The business environment can be volatile even without pandemics. With evolving technologies and changing lifestyles, conventionally strong businesses are no longer guaranteed long term investments, and one thing that the ongoing pandemic has taught us is that nothing is safe from disruptions, not even the large multi-national concerns. Investments are a difficult decision, but the prospects are promising, especially now. The current state of the economy offers incredible investment opportunities.
A right decision needs to be made at the right time to cultivate optimum benefits when it comes to investing. In this article, we discuss why one should invest in Endexx Corporation, and why now?
For a long period of time, cannabis has been a controlled substance, however, things have been changing slowly and within the last decade, we have seen a lot of developments that have resulted in legalization in several states with the US and in other countries globally. The medical benefits of Cannabidiol (CBD) extracts have been proven and now we live in a time where it is being used as an alternative therapeutic choice with minimal side effects. WebMD states that CBD is being used for epilepsy, anxiety, pain, Parkinson disease, Crohn disease, dystonia, Multiple Sclerosis, and for several other ailments. Upon the recommendation of the World Health Organization (WHO), the United Nations Commission on Narcotic Drugs (UNCND) removed cannabis resin from Schedule IV of the 1961 Single Convention on Narcotic Drugs”. This is expected to eventually improve global industry conditions. CBD has entered the mainstream, and Endexx is an early industry player all set to experience exponential growth. Endexx leadership has demonstrated exceptional foresight by making timely and effective business decisions, and they are continuing the trend.
We take an overview of how Endexx has positioned itself to capture a huge portion of an exponentially growing market. With an incredibly efficient business model, approval of licenses, and a joint venture with the music mogul DJ Khaled, Endexx is expecting rampant growth in revenues and profit. We will talk about why now is the perfect time to invest in the promising collaborative corporation.
Endexx Corporation is a micro-cap company specializing in Hemp-Derived Phyto-Nutrient based Consumer Products. It owns several subsidiaries that support the main business operations, this translates into significant cost-savings for the company and provides with the quintessential competitive advantage a modern business needs. The company entered the CBD industry through its participation in the National US Farm Bill Program in 2014, and now Endexx’s CBD Unlimited product line includes more than 50 items spanned across categories such as Pet Products, Healthy and Beauty, and Nutrition. Endexx’s other assets include: CBD Life Brands, Inc., Kush Inc., Phyto-Labs LLC, Together One Step Closer LLC. Aka (Holistic Earth Remedies), and Go Green Global Enterprises Inc. (which owns 49.9% of Go Green Global Enterprises Limited, a Jamaican Corporation) are owned by Endexx Corporation (OTC – EDXC). Endexx, through CBD Unlimited, has also invested in Ecohealth Neuropathy Inc. gaining 25% equity. Through CBD Unlimited, Endexx Corporation develops and distributes organically produced plant-based products with No-to-Low THC (less than 0.01%) content derived from the hemp (Cannabis Sativa-L) plant. The product portfolio includes CBD consumables for pets, CBD oils, day and night capsules, and topical application merchandise for pain alleviation and therapeutic support.
Recently, the Company announced a joint venture with a global celebrity in October 2020 without disclosing the name, however, around mid-December 2020, the information was disclosed, and the celebrity is the social media sensation and music industry mogul DJ Khaled. The Rolling Stone reported DJ Khaled as having his personal wellness journey as the motivation for the new venture. Having once been called “The King of Snapchat” by the VP for Content at Coca Cola, Emmanuel Seuge, the mega-celebrity has a strong social media following on several platforms. His new venture with Endexx is not merely a celebrity endorsement deal, his stake in the venture along with his personal experience with the products is reassuring when we talk about possible conversions. DJ Khaled became a social media ambassador for Weight Watchers in 2018, immediately the shares of Weight Watchers increased by 8%. Earlier the celebrity had contributed to the rising fame and adoption of Snapchat, whereby both the entities enjoyed augmentative outreach.
However, the association with Snapchat was not official and DJ Khaled did not have a stake in it and the deal with Weight Watchers was merely a social media endorsement deal. With Endexx Corporation, things are different, Mr Khaled owns 25% of the joint venture, this ownership undoubtedly would translate into a deeper commitment by the social media mogul. His 12th album is set to be released in early 2021, following which he will be on a promotion tour across North America since these would be his own products, the artist would definitely promote aggressively. Endexx is on a trajectory to become a major lifestyle brand in the CBD industry, and now the new venture completes a major facet of the transformation. DJ Khaled has his personal wellness journey as a motivation to initiate this venture.
DJ Khaled has nearly 40 million followers across his social media empire, with a moderately calculated conversion rate at only one per cent of the audience, 400,000 people are initially potential customers of the brand. Furthermore, the products that the celebrity would be launching have a diverse assortment, covering a wide range of use cases, ranging from high-value price point to ultra-premium products. The products will be available online as a subscription-based model and e-commerce purchase, creating repeat purchases and brand loyalty. Generally, the products are designed as a 1 monthly supply repeating orders every 30 days.
In addition to the 4-5m views on his Snapchat stories, the social media prodigy has 4.1m, 22.7m, and 5.1m followers on Facebook, Instagram, and Twitter respectively. With an outreach of 35.9m people spread over several platforms, at a mere 1% conversion rate, the expected order rate will be 359,000 transactions. The prices of the products are not yet confirmed, but for approximation, we use three different average prices along with the subscription model.
The venture could be earning 323.1m, 430.8m, or 538.5m for a price point of $75, $100, and $125 respectively. Projections show that the venture could be earning anywhere between $323m and $538m in sales revenue over the next 12-24 months.
An alternate projection, to be considered even more conservative in nature, is to be done without incorporating the subscription model. With conversions spread over a twelve-month period, the company could still earn 27m, 35.9m, or 44.8m for the price point of $75, $100, and $125 respectively. However, it must be understood that several of the products will have a subscription-based model and this calculation is a bare minimum estimate whereby conversion is not recurring.
The venture has a high capacity of conversions, ranging from 0.359m to 4.308m. Considering an average product set price of $100 the venture would only have to make 10,000 transactions to achieve $10m in sales volume. Given the parameters of this venture, success is highly probable and the collaboration is likely to act as a catalyst for aggressive growth.
Endexx Corporation, through careful investments and the incredible foresight of its management, is all set to be a market leader within the industry. Recent developments provide the perfect environment for business growth. The venture with DJ Khaled which will see a release of his CBD line is expected to bring in significant sales revenues.
With the changing global and national policies, and the overall elements within the industry, huge potential for growth both domestically and internationally, expands market potential. Endexx’s new Master distribution agreement expands the retail opportunities to over 100,000 stores. Endexx has also received provisional approvals of licenses for Endexx’s International Division-” Go Green Global Enterprises”: one for a “Herb House License” and the other for a “Tier-2” Grow License by the Cannabis Licensing Authority (CLA) Jamaica would enable Endexx to attain a vertical market and expand globally into the Cannabis market. The approval of licenses in Jamaica entering the global Cannabis market offers accelerated global revenue potential. The conception of a full line of proprietary formulas and finished goods increases profit margins for Endexx as distribution channels are secured.
Creation of a vertical market that enables Endexx Corporation to occupy several nodes of the supply chain including growing, processing, logistics, and Distribution. New ventures, changing global and national policies, and the overall elements within the industry promise huge potential for growth. The recently announced venture with the music industry virtuoso DJ Khaled, enhancement of current distribution, and approval of licenses in Jamaica promise to be the catalyst for profusely increased valuation and revenue.
Through securing nodes of the international supply chain, Endexx will be enhancing its operational scale, effectiveness, and efficiency, significantly improving the company’s international footprint. Provisional approval for the “Herb House License” in Jamaica enables Endexx to operationalize the store in Ocho Rios, located at a prime tourist vicinity with incredible pedestrian influx during the season. The approval of the “Tier-2” Grow License would enable the company to cultivate and distribute marijuana within Jamaica. The cultivation concern would complement the existing business operations by securing efficient and reliable procurement for the processing function, ultimately contributing to cost reduction. As the company works towards reaching its target of 20,000 stores it will be expanding its current distribution network, together with the joint venture being launched with DJ Khaled the company is all set to enter a phase of augmented growth.
Approximations indicate that the joint venture would have the capacity to earn sales revenue ranging from $35.9m to $430.8m taking an average product price of $100. Current expanded distribution is expected to bring in $20m in sales revenue within the next 12 months. The Jamaican licenses would translate into $5-10m in revenue over the next fiscal year. With a probable increase in revenues ranging from $60.9m to $460.8m and a low current share price, Endexx manifests itself to be a significant future proof investment. It is a well-established corporation within a rampaging industry. Endexx is all set to thrive with its enhanced distribution, global expansion, and a joint venture with DJ Khaled and you should be a part of that growth.
Bottom Line: Endexx could be a strong part of any aggressive-growth portfolio with a possible price per share of over .75 in the next 12 months.
Last Quarter Stock Chart
Source Market Watch