Why did Isodiol (ISOL.C) stock price almost double in 5 days?

On November 5, 2018 Isodiol (ISOL.C) announced that it is going to debut its newest CBD raw ingredient, Heneplex p200, at Supply Side West in Las Vegas November 8-9, 2018.

A week ago (Oct 30, 2018) ISOL was trading at $1.62.  It’s now $2.88.  Yes – here at Equity Guru we’ve been screaming about Isodiol – and we’d love to take credit – but there are forces bigger than us at play.

Supply Side West is a petri-dish, swirling with some of these forces. A gaggle of about 26,000 health & nutrition industry enthusiasts – Supply Side West focuses on dietary supplement, beverage, functional food, personal care, and sports nutrition innovation.

According to The Economist Intelligence Unit global annual health spending reached $7 trillion dollars in 2015, and is expected to reach to $8.7 trillion dollars by 2020.

The “health and nutrition industry” is riding the mother of all of demographic waves.

Between 2016 and 2021, worldwide life expectancy is expected to rise from 73 years to 74.1 years. By 2021, the number of people older than 65 years will jump to 656 million (about 11% of the total population).

These feisty old bastards refuse to act their age.

Here in Vancouver, BC, the BC Older Timers Soccer League has 30 teams registered in Over-55, and Over-60 category.

These dudes play hard, they get sore, and they spend money to heal fast so they’ll be ready for the next game.

Isodiol is “focused on the nutritional health benefits derived from hemp.” Its business model is “product development, sales, marketing and distribution of hemp-based products.”

On September 11, 2018 ISOL announced Q1 revenue of $9.2 million, representing a 240% increase over the quarter ended June 30, 2017.

ISOL Q1 Highlights:

  • Total Revenue of $9.2 Million
  • Gross profit of $4.6 million
  • Cash Position of $11.5 million
  • Government Approval from UK Medicines and Healthcare Products Regulatory Agency (MHRA) for Pure, Natural CBD as an Active Pharmaceutical Ingredient (API)
  • Bought KURE Corp
  • Announced KURE expansion plans
  • Binding Agreement to Acquire 51% of Farmtiva, a California hemp cultivator
  • Binding Agreement to Acquire 51% of Round Mountain Technologies, a Nevada hemp cultivator

Problem:  CBD hemp extracts and oils are di­fficult to formulate and incorporate into consumer goods products.  CBD hemp extract in an oil form “sticks to just about everything, tastes bad to many users, and dissolves in few substances besides alcohols and oils.

Solution: Heneplex p200 is more versatile than traditional extracts.  It can be easily mixed into almost any food and beverage product, including protein shakes, juices, soda, coff­ee, tea, baked goods or frozen goods, or water.

Yesterday, Isodiol management assured investors that it “has not deviated from its business plan announced on June 29, 2018.”

“Over the past 6 months, we made significant investments that built a diverse foundation for Isodiol through acquisitions,” stated CEO, Marcos Agramont, “and we are now shifting our focus to optimally operating our various business segments.”

Isodiol’s 3 core business strategies:

  1. Supplying the market with CBD extracts in four categories:
  • NUTRA99: A nutraceutical-grade CBD isolate derived from US Farm Bill Compliant hemp.
  • ISO99: A proprietary extracted nutraceutical-grade CBD isolate derived from EU organic certified hemp.
  • Spectreus: A full-spectrum hemp oil extract derived from US Farm Bill Compliant hemp.
  • BSPG API: An MHRA (The Medicines and Healthcare Regulatory Agency) registered Active Pharmaceutical Ingredient (API) for use in clinical trials and for formulation of Finished Pharmaceutical Products (FPPs).
  1. Contract Manufacturing of Consumer Products Containing CBD Ingredients

Incubate and develop brands as R&D endeavors, evaluate their potential for market success at scale.  Isodiol intends to retain the contract manufacturing rights for these brands, provide its partners with scale production, and capture the B2B revenue stream.

  1. Total Vertical Integration of Key Revenue Streams

With the acquisition of Kure and the expansion of the CBD store-within-a-store concept Isodiol believes it can scale up and capitalize on market penetration quicker than its competitors.

At the cultivation level, Isodiol will continue to pursue new hemp farming and manufacturing projects throughout the world, meet commercial demand and regulatory requirements.

“In my office, I take hemp CBD oil to deal with a host of hard living complaints,” stated Equity Guru’s Chris Parry, “So does our Equity.Guru CEO, Daria Grave, and all her family, here and abroad. Our sales director takes it and that’s no small thing, because market guys are usually associated with other forms of self medication.”

ISOL management believes that its business strategies are “in front of market trends”, particularly as “legalization continues to trend in a favourable direction in the United States and Mexico.”

According to New Frontier Data, U.S. CBD sales are predicted to grow about 400% in the next four years, from $535 million this year to over $1.9 billion by 2022.

ISOL’s growth strategy includes the development of over-the-counter and pharmaceutical drugs and continued expansion into Latin America, Asia, and Europe.

Complete Isodiol portfolio is here.

At Supply Side West in Las Vegas, Isodiol will be at  booth 1557. We predict a crowd.  CBD is hot.  This company is already generating serious revenue in a sub-sector with a parabolic demand curve.

Full Disclosure:  Isodiol is an Equity Guru marketing client, and we own stock.

Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

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