- Highly scalable hemp farming knowledge base
- Mission to lead the hemp industry into mainstream consumer markets
- Experienced management
What Exactus Inc does:
Exactus Inc (OTCMKTS:EXDI) farms and manufactures hemp-derived cannabidiol (CBD) products.
The 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.
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.
The company has 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 August, Exactus posted its second-quarter 2020 results, which showed an increase in year-over-year revenue despite the coronavirus pandemic. It also revealed lower cash burn and shrinking debt, as the firm continued to expand its sales and marketing efforts.
Net revenue for the three month period came in at $531,240 compared to $139,683 in the same quarter a year earlier.
The company said it will now focus on specialty ingredients, and its white label business to expand its customer base and leverage its relationships to drive "more profitable and scalable revenue".
Earlier this year, with its first quarter numbers, reported at the beginning of July, the company's CEO, Emiliano Aloi said 2020 had marked a new beginning for Exactus, not least with the board being bolstered by new additions from the banking, media, and technology worlds.
He also praised the group's president Derek Du Chesne and his "valuable work in restructuring our commercial and supply chain strategies,” which had prompted the higher revenues and lower spending.
The first quarter saw Exactus receive purchase orders for around C$900,000 of CBD and CBG products.
Notably, during the understandable uncertainty among farmers during the coronavirus pandemic, the firm has been testing a hemp buy-back program. It sees the firm repurchase any unused biomass at fair market value to process, giving farmers some kind of outlet to sell their harvest.
- Financial reports
- Regulatory changes
- More contracts and deals
What the boss says:
In the company's second-quarter results statement in August, Exactus interim Emiliano Aloi CEO said: "Our year over year sales are up, our burn is down, and our debt is shrinking. Specifically, we are very proud of our new integrated CRM, sales, and E-commerce integration that Mark Alouf and his team have put together, and of Sonya Bain’s leadership in launching our white label division.
"These are the results that we need to strengthen our position in the market and to enable Exactus to engage in its M&A growth strategy."