SLEEKSCAPE'S 2022 CANNABIS & MARIJUANA MANIA GRAND SALAMI -- PART II

[sleekscape]

Medico was very skilled at the nuts and bolts operational aspects of running a company

Just look at the profit margins, they were best in the sector by far

So he’s excellent at things like sourcing ingredients, selecting packaging materials and choosing copackers to maximize gross margins

This makes sense since he is an accountant by training

He was also very good at product development

Starting with only 1 product line of Hemp Coffee, he has now expanded into 5 different product lines of Hemp and CBD Beverages

Hemp Coffee, Hemp Tea, CBD Coffee, CBD Iced Coffee, CBD Iced Tea

The branding and design of the products is excellent

Just as importantly, if not more so, is making sure the contents of the beverages will pass muster with future FDA regulations in order to retain eligibility to be sold nationally

The first step to achieving this is selecting the correct formulation of CBD

Many CBD Iced teas and coffees currently on the market have failed to do this as they chose to use hemp extract, either full spectrum or broad spectrum CBD, instead of CBD Isolate

The chances of the FDA allowing anything besides CBD Isolate in the food supply in their first set of regulations in the upcoming Enforcement Discretion policy for CBD Products are near zero

The second step to achieving compliance with future FDA guidelines is ensuring a consistent and accurate amount of CBD in each can or bottle, which is very difficult to do when placing CBD into a beverage container, due to both the properties of CBD inside of a liquid and its interactions with the walls of the container — as a consequence, CBD levels in beverages tend to measure much lower than the label claims

The third step to achieving compliance is sending each batch of beverages manufactured to a certified third party lab for cannabinoid and contaminant testing

The fourth step is using a QR code on the bottle or can so that the consumer can see the third party certified laboratory results

Have you ever scanned a QR code on the iced tea?

It’s a very extensive lab panel, it’s impressive

All four of these steps are absolutely crucial to meeting upcoming FDA guidelines

Proper formulation — CBD Isolate

Accurate Dosing — label claims match up with lab testing

Lab testing for cannabinoids and contaminants from a certified third party laboratory

QR code on bottle/can that directly links to lab results for customer safety and full transparency (for example, 0% THC is very important to those who take drug tests)

Now if you look at the marketplace right now for CBD Iced Tea and CBD Iced Coffee, very few companies out there meet all of these necessary criteria to be carried in chain stores, which will soon be using checklists to ensure compliance with the FDA’s upcoming regs

So Elev8 Hemp products are actually in rare company right now

Product development was undoubtedly one of Medico’s strengths

It’s the more creative aspects of developing a company where Medico’s entrepreneurial instincts were lacking

And the lack of ability to communicate to the investment community what makes Elev8 Hemp a promising CBD Beverage company at the forefront of formulation, transparency, testing and safety

For example, what I just explained above is something that should be on their website

It’s what separates them from your typical CBD Beverage company

So why isn’t it on there?

Why hasn’t this ever been communicated in a PR?

This was one of Medico’s weaknesses, not having a firm understanding on what prospective customers and investors are looking for in a CBD product and public CBD company, respectively

It’s not just about developing the right products, it’s about explaining to the consumer why they should feel comfortable buying them

Another weakness was the lack of willingness to delegate

It seemed like he wanted to control every aspect of running the company, whether or not it was a personal strength

So when he hired Bright Rain to develop a marketing and sales plan, I thought that was an excellent decision:

https://brightraincollaborative.com/elev8-hemp/

All of the pieces seem to be clearly in place to grow rapidly

But doing so takes somebody who knows how to switch from the product development phase to the marketing and sales phase

And Medico wasn’t able to do so

He very systematically went through the various stages of product development, and for whatever reason, simply wasn’t able to leave that stage and enter the product launching stage

We can all speculate as to the origins of this — perfectionism when it comes to the product design or product formulation, operating as a publicly traded company producing federally illegal CBD Beverage products caused hesitation/anxiety/fear of being shut down and launch paralysis, waiting for the “perfect” moment, etc

So if the new CEO has a modicum of sales and marketing ability, the revenue ramp continues to possess really great potential

If Strong can use his connections to professional football players to enlist one, or better yet, several of them, to endorse the products and become brand ambassadors, then things could get very exciting for BLEG

Now that’s just some perspective on the company itself, which to many seems like the most important thing to evaluate

However, the idea that company performance = stock performance in the OTC cannabis sector, especially during a mania, has been repeatedly disproven

There are dozens of easily identifiable reasons that go into the pie chart of factors that underlie stock movement

And in the cannabis sector, on the OTC exchange, traditional measures of company performance have literally zero relevance for predicting % gains during a mania

Look back at the biggest % gainers during the 2016-2017 Cannabis Mania

By any measure, all of them had absolutely horrible company performance

OWCP — 75,000%

CNBX — 17,500%

MCOA — 5600%

AGTK — 5500%

Go check out their 10-Qs and 10-Ks in 2016 and 2017

It’s a very eye opening experience, if you’ve never really evaluated the factors that you thought moved stocks

For a long time I’ve believed that federally permissible national sales of CBD Products are going to cause the next cannabis mania

And we are finally on the cusp of seeing that in 2020

There are 2 separate pathways to federally permissible national sales

Legalization of CBD Products (Congress)

Enforcement Discretion Policy for CBD Products (FDA)

On 7/22/20, the FDA sent their CBD Enforcement Discretion Policy to The White House (OMB)

So we know that federally permissible national sales of CBD Products are coming in 2020

And because it’s an election year, we are going to see this happen before the election

We are also in a very good position to get Legalization of CBD Isolate in Beverages and Supplements in 2020 as well

That’s something only Congress can accomplish, and if you believe that Jonathan Miller is the real deal, there is a very good chance we will see this happen inside of the economic stimulus bill sitting in front of Congress right now

So we can get both Enforcement Discretion (national sales) and Legalization (national sales) of CBD Isolate Products

That 1-2 punch would lead to as wide open and unfettered a national marketplace as can be achieved for any newly legal product, especially one that was considered a Schedule I Drug less than 2 years ago — that’s why this is such an exciting achievement, it has never been done before — it would mark the very first time any cannabis products have attained federal legality and truly national sales — and Hemp-derived CBD Isolate products could sell in every single store across the country, not just in licensed dispensaries — that’s why the size of the CBD Product market is so massive

Getting back to the term “Enforcement Discretion” for a second

Another term for Enforcement Discretion is Interim Regulations, because that’s essentially what a policy of Enforcement Discretion would be laying out

I’ve said since late 2019 that Banking and Legalization go together as a legislative pairing

One without the other simply doesn’t make very much sense IMO

So the prospect of getting legalization, regulation and banking for CBD Isolate Products in 2020 before the election is quite feasible

Nothing is definite in the cannabis sector, but the table is certainly set due to the political pressure stemming from the elections and the fact that Trump is currently trailing and Mitch is in a tight race:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=156564472

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=157441453


Legalization + Regulation + Banking = Most obvious cannabis mania since 2014, and one that I’m projecting would be centered around CBD Isolate Beverages and Supplements

Now getting back to that pie chart I referred to earlier that explains what moves a stock during a cannabis mania

I will give you the biggest sliver of that pie chart right now, focusing only on those OTC Stocks which currently have CBD Beverages available for sale

Float Size — CBD Beverage — Stock

2.75B — Water — RTON

911M — Water — PURA

800M — Water — HIPH

734M — Water + Energy Drinks — KGKG

5M — Coffee + Tea — BLEG


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