Thoughtful Brands Inc (CSE:TBI) (OTCQB:PEMTF) (FWB:1WZ1), the renamed Mota Ventures, posted second-quarter results on Friday that saw its revenue jump 68% year-over-year driven by strong demand for its Nature’s Exclusive CBD brand and expanding customer base.
For the period ended June 30, 2020, the natural health products and e-commerce technology company posted revenue of $12,842,934, driven by the popularity of its immunity-boosting Nature's Exclusive CBD brand which saw a big sales boost during the coronavirus (COVID-19) pandemic.
Building on the success of Nature's Exclusive, Thoughtful Brands said it would continue to expand its portfolio in the nutraceutical and hemp-based CBD product space through the recent acquisitions of Golden Path and Wild Mariposa - two direct-to-consumer e-commerce brands offering natural health products in the US.
The group estimated that it acquired 202,564 customers for the twelve months ended June 30, 2020, compared to 44,207 in the twelve months ended June 30, 2019.
Thoughtful Brands said cost of goods sold amounted to $11,293,727 during the quarter, and it included costs linked to e-commerce campaign costs, product fulfillment, and customer acquisition.
"The Thoughtful Brands team would like to emphasize the company's commitment to its partners, the integral role of supply chain across its businesses, and its unrelenting effort to provide the best possible experience for its customers,” Thoughtful Brands CEO Ryan Hoggan said in a statement.
“We're looking forward to the remainder of 2020," he added.
During the second quarter, the company completed its acquisition of Verrian, which owns and operates a 110,000-square foot pharmaceutical manufacturing facility in Radebuel, Germany with a full-fledged lab and equipment independently appraised at $10.6 million.
Significantly, Verrian also specializes in developing psychedelic derived medicines with the goal of formulating treatments for addictions, including opioids and alcohol. Thoughtful Brands said the move has propelled the company into the “burgeoning psychedelic market” and supports its forays into the “natural health sector beyond the CBD market.”
On April 7, the group acquired a 20% ownership interest in Folium Life Sciences Inc, a Health Canada-licensed cannabis cultivator. Folium is expanding its licensed indoor cannabis production facility on Vancouver Island to produce high-quality cannabis.
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