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Many investors and companies are focused on capitalizing on Canada’s recreational cannabis market and we understand why…recreational marijuana is big money.
If you look at the amount of revenue generated from recreational marijuana in states like Colorado, Nevada and Washington, it is easy to understand why so many people are focused on this upcoming opportunity.
Although Canadian licensed marijuana producers have been in focus after Constellation Brands (STZ) invested $245 million into Canopy Growth Corp (WEED.TO) (TWMJF), we are keeping an eye on opportunities levered to this market.
One company that we have been watching is Isodiol International (ISOL.CN) (ISOLF), which has a partnership with Canopy Growth.
Expands its Reach into Active U.S. Cannabis Markets
Today, Isodiol reported a significant development and expanded its reach and committed distribution licenses for its Pot-O-Coffee brands in Oregon, Washington, Illinois and Colorado.
Isodiol entered an agreement with Nutritional High (EAT.CN) (SPLIF) to distribute the Pot-O-Coffee, Pot-O-Tea, and Pot-O-Coco product lines. As a part of this agreement, Nutritional High will complete the final stage of manufacturing by infusing its cannabis into the product and will provide a royalty to Isodiol.
Isodiol CEO Marcos Agramont said, “This strategic alliance with Nutritional High will offer our customers greater access to Pot-O-Coffee products via a reputable manufacturer and distributor. With the recent transaction involving our Canadian licensing partner (see news release announced July 20, 2017) Canopy Growth Corporation and Constellation Brands, we feel the infused beverage industry will make significant strides in the near future.”
Isodiol Makes Strategic Acquisition
In addition to the licensing agreement, Isodiol announced that it has acquired Culinary Coffee Roasters, LLC, a leading roaster and purveyor of fine coffee, tea and blended formulations, based in Stuart, Florida. Culinary has been in the coffee beverage business for over fifteen years.
This acquisition was not too expensive and Isodiol will pay $50,000 in cash over three months and $450,000 worth of equity, subject to a maximum escrow period. We are favorable on this move since 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.
This move is 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.
A Long-Term Opportunity
Isodiol bounced higher yesterday but the shares have come well of its monthly highs. We are favorable on the recent pullback as it has created a great opportunity for new investors.
We are favorable on Isodiol due to its strong revenue numbers, strategic acquisitions and partnerships, its management team’s vision and execution, and the significantly stronger balance sheet.
We expect to see the market respond favorably to this development and recommend that investors keep Isodiol on their radar.