Laguna Blends, Inc. (CSE: LAG) (OTC: LAGBF) (LB6A.F) Receives Second Report from Fundamental Research Corp.

Fundamental Research Corp. (FRC), a company in the business of providing quality equity research coverage since 2003, recently released its second report on Laguna Blends, Inc. (CSE: LAG) (OTC: LAGBF) (LB6A.F), a rapidly growing multi-level marketing (MLM) company focused on the sale of functional, hemp-based beverages. FRC released its first report on May 5, 2016, giving Laguna a BUY rating and fair value estimate of $0.45 per share. According to the original report, the company’s shares were expected to range from $0.30 to $1.06, depending on the number of affiliates LAGBF generates by 2020.

Since this initial coverage, Laguna’s share price is up by 83% and its market capitalization is up by 155% to $6.22 million. Not only this, reported revenues for the fourth quarter of fiscal 2015 (quarter ended March 31, 2016) were approximately $17K, a number that rose to approximately $47K in the company’s first quarter of fiscal 2016 (quarter ended June 30, 2016). Laguna Blends has raised approximately $0.7 million through two private placements, leaving FRC to nearly double the company’s fair value estimate from its initial $0.45 per share to $0.80 per share.

The company has also entered into an exclusive licensing agreement with Cannaceuticals (“Canna”). LAGBF will be distributing Canna’s seven Swiss-made cannabidiol skincare products by the end of this month in the U.S. and in Canada by the end of the year. The agreement was signed after the results of the clinical trials on these products showed that all 21 female test subjects noticed an overall improvement of their skin’s appearance.

Personal care products were shown to be the number one category in direct sales in 2015. Therefore, it is only fitting that Laguna positions itself within the skin care industry. Niche products such as cannabidiol skin care products normally do well in direct sales, and although these only equate to less than 1% of retail sales in the U.S., wellness product sales and personal care products make up 46.7% of these.

LAGBF has bought all of the current inventory of the seven Cannaceuticals products for $0.23 million, to be paid over the next six months. In addition to this, LAGBF paid a licensing fee in common shares worth $0.10 million. Laguna will place a minimum order of $1.5 million giving the company the rights to sell all seven products in the U.S. and Canada. Once regulatory approvals are received, Laguna will have the rights to sell Canna’s products in Asia, Europe, and Mexico. The agreement fits in with Laguna’s strategy to build a diversified portfolio of products, similar to other MLM companies. Laguna announced the VIP launch of Cannaceuticals CBD skin care products on September 13, 2016, making them available for sale on September 15, 2016.

For more information, visit www.lagunablends.com

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