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Stock Spotlight is Freedom Leaf Inc (OTCMKTS: FRLF)


Freedom Leaf Inc (OTCMKTS: FRLF) is an exciting Company with a number of subsidiaries making big moves in the CBD and cannabis markets. The Company bills itself as a group of diversified, international, vertically-integrated hemp businesses concentrating on health, wellness, and education as well as cannabis media companies. Freedom Leaf, Inc. has been a leading go-to resource in the cannabis, medical marijuana and industrial hemp industries since 2014, founded by professionals with decades of combined experience in marijuana legalization advocacy. FRLF is building a diverse portfolio of valuable businesses through strategic mergers, acquisitions, and acceleration projects across the industry.

FRLF’s portfolio of acquisitions includes the recently acquired hemp CBD product line Irie CBD; and their wholly-owned hemp extraction division Leafceuticals, Inc.; FRLF exclusive health and wellness CBD brand “Hempology;” and their hemp greenhouse cultivation with recent acquisition of a facility in Valencia, Spain; its hemp-based rolling paper company Plants to Paper; two of the largest Spanish-speaking cannabis web portals in the world LaMarihuana.com and Marihuana-Medicinal.com ; and, of course, its flagship publication, Freedom Leaf Magazine .

Freedom Leaf skyrocketed in October after the Company received a significant investment from cannabis private equity firm Merida Capital Partners to further expand its existing US sales channels and accelerate its European hemp cultivation operations.  Freedom Leaf and Merida have also agreed in principal to a strategic partnership by which Merida will provide certain operational resources and support for both Freedom Leaf’s US hemp-based cannabidiol (CBD) sales efforts and their global cultivation operations. In connection with Merida’s investment, Merida Senior Partner David Goldburg will be joining the Freedom Leaf Board of Directors.

Freedom Leaf said they will use the investment to upgrade their recently acquired 430,000 square foot greenhouse facility in Valencia, Spain, which is already harvesting hemp for sale in Europe; securing GMP certification for the Valencia facility, which should allow Freedom Leaf to add cannabis cultivation to its existing hemp production; iii) developing the Company’s hemp extraction, distillation and processing lab in North Las Vegas; iv) expanding the Company’s ecommerce funnel for CBD sales as well as its online media properties; and v) optimizing the Company’s product formulation and distribution supply chain.

On October 31 Freedom Leaf surprised analysts and investors by exceeding its revenue guidance for its last quarter of its June 30 2018 fiscal year of $400K issued in a press release on July 3rd by 47% delivering revenue of $590K. Additionally its latest acquisition, Tierra Sciences Global, has generated $167K in the first 30 days of their prelaunch in affiliate marketing campaign. We project that the first quarter of our current fiscal year will be above approximately $600,000. Freedom Leaf CEO Clifford J Perry stated, “2018 was a transition year as we integrated Irie and Hempology brands and rationalized our supply chain.  Closing Q4 with a 47% above our revenue guidance reflects these efforts and sets us up for a strong year of growth in 2019.”

Earlier this month Freedom Leaf entered into an LOI to acquire Hemp2o, a brand of hemp-infused beverages cofounded by San Francisco cannabis entrepreneur and rapper Gilbert Milam Jr., better known by his stage name Berner. Hemp2o, which offers eight flavors of organic hemp-infused beverages including top selling flavors “Sunset Sherbert”, “Strawberry Watermelon”, and “Blueberry Apricot”, expects to generate over $2.0 million of revenue in calendar 2018.  Its beverages are currently sold by national retailers including selected Whole Foods on the W. Coast, 700 Safeway/Albertsons on the W. Coast and in the S. West, selected Target locations in Los Angeles and San Francisco as well as on Amazon.com.  The transaction, which involves a combination of both cash and Freedom Leaf stock, is expected to close in December.

Freedom Leaf CEO Cliff Perry commented on the pending acquisition, stating “We are excited to welcome Hemp2o into the Freedom Leaf family, and look forward to expanding our national footprint based on their success of established authorized accounts in some of the largest retailers in the U.S. We believe that our consolidated sales teams and expanded product selection will increase revenue through both of our respective channels.”

We will be updating on FRLF when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with FRLF.

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Disclosure: we hold no position in FRLF either long or short and we have not been compensated for this article.


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