Real Brands Inc (OTCMKTS:RLBD) could be perfectly positioned to rise as one of the emerging winners in CBD Boom 2.0. But first, let’s discuss what that means.
Remember CBD? Think back to 2017-18. You simply couldn’t avoid those three letters. If you googled “hot stocks”, you were bound to see some list of 10 stocks that contained at least 3 CBD stocks.
However, like so many booms, there was an inevitable bust that followed. And, in the case of the CBD boom-bust cycle, it was the most standard kind of process: a commodity boom-bust. The price of CBD oil went sky high as the world discovered this new wonder substance. And then the gold rush started among new fledgling producers until your next-door neighbor was making the stuff in his garage.
Once that new tsunami of supply started to hit the market, the price of CBD oil crashed – what was once selling for $5,500/kg was now selling for $1,000/kg. And suddenly the math on those convertible financing rounds didn’t add up so well, and all those “hot CBD stocks” came crashing back down to earth.
It’s a story that’s as old as the market itself. But there’s another chapter to that story.
Let’s review:
Chapter 1) The first boom as everyone figures out “This stuff is Great!”
Chapter 2) The first bust as the supply glut hits after everyone figures out money can be made by producing it because “Everyone thinks this stuff is Great!”
Chapter 3) The Second Boom
“This stuff is still Great”, only now, lots of people have already learned the hard way about the necessity of competitive advantage and investors are too skeptical to give just anyone a capital foundation to set up production.
In other words, through the wonders of capitalism, the market starts to differentiate into an ecosystem with high-volume low-cost mass producers, pick-and-shovel players, and branded high-margin winners.
That’s where we are now in the CBD space.
Getting to this stage has been a roller-coaster ride, but it’s time to start looking for the Chapter 3 winners because there’s still a $13 billion market with growth ahead, and someone is going to rake in the spoils.
RLBD could be just such an opportunity.
Differentiation
Real Brands Inc (OTCMKTS:RLBD) has already put together a model designed to differentiate itself on multiple levels, including with proprietary technology, branding expertise, credibility driven by affiliation with established research institutions, a team that deeply understands the market, alignment with deep-pocketed funding sources, and a major partnership in place with a billion dollar listed player.
First off, one should understand that RLBD has its roots in a reverse merger that took Canadian American Standard Hemp Inc., or “CASH”, onto the public markets last fall. That installed a new leadership team including a new CEO and Chairman, Thomas Kidrin, who was formerly with MariMed Inc (OTCMKTS:MRMD), a publicly traded cannabis company.
A good way to find out more about RLBD is to check out a recent interview with the Company’s CEO, which can be found here.
In the interview Kidrin notes that RLBD is in the business of proprietary specialized extraction and chromatography to produce 99% pure cannabinoids.
RLBD is over 23% owned by Turning Point Brands, Inc. (NYSE:TPB), a billion dollar NYSE-listed company that is also a customer of RLBD now for bulk CBD oils and isolates used in Turning Point products. Turning Point has more than 250,000 points of distribution with leading brands such as Zig-Zag®, Stoker’s®, and Beech Nut®.
RLBD also recently brought in the Chief Science Officer of iconic skin care brand, Elizabeth Grant Skin Care, Dr. Adel Rammal, PhD. Rammel will be instrumental in helping to formulate leading edge branded CBD topicals to be marketed through the company’s Wa Brands segment.
Marketing and Expansion
RLBD CEO Kidrin also noted in his recent interview with SmallCapVoice.com that the company is in late-stage negotiations with a major celebrity influencer who will help to spread its brands far and wide and generate massive consumer interest. Expect an announcement on that soon.
The company is also working on expanding its product lines and has the proprietary technology to produce higher margin cannabinoid-based products at scale efficiently, which grants RLBD another edge over the competition in establishing itself as a CBD Boom 2.0 winner.
RLBD is also working on an international expansion that will include marketing through international sports celebrities and sports leagues and include a sports wellness product line that Kidrin says is nearing launch.
The company is also working on a line of CBD Beverages and other fresh concepts, which will launch in the next 60-90 days.
Real Brands Inc (OTCMKTS:RLBD) wants to move these new products internationally as well, and will seek to market through authentic influencer relationships.
Substance
RLBD is working toward an uplist onto the OTCQB as a stepping stone to a further uplist onto a major exchange. The company is in the process of filing Form 10, which should be completed this month, and believes it will be able to uplist shortly after.
The company also has already established formal affiliation with a group that works directly with major research universities to back up its claims and add value and brand substance.
Finally, Real Brands Inc (OTCMKTS:RLBD) has deep-pocketed support given that it is almost a quarter owned by TPB, which is a third owned by a multi-billion dollar hedge fund with a vested interest in helping TPB and its major interests secure necessary financing on strong investor-friendly terms.
That is a huge advantage over small competitors looking to move into position with larger players such as Neptune Wellness Solutions Inc (NASDAQ:NEPT), cbdMD Inc (NYSEAMERICAN:YCBD), GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH), and Jazz Pharmaceuticals PLC (NASDAQ:JAZZ).
