ROCKY MOUNTAIN HIG COM USD0.001 (OTCMKTS:RMHB) has experienced some up and down over the last five days but is still holding more than a 60% increase over that time. The over-arching catalyst is their new private label deal. RMHB has entered into a three-year Master Manufacturer Agreement with CBD Alimentos SA de CV, a food and beverage distributor from Mexico.
Michael Welch, Chairman of the Board, President and Chief Executive Officer, said, “We are very pleased to have this significant private label opportunity to provide our original hemp-infused drinks in Mexico and are looking forward to working with CBD. This agreement, made possible by CBD, is an important milestone for our Company. We look forward to meeting Mexico’s demand for hemp-infused drinks with our great products. We will work closely with CBD to advance this strategic opportunity.”
ROCKY MOUNTAIN HIG COM USD0.001 (OTCMKTS:RMHB), to go into detail, maks energy drinks, black tea, and lemonade; hemp-infused edibles, such as energy bars; and hemp-infused energy shots and coffee shots. It is also developing wine based ready-to-drink cocktails; cannabinoid infused beverages; hemp protein bars and hemp chia seed bars; and hemp infused natural spring water.
RMHB specializes in brand development of health conscious, hemp-infused food and beverage products. The Company currently markets a lineup of four naturally flavored hemp-infused beverages and a low-calorie Coconut Lime Energy drink. Rocky Mountain High Brands also offers hemp-infused 2oz. Mango Energy Shots and Mixed Berry Energy Shots, as well as a new Relaxation Brownie. The Company recently launched a naturally high alkaline spring water, Eagle Spirit Spring Water.
RMHB markets its products through brokers, distributors, and retailers. The company was formerly known as Totally Hemp Crazy Inc. and changed its name to Rocky Mountain High Brands, Inc. in October 2015. Rocky Mountain High Brands, Inc. was incorporated in 2000 and is based in Dallas, Texas.
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CBD’s initial purchase order will be 8,000,000 cans, worth up to an estimated $3,600,000 in revenue for the Company during late first quarter or early second quarter of 2018. The 2018 volume requirement is 16,000,000 cans including the initial purchase order. This translates to revenue to RMHB of up to an estimated $7,200,000 in 2018 under this contract. RMHB and CBD will work in good faith to agree to a 2019 volume requirement.
RMHB has increased its gross profit year on year, jumping from a loss of $59,000 in 2016 to $0.15 million in 2017. However, losses have also increased from a loss of $3.7 million in 2016 to $7.1 million in 2017
The firm, however, is heavily leveraged with liabilities of over $5.8 million on its balance sheet which is more than double the current liabilities from the previous year.
ROCKY MOUNTAIN HIG COM USD0.001 (OTCMKTS:RMHB) has market cap of $12.55M and 896.66M shares out. RMHB are seeing volume and volatility from this deal, but overall this is a win for the company. For continuing coverage on shares of $RMHB stock, as well as our other breakout stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: We hold no position in $RMHB, either long or short, and we have not been compensated for this article.