Awarded US Hemp Authority certificate for CBD products
Our long-term Wise-Owl cannabis investment, BOD Australia (ASX:BOD) today announced it has been awarded US Hemp Authority Certification for its exclusive CBD extract and its CBD products sold in the US.
This certification provides a competitive advantage in the US as it essentially an endorsement that BOD’s products adhere to the highest US standards, enhancing consumer confidence in the brand.
BOD already sells a range of CBD wellness products in the USA through its exclusive global partner and Swisse Vitamins parent company Health and Happiness Group Limited (H&H, HKSE: 1112).
We’re keen to see how today’s news translates into revenue from the US markets going forward.
We await progress updates on BOD’s clinical trials. During the last quarter, BOD dosed the first patients for the following two trials:
- Insomnia (Phase IIb) - for an over-the-counter (OTC) treatment available at pharmacists
- Long-COVID (Open label, “Proof of Concept”)
Since these potential products both address substantial markets, we’re keen to see the outcomes of both trials.
With a market cap of ~$10.5M, and $3.67M cash at bank as of 30 June 2022, this translates to an enterprise value (EV) for BOD of ~$7M. Given BOD's low EV, we suspect that success in either trial would lead to a significant market re-rate.