CBD Of Denver (CBDD) released news yesterday that they have built a relationship for sourcing hemp for Swiss subsidiary.
If you’ve looked at prior news and income reports, specifically acquisitions and grow operations, then read yesterday’s release, what they’ve essentially said is that they have a sales demand that can’t be met with their current production – they have to buy in bulk!
Prices, depending on quality, for Dry Flower in bulk in the US ranges $100 to $600 per pound. The average hovers at $300-$350. Let’s take $325/lb. At two (2) tons per month, CBDD has a commitment of buying $1,300,000 in dry flower.
Most recently, CBDD finally turned a profit and that was without full harvest capacity – only a portion. I believe the margin was 15% but on a full scale, it should be 30% easily, if not more.
If they can keep the 30% margin, this leads me to believe a monthly net revenue of $400,000 – or $4,800,000 annually. This is on top of all other operations and revenue sources through their subsidiaries.
If their current market cap is true, and today’s PPS is balanced fairly (which I believe is grossly undervalued), then we should be $0.005 soon with a market cap of $25 million plus or minus.
This also doesn’t account for the expected growth in the hemp industry, or fluctuations in the cultivation costs.
CBDD has agreed to a working relationship with a Denver based company to supply up to two tons of hemp per month to CBDD’s Rockflowr subsidiary. Marcel Gamma explains “We are very excited about our new relationship, giving us much-needed product to fill outstanding orders and expand our sales in Switzerland and other countries. We have worked out the details of the supply chain and product is arriving in Switzerland without any problems.”
Sourcing product from the United States gives Rockflowr a steady supply of high-grade hemp flower. They have been expanding at a rapid pace and opening a supply chain from Denver is allowing them to broaden their sales base in Switzerland and throughout Europe.
CBD Welt 24, GmbH is also expanding their production/distribution of pollen and is currently looking to purchase a larger pollen extraction machine. Selling pollen has become a very profitable segment of their business. CBD Welt 24 is not only selling raw pollen, but also pressing the pollen into blocks, similar to Hashish, only without the THC. CBD Welt 24 is still on track to harvest every month and is seeking to expand its operations.
CBDD is focused on using equity to acquire profitable Swiss assets at attractive valuations to create value for all their shareholders