Endexx Corporation (OTCMKTS:EDXC), a pioneer in the CBD Industry since 2014, has entered 2021 on a major upbeat note with its pending DJ Khaled-branded CBD roll-out.
The Arizona-based company has already tasted success selling CBD products but now expects a major sales boost from its recently-announced partnership with the Grammy Award-winning artist and record executive.
For those unfamiliar with DJ Khaled, he produced the last two albums for multi-platinum rapper and pop superstar Drake. He is also a big believer in CBD as part of his personal-wellness journey.
“I was drawn to Endexx Corporation because they're an innovative company that has proven they have the keys to deliver consistent, top of the line, high-quality products,” DJ Khaled said in a recent statement.
READ: Endexx to launch branded CBD products with GRAMMY winner DJ Khaled
Endexx anticipates that the DJ Khaled-endorsed, hemp-derived, cannabidiol-rich collection will launch in early 2021, which is expected to strengthen the company’s position in the market as consumer demand for CBD products continues to grow.
Stellar growth in the years ahead
“We’re in what they call the ‘hockey-stick’ phase of our growth. We’ve spent the last six years building the foundation, including the formulation of the product line, and now we’re converting into sales and marketing as well as expanding through e-commerce and through commercial retail,” Endexx CEO Todd Davis told Proactive Investors.
“We’ve secured the necessary marketing assets and distribution platform to grow Endexx into a $200 million-plus company within the next three years.”
As one of the pioneers in the hemp and cannabis industry, Endexx established itself as an early market leader in US CBD product sales through its independently-operated subsidiary CBD Unlimited.
“What makes us different is we built everything on the backbone of science and compliance. With science, we figured out how to dose and how to deliver CBD through clinical testing and field-testing involving doctors and patients,” Davis said.
While the high-profile partnership with DJ Khaled is expected to increase sales significantly, Endexx is already experiencing strong revenue momentum. The company generated sales of $2 million in fiscal year 2020, a 78% year-over-year increase.
And although its fiscal 2020 results were impacted by coronavirus (COVID-19) restrictions, Endexx said it is beginning to see orders pick up again and expects 2021 to be “strong.”
Building a sustainable brand
While the company has turned to a rap superstar to help promote its new CBD product line, which includes wellness products for men and the whole family, Endexx is also developing a media and clothing business to help facilitate the growth of its Kushwear brand into a lifestyle brand across various industries.
Firstly, with its 2020 acquisition of Kush Inc (also known as Kushwear), a media-driven entity specializing in building brands through strategic marketing and relationships. Kushwear.net supports labels known for manufacturing, distributing, and selling hemp-derived materials as well as various sustainable bio-products.
Then Endexx completed the acquisition of CBD Life Brands Inc for its digital and social assets, copyrights, trademarks, and formulas/recipes for its CBD-infused beverages with “Nero” (Greek for Water).
“Acquiring Kush, Inc will support CBD Unlimited’s global growth strategy as we develop into new markets,” Davis said.
“We look forward to extending our product pipeline to sustainable alternatives and clothing brands under the Kushwear name. We plan to remain innovative for our customers as the company expands its network, now with the addition of Charlie Mohr joining the team and providing his unmatched proficiency in this space.”
Charlie Mohr, president and founder of New York-based Kush Inc, joined Endexx full time, bringing his years of leadership experience in marketing and branding to the new subsidiary.
Endexx said it plans to work closely with Kush’s research and development team to expand its range of products, adding that it is on track to continue its upward growth trajectory and surpass year-over-year guidance and goals.
An important part of Kush’s brand building is its community outreach initiatives. For example, this past summer Kush Inc hosted a beach clean-up at Lido Beach in Long Beach, New York, in which its group of volunteers removed more than 1,300 pounds of garbage as the company continues to further the brands’ Corporate Social Responsibility (CSR) impact and initiatives to help shape a more sustainable future.
Other notable corporate developments for Endexx during the past 12 months include: securing additional distribution channels that has resulted in an expanded network in the pharmaceutical and grocery/natural food channels as well as independent retailers; acquiring Retail Pro Associates Inc to expand its Phyto-Bites and equine division; initiating “Ruby Bees” Hemp Infused Honey e-commerce sales; and introducing an investor outreach and ambassador program.
CBD, known as cannabidiol and extracted from non-psychoactive hemp plants, has been growing in popularity in recent years as many health professionals, athletes, entertainers, among many others, have enthusiastically praised its benefits. The cannabinoid has been scientifically shown to reduce inflammation, chronic pain and anxiety – both in humans and animals.
CBD became legal to sell in the US following passage of the 2018 Farm Bill and nationwide sales of CBD are estimated to reach $16.8 billion by 2025, according to market research firm the Brightfield Group.
Nationwide distribution in the US
Heading into 2021 and beyond, the company is looking to expand its retail reach. CEO Davis noted that the company, whose products are available in about 6,000 US store, has a new distributor that services over one million stores throughout the nation, with Endexx initially targeting 5% to 10% of their store count.
“We have a high repurchase rate on our products and have registered a couple of our products for OTC analgesics, which carries a higher compliance standard. Those are widely available at Walgreens in nearly 30 states in the US at this time,” he added.
Going forward, Davis said Endexx investors can expect continued expansion and distribution as well as the introduction of high-quality product lines that are value-oriented and price-point sensitive.
“Our corporate growth over the past months has been strong regardless of recent worldwide events,” Davis noted. “We plan to continue targeting acquisitions and growth opportunities across all product categories and distribution channels.”
Contact Sean at sean@proactiveinvestors.com