Level Brands, Inc. (NYSE MKT:LEVB) Q1 2019 Earnings Conference Call Transcript

Feb 15, 2019 • 09:00 am ET


Level Brands, Inc. (NYSE MKT:LEVB) Q1 2019 Earnings Conference Call Transcript


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Good morning and welcome to Level Brands First Quarter Fiscal 2019 Earnings Call and Update. Yesterday the Company issued a press release that provided an overview of its first quarter results, which followed the filings of its quarterly report on Form 10-Q yesterday. Today's conference is being recorded and will be available online at levelbrands.com. All participants on this call will be on a listen-only mode. The call will be followed by a question-and-answer session.

At this time, I would like to turn it over to Mark Elliott, Chief Financial Officer and Chief Operating Officer. Mark?

Mark Elliott

Thank you, Michelle, and thank you all for joining the Level Brands first quarter fiscal 2019 earnings conference Call. On the call today, I also have our Chairman and Chief Executive Officer, Martin Sumichrast, as well as Scott Coffman, the CEO of our subsidiary cbdMD.

Following the Safe Harbor statement, Martin will provide a high level business overview, which will include our December 2018 mergers with Cure Based Development, which included our acquisition of the cbdMD brand. We generally refer this transaction, which is described in detail 8-K that we filed on December 20, with the acquisition of cbdMD. We now operate this business within our cbdMD subsidiary.

Scott will then go into further details about cbdMD, its performance and the overall opportunity ahead. I will then provide a summary of the quarterly financials results and then Marty will finish up by providing some additional corporate updates. We will then open the call for questions. We'd like to remind everyone that various remarks about future expectations, plans and prospects constitute forward-looking statements for purposes of Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995.

Level Brands caution that these forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from those indicated, indicating the risks described in the Company's filings with the SEC. Any forward-looking statements made on this conference call speak only as of today's date, Friday, February 15, 2019, and Level Brands does not intend to update any of these forward-looking statements to reflect events or circumstances that would occurred after today's date.

With that, I'd like to turn the call over to Chairman and CEO, Martin Sumichrast. Marty?

Martin Sumichrast

Mark, thank you. Thanks for the introduction and thanks to all of those who are listening in on the call this morning. I'd like to start the call by talking about our move into the rapidly growing CBD space, and specifically our transformative acquisition of cbdMD in late December, 2018. We first entered into the CBD market about a year ago, we entered through a licensing arrangement and at that time the CBD market was just starting to expand. There were few players in the federal uncertainty around CBD created a bit of a gray area in the market. As the year developed, we recognized the pro hemp legislation was most likely going to pass as Congress took up the 2018 Farm Bill, which