​Reading the Fine Print on Your CBD Stock: CBD Unlimited Inc. (EDXC)

Stephen L Kanaval  |

Image: iStock.com/Kameleon007

Across the industry, CBD Unlimited, Inc.  (EDXC)is known for their marketing depicting cooking-cutter American families playing catch in the background of their extensive CBD product line.

The tag line says: "Nutraceutical Hemp Products for the Whole Family" as the picture includes children and a dog. And, it is entirely possible that these advertisements might be more visible in the near future as the company just completed production on 7.5 million wholesale products.

Recent Surges in Price for CBD Unlimited

According to the company, those supply numbers were calculated to meet demand. Where will CBD Unlimited be shipping its line of sprays, balms, droppers and capsules? To 1,200 New York City bodegas and boutiques courtesy of a deal with Gold Coast Distributors, an established distribution company focused on healthy products in the bustling metropolis.

Overall, the company has been growing by their standards and they seem to have fully committed to the CBD sector for the moment.

For the three months ended December 31, 2018, EDXC generated $236,000 in sales, representing an increase of 23% year-over-year and 20% sequential increase quarter-over-quarter.

“Last year, we grew CBD Unlimited’s distribution to over 1,000 distribution channels. With full-scale production capabilities, we are confident that we will reach at least 5,000 by 2020,” commented CEO & Chairman Todd Davis. “With the recent passage of the Farm Bill in December 2018, we are seeing an increase in our national product reach and will be able to deliver to meet these high demand levels.”

But What is Inside the Bottle?

This distribution deal announcement sent the stock hurdling upward $0.26 on March 11th to $0.39 on March 18th. Moreover, looking at the price action, going back to March 5th, CBD Unlimited's subsidiary, CBD Health Solutions, closed a deal with a private sales group to increase the reach of their CBD Unlimited product line.

The news of an increasing sales force - it will start at 25 people and expand to 500 people by 2021 - seemed to rally investors around EDXC (the volume for the day crested over 9 million), which was formerly known as Endexx Corporation and trumpeted itself as an organization outfitted to help entrepreneurs and small business owners.

All this is nice, but our question in all this is: what is the quality of the actual CBD oil? According to company information, CBD Unlimited's hemp comes from Colorado and their isolate is imported from Europe processed with supercritical CO2 extraction (using pressurized carbon dioxide to pull extracts from the plant).

However, the isolate they are importing has not gone through any third-party testing at the moment. And this is a crucial point to remember, companies in the space are really self-policing their own products right now thanks to limited federal oversight. Furthermore, a recent study by the Jama Network showed that 18 out of 83 CBD products actually had THC in them.

CBD Unlimited's website makes a number of claims about its safety and wellness attributes, but without an objective laboratory back up those claims, cookie-cutter families and everyday retail investors should be wary of brands like CBD Unlimited.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
EDXC CBD Unlimited Inc - Ordinary Shares 0.35 0.02 5.45 311,380

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