Curaleaf Holdings, Inc. (CSE:CURA) is launching a new line of hemp-based CBD products designed for pets with a new brand called “Bido,” it said May 10. The Massachusetts-based cannabis company, fresh off its big purchase of Cura Partners, is hoping to attract dog owners looking to reduce the anxiety in their pets with Bido pet drops that will come in a variety of flavors.
Although research is limited on the effectiveness of CBD on pets, in its release, Curaleaf stated that “initial third-party studies to support a pet’s overall wellness including the potential to help manage pain and anxiety.” Curaleaf said its products “undergo strict laboratory testing” and it can provide results upon request. Given the popularity of CBD, the company looks to gain an advantage on others in the industry as one of the first movers in the pet sub-market.
Our human customers are already reaping the benefits of CBD with Curaleaf Hemp. The same care and research went into the development of Bido. We are excited to be extending our high quality, trusted products to pet owners
– Joe Lusardi, President and CEO of Curaleaf
Is the move too early?
With limited research available, cannabis companies still have an uphill battle convincing patients and doctors CBD is a safe way to effectively treat medical conditions, and targeting pet’s health might be premature for Curaleaf. Especially with high demands on cash needed to continue growing and fund further acquisitions, it may be a risky. While the pet food CBD segment of the market might hold potential, the human market has already caught fire.
However, Curaleaf’s CEO is looking at in a different light, and that’s in offering customers a wide array of cannabis and hemp products: “The launch of Bido is just one more way we are the most accessible cannabis company in the U.S.”
With oils, vape pens, patches and lotions already in its product line, Curaleaf has a vast offering that can capture a broad and diverse customer base. But the wide scope of product lines will take up resources, including cash, which could hinder other opportunities. Curaleaf has its hands full already integrating Cura Partners into the mix, and because it has not been posting profits or even generating positive cash flow from its current operations, it could spell trouble down the road.
Curaleaf is going through many changes this year, meaning costs are likely to rise and profits may be even more elusive than they are today. Investors will want to keep a close eye Curaleaf’s cash flow because of the danger it could present shareholders with more shares being issued if cash becomes a problem, which will put downward pressure on price while also diluting ownership.
However, Curaleaf is currently trendy upward with share price rising more than 40 per cent in the past three months.