Spero CBD

CBD Oils and Supplements

Company Information

Website:

https://www.sperocbd.com/

Sector:

Cannabis

Location:

Oakland, CA

Spero CBD produces a line of CBD-infused products. These include tincture oils, supplements, and products specifically designed for pets.

CBD, which stands for cannabidiol, is one of two primary cannabinoids found in cannabis. While the other cannabinoid, THC, often creates the “high” feeling associated with cannabis, CBD has several therapeutic benefits. These include anti-inflammatory, analgesic, anti-anxiety, and seizure-suppressant properties.

Because of its benefits, the market for CBD and CBD-infused products is exploding. According to Forbes, annual sales of CBD products will reach $16 billion by 2025. In the U.S., the 2018 Farm Bill, which removed hemp-produced CBD from the controlled substances list, is helping to fuel this industry’s growth.

That's why several companies are introducing CBD-infused products to target this market.

But Spero CBD is separating itself from these competitors. While other companies’ CBD products contain unnatural byproducts and toxins, Spero CBD’s products contain pure traces of CBD. Every product is also organically produced, and is 100% free of pesticides and THC.

The difference is in Spero CBD’s production process. Many CBD products on the market are produced from distillate, the powdered form of CBD created through a distillation process. This is then marketed as “pure” and “THC free” CBD.

However, this distillate is not pure. In addition to elements of CBD, there are unintended compounds created during the distillation process, including solvents created from the clarifying agents used to clean the cannabis leaf.

The end result is a cheap and easy-to-ship product. But the effects of these unnatural byproducts on humans and animals is currently unknown. And the amount of residual toxins from chemical clarifying agents is untested, and varies from batch to batch.

Spero CBD, in contrast, uses a production process called liquid chromatography. This process, which involves binding and removing the THC cannabinoid from cannabis, leaves an intact liquid extract containing only CBD and minor cannabinoids. The result is a superior, truly natural product with the benefits of CBD.

In addition to this unique production process, all of Spero CBD’s products will be tested by a third party to ensure validity and effectiveness.

Third-party validation is important. In April 2019, a Business Insider article reported that a California company tested 20 popular CBD products and found that only 15% of them matched their labels for advertised concentration of CBD.

Furthermore, the company found “insanely high levels” of dangerous chemicals in several products. By submitting its products to third-party testing, Spero CBD can give consumers comfort in knowing its product ingredients are legitimate.

Spero CBD is bringing three initial products to market. These include:

Tinctures: These oils are the most efficient delivery mechanism for CBD. They allow the ability to adjust the dose of CBD, and the cannabinoid is absorbed faster than other methods by placing the drops directly under the tongue. The company has two flavors of tinctures: Pure and Peppermint.

Gel Capsules: These are a convenient way to take CBD orally and can be combined with other natural supplements.

Pet Treatments: CBD has been proven to be as safe and beneficial for animals as humans; therefore, the company has extended its product line to pets, providing treats and tincture oils for dogs and cats.

In the future, Spero CBD will introduce topical skin products, pre-loaded vape cartridges, and flavor-free CBD water for pets.

Spero CBD will use three sales channels:

First, it will sell its products direct-to-consumer via online sales. This will include a discounted monthly subscription plan. According to Hemp Business Journal’s 2018 market report, online sales make up more than 60% of all CBD sales.

Second, the company will sell its products wholesale directly to retail establishments.

And third, it will use pre-existing relationships with established distributors to include Spero CBD products into their offerings.

Team Background

Justin Jarin - Co-Founder

Justin has more than 15 years of experience in the cannabis industry, including in sales, distribution, and production.

In 2017, he sold more than $25 million of cannabis products while working for multiple cannabis companies in California.

He is the co-owner of San Francisco’s first legal cannabis dispensary.

David Allred - Co-Founder & CEO

David has 18 years of entrepreneurial experience.

Throughout his career, he has managed multiple projects with budgets of more than $20 million, and led teams of more than 300 employees.

In addition, he’s successfully launched startups in four industries.

He has degrees in Biochemistry and Business Management.

Lyndsey Jordan - Co-Founder & Branding/Marketing

During her 10+ years as a strategic designer, Lyndsey has served as a project lead for global brands including Hulu, Audi, YouTube, and Seagrams.

She specializes in helping startups market, and has experience developing brands from inception to successful acquisition.

Mike Van Der Heijden - Co-Founder & Technology Director

Mike has spent 15 years as a search engine optimization and website traffic generation expert.

He has been a consultant to more than 40 enterprise clients throughout his career, and driven multiple websites to No. 1 in their respective markets.

Tim Handley - Co-Founder & Board Advisor

Tim is an experienced M&A investment banker who previously launched LatAm Autos (ASX: LAA), a holding company of businesses in the automobile industry. He took the company public and serves on its Board of Directors as Executive Chairman.

In addition, he was a mergers & acquisitions advisor for UBS Bank, and has experience leading more than 160 employees.

Co-Investors

Raising
$1.07 million
Committed
$1.07 million (100%)
Current Valuation
$6 million Cap / 20% Discount
Min. Investment
$250
Deal Type
Title III
(For all investors)
Offering Type
Convertible Debt
Finance History
Notable Investors
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