With Access To $20 Million In Financing, 1606 Corp Is Eyeing CBD Business Acquisitions As It Embarks On An Aggressive Growth Path
Phoenix, AZ
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March 09, 2023 09:15 AM Eastern Standard Time
By Ernest Dela Aglanu, Benzinga
The global CBD market is on an upward trajectory, and there are no indications that the growth could be slowing down anytime soon. The market was valued at $5.18 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 16.8% from 2022 to 2030.
The positive growth projections could be good news for industry watchers and players like 1606 Corp (OTC: CBDW), which plans to accumulate a diverse portfolio of cannabidiol (CBD) products and companies nationwide by consolidating the fragmented CBD industry via acquisitions.
Due to the numerous benefits of CBD, including treating anxiety and seizures and reducing pain, there is growing demand for health and wellness purposes. This ever-increasing demand and rising acceptance and use of CBD products thanks to increasingly friendly government regulations could significantly benefit a player like 1606.
$20 Million Financing For CBD Businesses Acquisition
The company, in line with its growth plans, recently revealed on February 16 that it had secured $20 million in financing to acquire CBD businesses after entering into an Equity Financing Agreement. (8-K)
“We’re moving fast. Now that we have our feet underneath us since receiving the ticker symbol CBDW and now we’re taking definitive steps toward adding shareholder value. This $20 million financing is going to allow us to buy profitable CBD companies, and we’ll be a great investment opportunity for investors around the world,” Greg Lambrecht, CEO and Chairman of 1606 Corp, said.
In the next six to 18 months, the company aims to spend between $5 million to $20 million on acquiring established brands or a broad spectrum of companies that are into CCBD + hemp edibles and topicals that are about six years old. While 1606 didn’t divulge any specifics, they did say they are waiting on a signature to close an acquisition any day now.
Compared to other players like Canopy Growth Corp. (NASDAQ: CGC), Jazz Pharmaceuticals PLC (NASDAQ: JAZZ), Nandan Denim Ltd. (NSE: NDL), and Aurora Cannabis Inc. (NASDAQ: ACB), the company’s difference and power with its acquisition war chest could be key, especially as it is able to act while valuations are attractive and push forward into the future of the industry.
The Phoenix, Arizona-based company, which began trading on the OTC Market on January 17, is known to acquire and develop CBD brands, including Truz and CBD Singlez, with the aim of consolidating the fragmented CBD industry.
Production Of New Inventory Of CBD Smokables To Supply 2500 Retail Outlets
To actively engaged in a modern direct marketing campaign to continue the growth into individual retail stores, 1606 has hired a direct marketing industry veteran, Brent Duskin. He is expected to increase the company’s product footprints in more retail locations in the U.S.
According to a statement by the company, Mr. Duskin has worked with Fortune 500 companies that complement CEO Greg Lambrecht’s experience and connections in retail distribution. Mr. Lambrecht has personally conducted business with over 30,000 retail stores in his career and is the foundation of the recent growth of 1606 CBD products.
The company’s main product skew is CBD Singlz, a smokable CDB product. The displays hold three 25ct Singlz containing mango-flavored CBD rolls, Original Flavor, and Menthol. These products are enthusiastically being used by cigarette smokers to quit their addiction to nicotine.
1606 reports that it currently has enough inventory to fill orders for an additional 2500 retail locations.
"The gap left as a result of the flavor ban on vaping and tobacco products has resulted in a lot of shelves being open, and we're aggressively taking advantage of that opportunity. The fact that the Federal Government will not be adding regulations to the CBD industry leads us to believe that the time is right now for the consolidation of the industry, and that’s why we’re excited to have a $20,000,000 opportunity in the next year to execute on that ideal," said Greg Lambrecht - CEO & Chairman of 1606 Corp (OTC | CBDW).
For CBD business inquiries contact: acquisitions@cbd.inc.
This article was originally published on Benzinga here.
1606 Corp acquires and develops CBD brands including Truz and CBD Singlez, (www.1606hemp.com). The company utilizes an acquisition model aimed at consolidating the fragmented CBD industry. 1606 Corp has a primary focus on Hemp and CBD products, brand development, and establishing distribution channels. 1606 Corp. was awarded the ticker symbol CBDW on January 1th, 2022 and began trading on the OTC Market on January 17th, 2023.
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Greg Lambrecht
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