Biotechnology Investing Not a Risky Opportunity
(If You are Smart)
Biotech Stock News > Why Biotech?
Last Update: June 1, 2018, 1:32 pm
(Staff Writer) • State and federal regulations on the use of CBD – cannabidiol – are changing.
Isodiol International Inc. (CSE: ISOL)(OTC: ISOLF) is built with the ability to adapt to these changes and take advantage of these new opportunities. (Isodiol, through its many subsidiaries and partners, delivers health, wellness and beauty CBD-based products to eager consumers around the globe.)
Following close on the heels of those legislative changes is a booming CBD-relation business field, with both private and publicly-traded companies popping up everywhere.
Consumer interest in cannabidiol has skyrocketed. The US market for hemp-derived CBD was $50 million in 2014. By 2020, that number could hit $736 million.
Laboratories can now extract CBD from cannabis plants, including the low-THC variety known as industrial hemp. (The definition of “low-THC” is THC content of 0.3% or less.) Industrial hemp plants contain relatively low amounts of CBD, so a lot of plant material needs to go into the production to yield a small amount of CBD.
And what does all this mean to the average investor, looking for an opportunity on this cutting edge of biotechnology?
Basically, as with any investment opening, investors must do their due diligence on the potential target.
Let’s take a moment to examine the due diligence points (and a great “green light option”) investors must see.
In just the last five years, more than 600 companies popped up that purport to be in the cannabis industry. One trend is that many of new entrants focused on CBD extracted from industrial hemp. There are a few filters you can apply when you evaluate them before making a first investment:
1. Isodiol filed with the SEC
Avoid companies that don’t file with the SEC, as they lack transparency. For example, company insiders can dump stock without having to file electronic disclosures. The number of companies that do not wish the scrutiny such a filing brings is amazing. Double check with your professional investment advisor on the company’s status with the SEC.
Build confidence in your Isodiol investment when you read this…
2. Isodiol generates significant revenue
Promises and plans to perform are one thing. Actual delivery of sales figures is another. Also, ask how the company generates their sales. Customers who buy products on a “subscription program” promise to buy more products, but they can cancel at any time. Does the company include these “anticipated sales” in their totals to inflate the true nature of their business?
3. Isodiol clearly explains the source of its CBD and product production methods
Today’s consumers are always on their guard for phony remedies and “snake oil cures.” Regulators at all levels are vigilant in pursuit of shady characters in every business. Despite all the protection available, some disreputable people still populate the CBD industry. There are CBD companies today that use “old family recipes” and less than sanitary manufacturing conditions instead of professionally-managed and spotless facilities and ultra-healthy processes to manufacture the final product.
4. Isodiol provides independent evaluation of its products
Do not believe Facebook recommendations. Testimonials on a company’s website are too easy to fake. Look for independent, third-party reviews from reliable agencies of the company and its products.
5. Isodiol is a real company, with real facilities and actual customers
Several of the companies that say they are in the CBD business don’t have actual, physical operations. It’s a highly competitive space, and companies with no traction to date are very risky. It’s easy to say that you are in the business, but much more difficult to actually produce and successfully sell healthy and popular products.
Another thing to do when you investigate Isodiol: go to their website and read their public disclosure documents. Educate yourself about how they manufacture or acquire
Finally, look for independent reviews on the products. Ask people in the industry if they heard of the brand before. If that awareness does not exist, worry about the quality of the product produced and sold. The FDA called out several companies over the past few years for quality issues and marketing violations, such as making unsubstantiated, or plainly false, health claims.
So, how does Isodiol fill you with “investor’s confidence?”
Many of the members of their experienced, professional management team left MJNA to join Isodiol. The company raised significant capital through the sale of equity and is vertically integrated. It uses its own raw ingredients to develop and offer both consumer products as well as wholesaling to other pharmaceutical companies.
What is the Isodiol Bottom Line?
In a crowded biotech field, Isodiol ticks all the boxes. And with so many changes coming to the legislative and regulatory landscape in a wide range of locations (both in North America and Europe), Isodiol is perfectly positioned to take advantage of this exploding marketplace.
The CBD from industrial hemp industry is booming. Investing in the industry is challenging. Avoid the ventures that look too speculative, stick to the trustworthy such as Isodiol International Ltd. (CSE: ISOL)(OTC: ISOLF) and investments in the biotechnology sector should prove promising.
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Read more on the Isodiol International Inc. story and why investors seek out this biotech stock when you click here.