Biotech

Todos Medical (TOMDF) Inks Transformative CBD Supply Deal After Hours

Todos Medical Inc. (OTCMKTS: TOMDF) announced yesterday a $50 million supply contract of Tollovid and CBD products to Nerd Hemp an AI Retail vending company.  With over $11.5 million in expected revenue during the 4th Quarter, this represents a major transformative win for Todos that should stabilize cash flow and fund all their initiatives without any further dilution. In recent interviews, the CEO of Todos refused to give up on his $20 million guidance for the year, and now we see why because they will likely meet or exceed it just on this one contract. 

Todos the Ideal Supplier

Investors skeptical of this supply deal need to look back no more than 3 weeks ago when they announced their botanical supplement manufacturing capabilities. Their manufacturing facility had over $2.0 million in manufacturing equipment for making capsules, gummies, tinctures, drinks, and syrup. The land also had access to a water supply that could establish grow facilities to produce 30,000 bottles of Tollovid per month.  This latest deal was intelligently framed and telegraphed, but retail investors blinded by the idea of a big seller panicked out of TOMDF instead of giving management the benefit of the doubt.  TOMDF had big plans for the manufacturing operation, but investors weren’t paying attention.  After the manufacturing announcement, it’s quite clear that the company is planning to move Tollovid manufacturing operations to their own facility in Cleburn, TX location. 

The CEO of Nerd Hemp was pragmatic about the distributor-supplier relationship and said

“Being able to gain access to a game-changing supplement such as Tollovid that is ideal for travel, athletic and leisure marketplace was something unique that no other supplier than Todos could deliver”

There is more to the story because the site has the ability to morph into a grow facility that would not only ensure a constant supply of botanical products but also lower their costs. Todos is one of the most expensive supplements on the market for good reason because users know it works on acute COVID and Long COVID.  The other strategy that Todos mentioned in the press release are 

lower priced formats that lower the barrier to access for the average consumer.” 

This means Tollovid may be sold as daily travel packs that allow the consumer on the go to get 3CL antiviral protection. The margins on these convenience items are very high and should help boost TOMDF profitability.    

Rise of the Influencers

Over the past year, the company launched its Tollovid brand and it has easily done millions in revenue and looking to grow more with the addition of influencers like Michael Irving and KingcarlX. KingcarlX is a social influencer with close to 6 million Instagram followers and has links to Kylie Jenner and Kris Jenner.  He is only one degree of separation from Kourtney Kardashian who is battling Long Covid. It’s just a matter of time before the right celebrity endorsement comes along and then balloons Tollovids sales. Ignoring the ladder climb to the top level social influencers could cost impatient investors extraordinary gains.      

New and Improved Tollovid

While many consider CBD a commodity, it’s ripe for formulating value-added products of CBD and Tollovid.   CBD is commonly used as an anti-inflammatory and its conceivable that Tollovid as a powerful 3CL protease inhibitor could be mixed with CBD to enhance its effect. The CEO of TOMDF said he would be “expanding our product offering substantially.”

Recurring Revenue Streams

Nerd Hemp is a vending retailer very focused on data and they use artificial intelligence (AI) to ensure their vending machines are optimized with the best product mix for the location to ensure maximum revenues.  They also seem to be capitalizing on the trend that consumers don’t want to wait in lines for their product anymore and vending machines cut out lines, streamline payment, and are low overhead when compared to staffing a retail agent.  Nerd Hemp has a number of venues like airports, sporting venues, fitness centers, and bars that cater to consumers looking for extra immune protection. Their business model generates recurring revenue streams designed to keep the customer engaged.  One major benefit is the offline (vending machine) to online conversion that is likely to happen once the consumers try the product and then purchase it once they get home.  

Investment Summary

Nerd Hemp is slated to install 5,500 AI retail vending machines in the future.  They were supposed to launch nationwide in 2020 but the lockdowns really hurt foot traffic which their business model was reliant upon. They delayed their launch until foot traffic increased and were comfortable that they had a supplier that was capable of meeting their needs.  The most important element was the “game-changing” supplement Tollovid.  TOMDF and Nerd Hemp seemed to have crossed paths at the perfect time.  Nerd Hemp needed a distinguishable product and a supplier of CBD and TOMDF needed to utilize their newly established manufacturing capacity to generate sales and profitability which will clean up their debt and allow them to fund their initiatives without dilution. 

The margins in the vending business are enormous and predictable.  Until now TOMDF wasn’t able to accurately project revenue because it was extremely dependent upon the amplitude of the COVID-19 waves.  Investors priced in a hefty discount to the stock price for that revenue lumpiness.  This transformative deal quickly morphs Todos into a positive recurring earnings story with accelerating revenues.  The hidden gem at TOMDF is the 3CL Pharma asset which was recently valued at 1.98 billion.  The current market cap of TOMDF is $20 million, far below any rational valuation of a phase 2/3 ready COVID19 therapeutic that took dying off the table .

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Disclosure: Insider Financial and its owners do not have a position in the stocks posted and have posted this article for free without editorial input. This article was written by a guest contributor and solely reflects his opinions.

Todos Medical (TOMDF) Inks Transformative CBD Supply Deal After Hours
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