Isodiol Is MJNA 2.0 – Expect Massive Dilution From Not-So-Arm’s-Length Transactions
Grumpy Bear Research, 23 April 2018
During the past few months, Isodiol International Inc. (OTCQB:ISOLF) has seen its stock price rocket up by over 300%, giving it a market capitalization of about CAD$300 million (CAD$424 million fully diluted). The company has the appearance of a rapidly growing business in phytoceuticals (plant-based health supplements) that focused on derivatives of hemp. Hemp is a cousin to the cannabis plant and is a source of non-narcotic cannabidiol (“CBD”), which is used in many nutraceutical products and is presumptively legal throughout the United States.
Revenues have also gone up exponentially at Isodiol in the past year, due largely to a plethora of acquisitions. In fact, the company actually delivered sales of CAD$5.9 million for the quarter ended December 31, 2017, which was an enormous increase over the CAD$3 million of revenue just two quarters ago. While they only eked out a small net profit of CAD$0.2 million, with that kind of revenue growth, the obvious sales pitch is that Isodiol is a rapidly growing company in the red-hot marijuana sector…even though they are not selling marijuana. Isodiol CEO, Marcos Agramont indicated his confidence in the company’s future by stating “We had another strong quarter of revenue growth and will continue our commitment to delivering high-quality hemp-derived CBD products through innovative delivery methods, which is the core of our success”.
