Endexx Corporation has told investors that it is optimistic it can now successfully apply to up-list its stock to trade on the OTCQB, with a long-term initiative to become Nasdaq listed, based on its current financials and adherence to compliance in the hemp sector.
In a special letter to shareholders following the release of its fiscal 2021 results, CEO Todd Davis said the company has seen recent changes within the investment banking community showing a strong interest in investments in companies like Endexx. Because of these changes and trends, Endexx believes the US capital markets will soon drive a paradigm shift in the prospects of the entire hemp and cannabis industries, he added.
“Recent proposed bills in Congress and the Senate, supported by permanent shifts in public sentiment, are paving the way to a viable and sustainable industry for CBD and hemp-derived products,” Davis said. “Limitations are easing in advertising and education and the potential to gain full access to US-based financial banking (Safe Bank Act) will unlock value and opportunities for the success of the industry in the decade to come.”
READ: Endexx sees 360% sequential surge in 4Q revenue as company bounces back from challenging 2021
Davis noted that the company remains driven and on track to achieving its objectives and long-term growth initiatives through continued expansion toward 20,000 Food/Drug/Mass (FDM) retail stores.
“Driving sales with better products and lower price points, supported by online marketing and sales growth is the backbone of Endexx's growth mandate,” Davis said. “Endexx has been positioning for the last eight years as a thought leader and premium product innovator in the CBD/hemp industry. Placing high-performing products in 20,000 plus retail stores nationwide will secure Endexx as a market leader built on a foundation of science and backed by fully compliant high-quality products.”
Citing recent industry reports covering the last six months, Davis said current volume and sales in Endexx’s balm and cream products show it trending as number one and two SKUs (stock-keeping units) in high-profile F/D/M national stores. Month after month, sales are increasing and product demand is growing, he added.
“When you combine that with our continued store growth, that sets the stage for the revenue growth discussed last year,” Davis said. “The market has been disrupted by coronavirus (COVID-19), supply chain issues, and staffing challenges at all levels that have delayed us from reaching our goals but have not deterred Endexx's mission. We are confident that reaching 20,000 stores and $50 million in annual sales is a realistic goal.”
In addition to store growth, Davis said management negotiated lower interest rates on all Endexx’s current debt and reduced overall derivative liability significantly by 68%. During the last six months, he said the company improved its balance sheet, setting the stage for a possible OTCQB qualification with the OTC markets.”
Endexx, through its operating division CBD Unlimited, develops and distributes all-natural CBD products derived from cannabis Sativa plants containing less than 0.1% THC. Its products include oils, capsules, topicals, and pet products, all with the shared purpose of therapeutic and pain relief.
Contact the author at stephen.gunnion@proactiveinvestors.com