Thank you for being here Larry Buzzy Twombly. For this interview PennyStocks.News have prepared a list of questions. Date of Interview: 05/24/2021
PSN: Hello, Larry Buzzy Twombly, Can you tell me more about yourself, your history in the beverage business, your appeal to the CBD Business and how that is related with each other?
Suntex Enterprises: I started in the beverage industry in 1994. The first product I developed was a bottled Iced Coffee drink called Buzzy’s Coffee. I had no idea what I was doing. I worked hard, met great people who are very powerful in the industry that helped me out immensely. I built that product to 2 million in revenue on a shoe-string budget. I was able to sell the brand to a venture capital company. Through the contacts I made with Buzzy’s Coffee, I was asked to get involved in such projects as the development of Vitamin Water, Fuze and others. The beverage industry has been my passion since day one! I feel the beverage industry needs the CBD industry to allow continued innovation.
PSN: For those who are not (or little) familiar with your company. What is the best way to describe Suntex Enterprises INC., and its activities?
Suntex Enterprises: Suntex Enterprises, Inc. is determined to become a major player in the CBD category. Suntex will be extremely active in both the development of new CBD products as well as acquiring operating CBD companies.
PSN: Can you tell me more about your perspective about the future of the CBD market and why you think Suntex Enterprise could be market leader in this sector
Suntex Enterprises: The CBD market is growing rapidly. Main Street consumers are getting exposed to CBD more and more every day. Suntes has many qualities that will contribute to Suntex being a true leader in the market. First and foremost is the quality of products offered. Budding Botanicals, a wholly owned subsidiary of Suntex, produces the finest products possible with the finest ingredients available. Another contributing factor is packaging. We at Suntes believe that the best way to be innovative is to have attractive, unique quality packaging that screams “Try Me”! Take Pumped Fitness CBD for example. Not only is it a super-quality product, but it is, in our view, the most attractive bottled package in the world. It is available in a fantastically unique 20oz and 30oz bottle in the shape of a dumbbell. Consumers can’t resist grabbing the bottle and “curling” it like weights.
PSN: We know that with your release of the product: Pumped fitness CBD Water, we have seen great promise from it, with the first week in April proving to be the most successful week of the year to date. Orders for the dynamic CBD beverage have more than tripled compared to March. The product itself was developed by V Group and utilized V Group recourses. Can you tell me more about the sales, revenue, future forecasts and about the product itself? Can we expect more kinds of CBD beverages from you?
Suntex Enterprises: Pumped Fitness CBD was developed by V Group. V Group, Inc. is an incubation company that develops operating companies and spins them off to their own operating public company. Suntex Enterprises was founded on the strength of Pumped Fitness CBD. Revenues are steadily growing with Pumped Fitness CBD. We are busy developing other flavors of Pumped Fitness CBD as well as other beverages related to it. Our goal is to offer a whole line of products under the Pumped Fitness CBD brand.
PSN: It was mentioned V Group was involved. What was their part in this?
Suntex Enterprises: As I mentioned earlier, Pumped Fitness was developed by V Group inc. as part of its incubation program. V Group paid for the initial development of the bottle, the ingredients, and the initial production.
PSN: Just as you announced, V Group will be compensated with Suntex Shares in a spin-off. Why did you choose V Group and why do they get these shares? What is the real reason of the SNTX shares spin-off and how does this construction make sense to SNTX shareholders and VGID shareholders?
Suntex Enterprises: The whole idea of the V Group incubation business plan is to create a scenario that is a positive win for all involved, especially the shareholders. Because the product was developed using V Group and V Group resources, it’s only logical that V Group shareholders are allowed to participate in the success of the new company; Suntex. Suntex is rewarded with the new product and company as well as a group of new shareholders that are excited and positive about the company. V Group is rewarded with an ownership stake of Suntex simply because they believe in V Group. Both V group and Suntex are working closely with FINRA right now to assure the share distribution gets accomplished quickly and seamlessly.
PSN: Earlier you promised V Group LOFB shares as well, which did not go through. Why did VGID eventually not got the shares and why should we believe that VGID will get SNTX Spin-off shares and not get cancelled as well?
Suntex Enterprises: Leaf of Faith was an incubation project initiated by V Group as well. During the finalization of the share distribution to V Group shareholders, LOFB’ board of directors changed. The new board of directors of LOFB decided that they didn’t want to honor the agreement V Group had with the original CEO and board of LOFB. After long and heated discussions between both companies, they did agree to issue “preferred” shares of LOFB to V Group. It is the plan of V Group management to convert and distribute those shares once they fully mature. We are being told they mature November 2021. V group continues to fight for those shares and for their shareholders. The V Group-Suntex transaction has no such warries. By design, both companies retain the same board of directors until the process is completed.
PSN: As you know, CBD is not legal in all 50 states, how do you believe this will change in the next upcoming years and how will that impact SNTX?
Suntex Enterprises: As more information about CBD becomes public, more and more states are making CBD 100% legal. With a favorable political climate, it won’t be long before CBD will be excepted everywhere.
PSN: We have seen that Suntex is engaged in a lot of acquisitions, among others: Budding Botanicals, Texan food-based CBD company and an upcoming cosmetic-based CBD company that is in the stage of informal talks. Why are you acquiring companies in different sectors that CBD market has to offer, what is your goal by acquiring all those companies and not focus on one sector only like CBD beverages?
Suntex Enterprises: Going forward, Suntex will be aggressive in acquiring non-competing CBD companies as well as developing new brands. It is the intention of Suntex to expand its market share in the CBD industry. Suntex will be acquiring other CBD companies but only those that will expand its existing portfolio and not compete with its existing companies. For example, Budding Botanicals produces and markets the very best Salves, Tinctures, and Body Works products on buddingbotanicalca.com. To expand revenue and market share Suntex is acquiring a Food-Based CBD company that currently offers Salsas, Pasta Sauces, Soups, etc. We are also looking to acquire a CBD Cosmetic company that offers CBD Shampoos, CBD Conditioners and other Hair and Skin Beauty Products. We feel that having multiple companies that offer a variety of products will ensure the greatest opportunity for growth and revenue.
PSN: SNTX’s subsidiary Budding Botanicals saw the largest increase of online orders in the company’s history. A volume increase of about a total of 35% from March 2020 to March 2021. With its great success it established a strong presence in California. Can you tell me more why you acquired Budding Botanicals and why this company attracted your interests and how the deal as structured?
Suntex Enterprises: Budding botanicals is a very interesting company. They got introduced to me a little over a year ago. Some people I know that use their products could no stop raving about the products and the people that run the company. Their biggest obstacle to growth was packaging and operating capital. I initially got involved to simply help them re-package their fantastic products. Once I got to know them better, I realized Budding Botanicals was a piece of coal that was about to be a huge diamond. The passion that management has for their products and their customers is fantastic. I knew right away that Suntex should be their home. With more exposure, Budding Botanicals will continue its fantastic growth. The structure was simple. It involved some cash that goes directly to producing new product for growth and to pay off equipment to make the process more cost effective for stronger profits. The rest is with restricted stock. This allows the management of Budding Botanicals ownership in Suntex and allows them to feel comfortable with the company’s future.
PSN: After Budding Botanicals recently became debt free, by paying off all of their expensive machinery including production equipment. It was mentioned that with the burden of machinery cost lifted, Budding Botanicals is free to concentrate on growth. Are there any foreseeable plans you have in mind for Budding Botanicals to help strengthen its growth and why do you think Budding Botanicals are or could be better than its competitors?
Suntex Enterprises: Growth is key for Budding Botanicals and for Suntex. With the burden of financing production lifted from the company, they can use their resources to develop new products and to expand their inventory of existing products. The new packaging also aids in growth, the more attractive the products are, the more likely consumers are to try them. Once they try them, no doubt they will love them.
PSN: We read that you are finalizing acquisitions of a Texan food-based CBD company, that currently produces, markets, and distributes food products infused with CBD. Why would you acquire a food-based CBD and how will this help SNTX with its existing products, will they be related?
Suntex Enterprises: The CBD infused Food company is exciting for us. This will offer a whole line of products that in no way compete with our existing products. The companies will operate independently but will utilize each other to reduce costs and to expand the customer base.
PSN: What is your perspective in food-based CBD market and why would anyone choose this kind of products instead of normal food products?
Suntex Enterprises: The every-day consumer base is quickly waking up to the health benefits of CBD. The retail market base is excepting CBD more and more also. As retail space for CBD gets bigger and bigger, we want to be involved in the growth. We believe customers will soon be seeing CBD sections in their local grocery stores much like there is Gluten Free and Dairy Free sections now.
PSN: Can you tell us more about the company regarding its financial status, revenue, market share and the deal that have structured with them?
PSN: We have also seen that you are interested in acquiring a CBD based cosmetic products, how is this a thing and why would someone be interested in these kinds of products?
Suntex Enterprises: We are interested in the CBD Cosmetic industry. Much like the benefits CBD offers for stress, pain, mood, etc.; CBD has been shown to offer outstanding benefits for Hair and Skin Care. CBD has been shown to help in the strength of hair as well as the shine and overall heath of hair of all types. The same can be said for Skin Care products. In other words, if something for your body is good, it’s made even better with CBD infused. With their product expertise and our packaging expertise, we could do beautiful things together.
PSN: We see that you are in the stage of informal talks with a CBD cosmetic company, is that particular company already making profits, and do they have a significant market share?
Suntex Enterprises: We are just starting formal talks now. There are two different companies that want to be part of the Suntex team. One of them is producing and selling product now. The other finished the development of their products and is expecting to do their first production in late June of this year. It is our opinion that both companies have great products but could use some help upgrading their packaging. Revenues are small at this point, but it is our opinion that this is a “Sleeping Giant” market.
PSN: To summarize, what is your goal by acquiring all those CBD companies and how will they relate to each other? What more kinds of CBD products are you looking for?
Suntex Enterprises: Simply put; the goal for Suntex is to offer the largest variety of CBD products in the most CBD categories possible and to be the most complete CBD company in the market. We are interested in any acquiring and CBD companies the are unique, create revenues and don’t compete with our existing brands. In other words, if it helps us grow, we’re interested!
PSN: How economically healthy is SNTX and its subsidiaries, regarding their: revenue, assists, income, and possible debts?
Suntex Enterprises: Suntex is in a great situation. The company and its subsidiaries have very little debt. They have growing revenues. They own their assets. We believe this is a foundation for growth.
PSN: Is there anything that has not been discussed in this interview about Suntex enterprises Inc. that you would like to share with us?
Suntex Enterprises: We are excited about Suntex. We are excited about the involvement of V Group shareholders. It has been a long road to get to where we are now. We have a long way to go but I believe we have the people and the products in place to get it done! Thank you for allowing me to talk to you about Suntex.