The Cannabis Industry as far as public companies go is undergoing dramatic change. The pedigree companies have been getting their asses kicked, and shareholders have been voting with their feet exiting the large market caps.
This has been happening since mid-2019 and accelerated into year-end 2019 where tax-loss selling caused both retail and institutional investors to rethink any cannabis sector investment which raises concern for the industry itself to be considered a legitimate asset class for the new decade. We think a logical solution is to find companies that actually have revenue and margin versus investing in hope. All in all, it is pretty normal to have a rotation in leadership, this has occurred in every growth sector stock since the beginning of time.
Enter CanaFarma, who boasts growing revenue each month since June of 2019, and sees revenue for 2020 as high as $45 million. This kind of revenue growth cures many ills for the downtrodden Cannabis Sector, and the timing could not be better for CanaFarma who intends to list on the Canadian Securities in 2020 under the symbol “CNFA”. The timing of public trades are still undetermined, but it will be worth watching this CBD focused entity report its numbers and navigate the analyst community.
The company also includes celebrity endorser Sean Paul who touts the Yooforic CBD Gum line for CanaFarma in videos on Youtube supporting and prompting online sales that contribute to the revenue streams mentioned above, management has real skill marketing the product line, and they plan to use funds from leveraging public markets to expand these product lines. Clearly, this is how they plan to get to the $45 million they are projecting, and it seems impossible when one thinks about chewing gum, and that’s what I thought until I did a bit of research on how William K Wrigley built an empire in Mars Confections into a $35 billion dollar a year business, it is possible and in fact, it has been done before starting with a high margin product like chewing gum.