Cannonau Corp. (CNNC:US)

Discussion in 'Penny Stocks' started by Tuna Laf, Jan 25, 2022.

  1. Tuna Laf

    Tuna Laf New Member

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    OTCPK:CNNC:US
    Current price as of 01/25/2021: $0.055


    Overview
    Cannonau Corp., traded under the ticker CNNC:US engages in developing cannabidiol based products (CBD). The Company uses nanotechnology to offer the Cannabidiol (CBD). The Company markets packages and distributes hemp-CBD-based products for the consumer on its Website company. It is also engaged in educating on its natural and practical benefits. It offers CBD in flavors such as wintergreen, vanilla and natural. Its collections include CBD gummies, CBD oils and CBD balms. Its CBD Oil is sourced from a Colorado farm. Its hemp Cannabis Sativa plants are cultivated with no genetic modifications, pesticides, or other compounds. Its hemp oil is extracted utilizing a carbon dioxide (CO2) extraction method for extracting the phytonutrients from each hemp plant ensuring the oil contains a spectrum of cannabinoids and terpenes. Its CBD also contains a variety of vitamins, minerals, fatty acids, protein, chlorophyll, terpenes, flavonoids, and fiber. It also offers hemp CBD products and treats for pets. The company was formerly known as Pacific Blue Energy Corp. and changed its name to Cannonau Corp. in August 2019. Cannonau Corp. was incorporated in 2007 and is based in Skaneateles, New York.


    SHARES STATISTICS

    Market Cap $13,299,860

    Shares Outstanding 241,815,632

    Float 21,324,798



    Analysis and comments

    The company operates in a very hot and trendy sector (cannabis), since most of the growth is still ahead, with laws and regulations constantly changing for the better of this industry, with the legalization in some states – many are yet to follow.


    The legalization of cannabis usage is divided into 2 categories. The recreational usage and the medical usage. When talking about “true” legalization, one talks about the recreational usage being legal. Currently, only 2 countries have complete nationwide legal recreational usage of cannabis, these are Canada and Uruguay. Some have decriminalized the recreational usage like Georgia, Mexico, South Africa, 18 states of the USA and Australia. So it is obvious how big the cannabis market could (and highly likely will) potentially reach in the near future. In fact, BDSA announced an update of its cannabis market forecast on Sept. 21 2021. Apparently cannabis sales for 2021 will near $31 billion, an increase of 41% over 2020 sales. Furthermore, global cannabis sales are expected to grow from $30.6 billion in 2021 to $62.1 billion in 2026, representing a compound annual growth rate of more than 15%. The increase is due to more states passing legislation to legalize cannabis. (https://www.globenewswire.com/news-...-in-2021-Will-Surpass-62-Billion-by-2026.html)


    When looking at the financial reports of Cannonau Corp. (CNNC:US) one can see that the company is currently in the hyper growth phase. As of the latest available financial data (June 30, 2021), the company had total assets of $24,844 versus $19,338. The increase of around 28.5% of the assets mainly result from an increase in the cash position from $164 to $638. But the main difference are the accounts receivables. Which increased by $5,032. Meaning the company started selling their products and generating gross profit of $5,104 versus only $555 in 2020. As stated above, the company is in the growth phase and therefore obviously are not profitable yet.


    The company’s stock a 52-week high of $14.34 in 2021, meaning the company is currently undervalued at $0.0520 per share.Today on opening had increase of 15%.


    Cannonau Corp., (CNNC:US) recently announced the appointment of Dr. Douglas Pitchford, MD as medical advisor and the engagement of Mr. Fruqan Mouzon, Esq who is our Cannabis law advisor for the company.


    The company was also featured in the HempCBD Investor Magazine Issue #5, meaning the company and the sector itself is getting publicity. CannaInvestor Magazine and HempCBD Investor Magazine are the leading industry investment magazines for Cannabis, Hemp, and CBD investors, analysts, executives, entrepreneurs, and the financial media.


    But the most promising news for the company and investors came in spring of last year: Virtual Medical International Inc. (OTC: QEBR), a Wellness company in the hemp-derived CBD sector, announced that it has entered into an agreement with Cannonau Corp. whereby it has obtained the rights to distribute or resell Cannonau's Full-Spectrum CBD products to the public online and in retail outlets on a worldwide basis.


    With an effective date of April 30, 2021, the agreement entitles Virtual Medical the rights to Cannonau's diversified business whose revenues are generated from CNNC's product sales through its company-owned retail stores, franchise stores, domestic and international franchise activities, third party contract manufacturing, e-commerce and corporate alignments.


    With other market participants like Charlotte´s Web Holdings, Inc. (CWBHF), Curaleaf Holdings, Inc. (CURLF) having a much bigger Market Cap., the potential for CNNC:US is definitely out there.

    Considering all of these facts, the stock might be a buy at these undervalued prices.
     

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