CBD is a hot topic in the investing community, and for good reason. The 2018 Farm Bill opened the door to the emergence of an entire industry surrounding hemp and CBD. As the industry emerges, few companies have the foundation in place and the ability to take advantage of the rush of demand for hemp and CBD-related products. We believe that Veritas Farms Inc (OTCMKTS: VFRM) is one of these companies.
What Is VFRM?
Veritas Farms is a United States-based company that has a strong foundation laid in the CBD space. The company owns and operates a more than 140-acre facility, where it grows the plants, extracts the CBD, manufactures the products, and ships them to a growing network of both retailers and eTailers.
The Company Enjoys Several Competitive Advantages
In the CBD space, there are quite a bit of investment options to choose from. However, there are few companies in the space that enjoy as many competitive advantages as VFRM. In our view, the most important of these include.
Think of a few stocks that come to mind when you think CBD. Are you thinking of Cronos (CRON), Tilray (TLRY), Canopy Growth (CGC), or Aurora Cannabis (ACB)? If you are, you’re thinking about Canadian companies.
While the 2018 Farm Bill provided an open door for the hemp and CBD market to emerge, there’s still a matter of importation. CBD, a derivative of hemp, now enjoys a reduced schedule as a controlled substance. However, as a controlled substance, it will still be regulated to some degree, much like nicotine.
So, in the case of every one of the Canadian companies mentioned above, the navigation of legalities surrounding the import and export of controlled substances may pose a challenge. For VFRM, being located in Pueblo, Colorado, offers an open door to national distribution without import headaches.
Founded in 2015, Veritas Farms is no stranger to the CBD market. The company strategically found its home in the state of Colorado. A state that is considered to have the most progressive regulations surrounding hemp, cannabis and derivatives of the same.
Over the past 8 years, the company has worked to perfect its products, process, and efficiencies. This has given the company the time to iron out the kinks before the emergence of the national CBD industry.
As a result, VFRM has the foundation set for explosive growth ahead as this emerging market continues to evolve. While other companies are still figuring out how to cultivate hemp, this one already has more than 20 skews and product not only in production, but on the market.
The Full Spectrum
In the space, there are United States-based companies like New Age Beverages (NBEV) and or Naked Brands Group (NAKD) that have CBD products on the market as well. However, they are at a disadvantage to VFRM. That’s because they don’t operate in the full spectrum.
As mentioned above, Veritas Farms operates a 140 acre production facility. In the facility, it produces its own clones, cultivates its own hemp, processes said hemp, manufactures the products, and ships them out!
There is absolutely no middle man in the equation here. So, while NBEV and NAKD may be at the mercy of the availability, quality, and changing cost of the CBD oils within their products, VFRM has full control from seed to sale.
A Splash In The Making
The Market Potential Is Incredible
There’s a good reason that there’s so much investor buzz surrounding the CBD market. While, due to the fact that there is no historical data in this emerging space, any estimate is speculation, there is a clear demand for these products.
Estimates based on sales in states and countries where CBD has been legal for a few years give us some staggering numbers to think about. Estimates of the CBD market range wildly from being worth around $2 billion by 2022 to being worth more than $20 billion by 2022. In fact, according to Rolling Stone magazine, the CBD market is expected to reach a value of $22 billion by the year 2022.
While suggesting that one company would take 100% of the market share in any industry would be ludacris, even a small percentage of a market this size would be meaningful for a company with a market cap of under $40 million like VFRM. With the infrastructure in place, strong media presence, control from seed to sale and perfect location, the company is clearly poised to take its fair share of the market.
The takeaway here is a very simple one. The CBD market is here and it’s here to stay. Moreover, it’s expected to grow to be a massive one seemingly overnight.
There are few companies in the industry that already have the scale and supply to meet the growing demand of this quickly emerging industry. Due to the hard work put in over the past several years, Veritas Farms is in a unique position to capture a decent chunk of this market.
The key here is locked in three simple statements:
- Veritas controls their products from seed to sale, giving them unmatched control over the supply and quality of its CBD-infused products.
- VFRM has laid a foundation that uniquely positions it to take advantage of the quickly-emerging CBD industry.
- Finally, located in the United States and with an impressive list of products, the company is leaps and bounds ahead of much of its competition, both domestic and abroad.
All in all, if you’re not already paying attention to VFRM, now is the time to start!