Today, HempFusion Wellness will complete a go-public transaction on the Toronto Stock Exchange’s senior board (TSX) and commence trading under the symbol: CBD.U
We are excited about HempFusion due to the following:
- The strength of the balance sheet (we believe, the second strongest in the CBD industry)
- The structure of the operations (sells CBD products and owns a top probiotic brand)
- The track record and the diverse expertise of the management team
- The ability to scale the business and capitalize on strategic international markets
HempFusion Wellness has a diverse proprietary product portfolio and owns several high-profile brands including Probulin, HempFusion, HF Labs and Biome Research. The company’s product portfolio is comprised of 46 stock-keeping units (SKUs) and includes: topicals, capsules, and tinctures. Most notably are HempFusion’s OTC Topical Products which are FDA Listed and target a specific number of consumer needs such as pain, eczema, sports pain, acne relief and more.
Led by a Management Team with Diverse Expertise
When it comes to the management team, we are impressed with the track record and skillset of that HempFusion has put together and believe that it is comprised of executives that a proven ability to execute on the Company’s 2021 growth strategy. From doctors, high profile sales executives, Marketing leadership, to capital market gurus, we are favorable on the balanced team HempFusion has put together. We find the diversity of the team to be a core pillar of the story and believe they will drive forward their newly revamped 5 channel distribution strategy that includes; Natural Channels, e-Commerce, Doctor-Practitioner Networks, Convenience and Food and Drug Mass aka Big Box (“FDM”)
HempFusion Co-Founder and CEO Dr. Jason Mitchell, N.D. is a naturopathic doctor and we are favorable on the experience that he brings to the team. With more than 20 years of experience in the natural products industry, Dr. Mitchell is an expert in supplement formulations and is responsible for the Product and Business development of all the company’s products and vision. Prior to HempFusion, he created and launched more than 300 industry-leading products for Country Life Vitamins, which ended up being acquired.
In the current market environment, it has become more challenging for cannabis and CBD companies to raise capital. The fact that the team raised more than $17 million during a brutal pandemic and $46 million prior to that speaks to the strength of the group and we find this to be a key aspect of the story on a going forward basis. We believe the company will not have a problem if it needs to raise additional capital and we find this be significant differentiating factor.
Executing on a Strategic Multi-National Expansion
Although the CBD industry is saturated, HempFusion is executing on a multi-faceted and multi-national growth strategy. One of the ways the company has been able to differentiate itself is through the ownership of Probulin, a probiotics dietary supplement brand that does not contain CBD. Acorrding to SPINS syndicated data Probulin was one of the fastest growing probiotics brands in the United States in 2020. Probulin represents a cornerstone of HempFusion’s CBD marketing strategy and we believe that it provides a gateway into countries where CBD is not yet legal.
Currently, Probulin is being sold in the US, Mexico, South Korea, Ireland and the United Arab Emirates (UAE). HempFusion plans to use products that do not contain CBD as a way to enter new markets, secure new distributors, and new points of sale.
Once these markets change their stance on CBD, HempFusion will already have the infrastructure that is needed to be an early mover on these markets. We are favorable on this approach and believe that it could prove to have a major impact on the long-term story.
Exclusive Relationship for Hemp that is USDA Certified Organic
When it comes to sourcing product, HempFusion’s main suppliers are based in Eastern Europe and it has secured a five-year exclusivity contract for sales into Europe and the US. All of the product is delivered in the raw form and is declared to be USDA certified organic when it arrives at the company’s distribution center in Kansas.
We are favorable on the level of quality that is associated with the CBD that is sourced by the company. We believe the quality of the product will play an important role in the success of the brand and bullish on the potential synergies that can be generated between HempFusion and Probulin over the long-term.
Another reason we are bullish on HempFusion is related to the economics that are associated with the operation. The company does not cultivate CBD or own retail stores and is strictly focused on being in the middle of that value chain. HempFusion’s goal is to capture market share, create efficient large scale distribution channels, and grow its customer base.
A Company with Catalysts for Growth
Going forward, one of the most significant potential catalysts for HempFusion is to potentially expand into major retailers like Walgreens, Kroger and Albertsons. By securing a distribution relationship of this caliber, the company could incrementally expand its distribution network. Currently, HempFusion has more than 4,000 points of sale and this is a number that expect to increase rapidly in 2021.
With a strong focus on research and development, HempFusion has an additional 30 products under development and we are bullish on the growth prospects that are associated with them. HempFusion is well positioned to execute on significant high-value growth initiatives and this is an opportunity that our readers should be aware of.
If you are interested in learning more about HempFusion Wellness, please send an email to firstname.lastname@example.org with the subject “HempFusion Wellness” to be added to our distribution list.
Pursuant to an agreement between StoneBridge Partners LLC and HempFusion Inc. we have been hired for a period of 180 days beginning November 1, 2020 and ending May 1, 2020 to publicly disseminate information about (CBD.U) including on the Website and other media including Facebook and Twitter. We are being paid $7,500 per month (CBD.U) for or were paid “ZERO” shares of unrestricted or restricted common shares. We plan to sell the “ZERO” shares of (CBD.U) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (CBD.U) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.