While the cannabis patch has been not for the faint of heart over the past two months, Green Growth Brands Inc (OTCMKTS:GGBXF) has avoided that trouble and demonstrated extraordinary relative strength over the same period, pushing over 40% higher since late November, with almost no breaks in the steady upward trend in share prices. This comes despite some very strained balance sheet numbers, with a mountain of debt dwarfing cash reserves. To further flesh out the narrative, the company just announced an agreement with DSW Inc. (NYSE: DSW) to sell hemp-derived cannabidiol (CBD) personal care products under the Seventh Sense Botanical Therapy brand at select DSW stores throughout the U.S. Naturally, one may wonder – rather reasonably – exactly how a CBD product fits into the rather uncomplicated and narrow retailing genre of a discount shoe store. But such are the times.
According to the release, “The Agreement was received by Green Growth Brands yesterday, January 9, for 54,960 units and covers sales in 96 U.S.-based DSW stores. Seventh Sense brand offers high-quality CBD-infused products and affordable prices, including muscle balms, body lotions, body washes and foot creams. The Agreement follows a successful test phase conducted last autumn in which Green Growth Brands sold select Seventh Sense products in 10 DSW stores. During the first 10 weeks of the test period, 74.4% of product presented on shelves was sold, significantly exceeding expectations.”
Green Growth Brands Inc (OTCMKTS:GGBXF) trumpets itself as a company that engages in the cultivation, processing, production, distribution, and retailing of cannabis and cannabis-infused products in the United States.
The company offers cannabis, tetrahydro cannabidol, cannabidiol, and cannabis-infused consumer products, as well as technology and consulting services for the cannabis industry. Xanthic Biopharma Inc. was founded in 1968 and is headquartered in Toronto, Canada.
The Company is a lifestyle-oriented, consumer products company that celebrates health, wellness and happiness. We are in the business of cultivation, processing and retailing of cannabis, tetrahydrocannabidol, cannabidiol, and cannabis-infused consumer products.
Over the next 12 months, the Company intends to expand its retail and wholesale cannabis businesses as well as its CBD consumer products business through a combination of strategic partnerships, merger and acquisition activity, and organic license capture. The Company’s objectives are to establish retail cannabis locations or otherwise apply for such licenses, in various states within that timeframe, pursuant to state laws. Such activity will focus on those certain states where cannabis has been legalized for medical and/or recreational use at the state level.
According to company materials, “Green Growth brands expects to dominate the cannabis and CBD market with a portfolio of emotion-driven brands that people love. Led by Peter Horvath, the GGB team is full of retail and consumer packaged goods experts with decades of experience building successful brands.”
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As noted above, GGBXF just announced an agreement with DSW Inc. (NYSE: DSW) to sell hemp-derived cannabidiol (CBD) personal care products under the Seventh Sense Botanical Therapy brand at select DSW stores throughout the U.S.
Recent action has seen 79% during the past month in terms of shareholder gains in the company. In addition, the company has seen a growing influx of trading interest, with the stock’s recent average trading volume running 12% over the long run average.
“DSW is the number one full line adult footwear specialty retailer in North America,” said Peter Horvath, CEO of Green Growth Brands. “They have revolutionized shopping for shoes and accessories and we are thrilled they chose to partner with our company, allowing us to introduce a new product category to their customers.”
“The Agreement, and the deepening relationship with DSW, is the first step in our strategy to expand sales of personal care CBD products through external partnerships, in mall kiosks, and through a growing number of stores and online,” added Horvath.
At this time, carrying a capital value in the market of $792.44M, GGBXF has a troubled balance sheet, with about $1.5M in cash on the books, which stands against about $58M in total current liabilities. The company has pulled in about $332k in total trailing 12 month revenues. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $GGBXF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $GGBXF, either long or short, and we have not been compensated for this article.