RE:DD report on Folium allegations and PaytronHere's my take after reading the report and doing some research on CBD.
After the farm bill passed, hemp/CBD prices have fallen dramatically because everyone can grow hemp now. Further downward pressure on the prices of CBD will ensue.
There is no scientific proof that CBD is good for you. FDA has not cleared CBD as a dietary supplement thus only topical forms are approved. FDA also recommends consulting with your doctor before taking it whereas a dietary supplement like Vitamins doesn't.
If the merger goes through ACB's backend rights in Ausa becomes moot.
The only thing that makes sense with the merger is if they drop the valuation to a level where they factor in future decline in CBD prices. A 600M-800M valuation is BS, more like 200-300M.
If the merger doesn't go through, we can rest assured Scott will focus on growing Ausa for the simple fact that he holds a ton of shares. ACB's future involvement becomes more viable and plausible.
While the future of CBD is a mystery, the THC market in the US in unrefutably huge. Curaleaf alone who only sells medical marijuana is in line to make close to a billion in Revenue.
Which CBD company makes a billion? None! CWEB is the biggest publicly traded CBD producers in the US and it's annual revenue is only 100M. And that's when CBD is Federally legal.
THC is still Federally illegal and it's market is already in the billions. The potential is there for THC not so much CBD.
Ausa should focus on THC as the SAFE banking act and MORE act are close to being passed. They need to be in position for when they pass.
If SAFE passes, Ausa can start buying distressed THC assets then when they legalize weed, ACB can exercise their backend rights. And by that time, Ausa would 10x easy.
I mean that's the freggin reason why we invested in Ausa in the first place? Am I wrong?
I would've never touched Ausa if I knew it was turning into a CBD company.
You get CBD from smoking weed anyways. CBD is only for those who doesn't want the psychoactive properties.
If Ausa want to go the CBD, then fine, at least give us immediate shareholder value!
Immediate shareholder value means, if they value Folium at $200M, Ausa should account for say 50% so our shares are worth more right away even before it gets traded.
Anyways, we'll know by the 26th. I know everyone is in pain right now. Be patient.
Goodluck!