals – which are foods that have medicinal benefits. The company has a diversified distribution channel that involves direct distribution and partner distribution. Its products are distributed to health food stores, health professional offices and cannabis dispensaries among other locations.In the broad legal cannabis sector, ISOLF serves the cannabidiol (CBD) market. According to Hemp Business Journal, a provider of legal marijuana market intelligence, CBD market in the US alone will grow an astronomical 700% in the five years to 2020. As such, CBD market is forecast to reach $2.1 billion by 2020, up from a tiny base of $202 million in 2015. This is the revenue potential that ISOLF is pursuing. Does it stand a chance of success? We look at the recent developments around the company for answer.Recent developmentsIn order to push forward with its product development and market expansion goals, ISOLF entered into a financing agreement with Alumnia Partners to raise additional capital. On August 21, ISOLF said that Alumnia Partners had committed to finance it with C$25 million in exchange for convertible debenture. The debenture will convert into common shares and warrants to purchase common shares of ISOLF.While this kind of fundraising leads to stock dilution, the dilutive impact on ISOLF stock should be limited or even negligible if the financing helps the company to achieve its product development and market expansion goals quickly.Marcos Agramont, the CEO of ISOLF, made this remark about the financing deal:

“This funding support allows us to further enhance our global expansion and move forward on strategic acquisitions. Innovation and development of IP is what separates us from our competitors and we will continue to make this a priority."

Source:Shortly after ISOLF reported the financing arrangement with Alumnia Partners, it announced an expansion of its distribution network in South America – thus widening the addressable market for its products. On August 30, ISOLF reported that it had signed FarmaUSA as a distribution partner for the South America region. FarmaUSA describes itself as a leading wholesale distributor of imported pharmaceutical products in South America.ISOLF hopes to take advantage of FarmaUSA’s distribution and doctor network to increase the presence of its Isoderm and Direct Effect Technologies in Brazil and across South America. In addition to physical distribution of products, FarmaUSA will also facilitate physician conferences in Brazil and the South American region to educate healthcare professionals on the benefits of ISOLF’s Isoderm product.Beyond the Americas, ISOLF is expanding to other overseas markets as well and the capital raise we’ve looked at earlier will come in handy for these international expansion efforts. On September 12, ISOLF not only announced that it was taking its products to Australia and certain regions of South East Asia, but also said that it is in the process of listing its stock on the Australian Stock Exchange (ASX). ISOLF said it has covered much ground as far as ASX listing goes, including completion of due diligence and corporate review, and that it expects to be clear with the process by the first quarter of next year.Expanding into Australia will expand the market for ISOLF’s products and listing on ASX will allow the company to tap into one of the world’s thriving capital markets.At this juncture one may wonder whether it would be legal for ISOLF to sell products based on cannabis extract in Australia and South East Asia markets considering that cannabis is not universally legalized. For this potential hurdle, ISOLF has a workaround. On September 5, the company said that it had created a new division that will focus on developing CBD-based products from non-cannabis sources. This approach should remove hurdles for ISOLF in selling into markets where cannabis is restricted.ConclusionTop sum up, ISOLF seems to be making all the right moves to seize the revenues and profits that the legal cannabis sector provides – and they are enormous.We will be updating our subscribers as soon as we know more. For the latest updates on ISOLF, sign up below!Disclosure: We have no position in ISOLF and have not been compensated for this article.