HICKSVILLE, NY --
January 16, 2020 -- InvestorsHub NewsWire -- 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.
Looking
Ahead
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
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.
Follow Canbiola
on:
Twitter
@CanbiolaHealth
Instagram @canbiola.inc or
@canbiola_cbd or @canbiola_medical_cbd
Investors and
Media:
IR@canbiola.com
(646)
397-2309