CBD of Denver (OTCMKTS: CBDD) has been under accumulation in recent weeks and recently broke north of its trading range. The stock had fallen to lows of $0.0016 from highs near $0.04 in early 2021, and the cannabis market looks ripe for a rally as there are 8 states with Marijuana legalization measures on the ballet including Texas, Oklahoma, South Dekota, Ohio, North Dekota, Nebraska, Missouri, Maryland, Iowa, and Arkansas.
CBDD hit the OTC in November 2018 and Microcapdaily reported on it at the time, stating in our article from November 16 “CBDD is a publicly traded company listed on OTC Markets and traded under the stock symbol CBDD. The Company is currently developing innovative CBD products and related social networking. CBDD is the new ticker for VGMI. The Company is led by new CEO Nicholas Sprung, a serial entrepreneur who used to be CEO of a Ski Company with an ambitious vision to make CBD of Denver a leader in the booming CBD space. The Company has established its principal corporate office located at 4610 South Ulster Street, Suite 150, Denver, CO 80237, where it has rented office space.
CBD of Denver (OTCMKTS: CBDD) is a Distributor of CBD and Cannabis flower and a producer of a full line of CBD oil and unique products sold in Switzerland and throughout Europe. CBD of Denver, Inc. is focused on using equity to acquire profitable Swiss assets at attractive valuations to create value for all our shareholders and is driven by a passion to improve lives and strengthen communities by unleashing the full potential of cannabis. Through our Rockflowr brands we have built a very strong European customer base by focusing on top quality products and meaningful customer relationships.
Earlier this year CBDD reported it filed audited financial statements for fiscal year 2021 on April 15, 2022 reporting a record $23.5 million in revenue and net income of $0.33 million. Management credits a fast growing market for its success and first profitable year. According to CBD of Denver CEO Paul Gurney: “While our internal momentum continues to grow, the market itself is providing increasing tailwinds. Just this week, Swiss authorities greenlighted a recreational usage pilot in the city of Basel to begin over the summer. As this trend potentially spreads across Switzerland, and ultimately across Europe, CBD of Denver is ideally positioned to capitalize on the rapidly evolving opportunities,” added Gurney. “I want to thank our shareholders for their continued support. I firmly believe we are on a great trajectory and look forward to reporting on our ongoing successes.”
While fiscal year 2021 financial results were exceptional the Company was negatively impacted in Q1, 2022, due to the reintroduction of COVID controls across Europe and pricing pressure on CBD flower. These trends have already reversed, and the Company’s April revenue nearly surpassed the entire first quarter’s revenue as prices began to stabilize. CBD of Denver generated $908,086 revenue in the first three months of 2022, with a net loss of $314,248 mainly on an inventory write down of $102,856. CEO Paul Gurney said “On the surface, the numbers don’t tell the full story and should be viewed in context. While revenues at 3.5{fe463f59fb70c5c01486843be1d66c13e664ed3ae921464fa884afebcc0ffe6c} margins don’t usually result in overall profitability, my mandate is to transform this business from a commodity trader into a higher-margin, multi-pronged, health and wellness powerhouse in Europe and Asia.”
$CBDD #Switzerland #Europe #London #Asia #CBD #Cannabis @Rockflowr1 #BeMoreMellowhttps://t.co/BFU4ybkpJJ
— Riz🇺🇸 (@84mongoose) June 3, 2022
To Find out the inside Scoop on CBDD Subscribe to Microcapdaily.com Right Now by entering your Email in the box below
The Company recently acquired 100{fe463f59fb70c5c01486843be1d66c13e664ed3ae921464fa884afebcc0ffe6c} of Mellow, a CBD ecommerce distribution platform and technology company, with capabilities in the UK, Europe, and Asia, for an undisclosed sum. The acquisition is expected to close in the second quarter of 2022. With operations in Asia, Mellow gives CBDD an entrance into the rapidly evolving CBD markets in the fast-growing Asia Pacific region. The Mellow technology stack will accelerate the Company’s plans to become the go-to name for cannabis across all parts of the value chain in international markets. his acquisition will combine technology and retail e-commerce distribution alongside manufacturing and supply chain infrastructure to create a turnkey solution for the CBD industry across Europe. According to CBDD management “Mellow is also the leading multi-channel distribution partner of choice for globally minded CBD and Hemp brands in Asia too, with our own physical store network and ecommerce channels. This is a global play.”
The Company recently expanded into the German medical cannabis market with the hiring of Bijan Hezarkhani to lead CBD of Denver’s growth in this fast growing European market. Bijan has extensive experience in the cannabis industry, including building out a medical cannabis franchise in Germany. He was the business development manager for Khiron Life Sciences for the last three years, visiting doctors and pharmacies in Germany to build Khiron’s medical cannabis business. Previously, he spent time at Canopy Growth as a business analyst covering Europe. Bijan will be the head of the Company’s medical cannabis sales in Germany and will be based in Frankfurt.
Germany officially approved medical cannabis in 2017. Germany is the largest medical cannabis market in Europe at 15 tonnes annually and generated approximately US$300 million of revenue in 2021. According to Forbes Magazine, over a million patients in Germany will have access to medical cannabis by 2024, with the German medical market worth €7.7 billion by 2028. The German market appears to be moving closer to adult-use legalization, a market estimated at 400 tonnes annually, making it critical to have the infrastructure in place in country. With 83 million people, Germany is the most attractive market in Europe for cannabis.
On May 26 CBDD announced mellow has signed an agreement with UK luxury CBD consumer brand OTO to act as their distribution partner in Asia. OTO, headquartered in London, is a premium positioned consumer CBD wellness brand, specializing in offering sophisticated products at the luxury end of the industry price spectrum. Mellow aims to provide the OTO brand experience through its mellow Asia division, which is operated out of the Hong Kong market, and which already operates a network of physical retail stores under the mellow banner as well as an eCommerce site
CBDD CEO said Paul Gurney said: “We are extremely excited to welcome the OTO brand to the mellow portfolio of brands in Hong Kong. This agreement will combine retail and technology/e-commerce distribution to enable mellow to continue the great work that the OTO team have achieved in other markets, and in doing so, will position OTO as the leading luxury CBD and wellness brand in the Asian markets. There is no other company present in the industry in Hong Kong with offering close to that of OTO. We are very pleased to be able to make this announcement, and we have much more in store ahead.”
Microcapdaily reported on CBDD in November 2020 in the $0.002 level right before the stock skyrocketed to over $0.03 per share in December. We stated in our article “CBD of Denver Inc. (OTCPINK: CBDD) is making an explosive move up the charts after the Company announced record revenues of $5,963,820.00 with gross profits of $484,666.00 for the 3rd quarter ended September 30, 2020. CBDD is an emerging player in the booming global CBD oil and CBD consumer health market which is expected to reach USD $123.2 billion by 2027, expanding at a CAGR of 25.6{fe463f59fb70c5c01486843be1d66c13e664ed3ae921464fa884afebcc0ffe6c} over the forecast period. It’s easy to see why penny stock speculators are so bullish on CBDD; the Company’s subsidiary Rockflowr GmbH is quickly emerging as one of the leading wholesale companies for CBD in Switzerland. Rockflowr sources its hemp flower from the United States in large quantities and its distribution has grown to more than 7 countries in Europe. Rockflowr GmbH generated the bulk of CBDD revenues.”
We are very pleased to be able to make this announcement, and we have much more in store ahead,” said Paul Gurney, CEO of CBD of Denver.
CBD of Denver Signs Licensing Agreement with UK Luxury CBD Brand OTO https://t.co/yxYdOgZTPz
— A10Vet (@A10_Vet1) May 26, 2022
For More on CBDD Subscribe Right Now!
Currently trading at a $31 million market valuation CBD of Denver has come a long way since we first reported on it in 2018, when the Company as nothing more than an ambitious vision. CBDD had a stellar year in 2021 reporting a record $23.5 million in revenue and net income of $0.33 million. While fiscal year 2021 financial results were exceptional the Company was negatively impacted in Q1, 2022, due to the reintroduction of COVID controls across Europe and pricing pressure on CBD flower. These trends have already reversed, and the Company’s April revenue nearly surpassed the entire first quarter’s revenue as prices began to stabilize. CBDD has been under accumulation in recent weeks and recently broke north of its trading range. The stock had fallen to lows of $0.0016 from highs near $0.04 in early 2021, and the cannabis market looks ripe for a rally as there are 8 states with Marijuana legalization measures on the ballet including Texas, Oklahoma, South Dekota, Ohio, North Dekota, Nebraska, Missouri, Maryland, Iowa, and Arkansas. Microcapdaily gave the heads up on CBDD in November 2020 when the stock was $0.002 right before it ran to over $0.03 in December 2020. We will be updating on CBDD when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with CBDD.
Disclosure: we hold no position in CBDD either long or short and we have not been compensated for this article.