Veritas Farms (VFRM) Stock: Reading Between The Lines Shows An Impressive Strategy!

Veritas Farms Inc (OTCMKTS: VFRM) is having a strong day in the market this morning. However, no news was released today. So, what’s the deal?

The gains likely relate to the company’s press release that was issued yesterday. In the release, the company made an announcement surrounding packaging and labeling. However, the real story was found in the company’s statement that it will be featured in select locations of a big-box retailer. Today, we’ll talk about:

  • Why yesterday’s press release was such a big deal;
  • what we’re seeing from VFRM stock as a result; and
  • what we’ll be watching for ahead.

Why The Announcement By VFRM Yesterday Was Such A Big Deal

As mentioned above, Veritas Farms issued an announcement in the pre-market hours yesterday. The press release largely revolved around the company’s work to update packaging and labeling of its CBD-infused products.

The packaging changes were designed to better inform users about the company’s products and provide consumers with a better user experience. In a statement, Alexander Salgado, CEO and Co-Founder at VFRM, had the following to offer:

…We feel this added element of ultimate product transparency will assist consumers to make better educated decisions, and will be vital to help set apart our high-quality Veritas Farm products from lessor quality competitors on the market.

Of course, the packaging and labeling change is positive. Consumers that are better educated will likely have a better experience with CBD-infused products, leading to return business.

On the other hand, in my view, that wasn’t the most important part of the press release. In a small snippet, just after Alexander Salgado’s statement, the press release reads:

Veritas Farms™ brand products can be found at several leading online and brick-and-mortar retailers across the United States, including select CVS Pharmacy stores.

This Is Where Things Get Interesting

In previous announcements, there has been no mention by VFRM that it has partnered with CVS Health Corp (NYSE: CVS) to sell its products in CVS Pharmacy stores. Moreover, there has been no mention by CVS of the same. So, yesterday’s announcement was the first time that investors learned that Veritas Farms’ brands will appear in a big-box retail setting.

This is interesting as VFRM may be on the leading edge in a new niche in hemp. For the most part, if consumers want CBD, they have to go to a corner store, head shop, or the rare gas station that offers these products. However, big-box options simply aren’t available at the moment.

With the announcement that the company’s products are going to be in CVS, investors get a look into an interesting strategy. It’s clear that VFRM is working to place its products in front of the masses, both online, and in the retail setting.

While the company has done a good job of getting its products placed in ancillary locations, it is now working to bring its products to big-box locations. Should it continue to do this, and have success in the process, the company’s brands could quickly grow to be some of the most widely-known on the market. Sure, packaging is important, but this, my friends, THIS IS WHAT I CALL VALUE ADD!

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Veritas Farms, recent news has proved to be overwhelmingly positive.

With new, more user friendly packaging and a growing footprint of retail outlets both online and off, the value proposition posed by the company is only getting better. So, it’s not surprising to see that excited investors are pushing the stock up in the market today.

As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:34), VFRM is trading at $0.68 per share after a gain of $0.02 per share or 3.03% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on VFRM. In particular, we’re interested in following the story surrounding the comapny’s continued work to expand its retail footprint. We’re also interested in tracking revenue growth following yesterday’s announcement of the packaging change and the company’s products being featured in CVS stores. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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