$HIPH American Premium Water Corp (OTC: HIPH) CEO
Post# of 42117
GlobeNewswire•April 9, 2019
In interview the Company is still on track for Uplist to NASDAQ in 2020
NEW YORK, April 09, 2019 (GLOBE NEWSWIRE) -- OTCTranscript.com conducted a wide ranging interview with American Premium Water Corporation CEO Ryan Fishoff (HIPH) where he discussed a number of different topics. Below is the transcript of the interview.
The Company released a study this week that analyzed the Company’s proprietary nano-technology. Can you go into more detail what this means for the short and long term future of the Company?
Science is an important part of the Company. We are making a concerted effort to emphasize science in our branding and marketing, and not just in our LALPINA CBD product. The Canyon Create portfolio has great compounds and products; Vanexxe is a great product that solves a cosmetic problem that afflicts millions of Americans which currently lacks a topical cosmetic solution. The growth potential is huge and I am looking forward to the formal rollout later to begin later this month. These are two examples of the Company’s products which utilizes sophisticated formulations that super cede what’s currently in the marketplace. We are going to continue to focus on developing products and make acquisitions that fit this criteria and leverage our ability to market & promote them.
More specifically, what does this report’s release mean to the Company?
I think the report speaks for itself. It validates what we have been saying about our product. The atomic analysis demonstrates that the nanometer molecular structure of our Hydro Nano technology has the ability to deliver CBD more efficiently into the body. Having the data shows that these aren’t just talking points, there is actual results to lean on. It further distinguishes our product (and Company) from our competition. There are many out there who claim to have have nano-technology, but we can point to scientific data to show how ours works and how effective it is. I think that will have a very positive effect on the Company and shareholder value.
You mention shareholder value, do you think the Company is properly priced?
I do think that the Company does not get enough credit for the technology that it has in the portfolio. I think its an undervalue asset, not only because of the applications it has in the beverage space but also of how the hydro nano formulations can be applied to other beverages, cosmetics, and topicals, which the Company is exploring to be utilized in its other brands and products. The underlying technology along with Company’s track record of marketing and distribution makes for a compelling business case.
Distribution is key for any consumer product business, what is your distribution outlook?
Since the beginning of the year, the Company has been focused on expanding distribution. We outlined at the end of last year our sales strategy to focus on four core geographic areas; New York, Los Angeles, Las Vegas, and Miami. They were chosen for a combination of their visibility and population concentration. At the beginning of the year we brought on cuttin edge beverage to focus on selling to grocery chains, health food outlets, convenience stores and independent retailers in the northeast. As the demand has increased for our products, especially from outside our core areas, we have added a group based in Northeast Ohio that will be focusing on accounts in the Midwest, where demand has spiked in recent months and became too large for the Company to ignore. We also setup an operation in the UK that will cover all of Europe which I am very excited about. All the teams have made a lot of progress and I look forward to being able to announce some of the results of their efforts soon.
Is it prudent to be expanding internationally when there is plenty of demand in the US?
Since we brought on Tanya Gullick and her team aboard, they have brought us many opportunities in the UK. We announced our partnership with Hanlons Brewery to develop CBD infused beer, which I think has a tremendous amount of potential from a commercial stand point but also as a showcase for the Company’s technology as a case study for other applications and partnerships. I took a trip to London earlier this year and I saw for myself the potential market in the UK and Europe. The regulatory environment over there is less onerous than the US or Canada, and CBD is in a much more nascent stage than it is here. The Hanlons partnership positions us to be able to tap into the global beer market which is huge, and because of the less onerous restrictions, we are able to get to market faster in the UK and Europe. We are exploring partnerships with liquor companies over there as well which I feel has equal if not greater potential for revenue. These confluence of factors presents a tremendous opportunity in the region; Tanya and her team are doing a great job cultivating distribution and partnerships. There are many things in the pipeline that will be coming to fruition in the coming weeks. I will be going back to London in the middle of May and I anticipate I’ll be able to share some updates on progress over there before then.
What are some of the other beverages that you are considering producing utilizing the Company’s proprietary formulation?
The Company will be focusing on producing water under the LALPINA brand for the remainder of the year. We are working on producing a THC-infused variation that we will launch later in the year to start in dispensaries in California. There are some logistical challenges that we need to overcome to sell it in other states and countries where legal (including Canada and Spain); that’s some of the development that we will be working on this year. California is by far the biggest legal marijuana market in the US and I think getting our LALPINA infused THC beverage in distribution throughout the state should bring significant topline revenue, as there is no cannabis beverage using hydro-nano technology on the market.
So there won’t be other kinds of beverages added to the Company’s portfolio?
LALPINA is a water brand. We will be looking at doing different flavors of LALPINA CBD and the THC-infused version in the near future but I don’t foresee us extending the brand into other beverages. I think in the short-to-midterm the Company will explore partnerships and/or acquisitions with other brands in different beverage categories. I think licensing our technology is the most logical path as we’re able to monetize our technology while focusing on the core business
What is the Company’s core business? Is the Company a water company or is it something else?
The Company is marketer and distributer of premium infused CBD consumer products. That’s beverages, cosmetics, and topicals. We are building something larger than ‘just’ a CBD water company, or ‘just’ a CBD cosmetics Company. The portfolio approach is another aspect besides our proprietary technology that separates us from our competitors like Puration (PURA), Kona Gold (KGKG) or Khiron Life Sciences. My goal is to create a Company that is emulated after a LVMH or Keurig that has multiple different brands and businesses under one banner and becomes the premier purveyor of CBD products.
One could make the argument that taking the portfolio approach could spread the businesses thin from resources and direction, is that happening with this Company?
No it is not, and in fact, having multiple products to sell across multiple categories is a positive, especially in the nascent CBD market. Wholesale customers have been clamoring for CBD products across different verticals. Multiple product lines increase the Company’s distribution network and there is certainly a halo effect that having such a wide reach opens doors that wouldn’t necessarily be open if we were segregated to one category. The shareholders also benefit because the various products create numerous revenue streams whereas other companies (PURA, KGKG) rely on one source of revenue. I believe that it’s a prudent approach that I have seen work before from my experience in the private equity world, and one that I believe will ultimately benefit shareholders in the long term.
Do you think the portfolio approach is how the Company received a $0.40 valuation recently?
I definitely think that was part of it. The Company has an institutional investor who believes in the long-term viability of the Company and the terms of the financing demonstrate this. It’s rare in the micro-cap world to have financing aligned with ALL shareholders interests as far as valuation is concerned. The Company has an ambitious plan for this year and I am pleased that there is some validation of the plan in the valuation we received from this financing.
Besides revenue growth and distribution, what are the biggest goals for this year?
Uplisting remains one our core strategic objectives. We have made headway with PCAOB auditors and we hope to have an announcement soon as to when the audit can begin in advance of filing a Form 10. I still remain focused on getting this Company to the NASDAQ next year and I still believe if we hit our strategic objectives this year, that goal will be in play for 2020. I look at a company like New Age Beverage (NBEV) who had a trajectory that I would like to emulate as far as where how quickly they were able to uplist from the pink sheets to the NASDAQ in less than two years while simultaneously scaling their business. It will certainly be a challenge but I have never been one to shy away, especially when it benefits the shareholders of the Company.
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