RichTV Live is as much about the community as it is about the host. So today Rich decided to profile a company that one of his followers tipped him off to, Alternate Health Corp. (CSE:AHG) (OTCQB:AHGIF).
Based in Toronto, Alternate Health is a leader in CBD extraction, product development, and distribution. Through its subsidiary, Blaine Labs, it has over 50 product stock-keeping units available in doctors’ offices and from retailers like Walmart, CVS, Amazon, and Walgreens. All products are FDA-approved and cGMP-certified.
The company’s innovative software systems allow it to diversify its operations. In addition to its role in the CBD industry, Alternate Health is involved in blockchain tax collection systems and electronic medical records (EMR) platforms across North America.
After falling from a year-long high of $0.84 on May 16 to a low of $0.15 on September 10, AHG has seen a bit of a comeback. In the last two weeks, it has rallied back to $0.22, and Rich believes it could continue to rise.
“The float is 77 million shares, so a very tight float considering that we’re talking about a $0.22 stock,” says Rich. “I like the share structure because when I see a small amount of shares and a tight float I think to myself, ‘less dilution, less selling’ which means the stock could go much higher.”
Alternate Health’s Recent News
According to its Q2 financial results, Alternate Health generated $1.9 million. According to CEO Howard Mann, this figure represents “just the beginning” of the company’s new strategic direction to focus exclusively on the hemp-derived CBD industry.
“We have built a strong base to rapidly expand our hemp and CBD product lines and capture a larger share of this exciting market,” he added in the financial report dated July 20.
Mann also explained that Alternate Health is in the process of finalizing the formulations of its products, negotiating with distributors, and securing its inventory. While investors can expect higher revenue in Q3, Mann says that the full effects of this process won’t be felt until Q4.
The company is expected to break even on cash-flow, or even become profitable, before the end of the year.
“They’re only going to get bigger and better,” says Rich. “In 2018 the operating revenue was $507,000, and in 2019 the operating revenue is $1.9 million. A $1.4 million change is a drastic jump.”
In addition to acquiring Blaine Labs, Alternate Health has been filling its coffers through a financing arrangement with European High Growth Opportunities Securitization Fund.
Alternate Health and the Future of CBD
As noted on the company’s website, Alternate Health earns no revenues from the production, distribution, or sale of cannabis or cannabis products. It deals exclusively with CBD.
Based on formulations it obtained from Blaine Labs, Alternate Health is launching a line of hemp and CBD products called UHemp. The brand includes tinctures and topical creams for the treatment of scars, pain, and fungus.
The company uses a vertically integrated blockchain distribution system to manage transactions across the CBD industry. Based in California, the system is both efficient and secure, with international growth potential.
“They’re using blockchain and bitcoin to take payments,” explains Rich. “They’re taking the two hottest industries in the world—cryptocurrencies and cannabis—and fusing them. Is this the future of CBD?”
What do you think? Is Alternate Health a worthwhile investment? If you want Rich to profile a company on your mind, let us know about it in the comments below. Also be sure to check out Rich’s other profiles of companies like Zenabis Global (TSX:ZENA) (OTCPK:ZBISF) and Kontrol Energy (CSE:KNR) (OTCQB:KNRLF).
Featured image: DepositPhotos © EdZbarzhyvetsky