SOL Global changes name, launches new hemp company
SOL Global (CSE:SOL) (OTCQB:SOLCF) announced the launch of their new company this week. Heavenly Rx is the latest international hemp company on the scene, promising a line of traditional CBD products that includes tinctures and vapes. The big picture plan for Heavenly is expanding into the wellness and pet industries with several proprietary brands.
SOL Global - formerly Scythian Biosciences Corp. - is changing gears when it comes to cannabis. The pot stock appears to be taking strategic advantage of the 2018 farm bill, which is currently paving the way for CBD and THC-free hemp products in the United States.
"SOL Global's executive team has been at the very forefront of regulatory reform both in the United States and internationally, and we couldn't be more excited to continue to build upon and execute our already robust long-term strategy for the global hemp/CBD industry,” SOL CEO Brady Cobb clarified in Monday’s press release.
This long-term strategy is playing out dramatically right before investors’ eyes. SOL’s executive team was unavailable for comment, but this pot stock is making moves that deserve a second look.
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Scythian Biosciences becomes SOL Global Investments
SOL updated their namesake in October, shortly after making a few executive changes and selling LATAM Holdings to Aphria. And although the pot stock posted record financial results in September, the LATAM agreement ended up costing them $17 million after short-sellers splintered Aphria’s share prices with claims of impropriety.
The company remains satisfied with the outcome of the Aphria deal, but CFO Andy DeFrancesco did admit to SOL being a “significant seller” of Aphria shares during a community AMA. More details are promised in SOL’s next quarterly update, but that just means investors will continue to play the waiting game.
In the meantime, SOL is not waiting for anything. In December, they entered a strategic partnership with OG DNA Genetics, an award-winning cannabis breeder with two million square feet of medical marijuana growth in California. With this, combined with their existing presence in Florida, SOL is well on their way to building an ample real estate portfolio in the American market.
And the latest launch of Heavenly Rx looks pretty similar. The pot stock invested $30 million in Tennessee-based Blühen Botanicals through the Heavenly subsidiary. Blühen is a hemp biomass extraction company, and the investment is focused on expanding the brand’s engineering team as well as their retail operations.
What does Heavenly Rx mean for investors?
The launch of Heavenly Rx is paved with good intentions and seems focused on starting their global expansion in American cities. And the company is looking to build a portfolio of decisive CBD brands that goes beyond traditional investments.
“Heavenly Rx is not simply an investment company, but rather a laser-focused global Hemp and CBD company only for all operations under the Heavenly Rx banner,” Andy DeFrancesco, SOL CFO, said on Monday.
It appears that Heavenly Rx could be SOL Global’s answer to the CBD industry. With a new company, and another new name, SOL could be separating themselves from the recreational and medical cannabis industries (and any negative biases therein).
With Heavenly, the goal is to bring something new to consumers and investors by focusing on meaningful brands with a holistic approach to wellness and boosting their existing offers with brand new CBD-infused products. Investors can expect more details in the coming weeks when Heavenly announces their Board and management team.