Last week, Isodiol International (ISOL.CN) (ISOLF) was one of the top performing cannabis stocks, rallying more than 150%. We believe this rally is just getting started.
Following Constellation Brands’ investment into one of Isodiol’s strategic partners, Canopy Growth Corp (WEED.TO) (TWMJF), we became even more bullish on the company’s long-term outlook.
Isodiol is a global bioactive phytoceutical innovator specialized in the development of pharmaceutical and nutraceutical products. The company continues to increase its global footprint and execute on a diverse array of initiatives.
Phytoceutical Division is Positioned for Growth
In late October, Isodiol announced that its Phytoceutical division will launch the market’s first non-cannabis, highly bioactive cannabinoid, CBD, derived from the Hops plant. We were bullish on this development and viewed it as a breakthrough as Isodiol expects to launch the first product in December.
This breakthrough is significant and will help Isodiol expand the distribution of its portfolio of CBD products. We believe that the development of the technology to extract cannabinoids from a plant other than a cannabis plant, is a remarkable achievement and continue to monitor how Isodiol executes from here.
Sourcing natural, highly bioactive cannabinoids to supplement the endocannabinoid system in the human body is the key to developing targeted health care remedies. Isodiol will continue to work with some of the top universities and alternative health facilities in the world to validate the science.
Hot Start to the Month of November
Isodiol started off the month of November hot and the company has shown no signs of slowing down.
On November 1st, Isodiol entered an agreement with Nutritional High (EAT.CN) (SPLIF) and expanded its reach and committed distribution licenses for its Pot-O-Coffee brands in Oregon, Washington, Illinois and Colorado. Under the agreement, Nutritional High will complete the final stage of manufacturing by infusing its cannabis into the product and will provide a royalty to Isodiol.
In addition to the licensing agreement, Isodiol acquired Culinary Coffee Roasters, LLC, a leading roaster and purveyor of fine coffee, tea and blended formulations, based in Stuart, Florida. Through this acquisition, Isodiol will be poised to launch specialty blends that will be roasted in their own facility and will be available to the retail outlets that are currently being served by Culinary.
Last week, Isodiol entered the vaporizer industry by signing a letter of intent to acquire Bradley’s Bioscience Inc., a leading manufacturer and distributer of hemp oil and nicotine e-liquids. Through this agreement, Isodiol will expand its product portfolio to include non-CBD lines, hemp oil vaping e-liquids, THC additives, and organic men’s grooming products.
Continues to Execute and Deliver Results
When we analyze marijuana stocks, we only invest in companies that are executing on previously announced initiatives. This is important because many cannabis companies simply just release news for a short-term spike. These companies never execute on such an announcement and it is what we like to refer to as Fake News.
Isodiol is a company that continues to execute on previoiusly announced initiatives and the company is led by a management team with a proven track record. We are favorable on these traits and believe investors need to keep an eye on Isodiol.
The recent moves are in-line with Isodiol’s focus on investing in high-growth markets and acting on consumer trends. This acquisition is significant as it will better position Isoldiol within the recreational beverage market.
In the first quarter of 2018, Isodiol will launch its own line of handcrafted Ready to Drink (RTD) beverages. These products will include an RTD cold brew Pot-O-Coffee line as well as a cold brew Pot-O-Coffee line, all enriched with BioActive Phytoceuticals. Other offerings will include infused coffee and tea shots.
Isodiol has Several Major Catalysts for Growth
Isodiol has several major catalysts and we are favorable on the company’s long-term outlook. We are bullish on Isodiol due to its management team, its geographic exposure, its improving fundamentals, and its valuation.
Even after the recent rally, Isodiol has a market cap that is below $200 million and we believe that the shares possess more upside than downside over the long-term. Keep this company on your radar!