Denver, Colorado--(Newsfile Corp. - July 16, 2021) - CBD of Denver, Inc. (OTC Pink: CBDD) CEO, Marcel Gamma today drafted the following letter to shareholders, providing an update on the latest corporate developments and answering some questions the Company receives on a regular basis.
Dear Shareholders,
It is with great pride that I present to you this update on our corporate activities and to give you some outlook on the near future.
Let me begin by thanking you on behalf of the entire company for the continuing trust and back up that we received over the past period and current. I hope that this letter will highlight key points and provide you a snapshot of the first two quarters.
Stable Revenues
Despite a significant oversupply in the Swiss market, Rockflowr has achieved stable incomes throughout Q1 and Q2, reconfirming a strong performance from Q4 2020. Through the strong customer relations, the quality service and products that we have built up over the past year we were able to successfully deal with market fluctuations and proved reliant.
The Company will continue on this path and with our professional sales and account team we are very well positioned. We will continue to expand our existing customer relationships and acquire new customers based on our good reputation in the Swiss and European markets. It is our declared goal to become number 1 in the Swiss market and to be among the top 5 in Europe in the future.
Market Expansion & Business Growth
For further business growth we are currently in advanced negotiations with two potential acquisitions and have already started the due diligence process for both companies. Through additional acquisitions, we aim to further expand the scope and develop further distribution channels to compliment the expansion strategy. Furthermore, we are looking into product diversifications as legalization rights are being eased for specific hemp subcategories and licenses as well as permits are being secured to ensure continued future growth and the capture of additional market share.
We expect the beginning of the ramp-up of new business sectors and affective growth through acquisitions to take place in the remainder of this year as well into next year. The integration time will be defined by the scope and schedule of additional acquisitions which are expected to be finalized soon and will be announced accordingly.
With import laws in the European Union being very specific, we have prepared the market entry to different countries on continental Europe.
In order to be serving new markets and offer a wider range of products we had to further develop the company structure and started implementing an action plan in order to achieve a successful market entry. We started already in Q1 by moving to a bigger location and further improving our facilities. With the increased space we managed to implement proper stocks with controlled climate and humidity levels for optimal conditions. Further, additional processing steps found space to be added, extending the range of services we can offer to our customers and giving us the capability to operate majorly in-house with a minimum of outsourced risks.
At the beginning of the month of May 2021 we have started to establish warehouses in the European Union to start shipping bigger quantities and more efficiently. In order to continue optimizing our supply chain we are putting further focus on the sourcing of products in order to achieve best qualities both in product and revenues. Furthermore, we have recruited new key account managers to manage the individual countries within the European Union as those have different legal frameworks and languages.
Opportunities
The marketplace in Europe is changing rapidly, new legalization laws are on the way in a handful of countries, opening the doors to tap into new markets and introduce products ranging from natural flowers, cosmetics, pharmaceutics to food substitutes. Rockflowr is in talks with over 20 companies spread over Europe in order to further scan for purposeful expansion opportunities that complement the portfolio growth and market penetration.
Prohibition Partner's latest report forecasts the European cannabis market to grow with a compound annual growth rate (CAGR) of 67.4 % to reach € 3.2 billion by 2025. The report identifies several European nations that could introduce legal access to adult-use cannabis by 2025, including Netherlands, Switzerland and Germany. CBD of Denver has already a strong presence in these countries and will expand it in a targeted manner.
There are other markets like Poland with its 36 million habitants where legal cannabis products are gaining momentum and Rockflowr is already represented. Legal production and sales of hemp, hemp derived products and medical marijuana in Poland is in its early stage however it is projected to grow rapidly in the coming years. Euromonitor reports that CBD and legal cannabis sales in Poland are rising dramatically from a low base level with the prospect of reaching PLN 5 billion (USD 1.25 billion) by 2025.
Financials
The company has hired Auditrium as an independent external Swiss auditor reviewing our financial statements regularly to assure transparency and compliant financial reporting on a timely basis.
FRUCI as our US auditor is working to complete the US audit that we expect to be completed soon. We have established weekly review call with FRUCI's representatives recently, and no challenges have occurred. Due to our Swiss Structure followed by conversion and translation challenges it takes longer than initially planned, but the US auditor is working diligently to complete this process soon so the Company can file our audited year-end statement. After finishing US audit, the company plans to file a Form 10 making CBDD an SEC reporting issuer and supporting our application to up list to a higher OTC Markets tier.
Shareholders and Investors
We regularly receive questions about what we can do about "market makers" or the share price. We have no control over market makers or other participants in the stock market. We hope that by up listing we will encounter a better market environment with more transparency where our stock will trade at a valuation befitting our success.
Other shareholders have asked about dilution. We have no toxic debt or convertible debt on the Company's financial statements. Prior to current management coming in, the Company was debt ridden and poorly managed. As you can see in our financial statements, past debt has been eliminated. The Company is cash flow positive. All shares for the past acquisitions are restricted shares and are subject to restrictions on sales pursuant to leak out agreements. All shares from the first two acquisitions are in book entry at the transfer agent and remain subject to the terms of the acquisition agreements. We encourage all shareholders and potential investors to do their own due diligence and review the Company's financial statements and capital structure.
In summary the Company's management team will continue to do what they are doing: buying undervalued companies to increase long term shareholder value by continuing to build profitable revenue. The Company cannot control market makers or propaganda being disseminated through online forums. Please read our filings and financial statements to determine the truth of our financial condition for yourself.
We do appreciate our shareholders and our Company goals are to grow our business through acquisitions and organic growth. We value all our shareholders and if you have any concerns or questions, please do not hesitate to contact us at the following addresses:
investors@cdbdofdenver.com
marcel@cbdofdenver.com
todd@redchip.com
Yours Sincerely,
Marcel Gamma
President & CEO, CBD of Denver Inc.
Follow CBDD on Instagram: @CBDofDenver_Inc @Rockflowr @RockflowrRetail
CBD of Denver, Inc., Rockflowr GmbH and Swiss Industry Ventures AG are now also on LinkedIn.
About CBD of Denver, Inc.
CBD of Denver, Inc. (OTC Pink: CBDD) a full-line CBD and Hemp oil company ("CBDD") and a producer and distributor of Cannabis and CBD products in Switzerland, Europe and the US. CBDD is focused on using equity to acquire profitable Swiss assets at attractive valuations to create value for all our shareholders driven by a passion to improve lives and strengthen communities by unleashing the full potential of cannabis.
Through our brand Rockflowr and BlackPearlCBD we reach our consumers and have built up a strong customer base by focusing on top quality products and meaningful customer relationships.
Black Pearl CBD has 0% THC but is not an Isolate where the THC is stripped from the product rendering it ineffective. We use a proprietary technique adding terpenes as the activation ingredient, resulting in a product that is the finest in the industry and only available at www.cbdofdenver.com.
Information contained herein includes forward-looking statements. These statements relate to future events or future financial performance, involving known and unknown risks and you should not place undue reliance on these statements. Any forward-looking statement reflects our current views with respect to future events. We assume no obligation publicly about update or revise these forward-looking statements for any reason.
Contacts:
Marcel Gamma
marcel@cbdofdenver.com
Todd McKnight
RedChip Companies
1-800-733-2447
todd@redchip.com
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