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Exactus excited about market potential for lesser known cannabinoids as it expands Hemptown USA tie-up

Snapshot

The firm has over 200 acres of CBD-rich hemp in Southwest Oregon, and is introducing a range of consumer brands

Exactus, Inc. -

Quick facts: Exactus, Inc.

Price: 0.05 USD

OTCQB:EXDI
Market: OTCQB
Market Cap: $2.6 m
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  • Highly scalable hemp farming knowledge base
  • Hemp-driven CBD is gaining strong momentum
  • Firm says it's building out product lines

What Exactus does:

Exactus Inc (OTCMKTS:EXDI) is a healthcare firm, which farms and manufactures hemp-derived cannabidiol (CBD) products.

The Florida-based company sells its CBD products through its own Exactus brand (Green Goddess) and white label products to third-party resellers.

It is also engaged in producing industrial hemp from farms in Oregon and plans to extract and manufacture directly through certified good manufacturing practice (cGMP) facilities.

The firm has over 200 acres of CBD-rich hemp in Southwest Oregon, and is introducing a range of consumer brands, such as Green Goddess Extracts, LeVor Collection, Phenologie, Paradise CBD.

Exactus One World is the name of the group’s farming and production initiative, which the firm says captures “the expansive and inclusive nature of the vision of a comprehensive seed to sale consumer program.”

The seeds (genetics) used at Exactus One World are sourced from Oregon CBD, founded by Seth and Eric Crawford, who are believed to have developed superior strains of hemp seeds and are thought to be one of the world's leading breeding, research and production facilities for CBD seed.

Early in 2020, the company struck a supply and distribution agreement with cannabigerol (CBG) market leader Hemptown USA, opening a new revenue source to distribute Hemptown’s specialized cannabinoids, including top-flower, biomass and raw materials, namely crude, isolates and distillates.

Found in low levels (usually less than 1%) in most cannabis strains, CBG is considered a minor cannabinoid but it has been found to act on specific human physiological problems, and results for medicinal use have been promising. For example, it has shown promise in fighting cancer.

How is it doing:

In December last year, Exactus said it was poised to kickstart the business with new e-commerce platforms, direct selling programs and call centers.

Exactus said it will mainly focus on introducing and expanding its premium Exactus and LeVor Collection lines while growing its existing Green Goddess Extracts brand.

It also revealed it had added two experienced executives to expand its wholesale, retail and direct to consumer sales channels. That news came a month after it reported that it had inked a celebrity endorsement and co-branding deal with high-profile Grammy-nominated Miami producers and songwriting duo Cool & Dre.

Last month, Exactus said it was on track to report gross sales in the first quarter, which would beat gross sales of the entire 2019 calendar year. It said it successfully navigated a downbeat 2019 for most of the industry to position itself for growth this year.

On April 2, the group unveiled plans to expand the partnership struck earlier this year with cannabinoid hemp plant group Hemptown USA, including that Exactus will work with Hemptown's ingredient and manufacturing divisions to develop selected units to service the white-label market.

Hemptown is a mutually beneficial CBD (cannabidiol) and CBG (cannabigerol) partner, Exactus has said.

"We are seeing an increase of interest in CBD and CBG while people look for natural alternatives to manage the many stressful aspects of life surrounding the virus," said  Exactus chairman Bobby Yampolsky, referring to the current coronavirus (COVID-19) pandemic.

Notably, Hemptown also has an FDA licensed, cGMP 25,000 square-foot nutraceutical manufacturing facility, providing opportunities for Exactus to enter the consumer-packaged goods space.

Inflection points:

  • Hemptown partnership activity
  • More deals, partnerships
  • Regulatory announcements

What the boss says:

Last month, Exactus' recently appointed chief growth officer Derek Du Chesne spoke to Proactive's Steve Darling about the company and what he sees as a wider market shift towards lesser-known cannabinoids.

"The industry's grown tremendously since the 2018 Farm Bill but since you have the DEA, the FDA, the Department of Public Health, all these different regulatory agencies - one says one thing, the other says another thing and as you see the price collapse on the raw material side and a lot of it on the processing side, I see the real opportunity is in these lesser known cannabinoids," he said.

"With Exactus we plan on bringing CBC to the market, CBN to the market, CBG in a commercially scalable and with the quality standards that is now available for CBD."

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Exactus (OTCQB: EXDI) President Derek Du Chesne joined Steve Darling from Proactive with news the company is seeing a strong start to 2020 with new customers signing purchase orders. Du Chesne also told Proactive about their new hemp buyback program that was put in place to help farmers...

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