PotNetwork Holding, Inc. (OTCPNK: POTN) is a publicly traded company that acts as a holding company for its subsidiaries, First Capital Venture Co., the owner of Diamond CBD, Inc., the maker of Diamond CBD oils. Since acquiring industry innovator First Capital Venture Co. and Diamond CBD, POTN has established a robust infrastructure for success and is recognized as one of the few companies leading the CBD revolution globally.
The company’ phenomenal performance in 2017 continued in Q1 2018 as well; POTN achieved record-breaking Q1 revenues totaling $6.3 Million. Compared with $1,858,347 in revenues for Q1 2017, this year’s performance represents an almost three times increase over the same period last year.
The Company’s growth is being driven by the results of its wholly-owned subsidiary, Diamond CBD, Inc. Diamond CBD distributes premium quality products and has established a successful, continually broadening distribution footprint. Diamond CBD’s products are distributed through 10,000 retail locations, and in Q1 of 2018, 25% of PotNetwork Holdings, Inc.’s overall sales revenue came from Diamond CBD’s e-commerce sales performance.
Diamond CBD, Inc., continues to strengthen its position in the hemp-derived CBD Industry. The company has been able to achieve over $10 million in Diamond CBD product sales just during the first five months of 2018, nearly doubling what it had generated in the 1st half of last year. More recently on July 23rd, POTN announced that Diamond CBD, upon showcasing its premium quality Cannabidiol (CBD) hemp oil consumer products at the Las Vegas CHAMPS Show, July 17 to the 19th, finished the event with outstanding results of over $300,000 purchase orders.
Diamond CBD has a highly successful history of sales from these key trade shows. Key among them are the CHAMPS Trade Shows which strive to provide the best trade show experience possible by matching exhibitors with buyers from throughout the world. At this show, the Company successfully drew attention from prospective vendors on a global scale.
The Company have an aggressive growth plan for the remainder of this year and is well poised to become a fully reporting company and eventually uplisting will heighten its visibility as it continues to expand its operations, markets, product lines and brands. 2018 is a pivot point for the company
As cannabidiol, marijuana and Hemp products and uses continue to diversify; the quickly expanding market for alternative marijuana demand outside of recreational and traditional medicinal usage continues to grow at an exponential rate. Hemp Business Journal estimates the hemp industry will grow to $1.8 billion in sales by 2020, led by hemp food, body care, and CBD-based products. According to research and Markets, analysts forecast the global CBD oil market to grow at a CAGR of 39.19% during the period 2017-2021. New partnerships, products, and areas of specialization continue for companies such as PotNetwork Holding Inc.
PotNetwork Holding’s momentum has pushed it to rank among the industry-leading CBD companies, recognized by prominent news sources nationwide, such as the Huffington Post, where the Company was Acclaimed as One of Five Notable CBD Revolution Industry Leaders.
POTN reported an increase in the volumes backed by these announcements laying the strong foundation for revenue visibility and business growth. Currently trading with a low market cap of $18.29 million, POTN is one of the most exciting stories among all small caps in this space. Additionally, the recent fall in stock prices represents a substantial buying opportunity, according to analysts.
Description & about the Company:
About PotNetwork Holding, Inc: PotNetwork Holding, Inc. (OTC Pink: POTN) is a publicly traded company that acts as a holding company for its subsidiaries, First Capital Venture Co., the owner of Diamond CBD, Inc., the maker of Diamond CBD oils.
About Diamond CBD, Inc.: Diamond CBD focuses on the research, development, and multi-national marketing of premium hemp extracts that contain a broad range of cannabinoids and natural hemp derivatives. Diamond CBD’s team consists of hemp industry pioneers and natural product experts, chemists, doctors and scientists, dedicated to producing the finest and purest cannabidiol (CBD) oils. The result is a robust selection considered among the most powerful natural CBD oils, tinctures, edibles, and vape liquids found anywhere.
Key Brands: POTN has over 15 successful brands in its portfolio, including Chill Gummies, Liquid Gold vape liquid, Relax Gummies, Blue CBD Crystals Isolate, flavored CBD Hemp Oils, Relax Extreme CBD collection amongst others.
Unique differentiating factors for Diamond CBD:
- Diamond CBD’s products are USA-made and produced with Cannabidiol (CBD) derived from the industrial hemp plant. According to the National Institute of Drug Abuse (NIDA), CBD oilmay be useful in controlling epileptic seizures, reducing pain and inflammation, and may also be an effective treatment for mental health disorders, such as addiction and various forms of psychosis.
- The Company formulates top quality hemp extracts that contain a broad profile of cannabinoids, and other natural hemp derived molecules, resulting in a robust selection of Industrial Hemp Derived Diamond CBD oils considered among the most powerful natural CBD E-Liquids on the market.
- Unlike marijuana CBD, hemp CBD extracts are presently legal in all states in America, though most states are yet to join Arizona and South Carolina in legalizing the growing of industrial hemp. Hemp-derived CBD is not psychoactive; therefore, the consumer should not get high. Furthermore, it is claimed to have a wide range of therapeutic benefits and useful neuroprotective properties.
Other Key highlights/achievements of 2018:
- On July 17th, the company announced that it had filed a Form 10 registration statement with the Securities and Exchange Commission (“SEC”) in order to become a fully reporting SEC company. The filing represents its first action toward uplisting to the OTCQB. The Company is also awaiting FINRA approval on its announced name change to “BioTech Hemp, Inc.,” and related trading symbol change
- On June 6th, the company announced that its wholly owned subsidiary, Diamond CBD, Inc., has introduced a unique, new product line of delicious premium CBD oils delivered in simple, consumable serving-sized syringes, providing a quick CBD “boost” to customers desiring a relaxing CBD lift.
- On May 31st, the company announced the rapid expansion of its MediPets product line, a top quality wide spectrum of healthy dietary treats for pets, formulated to support the health and wellness of cats and dogs everywhere. In addition to organically grown hemp-based CBD, these pet treats contain a variety of other nutritious ingredients, blended to appeal to, and improve, a cat’s or dog’s quality of life. Having an endocannabinoid system very similar to that of humans, animals also have cannabinoid receptors throughout their bodies. Whether a pet is healthy or suffering from an ailment, Diamond CBD pet treats are formulated to contribute to help optimize canine or feline health.
- Created a buzz at numerous conferences and trade shows nationwide, increasing sales and networking dramatically.
Earnings Review:
Liquidity: On May 8th, the company announced a debt retirement of $1.2 million. With less than $1.7 million in debt still outstanding in Q2, the Company is positioned to meet and exceed growth expectations for 2018.
During the first quarter, the Company reached an agreement with a debt holder exchanging a $1.2 million convertible promissory note for common stock purchase warrants at $.25 per share, effectuating a shift in debt to equity. With now less than $1.7 million in overall notes payable, the Company has taken a significant step forward toward improving its ratio of assets to liabilities, reducing its debt service, and improving its overall financial metrics.
Key Stock Influences: Some key influences that might govern future stock price performance include:
- PotNetwork presently extracts CBD from imported hemp plants. Any kind of regulatory tailwind in the U.S. is likely to benefit the company’s market expansion, along with its organic growth strategy through aggressive marketing campaigns.
- POTN has a constrained financial position. 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’s business is exposed to regulatory risk and its adverse impact on the overall business risk profile.
Stock Performance
On Monday, July 30th, 2018, POTN shares were at $0.26 on volume of 1.3M million shares exchanging hands. Market capitalization is $18.1 million. The current RSI is 37.19
In the past 52 weeks, shares of POTN have traded as low as $0.00 and as high as $0.95
At $.026, shares of POTN are trading below their 50-day moving average (MA) at $0.32 and below its 200-day MA at $0.28
The present support and resistance levels for the stock are at $0.2079 & $0.2857 respectively.
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