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Icanic Brands Stock Surges 53% As Its Growing Stake In The CBD Sector Earns Investor Attention (OTC: ICNAF)

Don't underestimate the facts. The CBD industry is flourishing, and expectations are it will gain additional market penetrating momentum in the weeks, months, and years to come. In fact, already labeled as one of the fastest-growing industries worldwide, the market is not only thriving, it's providing substantial investment opportunities into companies exploiting the unique opportunities in the sector.

And within a market expected to reach $70.6 billion by 2028, some companies are indeed better than others. Icanic Brands (OTC: ICNAF) (CNQ: ICAN.CN) is one to watch. Better yet, despite its more than 53% share price increase since August*, ICNAF stock is well worthy of investment consideration. (share price on 10/4/21, 11:31 am est)

Here's why:

Compelling Value Proposition

Foremost, from a sum of its parts perspective, the value opportunity is compelling. And it comes as CBD is earning global acceptance related to the medical and therapeutic benefits of the product. For Icanic, that could translate to more significant market opportunities by leveraging its already impressive strength in the space. Better still, by targeting specific niches, the rewards can be exponential. And it's there that Icanic is expecting to shine.

Even better, as more states and countries legalize CBD use, expect Icanic's targeted market opportunities to get even more substantial. In fact, in the United States alone, ICNAF can generate significant revenues from several of the 36 states that have already legalized the medical use of CBD for persons over the age of 21. Some states enacted recreational use provisions as well. Many are expected to follow that order. It all bodes well for Icanic.

The better news...Icanic Brands isn't sitting idle. Instead, they are taking full advantage of the revenue-generating opportunities in these massive and diversified markets to create a company that can serve multiple market niches while not losing focus on the core CBD market. Revenues from both are expected to take Icanic from a roughly $68 million company to a value more indicative of its operational strengths. Comparative peer valuations could put a $100 million valuation in the crosshairs sooner rather than later.

And while that may appear presumptuous, there are reasons to be optimistic.

Why Icanic Brands Is Better

Foremost, Icanic Brands is a multistate CBD branded products manufacturer and distributor in California and Nevada. And having that multistate advantage is a big deal. It provides logistical benefits to expand and adds leverage to extend its reach in a competitive market that requires innovation and determination to succeed. 

Keep in mind, too. Icanic is thriving in the California and Nevada markets, where doing so isn't easy. In fact, despite being in two of the most competitive CBD markets in the world, Icanic Brands is staking an impressive claim to market share. Moreover, with an innovative development plan and an organizational structure built on integrity, Icanic has done more than creating a respected presence in the sector; they are generating growing revenue streams in the process.

Its latest quarterly report proves that growth is accelerating. In its Q3 report, Icanic posted a gross profit of $ 1.556 million, an increase of 30.6% quarter over quarter, and a 100.2% YoY. From those numbers alone, it's apparent that Icanic Brands is a company that knows and understands how to thrive in the CBD business. Of course, expect its growth to continue.

And with its ability to create high-quality, award-winning products, it's no surprise that Icanic is doing well. Its Ganja Gold pre-rolls have the CBD industry buzzing due to their superior quality. And more than that, it's an efficient business vertical for the company by utilizing innovative state-of-the-art manufacturing technologies that help maintain increasing supply chain agreements with California-based growers. Factor in its downstream sales strategies and associations with some of its state's most significant raw material providers, and it's easy to see how Icanic is building a winning brand.

Still, Icanic's strength does not only come from its outstanding products and industry-leading technologies alone. Its partnerships and acquisitions are creating significant value as well.

The Acquisition of Substance LLC

Recently, Icanic Brands signed a binding Letter of Intent to acquire Substance LLC. Substance is a premium California-based brand that has become well known for its quality CBD products. The deal also injects a tremendous amount of social consciousness into the company, inheriting Substances' position as a leader promoting racial equity. And Icanic intends to continue the practices and amplify the messages started to eliminate harsh criminal penalties that target casual users of CBD-based products. 

The benefits of the deal are more than financially motivated. Icanic intends to help bring positive change to the sector and the communities they serve. Hence, unlike most publicly listed companies driven entirely by bottom-line results, Icanic expands its presence on multiple fronts. The results can be impactful.

In fact, Icanic has not been shy to note that by acquiring Substance, they plan to impact the competitive California market while also giving back to the community. Investors that recognize the value of both should indeed be attracted to the new assets. 

Still, don't be misled. Shareholders can expect Icanic to leverage its assets to become a bigger, more diversified brand. Thus, by acquiring specific assets that target different needs, Icanic can grow stronger quicker.

Accretive Acquisitions Add Substantial Value 

Notably, that's happening now. Remember, Substance is not the only strategic acquisition that Icanic has recently closed. The company also acquired De Krown, a California-based product manufacturer with tremendous CBD market experience. That deal is expected to add significant revenue-generating potential. There's more to like.

Keeping in mind that CBD comes in many shapes, forms, and sizes, the massive CBD edibles market is also in play after Icanic partnered with Heavenly Sweets to create what is expected to become a revenue-generating juggernaut. It's a win-win deal.

The partnership will accelerate Heavenly Sweets' growth in Nevada by leveraging Icanic's manufacturing capabilities and strategic sales platform. Icanic benefits from extending its product reach and developing new revenue streams.

The most excellent news is that all the deals create shareholder value for Icanic investors. That's the crucial part of each of Icanic's acquisitions and partnerships. They deliver near and long-term value capabilities. Further, its production capacity is surging as well.

Already, ICNAF is using the most innovative pre-roll manufacturing technologies, enabling them to consistently produce high-quality pre-rolls at high gross margins. This translated to quick success in what has become a notably competitive market. Further, its enhanced abilities benefit ICNAF from selling to two distinct needs while ultimately contributing to a common revenue stream. That's important as well.

Investors and consumers are paying attention, too, calling Icanic the Tesla (NASDAQ: TSLA) of the CBD market, recognizing their innovation in manufacturing, marketing, and technological achievement. In turn, ICNAF shows its determination to maximize every dollar earned from its business development and marketing process. 

Taking Advantage Of A Booming Market

The best news is that Icanic doesn't intend to slow down. And to investors that embrace the Icanic value proposition, they will be hitched to a company taking advantage of multiple segments within a global industry growing at warp speed.

Indeed, the CBD sector can be volatile and competitive. But that's more reason to connect with fast-growing companies that have the foundation to grow efficiently. Icanic Brands shows it has the team and resources needed to make its company bigger and more socially responsible through an acquisition strategy that adds immediate and accretive value.

Thus, capitalizing on the potential from lucrative markets may not be as difficult as it seems. Investing in the right players at the right time can and often does make a difference. And catching Icanic Brands at current levels presents both compelling value and exposure to a market that could increase exponentially during the decade. Still, it didn't happen overnight. Icanic earned its praises.

Now, with its vast experience in the CBD industry, innovative technologies, award-winning products, well-calculated sales plan, and impressive partnerships and acquisitions, there is likely only one direction for the company to go, and that's up. 

Thus, for investors who appreciate gains, Icanic Brands could be the perfect CBD stock to add to a hyper-growth modeled portfolio.

 

Disclaimers: STM, LLC. is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website by visiting primetimeprofiles.com/disclaimer.

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