The cannabis industry is arguably in better shape today than it was in 2019, and there are opportunities to buy many strong companies at a fraction of the value they were trading last year. The fast growth of the cannabis industry has sparked investor interest in CBD stocks.
If you see a company that has the potential to exponentially grow revenues and earnings, but is still in the growth stage in which they are spending heavily on expansion, you have to take a leap of faith to buy early.
But if you wait until the money is rolling in, the share price will likely have already risen to reflect a more traditional valuation and the opportunity for huge gains will be gone. Any investor who avoided marijuana stocks over the past two years would be well served to take another look. Right now could well be the opportunity you’ve been waiting for.
About a third of CBD consumers say they will shift from brick-and-mortar stores to online to buy their products during the pandemic, according to Bethany Gomez, managing director of the Brightfield Group, a consumer research firm.
Forty-seven percent of CBD customers already had or planned to stock up on CBD and 37% of CBD customers planned to use CBD more frequently because of the COVID-19 pandemic, which means ongoing opportunities for more online sales, Gomez told Hemp Industry Daily webinar attendees in April. Before the coronavirus pandemic, 85% or goods “were bought in a four-wall physical retail environment,” said Christopher Gavigan, founder and CEO of Prima, which sells CBD-infused topicals at Sephora stores.
The growth in cannabis sales appears to have brought some relief to cannabis stocks, which have been going through a rough period.
American Green, Inc. (OTC: ERBB) became, in 2009, America’s second publicly-traded company in the cannabis industry. American Green now, with its more than 50,000 individual certified shareholders, is one of the largest (in shareholder count) in the cannabis sector, American Green’s mission is to lead the cannabis and premium CBD industry. Leveraging our team of professionals in cultivation management, manufacturing, extraction, wholesale, retail, and community outreach, we strive to develop sustainable initiatives in the cannabis-adjacent and CBD industries, laser-focused on adding company and shareholder value.
Yesterday, the company announced that its Online CBD Store experienced positive growth last quarter compared to Q2/19 while also improving its revenue and gross profit month-over-month when comparing the individual months of May 2020 and June 2020. Online sales from the Company’s most recent quarter ending June 30 were 31% higher than the same quarter in 2019. When comparing the June 30th quarter to its previous quarter ending March 31, the company showed an increase in sales of 24%. The company will continue to implement its successful formula and believes that doing so will improve shareholder value.
According to Kevin Davis, American Green’s Vice President of World Online Sales, “I credit our successful growth to always being available to our customers by phone or email, to answer their questions or concerns, our talent for researching and delivering only the highest grade CBD-infused products available anywhere, and delivering them to our customers at a reasonable price. Our laser-focus in these areas has resulted in retaining a very high return-customer ratio resulting in reduced customer acquisition costs.”
Additionally, the American Green CBD Store has separated itself from the pack by being responsive to market demand with respect to product selection. To clarify, American Green currently provides one of the strongest and highest grade CBD Capsule strengths on the market. Our 250MG CBD Capsules contain 250MG of pure CBD per dose. They are competitively priced and currently top search engine result pages based on their price, quality, and unique formulation.
American Green’s CBD division is slated for continued growth as it expands into other products and extracts. The company also currently offers CBD Isolate, Water Soluble CBD and Broad Spectrum CBD (which includes a full range of cannabinoids and terpenes, without the presence of THC).
American Green (OTC: ERBB) also recently announced that EZ WEED has selected and purchased the company’s proprietary smart vending solution — called the “AGM” as their “system of choice” for EZ Weed’s new business venture teaming up with prospective cannabis dispensaries throughout the nation.
EZ Weed is run by Managing Partner, Lauren Smee and backed by retired NFL Linebacker-turned-venture-capitalist, Lamarr Houston. Mr. Houston, who played professionally for the Oakland Raiders and Chicago Bears, recently visited American Green’s AGM facility in Gastonia, NC. According to AGM Division Head, Lindel Creed, “It was obvious to me from the minute they both arrived at the AGM facility, that both Ms. Smee and Mr. Houston knew exactly which machine features they required for their venture and, by the time they left the facility, both were convinced that American Green could provide them.”
EZ WEED expects to purchase and supply the AGM Dispensing Vending Machines following their up-and-coming EZ Weed national launch and have already begun securing their location agreements with some of the top dispensaries in the US. According to Ms. Smee, “Our partnership with American Green is vital in reaching our goal of becoming the first national and mainstream marijuana vending machine provider and service. The automation, humanless sales method, and intelligent vending capabilities of the AGM will allow us to scale for high growth.”
EZ WEED was founded in January 2020. The company came to fruition organically through a love of cannabis and Ms. Smee’s extensive knowledge in launching startups — with a new twist and groundbreaking sales method in the cannabis industry. The average sales process in a dispensary can be anywhere from 15-45 minutes. With EZ WEED, the entire process, even as a first-time user, is on average 3 to 5 minutes.
Besides the state-of-the-art machines, EZ WEED also provides its dispensary partners with “white glove” customer service as well as completely customizable digital marketing for each American Green AGM vending machine it provides. We do all the work pertaining to custom menus, product display, machine maintenance and a dedicated account manager that remotely keeps track of machine sales and inventory.
According to EZ Weed, serving cannabis users in an efficient manner has proven to be a challenge on a national level. With forward-thinking ideas and the backing of the venture capital firm, League Ventures, EZ WEED stands ready to enhance the sales process for new and seasoned cannabis users all across America. Please visit the websites of these two great companies by clicking on their names above.
American Green looks forward to a great long-term relationship with EZ WEED and believes that their expedient, reduced-human interaction is perfect for our country’s environment for today and years to come.
In other news, American Green plans to open up 10 additional major markets to experienced vending operators wishing to sell American Green’s Premium CBD line of products. In addition to the AGM smart vending kiosk, the company is also a leading online supplier of America-made, high quality CBD products which it plans to “marry” to its state-of-the-art AGM machines.
Several upcoming catalysts could catapult American Green Corp. (OTC: ERBB) shares higher. In our view, a bounce is all but guaranteed.