Ever since it’s legalization in December 2018 by the US Congress, the CBD (cannabidiol) industry has seen unimaginable growth. It was one of the fastest-growing industries in 2019 according to the National Institute for Cannabis Investors.
Not only that. It is expected to continue its exponential growth for the next 10 years. According to Forbes, its market value is predicted to rise to as high as $22 billion over the next three years.
Good time to invest in CBD stocks.
Naturally, it is a good time to look into the stocks of these companies growing industrial hemp, extracting CBD and other cannabinoids, making CBD products, and selling all kinds of products containing CBD, and perhaps even consider investing in them.
With research going on in full swing on the benefits of CBD, a lot of people around the world have found a safe alternative in this safe, effective, and non-psychoactive cannabinoid.
It not only helps manage pain and reduce inflammation, but it is also known for fighting a lot of conditions and diseases, or at least their symptoms.
What’s more, it has even been found helpful in treating the symptoms of cancer, epilepsy, arthritis, heart disease, and digestive problems. Besides, it has also been proven to be a fantastic skincare product.
So, let’s find out which companies are doing good business in this industry and which are best to invest in.
Market Value of Top CBD Companies in 2019
Since the worldwide CBD market is becoming increasingly saturated, more so in 2019, with new and old ones joining the CBD bandwagon every day, it can be baffling to keep track of the goings-on in the industry.
1. Charlotte’s Web Holdings, Inc. (TSE: CWEB) $1.36 Billion (CW Hemp)
A market leader in products made from hemp-based CBD extracts, Charlotte’s Web Holdings was originally started as Stanley Brothers Holdings Inc. by the Stanley Brothers – Joel, Jesse, Jon, Jordan, Jared, and Josh.
The special strain of cannabis that came to be known as Charlotte’s Web was developed by these 6 brothers in 2011 by crossbreeding a strain of marijuana with industrial hemp. This new strain of cannabis contained a much lower level of THC and very high levels of CBD – something that was originally named as the Hippie’s Disappointment due to its low THC-content.
However, with time, people soon realized the potency of this new strain of cannabis in treating different kinds of ailments.
In particular, between 2011 and 2013, this strain was able to help a couple of children with Dravet’s Syndrome – a very rare kind of epilepsy – by lowering the frequency of their seizures, thus enabling them to live normal lives.
One such child was an American girl, Charlotte Figi, who had developed Dravet’s syndrome when she was just a baby. By the age of three, she was severely disabled. She was experiencing around 300 grand mal seizures a week, despite her regular treatment.
Since 2011, she had been using another strain of marijuana (it is legal in the area she lives in to use medical marijuana for epilepsy), called R4, which was also high in CBD and low in THC. However, her parents contacted the Stanley Brothers and got her on the new strain in 2013. Since then, her epilepsy had improved considerably. The rate of her seizures reduced to only about four seizures per month. From then on, this strain of cannabis came to be known as Charlotte’s Web after the famous children’s novel.
Charlotte Figi became a household name across the US and many other parts of the world, bringing the Stanley Brothers’ endeavor to the fore.
In November 2013, Josh Stanley declared that their strain contains 0.5% THC and 17% CBD. However, to conform with the federal norms, the THC content was further reduced to 0.3% by weight. In September 2014, it was measured at 0.3% THC.
On August 30, 2018, Charlotte’s Web Holdings, Inc. enlisted itself on the stock market with an initial public offering in Canada.
2. Medical Marijuana, Inc. (MJNA) $228.54 million (RSHO-X)
A maker and maker of a variety of hemp-based products, Medical Marijuana, Inc. is traded as MJNA.
Established in 2009, this company is headquartered in San Diego, California. MJNA boasts of being a company of first, and rightfully so, as it was among the first to utilize a circuit court decision that protected hemp and hemp-derived products as being the same as those derived from marijuana. This is how it first started selling CBD products to the public.
Following some initial losses in 2011 and 2012, it went on to make money from 2013 after it invested in Kannalife Sciences Inc., which was set up to bring inventions concerning using CBD as a neuro-protectant to the general masses.
The following year was marked with a number of lawsuits with Project CBD concerning the use of possible toxic solvents in some of their products. During this time, the company was not able to do direct business but had to resort to selling its products through one of its subsidiaries HempMedsPX.
In 2015, the company finally hired Stuart Titus as its new CEO, bring an end to the instability within the company that was triggered with the stepping down of its former CEO, Michael Llamas, under the shadow of his alleged role in a real estate Ponzi scheme.
3. CV Sciences, Inc. (OTCMKTS: CVSI) $127.1 million (PlusCBD Oil)
CV Sciences, Inc. is the makers of the brand of CBD oil and CBD products, PlusCBD Oil. The company produces and markets some of the best hemp-based CBD products, formulated and marketed as health supplements and pharmaceutical medications.
The company’s Pharmaceutical Division works on developing synthetically‐designed CBD‐derived drugs and getting them approved by the US Food and Drug Administration (FDA) as drugs specifically based on cannabidiol being the main pharmaceutical ingredient.
It’s Consumer Products Division manages the marketing of these plant‐based CBD products with an aim to improving the quality of life.
The company sells CBD products at health food stores, health care providers’ offices, and also online.
The biotechnology company, based out of San Diego, California, signed an agreement with Southeastern Grocers, Inc. (SEG) as recently as November 2019 to boost its distribution channel in more parts of the US, with specific offline reach in Florida and South Carolina.
4. Elixinol Global Limited (ELLXF) (ASX: EXL; OTCQX: ELLXF) $106.80M (Elixinol)
Headquartered in Sydney, Australia, Elixinol Global Limited is a manufacturer and global distributor and exporter of hemp-based food supplements and skincare products.
The company operates through its subsidiaries in the US (Colorado) and Australia. One of their subsidiaries, Elixinol USA, was founded in Colorado in 2014. It manufactures and is a global distributor of industrial hemp-derived food supplements and skincare products.
Another subsidiary business, Hemp Foods Australia, which was established in 1999, operates from Bangalow, Australia. It is a leading wholesaler, retailer, manufacturer and exporter of bulk and branded hemp-based raw materials, and finished food items.
It also owns another newly formed, yet to start operation subsidiary that goes by the name Elixinol AUS.
Yet another subsidiary, Nunyara, is currently awaiting approval from the Australian Office of Drug Control for the cultivation of marijuana and the manufacture of marijuana-based products for medicinal purposes since early 2018. While its license to manufacture medicinal marijuana was granted in July 2019, the license for cultivation is still pending approval.
Registered with the Australian Securities Exchange as ELLXF, Elixinol enjoys a presence in the global cannabis industry, especially in hemp-based CBD dietary supplements, food, and wellness products.
Managed by a team of experts in the industry, this company also happens to be one of the first companies to have forayed into the Japanese market with hemp-based food items.
5. cbdMD, Inc. (YCBD) $90.25 million (cbdMD)
Founded by Blu-Ecig Scott Coffman in Charlotte, North Carolina, in August 2017, cbdMD now operates as a pharmaceutical and biotechnology company under the able leadership of CEO and co-founder Scott Coffman, with its focus entirely on the health benefits of CBD.
By the next year, the company started reporting revenue. By August 31, 2018, the company’s revenue had crossed $3.2 million, with its monthly sales exceeding $1 million in October 2018.
In December 2018, the company’s brand website, cbdMD.com, which they use to sell broad-spectrum CBD products online, was acquired by Cure Based Development LLC in a 2-step merger. The same month, Cure Based Development LLC was acquired by Level Brands, Inc.
Apart from online marketing, the company also sells its products from over 700 retail stores across the United States.
This brand specializes in manufacturing consumer-grade CBD products, including tinctures, oils, gummies, vape juice, bath bombs, creams, and edible treats. It also caters to similar needs of pets, like dogs and cats. All their products are produced at a North Carolina facility. The products contain 100% natural CBD, extracted from organically grown hemp.
In May 2019, American golfer Bubba Watson has made a brand endorsement deal with cbdMD.
cbdMD was the first company in the CBD market to have etched its niche in the US Stock Exchange.
6. Heavenly Rx $27.26 million
Heavenly Rx is a subsidiary of SOL Global Investment (CSE: SOL) (OTCQB: SOLCF), focussed primarily on hemp-derived products.
On July 12, 2019, the global investment company increased its ownership of Heavenly Rx to 42% with a fresh round of investment of $15 million.
Heavenly Rx, which is based in Toronto, Canada, generally makes bids to acquire or collaborate with various assets in the hemp-based CBD wellness market.
Its main focus is on hemp cultivation, processing, and manufacturing of a variety of traditional CBD products, like oils, tinctures, balms, and vape liquids. They are also aiming at entering cosmetics, health and wellness, and beauty product verticals.
In a bid to become a public company, Heavenly Rx CEO Paul Norman as recently as November 19, 2019, announced its plans of a reverse takeover of Therapix Biosciences, a Nasdaq-traded pharma corporation that is developing cannabinoid-derived medications.
Therapix is an Israel-based biotechnology company that is working on developing THC drugs for treating Tourette Syndrome, obstructive sleep apnea and pain.
Paul Norman, who was the former president of the Kellogg Co., joined Heavenly Rx in June this year.
Clive Sirkin, who until recently served as the chief growth officer at The Kellogg Co. will also be joining the Heavenly Rx on the board of directors.
The Therapix acquisition is not one-of-its-kind. In the past several months, Heavenly Rx has acquired several food and wellness enterprises.
On July 25, 2019, Heavenly Rx Ltd. acquired Tru Brands Inc. [TRUWOMEN®], a health and wellness company, focused on all-natural food items. Heavenly now owns a 51% stake in Tru Brands ($3.5 million in cash and $2.57 million in company stock). The deal was to bring CBD into the wellness space, through TRUWOMEN®.
On May 23, 2019, Heavenly Rx acquired Blühen Botanicals for $30.1 million.
7. PotNetwork Holdings, Inc. (POTN.PK) $26.09 million (Diamond CBD)
Based in Colorado, US, PotNetwork Holdings, Inc. is a publicly-traded company that designs, develops, and manufactures hemp-based, consumer-grade, THC-free CBD products. Acting as a holding company for its subsidiaries, PotNetwork has forayed into the booming CBD industry.
Its primary, fully owned subsidiary is Diamond CBD Inc. It also owns several other noted CBD brands sold in over 10,000 retail stores across the country, including ChillPlus Gummies, Blue CBD Crystals Isolate, Relax Extreme CBD, Meds Biotech, CBD Re-Leaf, Pet CBD Food, etc.
Its products include an array of cannabis-based wellness supplements, including CBD tinctures, vape oils, and edibles.
The core team, which includes a number of medical professionals, is led by CEO Kevin Hagen and Chairman Gary Blum.
Established in 1996, the company was known by various names, owing mostly due to the kind of research it did and the kind of products it sold. It was only in 2016, that its name was formally changed to PotNetwork Holdings, Inc.