Everywhere you look, you might have noticed an increase in the level of advertisements for and availability of CBD products. Over the last few years, with the relaxation of prior and adoption of new legislation pertaining to the industry, the market has been flooded with products, some produced by major corporations while others by small sole proprietorships. While the overall goal of this newly booming industry is to help those who have certain ailments, the saturation by numerous players has led to an increase in what many would call “lazy” products, meaning that the sourced material for the products were produced using the most cost effective means rather than the most up to standard/healthiest. That’s where Nass Valley Gateway Ltd. comes in.
Nass Valley Gateway Ltd. (CSE:NVG) (OTCPK:NSVGF) is a life sciences company. Since inception, the company has had its foot on the gas pedal, merging with Advanced Bioceuticals Limited, a New Jersey LLC focused on the cultivation, extraction, and sales of organic, non-GMO hemp-based, CBD products. Through this merger, these products are sold under the “Nass Valley Gardens” brand via retail, wholesale, direct response, and digital sales channels. Following this strategic move, Nass Valley partnered with New Hope Lab Farms, which is a nationwide Clinical Research and Development company that focuses on the development of resources using only natural hemp seed. Through this partnership, Nass Valley is connected to an extensive network of partnerships and assets that otherwise would have been much more difficult to access on its own. Lastly, the company has partnered with Wasi Inc., which is a call center than has up to 300 live operators fully trained to sell these natural CBD products to consumers and retailers.
Through these mergers and partnerships, the company is now extremely well positioned to become the leader in growing of natural hemp seed, manufacturing and extracting the highest quality CBD extract product without the use of any genetically modified organism (GMO) CBD products, thus solving the industrywide problem of “lazy” companies and products. Nass Valley’s product lines include:
- Full Spectrum and Broad Spectrum Pet CBD
- Variety of CBD Gummies
- Lotions, Oils and Capsules
Through a major advertising campaign and armed with great partners, Nass Valley is aiming for aggressive revenue growth through both expansion of current operations as well as landing key new accounts with wholesalers and retailers. According to published corporate documents, Nass Valley projects revenues around $36 million by late-2021, an impressive feat for a company with only a $39 million market cap. In addition to general operational expansion, the company has announced the projected launch of new product lines for both human and pet consumption, which is an increasingly popular segment of this booming sector of the economy.
As far as the company’s stock is concerned, before the strategic partnerships, trades would occur few and far between. However, since April of last year liquidity has grown by a whopping 72% using a 50-day SMA of volume (data provided by Yahoo Finance). With the majority of price action occurring between $.07 - $.14, the recent pop up to $.16 in yesterday’s trading shows potential for an upward breakout out of the trading range.
The industry itself, while it was lagging for months when compared to the index, is actually vastly out performing the S&P 500 month to date, returning a staggering 15.8% when compared to just 3.5% for the index in October. As mentioned above, Nass Valley currently has close to a $39 million market cap, however with its aggressive growth projections within an industry that is expected to be valued around $20 billion by 2024, it’s not absurd to think that this stock could potentially have room to run, especially given the recent momentum in the sector.
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