Just before Thanksgiving, in an under the radar announcement, Gridiron BioNutrients formerly MyCloudz, Inc. (OTC: MYYZ), a nutraceutical innovator specializing in Cannabidiol health and wellness products, announced it had executed a three year endorsement agreement with the National Football League Alumni (NFLA) effective November 1, 2017 through November 2, 2020.
With opioid addiction and overdoes a growing epidemic both domestically and internationally, the hemp industry is taking on a new role in the area of pain management and wellness. Cannabidiol, or CBD, is one of over 60 compounds called cannabinoids that are found in many plants but are most commonly linked to cannabis.
Unlike other cannabinoids such as tetrahydrocannabinol (THC), CBD does not produce a euphoric “high” or psychoactive effect. This is because CBD does not affect the same receptors as THC. Most CBD oil comes from industrial hemp, which usually has a higher CBD content than marijuana. Studies are showing that patients who use CBD for pain management have an easier time getting off prescription opioids, as well as reporting reduced incidents of chronic and sporadic pain.
Prior to its acquisition by MyCloudz, Inc., Gridiron BioNutrients was founded by Darren Long, former NFL tight-end and 3x All American College Football Player. Darren became an advocate of health and proper nutrition as a result of the symptoms from Chronic Traumatic Encephalopathy (CTE). Darren is on the frontline, working with many of his former NFL teammates and friends that are victims of CTE (brain concussions), which is a debilitating disease.
In 2014 Congress passed legislation allowing for the cultivation of hemp essentially marijuana that contains little or no tetrahydrocannabinol (THC), the psychoactive substance that makes you high. Furthermore, Section 7606 of the Agricultural Act of 2014 does not treat hemp as a controlled substance when grown under a compliant state program, thus opening the door to a burgeoning CBD market. According to a report published in Forbes, The CBD market is estimated to grow by 700% by 2020. A new report by market intelligence firm Hemp Business Journal projects that the CBD market will grow to $2.1 billion by 2020. The Hemp Business Journal report estimates that $450 million of the projected $2.1 billion in sales by 2020 will come from hemp-based sources. The hemp-derived CBD market was $90 million in 2015.
Gridiron BioNutrients’ products include capsules, oil, ointments, concentrate, and water. All of their certified Cannabinoid products are THC free, contain no heavy metals or pesticides and are independently lab tested for purity.
CannabidiolCBDis a cannabis compound that may have significant medical benefits, but does not make people feel “stoned”. CBD is non-psychoactive, which makes it an appealing option for relief from inflammation, pain, anxiety, psychosis, seizures, spasms, and other conditions without disconcerting feelings of lethargy or dysphoria.
Scientific and clinical research, much of it sponsored by the US government, underscores CBD’s potential as a treatment for a wide range of conditions, including arthritis, diabetes, alcoholism, MS, chronic pain, schizophrenia, PTSD, depression, antibiotic-resistant infections, epilepsy, and other neurological disorders.
Trading under the symbol MYYZ, MyCloudz Inc., which is changing its name to Gridiron BioNutrients as a result of the share-for-share transaction, currently trades at $1.11 per share with a market cap of $58.42 million. The company’s primary focus going forward will be CBD wellness related products. With the expected growth of the cannabis market both in the US and abroad, it is a crowded market. Having an endorsement deal in place with the NFL Alumni helps set Gridiron BioNutrients apart form the competition and adds a layer of legitimacy to what many still consider a fringe industry.
We think this stock is worth watching, but as always urge you to do your own research.