The month of November has been one to remember for players and management in ISODIOL INTERNATIO (OTCMKTS:ISOLF).During this period, the company has seen its share price has been on the rise, moving from a price of $.2 to close yesterday just shy of $.5, a near 150% jump in prices.Moreover, during this period, the traded volumes have been slowly rising.Currently, the traded volumes have crossed the 500,000-share mark with some even crossing the 1 million share mark as was the case on the 15th of November.All this share price action can be seen in the chart below: ISOLF Daily ChartWith such a remarkable trend having been set and such a positive trajectory being followed, we opted to have a closer look at the company and as to how they are currently performing.As such, over the course of this piece, we will seek to find out the drivers of such a high valuation, be it financials, projects taken or new information, and detail how this will affect them in the long run.Before then, however, let’s have a basic introduction to the company for the sake of first time readers.A look at ISOLFIsodiol International Inc. is the market leader in pharmaceutical and nutraceutical grade phytochemical compounds. They also pride themselves as being industry leaders in the manufacturing and development of phytoceutical consumer products.The company was a pioneer in the commercialization of many novel products in the cannabis industry such as 99%+ pure, bioactive pharmaceutical grade cannabinoids, micro-encapsulations, and nanotechnology for high quality skin care products.Currently, their main growth strategy entails growing their product line coupled with the expansion into Latin American, Asian and European markets. A lot has been done to ensure this is actually accomplished, most of which is discussed below and accredited for being the reason behind the share price growth.Recent DevelopmentsA lot has been done by ISOLF over the recent past and a lot more is expected. However, the following is a breakdown of their greatest achievements over the past two months.Blockchain ImplementationThe company announced, towards the end of October, that they were in the advanced stages of adopting and accepting blockchain for payment processing. This is courtesy of the exponential growth seen in their online sales since inception.The adoption of Blockchain technology will reduce the transaction fees and ensure that their international presence is felt and grows into the future.This also speaks to their foresight given the fact that blockchain technology is currently being accepted more and more as a means of payment globally. Their entry into this space is only meant to grow their reach going forward.Industrial PartnershipsA lot of partnerships have been formed in the marijuana sector as companies find other players to aid in growth of brands or entry into new markets.ISOLF has not been left behind.They have entered a joint commercialization strategy with Nutritional High International Inc in a bid to grow their branded products dubbed ‘Pot-O-Coffee’.Under this agreement, Nutritional High will distribute Isodiol’s Pot-O-Coffee, Pot-O-Tea, and Pot-O-Coco product lines while focusing on the states of Colorado, Oregon, Washington, California and Illinois, in cooperation with Nutritional High's partner companies.This move which rides on the wave created by the investment in Canopy Growth Corp (OTCMKTS:TWMJF) by Constellation Brands, Inc. (NYSE:STZ) is meant to bring cannabis-infused drinks to the market. Though second, ISOLF is proud of their entry into this space and expects nothing less than growth courtesy of this move.Breakthroughs and AcquisitionsISOLF has, even more recently, launched ImmunAG™, the market’s first non-cannabis cannabidiol (CBD) product derived from the hops plant. According to the company, the ImmunAG tablet does not dissolve in the stomach but rather dissolves in the lower intestine, creating greater bioactivity.The sales launch which is a first for the company will see them grow courtesy of the continued growth in the cannabis sector coupled with the worldwide acceptability of the hops plant.Their CEO, Marcos Agramont, was quoted at the launch saying:
“The release of ImmunAG is a monumental milestone for Isodiol, as it marks the industry’s first foray into non-cannabis CBD products. This launch is a continuation of our company strategy to provide a diverse range of products as we strive to increase shareholder value by creating entirely new market segments.”
Source:Finally, the company has chosen to integrate all parts of the value chain by its recent acquisition of Bradley’s Bioscience Inc.Bradley’s Bioscience manufactures more than 500+ nicotine products across several brands; all of which are compliant with current FDA regulations and approved for sale in both the United States and internationally.The company which operates through offering non-CBD lines, hemp oil vaping e-liquids, THC additives, and organic men’s grooming products is expected to ensure that the product lines of ISOLF.Their CEO, Marcos Agramont, further spoke of the intent as follows:
“The global e-cigarette and vaping market is poised to be a $61.4 billion-dollar industry by 2025, and there is a definite need for standardization in the industry.”
Source:With such a move, ISOLF now not only has the ability to produce but also distribute their products through their expected subsidiary. Nothing will stop them from growing especially now that they have made such a move.Financial PerformanceThe company’s financial performance for the period ended June 2017, despite a few hiccups, was quite impressive.Their revenues went up from $47,185 to over $2.74 million for the period ended June 2016 and 2017 respectively. Moreover, so did their gross profit margin as it went from 30% to 58.6% during the same period. Such performance was attributed to greater marketing of their products as well as better management of costs as the firm grew.Despite this, the company netted in a loss of $1.22 million, which may seem bad until a further analysis of their financials is done.The loss for the period went up from $357,336 to $1.22 million for the periods ended June 2016 and 2017 respectively. However, during the period ended June 2017, the company had share-based compensations totaling $1.21 million, most which exacerbated their loss position. With this out of the picture, the company’s loss position courtesy of operating costs would have been reduced to $8,478 as compared to $291,891 from the previous period, quite a significant leap for them.Their working capital base was also negative, standing at about $3.79 million. This, was inclusive of $7 million in acquisition-related costs.The company acquired ISO Inc and was meant to pay an additional $7 million over the period till June 2018 as cash payments. The company, which is expected to generate an extra $1.8 million over the next period, is expected to be a leading contributor to ISOLF’s revenue portfolio and eventually its growth.Finally, in a bid to finance the working capital base among other corporate operations, they issued shares and received proceeds totaling $3.7 million. In addition, their shareholder equity rose from $1.9 million to $11.48 million during this period.From the above financial analysis, ISOLF has done a lot in a bid to tidy their books as well as grow their finances and portfolio. All this has in one way or another played a role in ensuring that they eventually secure a position on the leaderboard in the cannabis sector.We expect that it will prove beneficial for them.Our ViewEventually, with all the above in mind, the company is expected to grow to even greater levels than currently have. It is upon this backdrop that we expect that the market chose to reward them with such a valuation. We are also quite optimistic of their growth potential and expect their price to only go higher into the future.ConclusionISOLF represents one of the success stories in the market. The entity has invested heavily in a lucrative sector and is poised for success. Further growth is imminent for them.For the full story on ISOLF, check out our complete coverage.We will be updating our subscribers as soon as we know more. For the latest updates on ISOLF, sign up below!Image courtesy of Jurassic Blueberries via FlickrDisclosure: We have no position in ISOLF and have not been compensated for this article.
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