Hemp Black Reveal, page-38

First of all, investors are not the same as consumers. Additionally, the marketing they are using is in-line with the the "Mind Body Soul" thematic that has been used for the Ananda Hemp business line. Marketing has also changed very very much compared to the days of Don Draper / Mad Men. Digital / data analytics is where the most bang for advertising buck can be discovered. Furthermore, I think the marketing is vague and talks about other products rather than its own is because it is they do not have products for sale yet. They are vicariously pushing people to rethink clothing philosophy like what Patagonia (lifetime warranty, high upfront cost, reused materials) and North Face does and rethink clothing materials (textiles) like Hemp derived from bananas or Cannabis sativa. When the product line is finalised and launched I would hope to see more substantive and directed blog posts and content.

Secondly, the blog posts are innocuous and are not really enough to sway my overall bullish outlook on EOF. The business is almost 90 to 100% Ananda Hemp and Ananda Professional. The profit drivers with regards to the business are therefore not effected by a few blog posts on Hemp Black's website. This is not the smoking gun that the market or@HempCFO should be looking for to down-rate this company. There are much more material risks for EOF. These should be the potential for the FDA to over-regulate the CBD industry or ban vapes, which EOF had just entered (probably some of the worst timing for a product launch in my opinion). This is what has probably tanked the stocks of cannabis companies globally rather than the blog posts...

Lastly, we should be careful in trying to sway the management too much. I trust what Eric Wang and Barry Lambert and crew (inclusive of predecessors) have created here. The forward momentum and confidence of management should be applauded. If we cut them short but insisting they have made terrible decisions, then we are potentially stymieing their innate creativity and their forward motion. Who would have thought that Ananda Professional would be such a hit with independent pharmacies, Ananda Food would be sold in IGA and Woolworths, and that Hemp Black would be so close to launching / making a splash. We should be providing guidance for what we would like to see with Hemp Black.

We should not rush to judge as of yet. I am in this for the long run. I will not let some inconsequential blog posts affect my outlook too much.