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A GREAT DAY FOR MEDICAL CANNABIS!!! House Passes Budget with Medical Cannabis Protection Amendment.
Washington, D.C. — Today, after months of debate and continuing resolutions, the House of Representatives passed its Appropriations package for the fiscal year of 2018. Unlike previous short term measures, this bill will fully fund the government through September 30, 2018. At over 2,200 pages the bill is a massive combination of funding outlays and policy. Due to the hard work of advocates the bill includes the text of the Rohrabacher-Blumenauer amendment.
The amendment, which has appeared in previous versions of the annual appropriations bill protects medical cannabis patients and programs from federal interference by the Department of Justice. Due to the recession of the Cole, Ogden, and other memos by Attorney General Sessions, this amendment is the only thing that prevents large-scale federal raids and prosecutions against businesses and individuals complying with state laws. The full text of the amendment is below:
SEC. 538. None of the funds made available under this Act to the Department of Justice may be used, with respect to any of the States of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming, or with respect to the District of Columbia, Guam, or Puerto Rico, to prevent any of them from implementing their own laws that authorize the use, distribution, possession, or cultivation of medical marijuana.
Attorney General Jeff Sessions lobbied Congress to oppose the re-passage of the amendment. In a letter sent in May 2017, he told Congress: “I believe it would be unwise for Congress to restrict the discretion of the Department to fund particular prosecutions, particularly in the midst of an historic drug epidemic and potentially long-term uptick in violent crime.” Sessions has been a vocal adversary of medical cannabis. Patient advocates fear that without the protections granted by the CJS Medical Marijuana Amendment, Session would be able to shut down medical cannabis programs and the patients they serve.
“The inclusion of the CJS Amendment in the House budget shows that Congress knows it must protect medical cannabis patients from AG Sessions and his Department of Justice. We are extremely grateful to the sponsors, Congressman Rohrabacher and Congressman Blumenauer, and the other members that showed leadership on the issue.” said Steph Sherer, Executive Director for Americans for Safe Access. “Now we hope the Senate will feel the same. We are one step closer to knowing patients will now be protected for another year while we work on passing comprehensive legislation like the CARERS ACT.”
Support for the re-passage of the amendment was strong and diverse. In November 2017, 66 members of the House signed on to a letter to Congressional Leadership that expressed the desire to maintain protections for state medical cannabis programs. The letter was signed by 28 Republicans and 38 Democrats.
The bill will now be sent to the Senate and will be considered under a closed rule, meaning that the time of debate and ability to amend the bill will be limited. While a government shutdown remains possible over other policy provisions in the bill, it is incredibly encouraging to see the provisions of this amendment in the original text of the bill.
The bill also includes several provisions protecting industrial hemp, and a significant number of provisions related to combating the opioid crisis.
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It is possible that the actual results and financial condition of GB Sciences, Inc., may differ, possibly materially, from the anticipated results and financial conditions suggested in these forward-looking statements by the blog author. Information concerning the GB Sciences, Inc., and its business, including factors that potentially could materially affect GB Sciences, Inc., are contained in the company’s filings with the Securities and Exchange Commission, available at www.sec.gov. Any forward-looking statements included in this blog are made only as of the date of this blog, and neither the specific blog author nor GB Sciences, Inc., undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which they may hereafter become aware.
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https://gbsciences.com/2018/03/23/spinach-veins-replace-heart-2/
You should have gotten an email from your trading house on how to vote online I got mine last week. If you did not get it call your trading house.
The special meeting of shareholders noticed to be held at 10:00 a.m. on March 7, 2018, was continued until April 6, 2018, at 10:00 a.m. at the same location being 3550 W. Teco Avenue, Las Vegas, Nevada. John Poss, the CEO of the Company who called the meeting to order stated that the meeting was being continued due to the fact the Company had not received a sufficient number of proxies to constitute a quorum of shareholders to enable the Company to conduct shareholder business. The Company will attempt to solicit additional proxies sufficient to conduct shareholder business on April 6, 2018.
https://www.sec.gov/Archives/edgar/data/1165320/000093979818000013/gblxeightk.htm
Giddy Up Website is being updated.
http://www.drinkgiddyup.com/index.php
Wow, I thought they would increase shares but when they made that deal last week and got the 3 million I started second-guessing that they would increase share count.
LOS ANGELES (AP) — American Indian tribes that say they have been cut out of California's legal marijuana market have raised the possibility of going their own way by establishing pot businesses outside the state-regulated system that is less than two months old.
The tribes floated the idea of setting up rival farms and sales shops on reservations after concluding that rules requiring them to be licensed by the state would strip them of authority over their own lands and their right to self-governance.
The possibility of the tribes breaking away from the state-run system is one more challenge for California as it attempts to transform its longstanding medicinal and illegal marijuana markets into a unified, multibillion-dollar industry.
For tribes to participate in the state-run market, "they have to give up their rights to act as governments, with regard to cannabis," said Mark Levitan, a tribal attorney.
At issue are legally thorny questions about who governs whom, taxation and the intersection of state marijuana laws with tribes that the federal government recognizes as sovereign nations within the U.S.
Under regulations issued last year, California would retain full control over licensing. Tribes would have to follow state rules, including "submission to all enforcement," to obtain a license to grow or sell marijuana. Any application must include a waiver of "sovereign immunity," a sort of legal firewall that protects tribal interests.
Without state licenses, businesses cannot take part in the legal state pot market. California has over 100 federally recognized tribes, the most of any state, and estimates of the number either growing and selling pot or eager to do so varies, from a handful to over 20.
Unlike those that have prospered from casino gambling, some are in struggling rural areas and would welcome a new source of cash to improve schools and pave roads.
After long-running negotiations between tribes and state officials failed to produce an agreement before broad legal sales began Jan. 1, the California Native American Cannabis Association warned state officials that tribes "may engage in commercial cannabis activities through our own inherent sovereign authority."
If tribes choose to step away from California's market, "the state will have no jurisdiction to enforce its cannabis laws and regulations on tribal lands," the group said in a sharply worded letter to Democratic Gov. Jerry Brown's administration in December.
Tribes "just want to be able to do business in the state of California and elsewhere, just like anybody else," said Paul Chavez, former chairman of the Bishop Paiute tribe.
The dispute in California differs from another legal pot state, Washington, where seven tribes have marijuana compacts with the state and others are in negotiations or awaiting the governor's approval. The compacts allow tribal marijuana businesses to participate in the legal system, such as selling tribe-grown pot to retailers off the reservation.
In California, the tribes are circulating a proposal that calls for the governor to strike agreements with them. Those pacts would allow them to participate in the legal market, while the state would recognize a tribe's "exclusive authority" to regulate commercial marijuana activity on its lands.
Tribes are eager for a settlement, but reaching a deal in the Legislature could take the remainder of the year.
"Everyone agrees conceptually there should be an even playing field, a level playing field," said state Assemblyman Rob Bonta, a Democrat at the center of the negotiations in Sacramento.
In addition to the problems in Sacramento, tribes are facing uncertainty at the federal level.
Earlier this year, Attorney General Jeff Sessions lifted an Obama-era policy that kept federal authorities from cracking down on the marijuana trade in states where the drug is legal, which also guided enforcement on tribal lands.
The shifting ground has put a chill over development plans — including in an isolated stretch of eastern San Diego County.
Nevada-based GB Sciences Inc. announced last year that it would build and manage a commercial cannabis company on tribal lands, nurturing plants, manufacturing products and distributing them across the state.
The tribe, the Los Coyotes Band of Cahuilla and Cupeno Indians, would get an ownership stake, jobs and 40 percent of the profits. GB Sciences would get income for its marijuana research and a foothold in the largest legal pot market in the U.S.
But the projected $8 million project is on hold, with the status of tribes in the pot market unclear.
Issues involving sovereignty touch a sensitive subject for tribes, and they see the predicament with marijuana as part of a history of exploitation.
The state rule "harkens back to the end of the 19th century ... when federal and state policies favored extermination or forced assimilation of California tribes," the tribal group wrote.
https://www.marketbeat.com/articles/tribes-cut-out-of-california-pot-market-might-grow-their-own-2018-02-25/
HMMM just posted on GB Facebook
CEO&Chairman John Poss writes; "Great deal buying out Pacific Leaf royalty on Teco facility -- we estimate a $15million bump in net present value -- and no one noticed." $GBLX #gbsciences #medicalcannabis #mmj
Did you happen to see at the Vegas facility whether Phase 2 was started yet or close to completion? right now they're only using about 20% of the 28 thousand square feet.
GBLX 8-K TERMINATION OF AGREEMENTS WITH PACIFIC LEAF
ITEM 1.02 Termination of a Material Definitive Agreement.
On May 12, 2015, the Registrant, GB Sciences, Inc. (the "Company") commenced a business relationship with Pacific Leaf Ventures, LP ("Pacific Leaf") beginning with a credit facility whereby Pacific Leaf would advance the Company up to $1,750,000 pursuant to a 6% convertible note. The Company also agreed to pay Pacific Leaf a royalty of up to 18.2% on the Company's gross sales revenue for a royalty period of 10 years in exchange for the use by the Company of certain Pacific Leaf technology. Over time the business relationship was modified with the credit facility increasing to $2,750,000 and the royalty rate payable to Pacific Leaf being reduced in exchange for 1,000,000 shares of the Company's common stock and the grant of options to purchase 1,500,000 shares of common stock at the purchase price of $0.36 per share. These arrangements between the parties were reported on current reports on Form 8-K filed by the Company on June 15, 2015, February 12, 2016, and August 11, 2016.
On February 23, 2018, the Company and Pacific Leaf entered into an Agreement whereby all rights and obligations between the parties pursuant to all prior agreements would terminate. Under the terms of the agreement, the Company paid Pacific Leaf $1,269,818.05 upon the signing of the agreement and will pay Pacific Leaf an additional $1,500,000 on or before July 31, 2018. The Company will also issue Pacific Leaf 1,600,000 shares of restricted common stock on or before July 31, 2018. Thereafter, no business relationship will exist between the parties.
https://www.sec.gov/Archives/edgar/data/1165320/000093979818000011/gblxeightkendofagreement.htm
You're aware that it was a joke a bad joke yes but a joke. This is all so old news.
LAS VEGAS, Feb. 27, 2018/PRNewswire/ -- GB Sciences, Inc. (OTCQB: GBLX) is pleased to announce a new agreement with the Colorado Hemp Project to develop and cultivate boutique genetics and new strains of hemp which will provide the key ingredient in proprietary CBD formulations.
The mission statement of the Colorado Hemp Project is: an organic hemp farm consulting agency that works with local farmers and municipalities across the globe to bring hemp cultivars and resources to the communities that need it the most, with the sole intention of healing the planet by accelerating the establishment of local, sustainable hemp farms and companies everywhere.
GB Sciences believes that hemp will provide an important palette upon which important compounds can be created, and believes that, ultimately, hemp will provide a relatively inexpensive source of important and beneficial cannabinoids. GB Sciences will breed CBD into the genetics of the hemp plants and then analyze and optimize results.
Kevin Kuethe, COO GB Sciences, said: "This arrangement with the superb growers at the Colorado Hemp Project will give us the ability to manipulate genetics in a way that creates rare and beneficial plants, providing us with the necessary link between the research on the one hand and the realization of custom boutique hemp genetics on the other."
"Wild" Bill Billings, co-founder of the Colorado Hemp Project with daughter Danielle, comments:"More than 25yrs in agriculture business has taught me that the fundamental of any good business is in its relationships with people. For us, it's all about our relationship with the farmers. We are here to help them. We've persuaded these farmers to abandon money losing crops for hemp, a crop positioned to change their lives as well as livelihoods. We feel a kindred spirit in the visionary mission of GB Sciences and look forward to changing the face of the world together by educating more people about the magic of the hemp plant."
John Poss, CEO & Chairman of the Board, concludes: "This is the first of many anticipated collaborations with the Colorado Hemp Project. We consider this a great step forward in developing cannabis genetics for hemp and are extremely pleased to be entering into this venture."
https://www.prnewswire.com/news-releases/gb-sciences-inc-enters-a-new-market-by-signing-a-contract-farming-agreement-for-the-development-of-boutique-hemp-genetics-with-the-colorado-hemp-project-300604530.html
Feb. 15--GB Sciences, the Las Vegas-based company handling medical marijuana operations for the LSU AgCenter, has leased a former Pepsi distribution site near Highland Roadand Interstate 10 in Baton Rouge.
GB Sciences LLS, the entity set up to operate the local medical marijuana business, signed the lease for the 5.40-acre site at 18350 Petroleum Drive in August, according to a quarterly filingGB Sciences made Wednesday with theU.S. Securities and Exchange Commission. Along with the land, the property has a 36,125-foot-square building on the site.
Under the terms of the lease, GB Sciences is spending $25,588 a month on rent through June 2022. If the company decides to extend the terms of the lease, it will bump up to $28,147in August 2022. If a second lease option is extended, the rent will rise to $30,966in August 2027.
Under GB Sciences' five-year licensing contract, the LSU AgCenter will receive a minimum financial contribution of$3.4 million, or 10 percent of gross receipts. GB Sciences will pay at least$1 million for the first year of the contract and $600,000 for the remaining years. The company will also make an annual research investment of$500,000 to the AgCenter. The company finalized its agreement with the AgCenter in September.
Construction of the production facility should be finished by March and medical marijuana should be available by late summer, AgCenter officials said.
LSU AgCenter officials asked that the location of the medical marijuana facility be kept confidential because of safety and vandalism concerns, said Bill Settoon Jr., vice president and general manager for GB Sciences Louisiana. But the address was revealed in theSEC filing.
Two off-duty East Baton Rouge Sheriff'sdeputies will be on the scene while operations are ongoing at the facility, he said.
Plans are to have "less than 20 people" working at the facility, Settoon said. LSU also will build out 5,000 square feet of lab space for AgCenter employees.
"This is a surprisingly high-tech operation," he said. "The marijuana will be grown in clean rooms, like where they make computer chips or perform surgery."
That level of care is needed because they are producing medicine at the site.
"We need to maintain the genetic consistency of the plants," he said. "If we are selling a product for a mother to give to a sick child, we need to make darn sure what we produce next month is like what we produced this month."
Between $5 million to $7 million will be spent on the building. That includes installing a modular clean room that is now being manufactured in Austin, Texas.
GB Sciences announced on Wednesday it sold a 15 percent stake in GB Sciences Louisiana to newly formedLafayette-based Wellcana Group LLCfor $3 million. GB Sciences said the new funds will be used to complete the construction of the Louisianainfrastructure for medical marijuana, and for general corporate purposes. The influx of cash also will enable GB Sciences to redirect financial resources already earmarked for the Louisianaproject to other areas of its operation and in other jurisdictions.
According to information on theLouisiana Secretary of State's website, Wellcana was formed in Lafayette last month. Its registered agent is Lafayetteattorney Charles Rush and the officer isK2 Logic LLC, which has an address the same as Rush's law office. K2 Logic's officers are Rush and Charlie Hohorst III, a Lafayette businessman who founded CajunGrocer.com, an online retailer for Louisiana food and specialty items. Rush and Hohorst did not respond to requests for comment.
GB Sciences posted a $7 million loss, or5 cents per share in the quarter that ended on Dec. 31, 2017. That compares with a $3.5 million loss, or 4 cents per share, in the quarter that ended on Dec. 31, 2016.
http://m.4-traders.com/GROWBLOX-SCIENCES-INC-16418864/news/GB-Sciences-selects-former-Pepsi-distribution-site-for-medical-marijuana-facility-in-Baton-Rouge-26003326/
Wellcana Group acquires $3 million stake in medical marijuana company licensed by LSU AgCenter.
GB Science which operates a cultivation center in Nevada, is licensed to produce medical marijuana in Louisiana by the LSU AgCenter. It has sold a 15 percent stake in the venture for $3 million to a newly formed Lafayette company to help finance its effort.
http://www.theadvocate.com/baton_rouge/news/business/article_c97abdcc-119f-11e8-9a86-e393c4bdf663.html
GB Sciences selects former Pepsi distribution site for medical marijuana facility in Baton Rouge.
GB Sciences operates a licensed cultivation center in Nevada. The company was selected last year to develop the LSU AgCenter's state-approved medical marijuana program and has leased a former Pepsi distribution site near Highland Road and Interstate 10 to set up operation.
http://www.theadvocate.com/baton_rouge/news/business/article_2da4fd78-1275-11e8-b58f-c7753fac9c14.html
GB SCIENCES PARTNERS WITH WELLCANA GROUP, LLC. IN THE DEVELOPMENT OF MEDICAL CANNABIS IN LOUISIANA
GB Sciences Louisiana LLC. Will Operate One of Only Two Licenses Granted by the State of Louisiana under LSU Agricultural Center’s Medical Cannabis License
LAS VEGAS, February 14, 2018/PR Newswire/–GB Sciences, Inc. (OTCQB: GBLX) and its wholly-owned subsidiary GB Sciences Louisiana, LLC (GBSL) are pleased to announce the completion of a new agreement with Wellcana Group, LLC (Wellcana) to work together on the previously announced initiative for the development of medical cannabis in Louisiana, a joint effort of the Louisiana State University AgCenter and GBSL, operating under the AgCenter’s medical cannabis license, which is one of only two licenses granted by the State.
The terms of the agreement provide that Wellcana will buy 15% of the newly-issued equity of GBSL for $3 million. Wellcana also has an option to purchase an additional 35% for an additional $7 million investment. This new influx of cash will enable GB Sciences to redirect financial resources already earmarked for the Louisiana project to other areas of operation and in other jurisdictions. The new funds will be used to complete the construction of the Louisiana infrastructure, and for general corporate purposes.
This new agreement also furthers the goals of GB Sciences to bring strategic Louisiana investors into the project. Wellcana will have the right to appoint members to the Board, of which two shall be Louisiana residents.
GB Sciences CEO, John Poss, said “Our intent has always been to bring Louisiana investors into our project. We are extremely fortunate to be partnering with Wellcana, an organization that shares our commitment to providing the highest quality medical cannabis to the patients of Louisiana. We could not be happier with this arrangement, in part because it represents such a novel and progressive blending of public and private sector resources to achieve important results, for everyone’s benefit.”
Wellcana Executives believe: “This investment represents the culmination not only of our own goals and dreams, but of the goals and dreams of many Louisiana patients that will be the direct beneficiaries of our joint efforts. We feel that Louisiana is at the forefront of intelligent development of medical marijuana, and we believe that the significant research talents and resources of the AgCenter will produce new formulations that will greatly benefit the entire country. We are proud to be citizens of a state that has demonstrated such forward thinking in such a regulatorily difficult but crucially important field.”
https://gbsciences.com/2018/02/14/wellcana-louisiana/
Wow! Useless response. just wasted 5 Seconds of my day to read it. I can laugh too. LoL LoL
GB Sciences, Inc., a Speculative Buy Ahead of Shareholder Meeting
The silver lining is that GBLX is transparent and we give it a speculative buy with a price target of $1.2 in the short-to-mid-term
GB Sciences, Inc. (OTCQB:GBLX)
MIAMI, FLORIDA, USA, January 18, 2018 /EINPresswire.com/ -- Emerging Growth Newswire - On March 7, 2018, medical cannabis player GB Sciences, Inc. (OTCQB: GBLX) will hold a special shareholder meeting, in line with its recent Form DEF 14A filing with the SEC. Shareholders will vote on two issues that will materially impact the long-term success of the company.
The two key issues that shareholders will vote on are: a proposal to re-domicile the Corporation from the State of Delaware to the State of Nevada; and a proposal to approve an amendment to the company’s certificate of incorporation to increase the number of authorized shares from 250 million shares to 400 million shares.
The company has been the subject of heightened investor interest since late November 2017, when it announced approximately $200,000 in revenues from its Las Vegas-based cultivation facility for the six months ended September 30, 2017, compared to zero revenue in the same period the prior year. As will be discussed later in the article, the facility has the potential to generate $10 million annually when operating at full capacity, explaining why news that the facility had produced its first revenue was received positively.
Investor sentiment has been positive since November 2017
GBLX describes itself as a company that “seeks to be an innovative technology and solution company that converts cannabis plants into medicines, therapies and treatments for a variety of ailments.” As the wording suggests, the company is still in the process of product development and does not have an end product in the market. In view of this, the proposed change in domicile from Delaware to Nevada is timely as it will help accelerate the process of bringing the product to market—Nevada has more progressive marijuana laws in comparison to Delaware.
In Delaware, access to cannabis for medical reasons was legalized in 2011 under Democrat Governor, Jack Markel. The first medical marijuana clinic opened in 2015, four years after legislation paved way for use of medical marijuana. In contrast, medical use of marijuana in Nevada has been legal since 2000 while recreational use has been legal since January 2017. Nevada also licenses marijuana growers and distributors, explaining why GBLX’s built its cultivation facility in Nevada and not in Delaware.
Since GBLX is still not profitable, and it can’t access conventional financing from banks due to the federal status of marijuana as an illegal substance, its financing strategy largely depends on issuances of common stock, convertible notes and warrants. All of these tend to lead to an increase in outstanding shares, introducing the need for the company to have a high number of authorized shares.
These points summarize why it is requesting shareholders to approve proposals to change the corporate domocile and increase the number of authorized shares.
Operational alignment
GBLX’s core operations are currently in Nevada, where it has a 28,000 square feet cultivation facility in Las Vegas that is operational but still requires additional work. This facility is the company’s “top priority,” according to notes in its quarterly report for the period ended September 30, 2017. Tellingly, the company’s CEO, John Poss, who also doubles up as the board chairman, runs the business from his Teco Avenue office in Las Vegas.
From an operational point of view, GBLX’s core business is in Nevada. But from a legal standpoint, the company’s corporate address is Delaware. Though this does not hinder it from doing its business, it adds layers of complexity in administration due to the disparity in state laws regarding the legality of cannabis.
According to the aforementioned quarterly report, the Las Vegas-based cultivation facility has the potential to generate $10 million annually when all phases of construction are completed. However, successful completion of construction requires additional financing, which the company will need to source externally.
Convincing a financier to put money in a business is easier when operations are aligned, explaining why the shift in corporate address from Delaware to Nevada is essential for GBLX’s long-term success.
In May 2017, the cultivation facility harvested its first cannabis. As a result of the harvest, GBLX recorded net revenue of $190,745 for the six months ended September 30, 2017. This illustrates that the company’s revenues are directly tied to the success of its Las Vegas operations, underlining the importance of domiciling the business in Nevada.
Company’s revenue tied to Las Vegas operations
GBLX has a production license in Nevada that allows it to convert cannabis plants from its cultivation facility into oils and extracts that are suitable for creating medical compounds. However, with revenues of just under $200,000, the company is not in a position to fund the end-to-end production and marketing of cannabis-based medicine using cash from operations. It needs a robust financing strategy, explaining why its request to shareholders to approve the increase of authorized shares from 250 million to 400 million is consequential for long-term success.
Financing strategy
Whether or not GBLX will produce and sell cannabis-based medicine depends to a great extent on shareholders’ approval of the proposal to increase authorized shares.
The company heavily depends on convertible notes and warrants. Though this strategy allows it to generate capital for its near-term cash flow needs, it leads to the creation of new shares and an increase in outstanding shares, which dilutes existing shareholders.
A convertible note is a financial instrument through which a lender gives money to a company with the option to convert the debt into shares of common stock at any time. On the other hand, a warrant offers investors the right but not the obligation to acquire stock in the company at a set price by a given date.
Before explaining how warrants and convertible notes dilute shareholders, it is first important to illustrate the central role that these instruments play in GBLX’s financing strategy.
In March 2017, the Company issued short-term promissory notes to various holders with combined face value of $965,500. The notes were convertible into 3,862,000 shares. The Company also issued 3,862,000 common stock warrants to the Note holders.
During the three months ended June 30, 2017, the Company issued short-term promissory notes to various holders with combined face value of $1,034,500. The notes were convertible into 4,138,000 shares of the Company’s common stock. The Company also issued 4,138,000 common stock warrants to the Note holders.
These two examples—though there several others that are outlined in detail in the quarterly report—demonstrate that GBLX’s financing strategy has the net effect of increasing outstanding shares.
An increase in the outstanding shares tends to dilute existing shareholders. Imagine you had to share one pie with three of your friends; each of you would get a quarter. If four more friends joined the party and you now totaled eight; each would get an eighth of the pie. While the size and value of the pie stays the same, the size and price of each piece will become smaller
This simple analogy demonstrates the impact that increasing outstanding shares has on existing shareholders.
GBLX currently has outstanding shares of 131 million against authorized shares of 250 million. This means that debt holders still have considerable room to convert their debt to shares. However, the company is not taking any chances, hence its request to shareholders to increase authorized shares to 400 million.
If shareholders approve this proposal, they will demonstrate that they are comfortable with GBLX’s financing strategy, despite its dilutive effect on shareholders. It could also be an indicator that they believe that GBLX will at some point be able to access conventional financing, particularly when medical cannabis laws are streamlined at a federal level and banks get the green light to put money in medical cannabis companies.
Transparency
Admittedly, GBLX’s financing strategy is not the best way to raise money. Nevertheless, it is a necessary compromise as most cannabis companies cannot access conventional bank finance due to the classification of marijuana as an illegal substance under federal law.
The silver lining is that GBLX is transparent as far as acknowledging its dependence on financial instruments such as convertible notes is concerned. In SEC filings, the company admits that: “If unable to raise the necessary capital at the times required, the Company may have to materially change the business plan, including delaying implementation of aspects of the business plan or curtailing or abandoning the business plan.”
The admission by GBLX’s management that it could change its business plan if things don’t pan out is bold. It shows that the company is candid about the risks in the medical cannabis field. Despite the hype about medical cannabis, approval of medicines is still a lengthy process.
Market leader GW Pharmaceuticals (NASDAQ: GWPH) was granted market approval for its Sativex drug in the U.K. in 2011, despite beginning research in the late 90s. Approvals for drugs is a lengthy and complex process, especially for a company with limited finances. GBLX has factored this risk into its outlook, as illustrated by its admission that it may change its plans in case things don’t work out. This transparency is a welcome departure from the overzealousness that characterizes many cannabis players.
Terra Tech Corp (OTCQX: TRTC), which also heavily relies on convertible notes and other financing instruments that dilute shareholders, has not been candid about its prospects. It has outstanding shares of 903.17 million against shares authorized of 990 million, leaving limited room for debt holders to convert existing debt to stock. However, the company has not issued any definitive guidance on how it intends to address this issue. On the contrary, it has consistently portrayed an image of strength and avoided conversations about financing, despite massive insider selling by the CEO Derek Peterson as recently as January this year.
GBLX does not have the best of financing strategies, but at least it is candid about it. The company is also not trying to do to many things at once and management is exclusively focused on Nevada at the moment. It should be able to win shareholders’ approval for its proposals to shift its corporate address to Nevada and increase authorized shares. In view of this, it is a speculative buy with a price target of $1.2 in the short-to-mid-term.
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Emerging Growth Staff
http://www.einnews.com/pr_news/427487929/gb-sciences-inc-otcqb-gblx-a-speculative-buy-ahead-of-shareholder-meeting
Top Adult Use and Medical Cannabis Cultivator Significantly Increases Yield with Solis Tek HID Lighting Systems
Solis Tek A1 Complete Fixtures and Light Diet Philosophy Help GB Sciences Cultivate Record Yields
CARSON, CA and LAS VEGAS, NV--(Marketwired - January 31, 2018) - Yield, consistency and quality are the key elements to successful commercial cannabis operations. For one of the nation's leading cannabis cultivators, GB Sciences, integrating Solis Tek (OTCQB: SLTK) HID digital lighting systems into their cultivation facility has helped them achieve record yields in their most recent grows.
"Building out a state-of-the-art facility was key to our cultivation strategy, and a large piece of that is making sure you have the right lighting solutions," said Kevin Kuethe, COO of GB Sciences. "The Solis Tek fixtures and lights have enabled us to put our plants on a nutritious 'light diet' that closely mimics sunlight, which has enabled us to increase yield. Our heaviest yields to date are from one of our most popular strains named Jenny Kush that yielded just over 2 grams per watt of finished, trimmed, cured product ready for retail sale."
Kuethe continued, "We currently have 4 bloom rooms in the facility, each of which is approximately 1500 square feet and contains 45 Solis Tek A1 complete lighting fixtures. The facility was built to produce the highest and most consistent quality medical-grade cannabis product for both medical and adult-use markets."
"Solis Tek's focus on science is what sets our lighting systems apart," said Alan Lien, president and co-founder of Solis Tek. "As the first company to market a light diet which most closely replicates the cycles of the sun as well as developing other key safety regulations in the industry, we understand the needs of commercial cultivation facilities. In the case of GB Sciences, their approach to cultivation is unparalleled and we are proud to be an important part of their cultivation strategy."
In a recent third-party study of the top five leading cannabis lighting systems, Solis Tek's A1 digital lighting fixture proved to have the best light energy and spectrum output, providing the highest intensity light spectrum to the canopy and floor, and a more consistent lighting footprint. The study found that Solis Tek High Intensity Discharge (HID) lights helped commercial growers avoid hotspots, creating a more even canopy, where no one plant grows taller and overshadows other plants. This helps cultivators - hobbyists and commercial growers alike - create the best environment to increase yield.
To be added to the Solis Tek email distribution list, please email SLTK@kcsa.com with 'SLTK' in the subject line.
About GB Sciences, Inc.
GB Sciences, Inc. is a diverse cannabis company, focused on standardized cultivation and production methods; as well as biopharmaceutical research and development. The Company's goal is creating safe, standardized, pharmaceutical-grade, cannabinoid therapies that target a variety of medical conditions.
http://www.marketwired.com/press-release/top-adult-use-medical-cannabis-cultivator-significantly-increases-yield-with-solis-tek-otcqb-sltk-2245260.htm
Trump Treasury Secretary Wants Marijuana Money In Banks
https://www.forbes.com/sites/tomangell/2018/02/06/trump-treasury-secretary-wants-marijuana-money-in-banks/#7a2ac4d43a53
Restricted shares are minimum 6 months could be longer depends on the company. So right now not part of share structure.
Dezzy
If I'm not mistaken you were the one saying $25 I said not likely. In my opinion we will see $2-3 by fall 2018. Sessions threw cold water on the whole mmj sector.
Top Adult Use and Medical Cannabis Cultivator Significantly Increases Yield with Solis Tek HID Lighting Systems
Solis Tek A1 Complete Fixtures and Light Diet Philosophy Help GB Sciences Cultivate Record Yields
CARSON, CA and LAS VEGAS, NV--(Marketwired - January 31, 2018) - Yield, consistency and quality are the key elements to successful commercial cannabis operations. For one of the nation's leading cannabis cultivators, GB Sciences, integrating Solis Tek (OTCQB: SLTK) HID digital lighting systems into their cultivation facility has helped them achieve record yields in their most recent grows.
"Building out a state-of-the-art facility was key to our cultivation strategy, and a large piece of that is making sure you have the right lighting solutions," said Kevin Kuethe, COO of GB Sciences. "The Solis Tek fixtures and lights have enabled us to put our plants on a nutritious 'light diet' that closely mimics sunlight, which has enabled us to increase yield. Our heaviest yields to date are from one of our most popular strains named Jenny Kush that yielded just over 2 grams per watt of finished, trimmed, cured product ready for retail sale."
Kuethe continued, "We currently have 4 bloom rooms in the facility, each of which is approximately 1500 square feet and contains 45 Solis Tek A1 complete lighting fixtures. The facility was built to produce the highest and most consistent quality medical-grade cannabis product for both medical and adult-use markets."
"Solis Tek's focus on science is what sets our lighting systems apart," said Alan Lien, president and co-founder of Solis Tek. "As the first company to market a light diet which most closely replicates the cycles of the sun as well as developing other key safety regulations in the industry, we understand the needs of commercial cultivation facilities. In the case of GB Sciences, their approach to cultivation is unparalleled and we are proud to be an important part of their cultivation strategy."
In a recent third-party study of the top five leading cannabis lighting systems, Solis Tek's A1 digital lighting fixture proved to have the best light energy and spectrum output, providing the highest intensity light spectrum to the canopy and floor, and a more consistent lighting footprint. The study found that Solis Tek High Intensity Discharge (HID) lights helped commercial growers avoid hotspots, creating a more even canopy, where no one plant grows taller and overshadows other plants. This helps cultivators - hobbyists and commercial growers alike - create the best environment to increase yield.
To be added to the Solis Tek email distribution list, please email SLTK@kcsa.com with 'SLTK' in the subject line.
About GB Sciences, Inc.
GB Sciences, Inc. is a diverse cannabis company, focused on standardized cultivation and production methods; as well as biopharmaceutical research and development. The Company's goal is creating safe, standardized, pharmaceutical-grade, cannabinoid therapies that target a variety of medical conditions.
Forward-Looking Statements
This press release may contain statements relating to future results or events, which are forward-looking statements. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import may identify forward-looking statements. These statements are not historical facts, but instead represent only the Company's belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Further, information concerning the Company and its business, including factors that potentially could materially affect the Company's business and financial and other results, are contained in the Company's filings with the Securities and Exchange Commission, available at www.sec.gov. All forward-looking statements included in this press release are made only as of the date of this press release, and we do not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which we hereafter become aware.
Note: Although the Company's research and development activities are not illegal, the production and sale of cannabis products violate federal laws as they presently exist.
To learn more about GB Sciences, Inc., go to: http://gbsciences.com.
About Solis Tek
Solis Tek Inc, parent company of wholly owned subsidiaries Solis Tek Digital Lighting and Zelda Horticulture, is a vertically integrated technology innovator, developer, manufacturer and distributor focused on bringing products and solutions to commercial cannabis growers in both the medical and recreational space in legal markets across the U.S. For nearly a decade, growers have used Solis Tek's lighting solutions to increase yield, lower costs and grow better to maximize their return on investment. In late 2017, Solis Tek introduced Zelda Horticulture, a nutrient line with all-natural ingredients. The Company's customers include retail stores, distributors and commercial growers in the United States and abroad. For more information, please visit our website, http://www.solis-tek.com.
http://www.marketwired.com/press-release/top-adult-use-medical-cannabis-cultivator-significantly-increases-yield-with-solis-tek-otcqb-sltk-2245260.htm
LAS VEGAS, Feb. 5, 2018/PRNewswire/ -- GB Sciences, Inc. (OTCQB: GBLX) has filed a nonprovisional patent application to protect its cannabinoid-containing complex mixtures for the treatment of inflammatory disorders. The new patent application claims the benefit of GB Sciences' provisional patent previously filed on February 1, 2017; plus, additional data describing their mechanism of action and further supporting their claims. Inflammatory disorders, such as arthritis, asthma, eczema, psoriasis, Crohn's disease and Inflammatory Bowel Disease, represent a serious health burden in the US with over$200 billion spent annually. New cannabis-based therapies could significantly help both patients and society.
The big pull back early this month I think was definitely because of Jeff sessions. Since then it's been small incremental pull back just from no news coming out of GB. The $0.12 pull back yesterday I feel is because of the news on GB science Facebook page. Stating that they started construction at LSU. I was disappointed I was under the impression that they started construction months ago and it be done by now. That means we won't see Revenue from LSU till the end of summer. You figure six to eight weeks of construction and in four months of growing till Harvest. I think people see that and said I can put my money elsewhere for the next 6 months. In my opinion.
Got my email ballot this morning I'm voting to approve the increase in shares. Mr. Poss has done a great job so far in building the business. As others have posted they can't get loans from Banks they need to raise capital to expand and grow. 400 million shares is not a lot in the big picture.
Sen. Cory Gardner (R-CO) is threatening to block future nominees for Department of Justice positions in response to Attorney General Jeff Sessions’ planned announcement Thursday of a new, potentially tougher tougher policy on marijuana.
Sessions plans to rescind a 2013 memo, issued under the Obama administration, that indicated that the Justice Department would refrain from enforcing federal drug laws in states that had legalized marijuana. Instead, the department will now leave enforcement and prosecution decisions up to individual U.S. Attorneys in each state.
The effect of the new approach could be to increase the uncertainty surrounding marijuana cultivation and sales, which have flourished over the past few years in Colorado and other states, like California, that have legalized it. Sessions’s new policy could also bring federal law enforcement into conflict with state authorities.
Gardner tweeted that President Trump original “had it right” when he suggested in 2016 that marijuana policy should be left to the states:
http://www.breitbart.com/big-government/2018/01/04/cory-gardner-threatens-jeff-sessions-tougher-marijuana-policy/
It's 250 million shares going to 400 million shares. And I agree it's still not that much. That's why I said in the short-term PPS will drop and then rise again quickly after. I think it's more of a speed bump in the short-term. Just my opinion.
READ ON
(Correction Not Saturday Feb 6th)
TO THE SHAREHOLDERS OF GB SCIENCES, INC.:
NOTICE is hereby given that a special meeting (the "Meeting") of the shareholders of GB Sciences, Inc., a Delaware corporation ("we," "us," "GB Sciences", "Company", or the "Corporation"), will be held at 10:00 a.m. Pacific time on Tuesday, February 6, 2018, at the principal executive offices of GB Sciences, 3550 W. Teco Avenue, Las Vegas, Nevada 89118, for the following purposes:
1. To approve the redomicile of the Corporation from the state of Delaware to the state of Nevada;
2. To approve an amendment to our certificate of incorporation to increase the number of shares of capital stock our Board of Directors is authorized to issue from 250,000,000 capital shares to 400,000,000 capital shares; and
4. To transact such other business as may properly come before the Meeting or any postponement or adjournment thereof.
https://www.sec.gov/Archives/edgar/data/1165320/000093979817000108/gblxprefourteena.htm
Fresh promise Foods purchase the rights to Giddy Up energy drinks, energy bars and nutritional products. The deal just completed end of 2017. Now waiting to launch New products.
Maybe because this Saturday is shareholder meeting to increase share count by 150mil. Makes people worry a little. IMO I think pps will drop short term then move up again.
Hate to tell you but investguy is wrong. Don't get me wrong I want Fpfi to take off.
What hemp company? Hemp and MMJ ended when Bill Chabaan left and James Robinson took over. All I'm aware is fresh promise Foods purchase the rights to energy drinks, energy bars and nutritional products.
Where are you getting your info about hemp and MMJ products for fresh promise Foods? I've heard nothing about those things.
Shares from creative Edge will be restricted I wonder what the time limit will be on them. I read on rule 144 could be at least 6 months.
I have stated in the past year that GB science will be bought out by a larger company he's a big Pharma big tobacco. But I don't see it happening until the federal government reschedules it. I do think that may happen in 2018 for rescheduling. Just my opinion
Thats the way I read 14A. Acquisition!
" To transact such other business as may properly come before the Meeting or any postponement or adjournment thereof."
https://www.sec.gov/Archives/edgar/data/1165320/000093979817000108/gblxprefourteena.htm