Shhh. Don’t Tell Two Friends. We Found a CBD Marketing Machine in the Making.
You may have noticed over the last 10-20 years, we’re pretty good at stumbling across some really obscure companies very, very early in their start-up days. Off the top of our head, finds in the the very early ‘category’ we came across include Circle Group which traded from $0.30 to $9.00, New Age Beverages $0.26 to $7.00, Roaming Messenger $0.25 to over $3.00, Dyadic $1.00 to $7.00, Immunomedics $3.00 to $26 – and really, dozens of others*.
What these companies had in common was a CEO or team which had a really great idea, and a drive to succeed and infectious confidence – which left us with a blend of “why not and what if they pull it off” taste in our mouth – so we signed them as clients.
Meaning we didn’t simply review SEC (or Sedar) filings and the like with those finds, but rather got excited about what management (or a large shareholder) told us about their vision – which for whatever reason made sense to us. Again, “why not, sounds like a good idea?”
We come across another such company last week and signed them as a client, meaning we will be reporting on their progress. The name; NASS Valley Gateway NVG on the Canadian exchanges and NSVGF in the US.
What resonated with us – and coincidentally something we have been looking for – is a company which is planning on using ‘old-school’ proven methods, to selling into a new product category – in this instance, CBD related products.
Not to get too off track but dozens of companies contact us each month with a new idea they want to share with us, in hopes we’ll in turn share with others (aka investors). The problem is (90% of the time) that they’re under the impression if they slap a CBD label on a drink, a cookie or gummy bear, or on a glass bottle with an eyedropper on top – that it’s going to magically fly off the shelves of a dispensary or via a nicely designed website using Woo-commerce or Spotify or Amazon – who collectively have millions of users.
But what most companies seem to be selling (to us) are product features. It’s nano this, organic that, the only water-soluble formula, or that the cannabis marijuana leafs were massaged daily and whispered to by Virgins in the Hawian mountains before being processed. We really don’t care. Google CBD at Amazon and 5,000 products will show up. In five years it will be 25,000 with 95% generating less than $100,000 in annual sales
What we want to hear is how they are going to SELL!
And that’s what we heard last week. We are of the opinion that the companies who will have the greatest success in selling new CBD products will be companies and people who were good at selling something else (Blue Emu, Proactive Acne Care, Bowflex, Snuggie, Shamwow – who raked in $100’s of millions) or companies which already have a well-selling product that is a line extension with CBD added. Like Alkaline88 (WTER) water enhanced with CBD or Blue Emu enhanced with CBD.
As sure as we’re sitting here, CBD commercials will hit the airwaves. If George Foreman started hawking a CBD cream that made his tired knuckles feel 20 years younger, it would sell. If Ron Popiel started hawking a CBD oil let finally let him sleep at night, “take it and forget it” it would sell. If either one of them started a public company to exploit CBD, we would be interested. We don’t care about nano-sized organic particles.
Enter: NASS Valley Gateway. We will be short, just some highlights and sound bites. As we mentioned the company is very early – and the stock is also very early (and we are early in our review).
We’ll additionally assume in the next few months it will be difficult to buy a large block of stock and it could easily triple with sloppy buying. So no rush to buy. But now is as good a time as any to start nibbling, in our opinion, before they announce their plans in a more concrete fashion, versus what is currently on their website and/or before they begin to actually implement their plans (aka TV commercial).
We’re putting this out after the close, last trade $0.065 with a spread currently wide enough to drive a truck through- $0.05 one day, $0.15 the next, aggravating for sure. This, rather obviously not a trading vehicle, we are looking years out.
Sound bite #1. Nobody has heard of it and we mean it. News is difficult to find and most popular financial sites haven’t carried what’s going on (we’ll help them fix that). Some news can be found here on Bloomberg (down halfway and to the right) and on some here on Cision. A considerable amount of news is outdated (old plans). In addition, the company during the past year has had many fits and starts, and just recently – after announcing a new CEO and COO, are now on what appears to be a trackable path.
Sound bite #2. New CEO Gavin Collier and COO Jordan Erskine are fantastic marketers and these guys are the real deal. News out last week. We did a background check on both, they come from DBS Blending, and these guys know how to sell. And they are from Utah, so they get some bonus points for that (as in they are not ‘stock guys’ from Long Island). They cut their teeth in the personal care/skincare industry as contract manufacturers, developing new and innovative products which will come in handy creating CBD enhanced products. News on NASS DBS Joint Venture.
Sound bite#3. The company will be using broadcast media, print media, and digital media to promote sales. They are planning 3 distinct products to sell into 3 distinct selling channels. Nass Valley Gardens, Dutchess and Dermapharm – direct to medical clinics.
Nass Valley Gardens: They plan to market to double verified opt-in leads of up to 10,000 per day. Leads can call into a 225 live-person calling center to enroll in a discounted subscription service.
Dutchess: Will target the enormous skin-care market. In addition to digital marketing (email) NVG has relationships with major U.S television networks such as NBC, CBS, and ABC. They are in the process of reserving time slots for 29 and 1/2 second TV ad on each network. Similar to Nass Valley Gardens, leads will be fed into a highly sophisticated calling center.
Dermapharm. NVG will focus and target top preforming doctors in the United States for this lineup. But rather than ‘hoping’ for sales, they will be sending out high-end personal ‘proformas’ to Health Care Professionals nationwide – which will demonstrate how a subscription plan sold to patients can benefit their medical practice (business) with minimal effort.
Also, call-center powered, The call center will be utilizing face-to-face technology that will allow agents to connect with doctors from a remote location 24/7 for doctors’ convenience. Traditional direct to doctor sales companies have manufacturer’s reps on the ground going office to office. This is inconvenient for doctors and expensive for the company. With the call center and its technology, NVG can launch national campaigns, manage its accounts, and convert leads in a way that traditional outside reps cannot. NVG will be giving doctors the convenience and profits they need while keeping the company overhead low.
In an upcoming report, we will delve into their three operating partners Dynamic Blending (product design, formulation and bottling), the WASI call center and the Television Ad Group for video and commercial production.
Initial Leadership Team
Gavin Collier & Jordan Erskine / Dynamic Blending
Mr. Collier sits on the board of several companies and is currently Chairman for NarcX, Inc.
Prior to his partnership with Jordan in forming Dynamic, Mr. Collier climbed the ranks in his legal firm and earned partner status. Mr. Collier provided aggressive and prepared legal services, which made him very formidable as a trial attorney.
Mr. Collier has 11 years in personal care manufacturing and has recently been named CEO of Dynamic Blending Specialists, Inc. His prior title was Vice President and COO. Mr. Collier has also played a key role in Dynamic Blending Specialists, Inc., an award-winning business, that just recently won the American Business Awards “Bronze” for fastest-growing business.
Mr. Collier has an A.S. in general studies as well as a B.S. Degree in Life Sciences Biology with an emphasis in Chemistry and Micro and Molecular Biology. Mr. Collier also obtained his Doctor of Jurisprudence and is a licensed attorney in the State of Utah.
Jordan Erskine is a highly motivated entrepreneur who has co-founded & sold many successful businesses. Jordan has over 17 years in the personal care/skincare industry. Jordan currently serves as President for the award-winning contract manufacturer Dynamic Blending. Jordan also serves as Chief Operating Officer for NarcX.
Jordan has spent his entire career in the manufacturing and R&D world. Jordan started his career at a large contract manufacturing facility, Wasatch Product Development, in Draper Utah. At Wasatch Product Development he wore many hats in R&D, manufacturing, formulations, etc. He spent many years in R&D developing new and innovative personal care/skincare products. Jordan then moved on to a large dental manufacturing firm named Ultradent Products, Inc. Here, Jordan formulated and provided technical formulations assistance for two large Fortune 500 company accounts, Glaxo Smith-Kline, and Colgate-Palmolive.
After this Jordan decided to start Dynamic Blending with Gavin Collier due to the huge need for contract manufacturers. Dynamic Blending was founded in 2015 and has seen triple-digit growth year over year. Jordan’s vision for Dynamic Blending was to offer a full turnkey solution in the skincare contract manufacturing industry. That is what Dynamic Blending does. From concept to fulfillment, Dynamic Blending can do it all.
FULL START-UP TEAM, click here.
More to come…
Neither the CSE nor its Regulation Services Provider has reviewed or accepts responsibility for the adequacy or accuracy of the contents of this update. A client, we are on a monthly retainer and have received payment of ten-thousand dollars to initiate coverage (coming).
*Past performance gives absolutely no indication for future performance.