The hemp-derived CBD market in 2018 is valued at $591 million and Brightfield Group estimates the industry to reach $22 billion by 2022- that’s a massive growth by any mean. Simply put, in four years, the industry is projected to be ballooned nearly forty times, posing an outstanding opportunity for investors looking to get their hands in the highly promising industry.
Charlotte’s Web Holdings Inc (OTCMKTS:CWBHF) is among the few companies that have survived the test of time and are proving to be investors’ favorite in all aspects. The company bills itself as the largest CBD brand by market capitalization and is clearly living up to expectations.
Incredible Production Capacity
While most companies in the industry were treading water last month, Charlotte’s Web stock pulled a magnificent gain of about 80% as of March 29. In addition to the extraordinary stock growth, the company prides an even exciting production capacity. In 2018, Charlotte’s Web produced about 675,000 pounds of hemp in its 300 acre an incredible upgrade from the previous 70 and 45 acres in 2017 and 2016 respectively.
With the outstanding production, Charlotte’s is in a better position to supply retail giants like CVS Health Corp (NYSE: CVS) and Walgreens Boots Alliance Inc (NASDAQ: WBA) that have announced intentions to sell CBD products at their different outlets across several states. This would in turn add to Charlotte’s Web’s existing 3,680 retail locations consequently driving sales through the roof.
Solid Q4 2018 Financials
Also, Charlotte’s Web is in a great financial shape according to the recently announced Q4 2018 financials. The company’s revenue has been screaming to the top for the 12th consecutive quarter now with the recent full-year revenue standing at $69.5 million- representing a 75% YoY gain. Quarterly sales surged 71% with gross profits increasing by 63%. More importantly, company’s debt is at its minimal sparing more funds for expansion operations.
Management said they had already begun the process of uplisting to the Toronto Stock Exchange (TSX) in Canada. What’s more interesting is that Charlotte’s Web is planning to up-list in leading stock exchanges including the NYSE and NASDAQ. This would increase the company’s stock liquidity while opening it up to a vast pool of investors who wouldn’t mind investing in the industry-leader. The company is also seriously considering expanding to Europe and Latin America markets in the near future.