Tuesday, 4 September 2018

KBEV Announces World's First Cannabis Nootropic Beverage

Since our write up on August 14 called "Buying Cheap Cannabis Warrant Plays In Preparation For Fall Pop", cannabis stocks have done extremely well. This includes the leveraged warrants we recommended in our report - KALY.WT and HIP.WT.A - though the sector is still led by Canopy Growth Corporation (CGC)(WEED.TO). We expect smaller players like these ones and our next pick to play catch up as long as CGC remains strong and investors will look for cheap cannabis stocks. On Tuesday, a beverage maker came onto our radar screen after announcing the world's first cannabis drink of its kind and we think it will have much more to run. We are up to 656 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history. If you like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We have over 3,000 followers on Twitter as well.

Koios Beverage Corp. (SNOVF) (KBEV.CN) moved up 75% to $0.35 in Canada on 3 million volume after announcing that it will release the world's first Cannabis Nootropic Beverage:

"VANCOUVER, Sept. 4, 2018 /CNW/ - Koios Beverage Corp. (CSE: KBEV)(OTC: SNOVF) (the "Company" or "Koios") is pleased to announce it will be launching two additional products in October to augment its existing line of beverages.

The first product slated for release in October is a beverage infused with cannabidiol (CBD), a cannabinoid derived from hemp plants, along with Koios' proprietary nootropic stack.

CBD is commonly used in medical practice to deal with inflammation, pain, anxiety, and epileptic seizures. Unlike THC, which is also produced in the cannabis plant, CBD is not a psychoactive cannabinoid and does not cause the sensation of 'getting high' which is often associated with marijuana.

Nootropic supplements are used to enhance human productivity without using harmful chemicals or stimulants.  Koios products can enhance focus, concentration, mental capacity, memory retention, cognitive function, alertness, brain capacity and create all day mental clarity.

"We are just scratching the surface of what cannabinoids like CBD can do for human health," said Miller. "CBD is the best researched of all the cannabinoids within the cannabis plant, and is well known for its restorative effect on human health, and in dealing with various types of pain.

"With our focus on creating optimal human performance and health through our natural supplements, a CBD-infused beverage was a natural next step," Miller added. "With our current nootropic stack we will bring a product to market that aims to produce high levels of natural focus while simultaneously creating calming effects for the end user. A CBD infused beverage will be a tremendous value to the market and will allow us to come one step closer to realizing our vision of helping a billion people live healthier lives."

The second product slated for October will also be released through the Cannavated subsidiary, and will be a collaboration with the Company's partner Keef Brands, a division of CanCore Concepts Inc. (CanCore).

Keef Brands will manufacture, market and sell a line of beverages that are not only infused with THC, but also contain the nootropic supplements from the Koios line of brain enhancing functional beverages. The resulting product will be the first in the world to combine cannabis infusion with nootropic supplements that enhance the consumer's mental acuity.

Keef Brands has the exclusive rights to the Koios blend for Colorado, with the option of expanding the licensing agreement to Canada and the U.S., provided it complies with all rules and regulations in the markets where cannabis has been made legal.

The timing of the release of these products was pushed back due to the overwhelmingly positive result we have had launching our Pear Guava flavour. 

"The product sold out in its first month and forced us to alter our production schedule to meet the demand of our customers and retail partners," said Miller. "The timing on these new releases is critical and we want to ensure proper vertical alignment with our distributors as we approach the busy season.""

The first of anything for cannabis is sure to turn some heads in this hot industry and KBEV ended at its day high of $0.35, a signal that it has a good chance to continue its run. The fact that the product sold out in the first month is encouraging as the hype is on the product side as much as it is on the stock side. KBEV has a reasonable 50 million shares outstanding, something that investors and traders should look for when trying to find the next multi-day, multibagger runner.

In this market environment, we think that KBEV has as good of a chance as any to run hard. Though one has to be wary that all microcap risks are still applicable to it, like the risk of dilution and being susceptible to a cooling off period in cannabis. However, we think that cannabis will remain hot for the next little while and that the risks of immediate dilution are small. The sky is the limit for how high KBEV could go in our opinion. It all depends on market sentiment over this potential game-changer for the cannabis drinks and healthy living industries.

Disclosure: We are long KBEV.CN

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