The result of the 2020 Presidential election has come as a major boost for the cannabis sector and many companies in the industry have seen their stocks soar on the back of the optimism. In such a situation, it might be a good time for investors to start looking at some specific cannabis stocks and one of those worth tracking is that of Cannabis Global Inc., (OTC:CBGL).
The company was previously known as MCTC Holdings Inc. The company is fully compliant with Securities and Exchange Commission regulations and trades under the ticker symbol CBGL. This article takes a closer look at Cannabis Global and its prospects.
The Business
Cannabis Global is involved in producing hemp-based cannabis products and on top of that, it also works on infusions technologies specific to the sector. The consumer products manufactured by Cannabis Global are sold under the brand name Hemp You Can Feel™. The company has managed to expand its intellectual property considerably as well. Cannabis Global has in fact filed as many as six provisional patents related to CBD polymeric nanoparticle and delivery systems.
While the acquisition is an important factor for continued growth, investors need to note that Cannabis Global’s work in the technical side of things could actually prove to be a bigger reason for its potential growth.The company worked on a new program known as Project Varin and one of the findings was sent in for a patent application as well. It is related to fast-acting CBD that can be used in a variety of products including edibles and beverages.
Election Factor
During the election period, as many as five states in the country eased access to legal cannabis and on top of that, the opinions of many Americans with regards to these products have also been positive. Due to its existing brands and notable IP portfolio Cannabis Global is in a position to potentially benefit substantially if there is any spurt in growth in the near future.
NPE Acquisition
The company has also tried to grow through acquisitions and recently, it picked up an 18.8% stake in Natural Plant Extract (NPE). NPE has its own distribution and manufacturing operations in California and could prove to be a smart investment for Cannabis Global. The investment from Cannabis Global is ultimately a strategic one in nature considering the fact that NPE possesses a special manufacturing license for Type 7 California cannabis.
The license allows NPE to go for unconventional extraction methods and permits it to distribute its products all over California. Arman Tabatabaei, who is the Chief Executive Officer of Cannabis Global, stated that with a Joe Biden administration, the possibility of Federal legalization of marijuana is ‘accelerating’. Hence, the company’s portfolio of intellectual properties in addition to its strategic investment in NPE is going to create ample growth opportunities if cannabis is legalized across the country.
CBD Infusion System Update
Earlier on this month, Cannabis Global made an important announcement with regards to its CBD delivery system for beverages. On November 5th, the company announced that it filed a Patent Cooperation Treaty (PCT) by way of which it seeks global protection for its CBD delivery system meant for edibles, beverages, and other varied consumer items.
As mentioned above, the delivery system has been developed as part of the company’s Project Varin initiative. The filing was submitted to the United States Patent and Trademark Office on November 4. Cannabis Global contends that the delivery system is going to be of interest to cannabis companies all over the world. The company believes that the delivery system is also going to help in bringing in significant reductions in cost. It is a non-provisional application and is an expansion on the application that was filed by the company on the same day in 2019.
New Acquisition
On November 18th, Cannabis Global completed another key acquisition that could help the company in growing its technical prowess further. The company announced that it completed the acquisition of Los Angeles-based outfit Ethos Technology Inc. Ethos is involved in providing highly secure containers for transport and distribution of cannabis.
Cannabis Global revealed that it aims to launch a new brand named Comply Bag that is going to leverage Ethos’ technology and offer secure transportation solutions. These developments make Cannabis Global a highly interesting proposition for investors, and it could be worthwhile to keep an eye on the stock over the course of the coming weeks.
