Top 5 in hemp derived CBD market, page-104

Great to see the Farm Bill/Hemp Act signed into law by President Trump this morning. As mentioned previously this opens up an enormous market opportunity for Elixinol, estimated to grow from USD $2bn to USD $22bn 2018-2022 (from +55% CAGR to +138% CAGR). Importantly it removes any federal restrictions from growing, marketing and selling hemp, and provides easier access to federally regulated services such as banking/insurance and utilities such as water rights – Prohibition is over.







EXL have said they will now appoint recognised advertising, public relations and marketing agencies to help build national brand awareness, focusing on increasing digital marketing campaigns(think Google, Facebook, Amazon) to grow direct to consumer e-commerce sales.

This should see EXL increase their marketing spend towards levels equivalent to that of their major peers Charlotte’s Web (CWEB) and CVSI Science (CVSI) –keeping in mind EXL is already growing faster than CWEB with a much smaller marketing spend…marketing $’s = revenue $’s…







Yet EXL still trades at a substantial discount to CWEB and CVSI…







I speculate on EXL doing a deal with a major national distributor (Kmart, Walgreens, Walmart, WholeFoods for example), with each account driving USD$20m in revenue (this could be light) – the opportunity here for revenue is enormous.


Analysts Forecast EXL growing revenue +72% in CY19 to $68.6m, then +39% in CY20 to $95m – in my view this could be very light on. Nothing in analysts numbers yet for a deal with a national retailer. Any deal would super charge these already very attractive metrics below:








I’m upgrading my own TP to $3.90, which is 7x Analysts CY19 revenue of $68.6m. As long as markets hold up I think we get there by end CY19.