CBD Unlimited Inc (OTCMKTS: EDXC) excellent run in the market is showing no signs of exhaustion as the stock continues to register higher highs. The stock is already up by more than 800% on strengthening investor confidence about the company’s long-term prospects.
EDXC Share Price Analysis
Share price explosion coincides with the company reporting a record-setting quarter for fiscal Q1 2019. The Company has also strengthened its distribution network to service more than 1200 bodegas and boutiques underscoring focus on accelerating sales growth a development that continues to excite investors.
In the recent past, the stock’s market sentiments have inched higher following the completion of an FDA Label review that could pave the way for entrance into Pharmacy Food and Mass Retail. In addition, the pursuit of accelerated sales growth has received a significant boost on the company completing production of 7.5 million wholesale products.
The stock taking a flight reflects strengthening investor confidence in response to recent developments that point to a bright future. With the stock trading at the $0.62 level, pullbacks should provide exciting entry positions given the strength of the upward momentum.
Immediate support from record highs is seen at the $0.40 level, from where CBD Unlimited embarked on the recent uptrend. A breach of the $0.40 support level could result in the stock plummeting to the $0.30 mark, the next substantial support level.
Above the $0.30 support level, CBD Unlimited remains supported for further upside action given the engulfing long-term bull trend and the bullish momentum in the overall cannabis sector.
What Does CBD Unlimited Do?
CBD Unlimited is engaged in the development and sale of consumable product lines derived from Hemp. Its lead product includes Phyto-Bites CBD-infused soft chews for dogs. It also sells Third Eye Chai a CBD-infused gourmet tea beverage as well as CBD capsules oils and distillates.
Why is CBD Unlimited Exploding?
CBD Unlimited is exploding on huge turnover of traded shares comes on investors reacting to improving underlying fundamentals that affirm robust growth. For starters, the company is fresh from producing 7.5 million wholesale products as it seeks to meet initial demand requirements in the cannabis sector.
“Last year, we grew CBD Unlimited distribution to over 1,000 distribution channels. With full-scale production capabilities, we are confident that we will reach at least 5,000 by 2020. With the recent passage of the Farm Bill in December 2018, we are seeing an increase in our national product reach and will be able to deliver to meet these high demand levels,” explained CEO Todd Davis.
The production milestone coincides with the launch of Premium Blue Line CBD in March as the company continues to expand its cannabis product line. According to the CEO, the development of new products is part of the growth strategy as they move to enhance the family of products to meet the diversified market demands.
FDA Label Review Milestone
Completion of an FDA label review for an entrance into the pharmacy, food, and mass retail sectors is another milestone that underscores CBD Unlimited long-term prospects. The company has since submitted vendor applications, of which if approved, will pave the way for the launch of mass retail and distribution channels.
“We are thrilled to complete this stage of our ‘Compliance’ label review as we expand into pharmacy, food, and mass retail centers. Label revisions will be ongoing as the regulations for the hemp industry develop. With our new labeling, we expect to continue expanding across several channels – nationally and internationally,” explained Mr. Davis.
With a new product labeling, CBD Unlimited hopes to make its products available in over 30,000 stores by the end of 2020. CBD Unlimited has already inked a deal with Gold Coast Distributors that will service over 1200 stores with its unlimited product line. The initial rollout will target customers in Brooklyn, New York, and Manhattan.
CBD Unlimited has started Q2 from where it left Q1 when it comes to improvement in operational efficiency, expansion into new markets as well as rallies in the stock market. After a record-breaking quarter, the company looks set to deliver impressive numbers thanks to the expansion of the product line as well as the signing of supply and distribution agreements.
The stock rallying is in response to investors remaining optimistic about the company’s growth metrics as well as long-term prospects. That said the stock should continue edging higher as 2019 rolls on.
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Disclosure: We have no position in EDXC and have not been compensated for this article.