Financial News
Icanic Brands Stock Surges To Six- Month High, Attracting Investor And CBD-Sector Attention (OTC: ICNAF)
The rally in Icanic Brands Companies, Inc. (OTC: ICNAF) (CNQ: ICAN.CN) is not slowing down. In fact, it's accelerating, setting consecutive intraday highs and closing at its highest levels in over six months. And more than only investors are attracted to Icanic; the sector is too, with ICNAF showing an ability to make potentially transformative acquisitions look easy. And in an industry riddled with complexities, being able to do so is an advantage.
Better still, ICNAF is doing the right things at the right time, completing acquisitions, and engaging in accretive deals that create shareholder value. In response, investors are bidding its stock higher.
Still, while things are great now, don't expect ICNAF management to slow down its strategy. Its current $74 million market cap is likely a starting point. And with Icanic better positioned than ever to leverage its arsenal of assets, building a more substantial company is likely in its crosshairs. In fact, that plan is already in motion. In the last two quarters alone, ICNAF has assembled the right strategic pieces to create a diversified company that can take advantage of multiple market opportunities in an industry growing at warp-speed.
The better news is that from an investment perspective, ICNAF's ability to get things done is translating into share price increases. That, in turn, opens the door to even more strategic and accretive opportunities. Combined, ICNAF may offer a perfect storm of investment opportunity.
Seizing Market Opportunities In Vast CBD Sector
Indeed, investing in an excellent company in the right sector at the right time can be rewarding. More so if that investment is in a company that genuinely understands the entirety of the industry it serves. One and done companies can be risky. Thus, finding those that are diversified with a roadmap driving growth are the better choices. ICNAF is by far the latter.
Better still, they appear to have market instinct, knowing what to invest in and precisely what niche sectors they want to develop. That intuitive nature is paying off for ICNAF and its investors. Moreover, despite its growth happening at a fast pace, it's measured. They also take "smart" advantage of its opportunities by adding value from a foundation that can target new revenue-generating verticals in a seamless and accretive manner. Best of all, having a base to work from and a team to deliver its intent are two ingredients that will drive further success.
It also doesn't hurt when ICNAF targets a massive market. Countries worldwide are legalizing some form of CBD use. In the United States, 36 states have legalized the medical use of CBD, with some of that group legalizing both recreational and medical use. The result of those appeasements opens a retail and wholesale market worth billions to companies that understand the intricacies of the business. As noted, ICNAF does.
Better yet, while the markets they serve are big now, analysts expect the market to grow by double-digit percentages over the next five years, keeping Icanic Brands well-positioned to create a revenue-generating juggernaut.
Building Its Presence In A Booming CBD Sector
The best part is that Icanic is already entering its first stage of hyper-growth, having the resources to fully capitalize on and monetize multiple strategic initiatives. The more excellent news is that they are adding more to its mix, further embedding its brand into crucial markets. Hence, while its $74 million market cap is impressive, at its pace of growth, ICNAF could surpass a $100 million market cap faster than many think. And with limited dilution, much of that increase would accrue to its share price.
Also, good to know is that Icanic is more than smart; they're ambitious. And the combination of the two is what will help them achieve market leader status. Already, ICNAF is a multi-state CBD branded products manufacturer and distributor with operations in California and Nevada. Of course, proving success there means they can do it anywhere. But, here's the important thing to know; Icanic is doing more than surviving in those markets; they are THRIVING.
And by leveraging its business model dedicated to innovative development and its commitment to providing safe CBD products for all, the likely result for Icanic will be that they lead their part of the sector. After all, its company culture goes well beyond just products and numbers. Icanic is showing itself to be involved in the communities it serves and participates in actions that bring attention to global inequities. Thus, Icanic is building a company based on culture. And for those in the business sector, it's a winning formula nearly 100% of the time.
By the way, its financial performance is impressive, too.
Impressive Q3 Adds Momentum To Surging Growth
In fact, in its most recent quarterly report, Icanic posted a gross profit of $1.556 million, a 30.6% increase quarter over quarter, and a 100.2% increase YoY. Indeed, impressive for an emerging company. Even better, though, it's a proof of concept showing that Icanic's strategy is working.
And that's to be expected, with Icanics' commitment to continue producing best-in-class products. In addition to its Ganja Gold pre-rolls driving higher revenues, Icanic is leveraging the value from its advanced manufacturing technologies, an aggressive downstream sales strategy, and well-established associations with some of the state's suppliers of raw materials. Thus, growth remains in style. Better still, the sum of its parts is accelerating its mission.
Keep in mind, Icanic isn't taking on the sector by itself. Its strategic partnerships and acquisitions have greatly helped position the company for expedited growth in 2022.
Acquisition of Substance LLC Adds Product And Culture
The most compelling part of the Icanic Brands story is that they are building a company around culture, not just products. And both were strengthened after completing its acquisition of Substance, LLC.
Last month, Icanic signed a binding Letter of Intent (LOI) to acquire Substance LLC., a California-based supplier of quality CBD products. That deal brings more than an established and reliable supplier of quality CBD products; it enhances its company mission to stay socially active in the communities they serve. Actually, that commitment extends worldwide.
Notably, its acquisition of Substance LLC isn't the only value driver. Other strategic acquisitions contribute as well. The theme is common to all, however- make Icanic a more robust revenue-generating company.
Its acquisition of De Krown, a California-based premium manufacturer of stellar CBD products, adds to that cause. That deal brings two things. First, it provides the ability to produce 118,000 rolls in a day. And second, it adds a wealth of expertise from a De Krown team that also became the best they can be in the markets they served. Immediately, the strength from De Krown will be accretive by adding physical and intellectual assets to also accelerate Icanic's business strategy.
Icanic also partnered with Heavenly Sweets, a company with 30 different CBD edible products under its belt. The partnership adds value in at least two ways. It expedites Heavenly Sweets' growth in Nevada and helps expand Icanic's reach with new products to serve a broader consumer base. Like all partnerships should be, it's a win-win deal. Actually, with new products creating a new revenue stream, investors benefit as well. Hence, that one is a win-win-win agreement.
Best of all, its deals and partnerships are accretive in nature. That means Icanic and its investors should see value sooner than later. Moreover, Icanic's acquisitions and partnerships are deliberate, well-thought-out, made with a purpose, and based on bringing only the best to the company. At the same time, they remain steadfastly involved in the communities they serve and are active for social justice. Simply put, it's a brand in development. Combining its assets, people included, Icanic is creating a company with nearly unlimited potential.
Hence, it's understandable why its shares are trading at six-month highs. They have the right products, the right people, and the right culture...all at the same time.
A Booming Industry With Billion-Dollar Opportunities
Here's the best part of the value proposition. Although the industry has been considered mainstream for almost a decade, it's still in its relative infancy. That means there's plenty of more opportunities to be exposed. In fact, with 14 more states either considering legalizing controlled use of CBD or full legalization, the United States market alone offers tremendous revenue-generating opportunities for companies in the right place at the right time. Icanic Brands is there.
Better yet, Icanic is proving that it has what it takes to flourish in an ultra-competitive market. Whether it's growing through accretive acquisitions and partnerships or benefiting from a combination of products and culture, Icanic Brands looks to be doing the right things at the right time. Thus, investors in Icanic Brands can benefit from more than a single source of company strength. And it's that combination of assets that makes ICNAF a compelling investment consideration.
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