- The U.S. CBD market has existed for years and has been disrupted since 2018 after the 2018 Farm Bill passed to legalize industrial hemp cultivation.
- Since the 2018 Farm Bill was passed, a large number of vendors entered the CBD market helped by the low barriers to entry and booming consumer demand for CBD-infused products.
- Since then, we have seen CBD companies facing eroding market share and deteriorating financial performance despite the overall market growth.
- The product line is similar to CWEB and the company claims that Reliva products are sold in over 20,000 retail stores which seems quite a large number if true.
- As discussed above, we think the nature of this acquisition means that there will be a very limited impact on Aurora’s financial performance given the size of the deal and bleak growth prospects.
Read full article: seekingalpha.com