Veritas Farms VFRMD Stock News

Veritas Farms Inc (OTCMKTS: VFRM) issued a press release this morning that outlines the value of the stock and the efforts that the company continues to make in order to increase this value. Here’s what’s happening:

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VFRM Stock Is One To Watch After Shareholder Letter

In a press release issued early this morning, a note from Alexander M. Salgado, CEO at Veritas Farms, offered up an update on milestones and work ahead.

In the first paragraph of the letter, Mr. Salgado pointed to the efforts that the company has been making to increase its retail footprint and therefore its revenue. In fact, as of now, the company’s products are featured on shelves of more than 4,500 retail locations across the United States. Importantly, more than 3,500 of these locations are national chain pharmacy and supermarket outlets.

As a result of the increasing retail footprint, VFRM is seeing strong growth in revenue. In fact in the second quarter of 2019, the comapny generated growth of more than 500% on a year over year basis.

Mr. Salgado also pointed to a number of infrastructure, human resource, and marketing investments that it has made throughout the year thus far. These moves have helped the company meet growing demand with feasible supplies and should continue to have a positive impact on results, both in the short and long term.

In following the company, I’ve been clear that there is real value in its big box approach, focused on national chain drug stores and supermarkets. In the note, Mr. Salgaod said that these efforts have led to a significant portion of the company’s distribution network being covered by national chains, leading to expectations of continued sales growth and awareness among consumers.

Mr. Salgado said that the VFRM team is confident that it will be able to continue this trend, greatly expanding its retail footprint further as time passes.

In the note, the CEO at Veritas also pointed to recent private placement financing that has led to more than $20 million in raised funds. These funds will continue to be used to fuel the company’s continued work to expand its retail distribution network.

Moreover, these funds will be used to implement additional sales and marketing programs, expand infrastructure, fill key management and admin positions, and to cover the costs of multiple product launches in the near future.

As any investor knows, having a great product is important, but being able to sell that product is just as important. In the note, Mr. Salgado addressed this poing. Stating that “the success of (its) Veritas Farms brand depends on reaching and influencing consumers with targeted marketing campaigns.”

Knowing this, VFRM has made large investments in the expansion of marketing teams. The company has also attended more than a dozen industry tradeshows and expos as well as launched its first outdoor advertising campaign.

Moreover, in order to continue driving consumer demand, the company has greatly expanded social media influencer partnerships. It’s also worth mentioning that as advertising policies shift around the web, the company has been able to begin advertising on digital display networks and social media platforms.

The marketing efforts made by VFRM are paying off. In fact, the company has recently earned attention from mainstream media outlets like Fox Business, The New York Times, Denver Post, Miami Herald, and several others. Moreover, advertisements in magazines like Men’s Health Magazine are proving effective in driving traffic and online sales.

The company said that due to the strong success that it has seen from its marketing efforts, it expects to continue expanding its proven programs and exploring other marketing opportunities as more retail outlets start to become more receptive to CBD and willing to put CBD-related products on their shelves.

Also, under the guidance of Spencer Fuller, VP of Agriculture at VFRM, the company has made key enhancements to its farming infrastructure and processes to expand and improve crop yields.

In particular, the comapny has more than doubled its planting area, planted highly productive and filled this area with highly productive proprietary hemp strains. The company has also worked to amend soil and implemented a subsurface irrigation system.

As a result of this work, Veritas Farms is now producing more than five times the amount of hemp that it was producing in 2018. Harvest of the current crop is planned for October.

Mr. Salgado went on to explain that throughout the last year, the team at VFRM has been working to develop new products. In the release, Salgado said that these products are not variations of current Veritas Farms options. Instead, they represent new product categories and sub-brands that have the potential to drive significant revenue ahead.

While the company said that it is not ready to launch these products as of yet, the launch is expected soon.

The Bottom Line

The bottom line here is that over the past year, Veritas Farms has been working hard to expand shareholder value, and has done a great job of it. With growing production, a growing retail footprint, and new product launches expected soon, VFRM is a stock that should be on your watch list.

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CNA Finance, parent company to Alpha Stock News, has a financial relationship with Veritas Farms.

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