3 stocks to watch and ... the week that was
The market continues its up and down ride, just have a look at what Dale Gillham says about it below, however there were a few small cap stocks that delivered decent news this week and saw the benefits.
Here’s a few we’ve had our eye on.
Bod Australia (ASX:BDA)
Medicinal cannabis, CBD and hemp healthcare products company, Bod Australia Limited (ASX: BDA) this week announced it has received its first purchase order for CBD products for the US market.
The US market for CBD consumer products is expected to grow to US$6.9 billion by 2025.
The binding $312,000 purchase order has been made by multi-billion dollar Hong Kong listed H&H Group.
BDA has an exclusive global distribution partnership with H&H Group and today’s order is the first of several binding orders expected in the next few months, as BDA begins to increase its US footprint and become cash flow positive by 2020.
The upcoming US entry follows BDA’s recent international expansion initiatives in the UK, Italy, France and the Netherlands.
H&H Group is also the owner of Swisse, the Australian leader in the vitamins, herbal and mineral supplements market and has been helping to facilitate BDA’s global roll-out.
In July 2019, BDA entered a transformational exclusive licencing agreement as exclusive CBD partner to H&H Group, the parent company of Swisse Vitamins.
Under the agreement, BDA receives a royalty on net product sales as well as a cost-plus margin for the supply of its CBD extract and formulas.
Today’s news means its US roll-out is now well and truly underway and its entry into the US market could be the start of a significant share price rerating given the size of the market.
This week BDA started at 47 cents, hit a high of 54 cents before settling at 53 cents.
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