Freedom Leaf is Growing Through Acquisition and Investment

Freedom Leaf Inc. (OTCQB: FRLF) is a group of diversified, international, vertically-integrated hemp businesses concentrating on health, wellness, and education as well as cannabis media companies. Freedom Leaf, Inc. has been a leading go-to resource in the cannabis, medical marijuana, and industrial hemp industries since 2014, founded by professionals with decades of combined experience in marijuana legalization advocacy. FRLF is building a diverse portfolio of valuable businesses through strategic mergers, acquisitions, and acceleration projects across the industry.

 

In the U.S., 30 states have some form of legal medical cannabis use and 9 states have approved recreational cannabis use along with many municipalities. In November voters will decide on ballot proposals for recreational cannabis use in Michigan and N. Dakota. Utah and Missouri voters will be deciding if they want a medical marijuana law on their books.

 

Freedom Leaf Inc. also sells licenses to use the Freedom Leaf brand in different countries and states across the globe. The company has entered into three license agreements: for Spain and Portugal, for The Netherlands, and for Florida.

 

The company’ shares continue to zoom backed by the favorable impact of its recent announcements and the growing popularity of the industry.

 

Recent announcements:


Investment from Merida Capital:

On Oct 3rd, 2018, the company announced that it had received a significant investment from cannabis private equity firm Merida Capital Partners to expand its existing US sales channels further and accelerate its European hemp cultivation operations.

 

Freedom Leaf and Merida have also agreed in principal to a strategic partnership by which Merida will provide certain operational resources and support for both Freedom Leaf’s US hemp-based cannabidiol (CBD) sales efforts and their global cultivation operations.

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Receiving an investment from a leading cannabis firm like Merida, which already has investments in key supply chain providers like KushCo, GrowGeneration and Emerald Scientific, is a solid validation of Freedom Leaf’s aggressive efforts to build a high-quality family of cannabidiol-based products. Furthermore, it is also an acknowledgment of the potential for the Valencia, Spain cultivation facility to become a significant supplier of both hemp and cannabis to European markets in the immediate future.

 

 

Acquisition of Tierra Science: 1st-year revenue projected in excess of $2,500,000

 

Before this on August 16th, the company confirmed a 100% acquisition of Tierra Science Global, LLC, a company specializing in health supplements supporting peak bio-energy levels in humans which are currently distributed via highly motivated direct sales teams and well-established affiliate programs in Europe, Asia, and the United States.

Freedom Leaf CEO, Cliff Perry is confident that Tierra will achieve new revenue highs expeditiously toward additional profits and an increase in shareholder value. “The affiliate model we are deploying for Tierra is expected to yield 150 product packages per week at an average price of $400 each, yielding $240,000 per month in revenues with a 24% net profit.  This would equate to $57,600 in profits from the affiliate model alone with conservative estimates for $2.88 million in yearly revenues,” states Perry

 

 

In a short span of time, FRLF has strengthened its market and operational profile significantly. The company is moving forward at a rapid pace on utilizing these mergers and acquisitions and building a solid foundation for its vertically-integrated, global hemp corporation to maximize both shareholder value and revenue growth.

 

About the Company: Freedom Leaf, Inc. (OTCQB: FRLF) is a group of diversified, international, vertically-integrated hemp businesses concentrating on health, wellness, and education as well as cannabis media companies. Freedom Leaf, Inc. is a fully-reporting and audited publicly-traded company under the symbol (OTCQB: FRLF). Freedom Leaf, Inc. has been a leading go-to resource in the cannabis, medical marijuana, and industrial hemp industries since 2014, founded by professionals with over 200 years of combined experience in marijuana legalization advocacy. FRLF is building a diverse portfolio of valuable businesses through strategic mergers, acquisitions, and acceleration projects across the industry.

 

Financial Results –

As per management, over the last two quarters, the company have been concentrating on cleaning up the balance sheet, reducing debt and increasing assets in preparation for additional acquisitions and their resulting revenue growth.

 

The following are the key takeaways from the Q3 report, between June 30, 2017, and March 31, 2018:

 

  • Revenue: Revenue was $56,254 for the three months ended March 31, 2018, compared to $254,084 for the three months ended March 31, 2017.
  • Profit: Net loss attributable to common shareholders was $1,561,141 for the three months ended March 31, 2018, compared to net loss of $27,200 for the three months ended March 31, 2017.
  • Liquidity and financial flexibility: As of March 31, 2018, the Company had $165,544 in cash. On Oct 3rd, the company confirmed that it received a significant investment from cannabis private equity firm Merida Capital Partners(“Merida”) to further expand its existing US sales channels and accelerate its European hemp cultivation operations.

 

Key risk factors and potential stock drivers:

  • Continuing growth in the cannabis sector could act as a catalyst for the company shares.
  • The company operation is still at a pre-commercialisation stage. Therefore, its ability to maintain liquidity and financial flexibility to fund its incremental capital requirements will remain an extremely critical challenge for the company.
  • The company’ business is exposed to risk related to competitive pressure, and its revenues may suffer from competitive pressure.
  • Notwithstanding the recent boom, this is still a very nascent stage space and only time would differentiate between real winners and laggards. As far as choosing an option with a relative advantage is concerned, FRLF is the preferred choice with upside potential.
  • Marijuana remains illegal under federal law. It is a Schedule I controlled substance. Even in those jurisdictions in which the use of medical marijuana has been legalized at the state level, its prescription is a violation of federal law.
  • The company’s business is exposed to regulatory risk and its adverse impact on the overall business risk profile.

 

Stock Performance

Comments:

  • On Monday, October 15th, 2018, FRLF was at $.67, on an above average volume of 2.8million shares exchanging hands. Market capitalization is $116.651 million. The current RSI is 84.37
  • In the past 52 weeks, shares of FRLF have traded as low as $0.0265 and as high as $0.58
  • At $.67, shares of FRLF are trading above its 50-day moving average (MA) at $.21 & above its 200-day moving average (MA) at $0.18
  • The present support and resistance levels for the stock are at $0.3806 & $0.5986 respectively.

 

 

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