HICKSVILLE, NY, Jan. 16, 2020 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — Canbiola, Inc. (OTCQB: CANB) (“Canbiola” or the “Company”), a health and wellness company specializing in the highest grade CBD products on the market, announced today highlights of 2019 and Company plans for 2020.
“2019 was a growth-oriented year for Canbiola as we invested heavily back into the Company,” said CEO, Marco Alfonsi. “I am very pleased with the significant progress we’ve made over the past year. Our year-over-year top-line growth was significant and a tribute to our employees’ commitment and hard work, as well as the quality of our products. Canbiola set out to manufacture our CBD line with the highest quality and standards, standards we feel will be even higher than what we anticipate the forthcoming government regulations will mandate, positioning us to have seamless operations going forward. This quality will allow us to continue to grow our sales channels through medical professionals, but we will now also be applying our resources to develop robust sales channels for traditional consumers as well.”
Mr. Alfonsi continued: “Additionally, we will be positioning our company as a true health and wellness company, diversifying our product lines to include non-CBD wellness products, as well as directing more resources to our Duramed Medical Device division, which has been far outperforming projections and poised for a break out year in 2020. These efforts will allow Canbiola to have strong organic growth, achieve profitability, and increase cash flow. We also have many exciting new opportunities that will be launched across our major product lines. Our company is well-positioned to achieve tremendous growth and take advantage of the opportunity as we execute our business plan.”
Key Financial Highlights
· Q1 2019 revenues increased quarter over quarter from the prior year by 741% to $517,160 with a gross profit margin of 49%.
· We posted an operating loss of $1.2 million for Q1 2019, which included $0.8 million in non-cash stock-based compensation.
· Q2 revenues increased quarter over quarter from the prior year by 311% to $633,579 with a gross profit margin of 52.8%.
· We posted an operating loss of $1,435,289 for Q2 2019, which included $959,948 in non-cash stock-based compensation.
· Closed $3,936,700 cash raised subsequent to the end of the quarter in a Reg D offering.
· Q3 2019 revenues increased quarter over quarter from the prior year by 277% to $615,422 with a gross margin of 77%.
· We posted an operating loss of $935,264 for Q3 2019, which included $602,823 in non-cash stock-based compensation.
Key Business Highlights for 2019
· Launched Pure Leaf Oil as its Consumer Brand from the acquisition of Pure Health Products LLC in December 2018
· Attained Registration in the GSA’s System for Award Management and Department of Defense
· Finalized Asset Purchase Agreement with Seven Chakras, Inc.- the Company’s Spa Line of products
· Completed a 300% increased investment in its Duramed division to combat the pain management and opioid crisis
· Conducted its Annual Shareholder Meeting on June 14 with over 200 in attendance
· Opened a new wholly-owned operating division – NY Hemp Depot LLC to develop cultivation operations under a new operating license
· The first products became available via Amazon.com
· Launched in test and development mode a dedicated Canbiola-branded CBD dispensing machine
· Approved a reverse stock split with intent to satisfy one criterion for a potential NASDAQ listing
· Launched Canbiola Turmeric & Ginger Pure Hemp Extract in 30MG capsules, Canbiola’s first capsule hemp extract product
· Presented at both the H.C. Wainwright 21st Annual Global Investment Conference in September and the 12th Annual LD Micro Conference in December.
· Executed an agreement for an all-stock transaction to acquire 51% of Green Grow Farms Inc. from Iconic Brands, Inc.
Also in 2019, Canbiola added key personnel including the appointment of Senator Ron Silver, James Murphy, and Alger Boyer Jr. to its Board of Directors to create an independent Board, satisfying a requirement for potential NASDAQ listing. Steven Medina Esq., Jason Winn, Dr. Mehran Peter Ghazvini, David Woycik, Jr., and John Bach joined our Corporate Advisory Board, while NFL Great Leonard Marshall joined Canbiola’s Sports Advisory Board.
The Company intends to continue to develop:
1. Additional opportunities in new market segments for the deployment of the ultrasound device
2. Additional cultivation opportunities with farms and growers for expansion of its harvesting imitative
3. Expansion of its branded products into new market segments
4. Continuing the selective search for potentially accretive acquisitions or venture within our market space and segment
5. Reviewing and outreach for the newest hemp extraction and processing technology
6. Diversify into non-CBD wellness products that offer real-world benefits to consumers.
7. Complete NASDAQ uplisting
About Canbiola, Inc.
Canbiola, Inc. (https://canbiola.com/investors/OTCQB: CANB) is a vertically integrated conglomerate specializing in the manufacturing, formulation, and sale of THC-Free Cannabidiol (CBD) Isolate products such as oils, drops/tinctures, gels, creams, moisturizers, chews, and capsules. All Canbiola products are organic and Non-GMO, free of impurities and contaminants, and formulated with the finest ingredients to the highest manufacturing standards. All products are certified for purity and accuracy by third-party laboratory verification.
Canbiola pursues an aggressive growth strategy through the continual development of proprietary products and the expansion of its offerings via strategic acquisitions in the healthcare and CBD industries.
Canbiola has created several innovative CBD product lines, marketed through targeted channels including:
· The Canbiola clinical line, which is marketed and promoted through healthcare practitioners in the medical setting.
· The Pure Leaf Oil (consumer brand) and Seven Chakras (spa brand) lines are sold through both online and brick & mortar retail outlets.
Canbiola’s state-of-the-art manufacturing facility in Lacey, WA is operated by Pure Health Products LLC (PHP), a wholly-owned subsidiary that produces all of the Company’s CBD Isolate products, in addition to providing private label and white label solutions for companies looking to add high-quality CBD items to their offerings. Canbiola is passionate about improving people’s lives and takes pride in providing pure CBD products infused with organic and natural ingredients. We want customers to know that they are buying lab-tested, high-quality natural products at a great price.
Canbiola’s Radical Tactical LLC subsidiary produces CBD products in other forms including vapes and gums.
Duramed Inc. and Duramed NJ LLC, wholly-owned subsidiaries of Canbiola, further the mission of providing innovative products designed to improve people’s lives, aiming to reduce their use of opioid substances through the utilization of durable medical devices. This product line includes a wearable low-intensity ultrasound SAM (Sustained Acoustic Medicine) device delivering multi-hour treatment intended to accelerate healing, improve function for musculoskeletal injuries (muscle, tendon, ligament), and reduce chronic pain (without opioid pain medication).
With the creation of its newest wholly-owned subsidiary, NY Hemp Depot LLC, Canbiola has attained complete vertical integration, allowing it to fully control the supply chain from seed to sale, develop customized products and maximize profit margins. Through the utilization of its newly acquired NY State Hemp Cultivation License, the Company contracts with farmers throughout the state of NY to cultivate specific strains of hemp, which is then processed into CBD Isolate products to Canbiola’s exacting manufacturing standards and specifications at the Company’s laboratory and a production facility.
The Company has closed an agreement to acquire 51% of the outstanding interests in Green Grow Farms Inc.
For more information about Canbiola, Inc., please visit: Canbiola.com
Forward-looking statements and risks and uncertainties discussed in this letter contain forward-looking statements. The words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect,” and similar expressions identify such forward-looking statements. Expected, actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are subject to a number of risks and uncertainties, including but not limited to, risks and uncertainties associated with, among other things, the impact of economic, competitive, and other factors affecting our operations, markets, products, and performance. The matters discussed herein should not be construed in any way, shape or manner of our future financial condition or stock price.
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Instagram @canbiola.inc or @canbiola_cbd or @canbiola_medical_cbd
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