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MarketProphet

08/22/17 9:00 AM

#3663 RE: WiseYoda #3662

$ISOLF

Isodiol Is A Running Bull That Continues To See Green





13 min 54 sec ago
While Canadian licensed medical marijuana producers remain in the limelight, we have focused on several Canadian firms that are not involved in the cultivation or sale of marijuana.

We remain bullish on Canadian licensed medical marijuana producers, but believe there are several attractive long-term opportunities not focused on this side of the market.

One company that falls under this category is Isodiol International Inc. (ISOL.CN) (ISOLF) and we are bullish on its long-term growth prospects. The company continues to see significant demand for its cannabis consumer products and we are favorable on the company for the following reasons:

Continues to record strong revenue growth,
Entered a partnership with Canopy Growth (WEED.TO),
Continues to enter and focus on new international markets,
Its balance sheet is flush with cash and will support growth initiatives.
Completes $25 Million Financing

Today, Isodiol significantly strengthened its balance sheet after it signed a convertible debenture financing for $25,000,000 CDN with Alumnia Partners. The company plans to use the proceeds to further expand its global reach and to execute on strategic acquisitions. Isodiol continues to focus on innovation and the development of valuable intellectual property. This capital will support these initiatives.

The debenture has no minimum draw down requirement, a two-year term, and an 8% interest rate. The conversion terms associated with the debenture consist of one common share and one half of one common share purchase warrant at discounts ranging from 15% to 25% of the market price of the shares. The exercise price of the warrants will be at a 50% premium over the market price of the shares.

New Opportunities to Support Above-Average Growth

The last quarter has been significant for Isodiol and we expect these developments to benefit the company over the coming quarters.

In July, Canopy Growth and Isodiol signed a licensing agreement where Canopy can manufacture and distribute Pot-O-Coffee and Pot-O-Tea branded marijuana infused single serve K-Cup products in Canada and international markets that allow it.

We are favorable on this partnership and expect it to pay dividends for Isodiol. Through Tweed Main Street, Canopy Growth services more than 58,000 registered patients and this outlet has proven to be a great revenue stream for companies such as Isodiol.

Continues to Increase Market Share and Enter New Markets

Isodiol continues to expand its reach and has successfully entered new markets. We are favorable on these developments and expect the company to enter several new markets over the next year.

One of the exciting developments in this area for Isodiol took place during June when the company started the approval process through Brazil’s Health Regulatory Agency to have its CBD products added to the list of approved imported CBD products.

We are favorable on the Brazil market and believe that the company can gain significant traction within it. Shortly after this announcement, Isodiol reported to have established operations in Mexico and said that it would start shipping its CBD products throughout the country.

Executing on All Cylinders

Last month, Isodiol provided an operational update on its subsidiary, Iso International and the results exceeded our expectations. During the period, Iso recorded a net profit of almost $897,596 on $4,919,693 in revenue. Although these numbers are un-audited, we expect the company to report operating results that are in line with these numbers.

This development is significant for Isodiol and represents a milestone for the company. Isodiol has continued to execute on its business plan and specializes in the development of pharmaceutical and consumer products.

We are favorable on Isodiol's multi-faceted growth strategy and expect to see continued growth for quarters to come. The company will benefit from a diverse strategy that is focused on both organic and inorganic growth opportunities.