HempFusion (OTC:CBDHF)
HempFusion Wellness, Inc.
[stock_market_widget type=”inline” symbol=”CBD-U.TO” template=”basic2″ color=”default”]
HempFusion is a Colorado-based health and wellness company specializing in full-spectrum CBD hemp product formulation and distribution. The company is focused on providing innovative and diverse proprietary formulation using the power of whole-food hemp and marketing premium consumer-specific product lines across multiple distribution platforms.
Should I Buy HempFusion Stock?
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HempFusion Fundamental Analysis
Profile
HQ: Denver, Colorado, USA
Incorporated: 2015 in Georgia, USA
Symbol: CBDHF (OTC)
Focus: Neutral
HempFusion is a CBD wellness company. They manufacture and distribute their health-based products to over 3,000 retail locations. They have regulatory compliance experience so many of their products have regulatory approvals that their main competitors (Charlotte’s Web, CV Sciences) do not have. They also sell probiotic products internationally.
Size: Weak (Until listed)
Market Cap: US $NA
Enterprise Value: US $NA
# of employees: 33+
Markets: Strong
Secondary: Canada, South America, Europe
Majority Subsidiaries: Probulin Probiotics
Valuation: Neutral (until listed)
Current share price: US $NA
Estimated to IPD from 0.90 to 1.35
Price to Sales: NA
EV/Revenue: NA
Price/book: NA
Operations: Neutral
Cultivation:
Current production: None
Future capacity: None. They will source their CBD from Europe which ensures it is 100% USDA organic.
Distribution:
Direct sales: Through e-commerce sites.
Store networks: Over 3,400 retail locations in 47 states. Targeting a network of over 20,000 stores.
Integration/Diversification:
Vertically integrated: No
Horizontally diversified: Yes
Financials: Neutral
2019 Revenue (unaudited): $3 mil
Outstanding shares (diluted): NA
Financing: Strong
The company has around $18 million in cash on hand and reports no debt.
Recent investments from RADD Capital also give them additional access to capital if needed.
Management: Strong
Co-CEO: Jason Mitchell
Co-CEO: Ian Dequeiroz
CFO: Bruce Valentine Jr.
CRO: Jon Visser
CMO: Ola Lessard
Management has very strong product development experience (Mitchell) as well as strong financial experience. The team led Organigram, Emblem Cannabis, and The Green Organic Dutchman in Canada. This is one reason they are listing in Toronto.
Branding: Strong
Their CBD brands are HempFusion Energy, Mind & Body, Sleep, and Stress. They also have an OTC approved line of topicals, creams, and ointments. The OTC designation means they can actually make health claims (pain, acne, etc) which is a substantial distinguishing factor from their competitors. They also have the probiotic brand, Probulin, a line of health-focused dietary supplements.
Risks: Low
The risks of investing in any cannabis or hemp company are currently high given the newness of the market. With HempFusion’s strong brands, cash on hand, and regulatory prowess, these risks are minimized.
HempFusion Investor Deck
HempFusion Technical Analysis (Coming Soon!)
Should I Buy HempFusion Stock?
Technical Analysis for HempFusion (OTC: CBDHF) – Coming Soon!
In the meantime, follow Stephen Goldman as he walks you through the HempFusion prospectus.
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Bottom Line: Should I Buy HempFusion Stock?
Recommendation: Strong
Remember, Cannin.com has over two years of successful stock picks. In fact, 78% of our picks prove to be true within 30 days or less.
HempFusion Wellness, Inc. is a promising CBD company with a robust health and regulatory background.
HempFusion’s offering will be for $7 million in shares and $10 million of units. Each unit is for one share and 1/2 warrant.
There is a nice timing play as well as the offered shares, unit shares, warrants, options, and warrant shares all have staggered hold periods which should ensure volume for an extended period of time (18 months).
They’ve reported over $18 million in cash, with no debt, which is always a good sign. The target for the offering price is currently $1 – and, as we anticipated, is currently up 100%+ since IPO on January 6th, 2021. Scaling is the name of the game here as their direct competitors: Charlotte’s Web (OTC: CWBHF) and CV Sciences (OTC: CVSI) already have market caps of over $400 million.
If they can grow wisely and get their strongly branded products in more and more stores in the USA, Europe, and Latin America, then HempFusion should see revenues triple or more.
If you want to invest in the CBD industry, cannin.com strongly recommends taking a position in HempFusion (OTC: CBDHF).
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The prospectus for this offering lists funds raised will be used for R&D on new products, marketing and e-commerce efforts, and general scale up. The company is targeting almost 20,000 more retail locations for expansion.
HempFusion Wellness has over 46 SKUs with several more in development. The CEO’s robust background as a product formator in the dietary supplement industry should also prove to be invaluable (he made over 300 SKUs in that past life).
Their strong regulatory experience also will come in handy with OTC listed products as they can make health claims – something HempFusion’s competitors cannot do – and they understand how to play federally with their self-affirmed GRAS (generally regarded as safe) designations to the FDA.
For more information, please contact HempFusion Investor Relations
+1 (416) 803-5638