Dewmar International BMC Inc (OTCMKTS:DEWM) has been positively on fire of late. DEWM has been making some aggressive moves into the medical marijuana space, and market participants have clearly been receptive. The company is just coming off an July 14 announcement that its Nevada subsidiary, United States Hemp Corporation, has created a wholly-owned subsidiary by the name of Cannabis Intellectual Property Holdings, LLC in order to protect a number of medical cannabis intellectual property assets. We often see this when the early equity holders want to create a new cap table for new investment flows that will own equity in a licensing arm, rather than directly own the IP.
Dr. Marco Moran, Chief Executive Officer of Dewmar International, commented, “Throughout my career as a director of pharmacy and head of Regulatory Affairs at a drug manufacturing facility in South Louisiana, I have seen well over 100 drugs that were known to work for 1 particular disease state re-introduced using different delivery technologies that ultimately resulted in an incredibly successful product and usage for additional non-related diseases and conditions.”
Dewmar International BMC Inc (OTCMKTS:DEWM) trumpets itself as a diversified operating company headquartered in Clinton, MS with additional offices in New Orleans, LA; Denver, CO and Houston, TX.
The Company has business lines in consumer goods, healthcare and content media. The Company and its subsidiaries develop, market and distribute goods, therapeutics and services in national and international markets through licensing agreements, e-commerce platforms, fee-for-service arrangements and distribution contracts. The Company’s largest retail customer is Wal-Mart Stores, Inc.
According to company materials, “Dewmar International BMC, Inc. is a U.S. based new product development, manufacturing and brand management company. Established in 2003, Dewmar’s primary business strategy has been in creating high profit margins with functional foods and beverages, as well as introducing new simple yet meaningful innovations to markets of great demand. The Company’s flagship product, Lean Slow Motion Potion, whose flavors include Yella, Purp and Easta Pink, is rated as one of the top 3 national selling relaxation beverages in the U.S. market. The company has offices in Clinton, MS; Houston, TX: Denver, CO and New Orleans, LA.”
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As noted above, the company has reorganized to enable new money to come in as investment without diluting ownership of the IP. The story the company relates should add important color to understanding why they might take this step.
According to the release, “the medical marijuana movement in this country has been growing for decades. The first state to approve marijuana for medical use was California in 1996 but momentum increased exponentially after news broke about the Charlotte’s Web strain in Colorado. Charlotte’s web was developed by the Colorado-based Stanley Brothers which is a strain that his high in a cannabinoid known as cannabidiol but at the same time, the strain contains virtually no THC… Prior to treatment, a young girl affectionately known as Charlotte was having a seizure up to hundreds of times a day. After using the high CBD oil, the seizures virtually immediately ceased to occur. According to Dr. Sanjay Gupta’s CNN Special Report docuseries film titled, WEED, we are at the beginning of the medical marijuana revolution as thousands of families moved from all over the country to Colorado to gain access to this rare but remarkable strain.”
Traders will note above 190% piled on for shareholders of the name during the trailing month. The situation may be worth watching. DEWM has a track record that includes a number of dramatic bounces. In addition, the company has witnessed a pop in interest, as transaction volume levels have recently pushed approaching 370% above the average volume levels in play in this stock over the longer term.
Now commanding a market cap of $34.9M, DEWM has a reserve ($131K) of cash on the books, which is balanced by about $1.3M in total current liabilities. One should also note that debt has been growing over recent quarters. DEWM is pulling in trailing 12-month revenues of $690K. However, the company is seeing recent declines on the top line on a sequential quarterly basis, with revenues falling at -10.4% as of its latest reporting period. As more color becomes clear on the name, we will review the situation and update our take. For continuing coverage on shares of $DEWM stock, as well as our other breakout stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: we hold no position in $DEWM, either long or short, and we have not been compensated for this article.
