Attaching the cannabis industry multiple to your public company is sure way to improve it’s valuation, and POTNETWORK HLDGS I COM USD0.0001 (POST REV SPLI(OTCMKTS:POTN) did exactly this – as they added subsidiary Diamond CBD to the revenue mix. This move has helped moved share price from the triple zero sub penny level to a penny stock. The shares traded over .06 cents in 2017 and have pulled back to just under .03 cents recently. A look at the price action in a chart below shows how attaching the cannabis multiple improves valuation no matter the size of the company.
The company reported that after the acquisition of Diamond CBD, Inc. the Company surpassed initial quarterly projections of $1.7 million in gross revenues. Management announced that it realized exceeded expectation by over $100,000, for a total of $1,858,347.48. Revenue for these transitioning companies is a key to the stock movement as most of the companies are pre-revenue.
POTN set corporate sights on achieving the goal of $1.7 million for the quarter, management had put in motion an aggressive effort to build a strong and thriving sales pipeline for 2017. “We are very happy with the final numbers. All quarter we have put significant effort into building a strong sales momentum. Evidently, between our efforts and the apparent consumer acknowledgement of our product quality, demand is advancing even more rapidly than we had originally anticipated,” exclaimed Maria Gomez, Regional Vice President of Sales, Diamond CBD.
If sales revenues in this range remain consistent at this level, it would represent a revenue increase in the approximate range of 480% percent, year over year. Based on the increased rate of sales growth, the Company plans to announce updated projections soon. The Company expects to have its corporate financial reports posted on or before May 15th.
In addition, Diamond CBD recently announced that management had a merchandising pipeline of 7,000 authorized retail vendors through its distribution channels. This puts Diamond CBD products now accessible at approximately 10,000 stores in the United States.
Diamond CBD Inc. is focused on the advanced research and development of the industry’s premium hemp extracts and making them available to the global marketplace. The Company’s team, consisting of hemp industry pioneers and natural product experts, chemists, and scientists, is dedicated to producing the finest and purest Cannabidiol (CBD) oil. The Company formulates advanced product quality to market through the team’s creation of diverse and top quality hemp extracts that contain a broad profile of cannabinoids and other natural hemp derived molecules, resulting in a robust selection of Industrial Hemp derived Diamond CBD oils.
The company has two wholly owned subsidiaries, Sunrise Auto Mall Inc. and First Capital Venture Co. and its wholly owned subsidiary Diamond CBD. First Capital Venture Co. through its wholly owned subsidiary, and its popular Chill Gummies were highlighted on the front cover of the April edition of the “BIG Industry Buyers Guide”, another leading cannabis and counterculture themed periodical. This publication is geared to enhance exposure and facilitate introductory resources for industry related businesses.
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Maria Gomez, Regional Vice President of Sales, stated: “The discovery of what yields strong profit margins in the effort to gain exposure is one of the most costly, time consuming, and critical hurdles for companies seeking growth. As we look toward the next quarter, discerning from our current momentum, anticipation continues to grow as the word about our products spread nationally.”
Diamond CBD’s Chill Gummies were also featured by Smoke and Vape Business Solutions in April and B2B Wholesaler Magazine in January. B2B Wholesaler’s informative overview noted that, “The steady growth and sudden explosion of Diamond CBD products is no surprise. The company continues to create innovative products that consumers love and industry retailers cannot keep on the shelf.”
The initial run-up in shares on high volume settles some concerns about short term traders entering and exiting, and the momentum players have clearly come and gone. The important metric now for PotNetwork Holding Inc. (OTCMKTS:POTN) is a continued focus on meeting projected revenues. The company is doing a good job of this, and as cannabis companies emerge from the value chase cannabis experienced it will be critical for them to set realistic sales goals. We encourage readers to come back to our site to sort out what these companies are projecting and get a clear understanding of what cannabis companies will survive for the long term. For more news on POTN and other fast-moving penny stocks, please subscribe to FinanceRegistrar.com below.