Exactus stock is rocketing on Wednesday after US cannabis firm Exactus Inc (OTCQB:EXDI) announced two major supply agreements following a better than anticipated harvest.
Exactus Stock Soars as Havest Beats Expectations
The Florida-based company, which has a 200-acre CBD-rich Hemp farm in Southwest Oregon, said last week that its 2019 harvest was surpassing expectations due to improved growing conditions, and now expects to produce 30,000 lbs of flower product compared to the 20,000 lbs it had originally expected. In October, Exactus acquired an additional 49.9% interest in the 2019 harvest, which should provide extra supply to be monetized in the fourth quarter. Exactus stock has gained nearly 300% in 2019 since transitioning to hemp.
The company's President Emiliano Aloi told shareholders that the company has over $750,000 worth of orders to date. “This strong momentum is anticipated to continue into 2020 as we build out the product lines under our brands and execute on our current harvest,” Aloi said in a statement last week. The company posted its Q3 results last month, in which revenue came in at $60,000, down from $140,000 in the same period last year. Aloi cautioned holders of Exactus stock on those results, saying they were incomparable to last year as those results were before the hemp switch.
The company has now announced two major supply agreements as it looks to capitalize on the improved hemp harvest. The first of these will see the company provide Ceed2Med with a minimum of 10,000 lbs of flower product, which Ceed2Med will condition, trim, and package for the wholesale market and share the profits with Exactus.
The second deal will see Exactus enter into a partnership with Canntab Therapeutics Limited (CSE:PILL) (OTCQB:CTABF) to produce CBD tablets under 13 different patents. Canntab will sublease a space in the company's Florida operations for this production process and will purchase hemp product from Exactus. Exactus shares have rocketed over 10% following the announcement of both deals.
The hemp-derived CBD market is one of the fastest-growing markets in the US, and data gathered by the USDA shows that hemp crops are the fastest-growing crops on American farms. With Exactus shares trading as just $0.59, it looks like a hemp penny stock with serious potential.
Featured image: DepositPhotos © EdZbarzhyvetsky