One Company to Solve the CBD Shortage

Written by Nick Hodge
Posted January 30, 2019 at 11:07AM

In Canada, registered medical patients have been allowed to use cannabidiol (CBD) legally since 2001, or almost two decades.

When Canada legalized cannabis last fall, CBD became legal for all adults to use.

It immediately sold out. All of it.

There is now a medical cannabis and CBD shortage.

According to James O’Hara of Canadians for Fair Access to Medical Marijuana:

"It's actually more than a supply issue. Really, it's something of a health crisis now. Unfortunately, there are no regulations in place to actually guarantee supply for the medical market."

Many suspect the licensed producers were lured by the appeal of mass demand from legalization and diverted medical supply to public markets.

Either way, patients can’t get their medicine and citizens can’t get their supplements.

You know cannabidiol (CBD) as the non-psychoactive cannabinoid found in cannabis that has found use in aiding everything from anxiety to seizures. My wife even gives our dog a CBD supplement for his joints.CBD for Dogs

It’s in creams and tinctures and pills. Our dog gets his in a powder mixed with yogurt.

And everyone from your neighbor’s kid to your elderly aunt is using it, or is interested in trying it.

There are plans for CBD teas and coffees and beer and you name it. The New York Times has called CBD ‘the new avocado toast.’

The FDA has also approved the first CBD-based drug for seizures as a result of rare forms of epilepsy.

The numbers are being adjusted higher all the time, but most recently the CBD market was pegged to be at $22 billion by 2022. That’s up from something like a half billion just a few years ago. CBD Market Forecast $22 Billion

And with all the new drugs being developed based on CBD, it’s easy to imagine the figures continually increasing.

The only problem, as I’ve already told you, is that it is sold out in Canada. And with some provinces not having rolled out retail stores yet, it’s expected to get worse before it gets better.

One Company to Solve the CBD Shortage

I sometimes have foresight on things like this.

Back in 2017, I had the good fortune to have premium readers invest in a private biotech company doing research on CBD drug therapies and delivery systems.

Through an exclusive agreement originally struck to supply CBD for a clinical trial program, this company can now supply pharmaceutical CBD commercially — globally.

It is on a path to scale its production to metric tons of CBD per year.

This CBD can be sold on its own to medical patients, or can be the primary ingredient in any number of products from edibles to creams.

And because pharmaceutical CBD is not derived from the cannabis plant, there are no supply constraints, meaning this company is in a position to potentially solve the current CBD supply crunch.

There’s more, and you can get all the info here, like how this company also has drugs of its own going through the FDA approval pipeline…

How it’s used its biotech prowess combined with the CBD molecule to cure cancer in mice…

And why everything you think you know about medical cannabis and CBD is wrong, and why the biggest names in cannabis are fatally flawed.

But you’ll want to see it now.

I financed this company two years ago at $1.25. Then again, while it was still private, at $2.85.

It just started trading, and the market immediately took it over $5.00.

We think it’s going much higher.

Other companies that only have a fraction of what this company has are being valued in the billions.

It would need to be valued 10X higher from here just to get to a $1 billion valuation. And that still wouldn’t be fully valued.

All the reasons why are laid out right here.

Call it like you see it,

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Nick Hodge

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Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

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