The cannabis industry is at a watershed moment and the majority of the companies betting on it are going through financial difficulties. While the financial results of Tilray (NASDAQ: TLRY), Aurora Cannabis (TSE: ACB) or Canopy Growth (NYSE: CGC) did not meet analysts’ expectations, smaller CBD companies like Veritas Farms Inc. (OTC:VFRM) show the power transparency has in the emerging cannabis market.
The shares of cannabis producers have been moving sideways for some time now. Nothing changed when the cannabis sector became turbulent and heavyweights such as Aurora Cannabis or Canopy Growth started going through a rough patch. In view of the recent, supposedly stable development, Tilray shares should not be considered a safe bet. A look at its previous price losses is enough to reach that conclusion.
In mid-November, Tilray presented its current quarterly results. On the sales side, the company was quite convincing, but the overall results fell short of expectations. Expressed in figures: Total sales in the third quarter of 2019 amounted to $51.1 million (net sales of $48.2 million). In comparison, in the second quarter, total sales amounted to $45.9 million (net sales of $42.0 million). The company broadly met market expectations for Q3/2019 sales. On the earnings side, this was not possible, as Tilray Inc. reported a net loss of $35.7 million, or an EPS of -$0.36. The net loss remained at the same level as in the second quarter.
These figures had no significant effect on Tilray’s shares. The situation in the cannabis sector remains tense and characterized by nervousness. For the time being, it is expected that the ups and downs will continue for Tilray. Sustainable technical signals can only be expected once the current range has been overcome. In addition, a reassessment of the situation would be necessary for both outbreak scenarios.
Veritas Farms Inc. is making a statement in the US cannabis market
South of the border, in the already established cannabis market of the US, competition between many companies that have a foothold in the market is high. While some cannabis companies are slogging their way in this highly competitive field, others know that success can be achieved through streamlined methods based on transparency and honesty. One such player is Veritas Farms Inc. (OTC:VFRM), a cannabis company that focuses on producing and distributing high-quality CBD-based products to consumers across the US.
Founded in 2015, Veritas became a success story that is set to dominate the CBD sector in just a few years. The company has made steady steps toward becoming one of the main players in the industry, focusing on the whole process of cannabis manufacturing. At its hemp farm and manufacturing facility in Pueblo, Colorado, Veritas’ team of experts supervises each phase of the production, from choosing the right seeds until the product is packaged and distributed.
In addition, Veritas just released a QR code packaging so that CBD-based products enthusiasts can easily check the quality of the products they purchase on their smartphone.
Veritas Farms Inc. is a CBD company that is going to thrive as the CBD sector matures, and the key to its success is honesty, as the Latin meaning of the word “Veritas” suggests. The company will reap the benefits of its long-term strategy, while other players in the cannabis industry will struggle to keep up.Topics #cannabis industry #CBD-based products #Veritas Farms Inc.