The CBD industry has grown by leaps and bounds over the course of the past year or so and Charlotte’s Web Holdings (TSX:CWEB) (OTCQX:CWBHF) is the biggest player in that space. The company manufactures a wide range of CBD based products starting from oils to gummies and more.
Key Factors to Watch
More importantly, the company has been successful in continuing to expand its retail reach across the country as well. At this point, its products are available in 10,000 stores in the United States, and that number is all set to rise pretty soon. Recently, the company announced the acquisition of Abacus Health in a deal valued at $69 million.
This particular acquisition will help the company in having access to 12,000 stores which sell over the counter CBD based products. The deal is expected to be closed later this year. While this is a positive development, the bears point to the fact that the United States FDA had warned consumers about the possible dangers of CBD.
As a matter of fact, CWH CEO Deanie Elsner did concede that the warning had impacted the company’s sales negatively. Moreover, the company has also stated that the absence of regulatory clarity from the FDA is also a problem for its business.
That being said, it is also important to note that CWH is still the biggest player in this space, and it is only going to grow bigger once the Abacus acquisition is completed. In such a situation, the company stands to gain the most once the regulatory clarity does come forth from the FDA. Hence, experts believe that a bet on the CWH stock could well prove to be a clever one for the long term.
The company is aiming to not only expand its retail reach further but also trying to expand its portfolio of products. At this point, the CWH stock is trading at only $7 a share, and it could well be a good entry point for investors. Sign-up below for breakout alerts and news updates for CWBHF and other fast-moving stocks.