CBD companies undergoing uplisting marks next step in the bullish market

By @chelean on
CBD salve made from hemp
California "weed nun" Desiree Calderon, who goes by the name Sister Freya, pours CBD salve made from hemp at Sisters of the Valley near Merced, California, U.S., April 18, 2017. Reuters/Lucy Nicholson

After setting the stage to let the world know about the advantages of cannabis, the next level for CBD companies is now ready to encourage more investors to join a possible billion-dollar market. The most competitive CBD companies are now in the process of undergoing listing, and it could very well change the game of how this fast-growing industry is viewed.

At least three CBD companies enjoying a robust growth have already set the motions to uplist in Nasdaq Capital Market and OTCQB Venture Market Place. This move aims to raise corporate visibility especially among investors, improve each company’s liquidity, and make the financial market aware of their corporate identity. As such, uplisting could mean favourable to each company’s financing efforts.

Bespoke Extracts Inc.

Bespoke Extracts, Inc. (OTCQB:BSPK), which produces high-quality hemp-derived CBD extract products, recently announced how the company’s common stock got approval for uplisting to the OTCQB Venture Market Place.

The OTCQB is referred to by the US Securities and Exchange Commission (SEC) as the middle tier or venture market included in the early-stage phase and could still be a developing US and international company. An OTCQB listing is the next step to determine if registered securities for resale could be sold at a higher market price with the SEC.

OTCQB is a viable next step for OTC companies as this could increase transparency, improve investor reports, would be easier to manage certification and compliance requirements, not to mention that most of the broker-dealers trade on the OTCQB. 

PotNetwork Holdings, Inc.

Another rising name in the CBD industry, PotNetwork Holdings, Inc. (OTCMKTS:POTN), has also submitted the necessary documents for OTCQB uplisting. POTN has filed a Form 10 registration statement with the SEC to become a fully reporting SEC company, and it is considered to be the initial step to uplisting to the OTCQB. The company now awaits approval to change its name to “BioTech Hemp, Inc.”

POTN has reached out to a specialised legal counsel to prepare a Regulation A+ needed by the SEC. This move was done not only as a commitment to producing the best CBD products in the market but also as a way to make the company more visible and transparent to qualified investors.

In the long run, it has plans to uplist to OTCQX or ‘Best Market’ tier reserved for established, investor-focused companies in both the US and the world.

POTN’s OTCQB uplisting is part of the company’s developments this year. The products under POTN’s subsidiary Diamond CBD have seen a healthy growth in sales and revenue. Last year, the company reported a total of US$14.49 million (AU$19.69 million) in revenue, while the first half of 2018 already saw a US$10 million (AU$13.59 million) profit. Once fully listed in OTC markets, the next phase would be a long-term recognition in the NASDAQ Capital Market listing.

POTN’s strong team of scientists and medical personnel were recently joined by cannabis legend Tommy Chong, further uplifting the value of the company. The star of this group, however, remains to be the high-quality products from oils, vapes, edibles and drinks, all containing excellent CBD from hemp, courtesy of non-GMO, organic farms.

CV Sciences Inc.

CV Sciences, Inc. (OTCQB:CVSI), manufacturer and supplier of hemp-derived phytocannabinoids including CBD oil for both recreational and therapeutic purposes, has recently submitted its application to list on the Nasdaq Capital Market.

According to Joseph Dowling, chief executive officer of CV Sciences, the uplist could open investment opportunities to more investors as well as assure a more lucrative shareholder value.

Listing with Nasdaq could prove to be a challenge, as the market would require submission and approval of listing requirements that could take some time to complete. While waiting for the approval, CV Sciences will continue to operate and trade under the OTC market.

CBD Business Projection

The CBD market is currently enjoying unprecedented growth in the market. CBD is projected to become a billion-dollar market in just three years, according to market analyst Brightfield Group.

In its report, it based the projection from the CBD market’s 2016 performance wherein sales hit US$170 million (AU$231 million), showcasing a 55 percent compound annual growth rate for the next five years.

CBD from hemp is said to be the “safer” CBD compared to those derived from marijuana as it contains less than 0.3 percent THC, the psychoactive compound associated with the latter cannabis. This makes hemp oil and hemp oil products more accessible than marijuana-derived CBD. This means that CBD from marijuana is legal only in some states, while hemp CBD can be found more in others.

The manufacturing of hemp-derived CBD was recently approved by the US Senate, months leading to the passing of the 2018 US Farm Law. Recognising hemp as an agricultural commodity could mean that hemp farms can now apply for grants and government assistance to further study and develop products which use hemp as raw materials.

With the current state of the CBD market, which is expecting more positive movement in the coming years, it won’t be a surprise if more CBD companies would resolve to upgrade their listing in the stock market, or if more companies begin veering towards this emerging market.

This story was based on press releases sent to us for consideration.