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The agreed-upon spending bill will force the FDA to issue temporary enforcement discretion within 120 days. —This is the result of a McConnell amendment to the bill. McConnell needs that enforcement discretion that supports favorable regulations for wellness industry CBD to get reelected. Those hemp farmers are relying on him.
I believe that we will win the Citron lawsuit since it’s not considered material to disclose non-final patent information when the respective product is not a core part of revenue. Since CVSI is still exhausting the patent appeal process, the patent is still pending, so Citron’s argument is moot, and thus Citron’s own misrepresentation of the patent process is what truly caused the PPS decline. It’s true that a final rejection is no longer final once the appeal process begins —according to USPTO rules.
So the FDA now has 120 days to provide enforcement discretion as of Jan 1?
FDA may not be next catalyst. Next catalysts could be individual states allowing for the sale of CBD supplements. ie TX, OK, and NY.
An FDA head from a state (TX) that allows for the sale of CBD supplements is most likely a good thing.
"Can I sell consumable hemp products at retail now?
Yes, Section 11 of HB 1325 allows for existing retailers to possess, transport or sell consumable hemp products that become part of the retailers' inventory prior to the effective date of DSHS rules resulting from HB 1325. The retailer must be licensed as currently required by law. Retailers selling consumable hemp products must ensure the product is safe for consumption by being free of heavy metals, pesticides, harmful microorganisms or residual solvents. Additionally, consumable hemp products sold must not contain more than 0.3 percent THC.
During routine inspection or complaint investigations, DSHS, within its statutory authority, may detain products, including dietary supplements, that are labeled as or contain hemp, including CBD, and that make unproven health claims, such as preventing, diagnosing, treating and/or curing a health or medical condition. Products that are being manufactured or handled in a manner that creates a health hazard for people who may use it may also be detained.
Note: HB 1325 contains limitations regarding retail sales of out-of-state consumable hemp products. The products must be processed or manufactured in another state in compliance with:
1. that state or jurisdiction's plan approved by the USDA;
2. in the absence of a state submitted plan, a plan established by the USDA; or,
3. the laws of that state or jurisdiction if the products are tested in compliance with, or similar to those set out in Section 443.151 of HB 1325.
Upon approval of the Texas state hemp plan by USDA, DSHS will establish a process to register retailers selling consumable hemp products containing CBD. At that time, existing retailers selling consumable hemp products containing CBD and new retailers wishing to sell these products will be required to register with DSHS."
https://www.dshs.texas.gov/consumerprotection/hemp-program/default.aspx
"Nevertheless, Gandelman is happy with much of the bill, which he says fixes the “Wild West” atmosphere in CBD manufacturing and sales. He believes New York’s industry can benefit from having strong and clear regulations."
https://www.newyorkupstate.com/news/2019/12/cuomo-signs-bill-to-clarify-hempcbd-manufacture-sales-in-new-york.html
"That alarming CBD liver damage study is bunk—and the media should know better."
https://www.leafly.com/news/industry/alarming-cbd-liver-damage-study-is-bunk
"A Look At How The Revolving Door Spins From FDA To Industry"
https://www.npr.org/sections/health-shots/2016/09/28/495694559/a-look-at-how-the-revolving-door-spins-from-fda-to-industry
"FDA Claims CBD Is Evil, While WHO And NIDA Said It’s All Good"
https://www.forbes.com/sites/mikeadams/2019/12/04/fda-claims-cbd-is-evil-while-who-and-nida-says-its-all-good/#5cf9f3b0382f
"Former JPMorgan, Deutsche Bankers Seek $2 Billion for Pot Funds"
https://www.bloomberg.com/news/articles/2019-09-24/former-jpmorgan-deutsche-bankers-seek-2-billion-for-pot-funds
Writing on the wall.
"It stops the FDA from getting involved"
https://cannabisherald.co/oklahoma-court-decision-on-cbd/942/
"“I really believe there’s a disconnect between what’s happening in the markets and what folks are seeing in their businesses,” Rivers said during an interview this week in New York."
https://www.bloomberg.com/news/articles/2019-12-04/pot-reality-doesn-t-match-depressed-markets-trulieve-ceo-says
"Soon “four or five of the biggest guys are all going to have corporate-level debt,” according to Daviau. This is because some of the largest operators, particularly in the U.S., are beginning to report profitable quarters, making them more attractive to lenders.
While the flow of pot companies going public has virtually dried up, there’s still investor interest from “really rich family offices” and “massive hedge funds,” including one he met with last week that has $46 billion under management, he said.
After an eight-month rout that saw cannabis stocks fall by approximately 60% from their highs, Daviau believes the sector has hit bottom.
“You’ve had a lot of accounts betting against the sector and most of them are reversing those bets,” he said. “I think that’s a good sign of a bottom.”"
https://www.bloomberg.com/news/articles/2019-12-08/several-debt-deals-coming-top-banker-says-cannabis-weekly
"Of course, shares in pot companies fell still further last week. It’s fair to ask if this sector will ever be safe for investors.
The answer is yes.
True, the fundamentals of the industry do not support the scores of North American publicly traded companies hoping to exploit the boom in legal pot.
But the handful of strongest players will endure, long enough to become takeover bait for Big Pharma, global liquor and tobacco combines, and consumer-products giants. At which point, investors in pot takeover targets will be offered a handsome premium to the pre-takeover value of their shares.
Canada’s Canopy Growth Corp., the world’s biggest pot company, is already majority owned by U.S. liquor giant Constellation Brands Inc.
A closer look shows the pot industry to be heading for better times, though it certainly has underperformed against early, unrealistic expectations.
What the FDA actually said about CBD:
The FDA made a sweeping assertion this week that it “cannot conclude that CBD is generally recognized as safe among qualified experts for its use in human or animal food.”
An FDA accused of dropping the ball on the dangers of nicotine vaping is determined to be tough on the pot sector.
But the FDA also acknowledges the scarcity of proof that CBD is harmful. “There is very limited available information about CBD, including about its effects on the body,” the FDA said this week. Given the enormous popularity of CBD, the FDA is committed to ensuring the purity and safe use of it rather than its removal from the market.
“The FDA continues to explore potential pathways for various types of CBD products to be lawfully marketed,” the agency said.
Those pathways are almost certain to include costly clinical trials, as with conventional FDA-approved medications.
And that is to the advantage of the biggest, well-capitalized pot firms. They alone have the resources to comply with the FDA’s stringent regulations, to be released next year and likely to be adopted by Health Canada."
If clinical trials are needed, then they are talking about CBD, the drug (CBD isolate). --Not FSHE!
https://www.thestar.com/business/opinion/2019/12/08/cbd-can-harm-you-according-to-the-us-what-does-this-mean-for-canadas-cannabis-sector.html
The possibilities are endless for Khiron. All up from here is my bet.
I thought legal sales of CBD in NY and Oklahoma would be a good thing here. It was for CVSI, so no clue what people are thinking with the sell-off when retail has entered its best time of year for mall retailers. It must be tax-loss harvesting, but those harvesters are taking a major risk considering the fact that some states are defying the FDA by passing their own CBD laws.
“Piper Jaffray Companies initiated coverage on shares of CV Sciences in a report on Monday, August 12th. They issued an overweight rating and a $5.00 target price for the company. One equities research analyst has rated the stock with a hold rating and five have assigned a buy rating to the company. The stock has a consensus rating of Buy and a consensus target price of $6.69.“
Quite a bit at .85
Real company. Real store count and feet in the door. Real revenues. Real growth. Really good products. Ambiguous regulations are the closed gates. Gates open with regulatory clarity. 5 Buy ratings and 1 hold by 6 analysts. Pushback against FDA is real; the matter is far from settled.
I think hemp will be treated like red yeast rice. Full Spectrum Hemp Extract will be marketed legally, but CBD isolate will not. The red yeast rice situation is precedent.
It looks like the FDA’s game isn’t going to fly much longer with the American people. It even appears to be backfiring. The FDA should be holding their heads low in shame. Everyone knows they are full of it. —Not just me anymore. Just google FDA scandals to see how dirty of an organization the FDA has become. I wouldn’t be surprised if they were all drug cartel puppets.
-Prescription drugs can not be sold to the masses without a prescription.
-Epidiolex is a prescription drug that contains CBD that is 99% pure.
-CBD isolate is essentially a prescription drug.
-Full Spectrum Hemp Extract is not a prescription drug since CBD is naturally occurring and just one component of hundreds in the hemp extract.
Once you realize all of the above, then you should have some kind of an idea as to how this should go down in the end at the FDA.
Very possible it’s a manufactured drop in hopes of getting a better buy out deal for some whale. Wouldn’t surprise me. I don’t think we should take the buy out if that’s the case.
Read and realize the potential of favorable FDA regulations. Follow the trends! https://www.forbes.com/sites/louisbiscotti/2019/11/15/feds-finally-crafting-national-cbd-rules/#353eb8a21b89
The loyalty program is being distributed now. More revenues to come. Cash flow positive by mid 2020 is the guidance.
Now, the focus of the company is on becoming cash-flow positive by mid 2020, and the one-time expenses are over, so operating costs should be much lower going forward. With the new loyalty software being plugged into Kraft-Heinz’s Point of Sale software, the sales trajectory should be interesting to watch, especially as regulatory clarity progresses in the States. With one of the two major parties pushing for marijuana reform, it will come soon, and with it, revenues could multiply.
And with 2.5 million in cash, decreasing debt, and only 78.5 million shares outstanding, with a much smaller float, investors will realize that LBUY will be sticking around for a while.
https://www.sec.gov/Archives/edgar/data/1643721/000147793219006333/lbuy_10q.htm
https://www.cspdailynews.com/technologyservices/kraft-heinzs-venture-capital-fund-invests-cannabis-platform
https://www.marketwatch.com/press-release/good-hemp-enters-into-strategic-marketing-agreement-with-leafbuyer-technologies-2019-11-13?siteid=nbsh
https://www.businesswire.com/news/home/20190305005495/en/Leafbuyer-Technologies-Flowhub-Announce-Integration-Offer-Instantaneous
https://marketrealist.com/2019/10/cannabis-kraft-heinz-marks-warren-buffetts-entry/
Earnings should be soon. Looking forward to seeing a lot more cash on the balance sheet.
Now, you can listen to SKK investments, or you can listen to Piper Jaffray or Cantor Fitzgerald. —Mediocrity versus Elite.
Increased competition affects everyone. Don’t get your hopes up.
Just a minute, SKK investments put a buy rating on CVSI according to TipRanks, but they say otherwise on SA. Something isn’t adding up.
https://www.tipranks.com/bloggers/skk-investments
Eeeeek. —Not doing so hot. Less than 50% win rate (42%). A Head/Tails call has a better chance of making an accurate prediction.
I agree. If CWBHF doesn’t beat, they could fall to a 2.5X sales valuation like CVSI, according to the SA author.
We’ll go from having our dietary supplements in 2300 stores to having them in thousands and thousands more stores if the FDA ED is favorable, which I believe it will be if you’re selling FSHE CBD instead of isolate. The SA author doesn’t even mention this, which tells me that he’s pretty clueless as to what’s going on. He admitted that he was wrong; well, I predict he will be wrong again. 0/2 buddy.
Wow, the new CVSI SA article seems to put a tremendous amount of pressure on CWEB to beat estimates. The author feels that CV Sciences’ earnings reflect their 2.5X sales valuation. So, if CWBHF doesn’t beat estimates, does that mean that it will fall to 2.5X sales too, due to increased competition and FDA barriers? If so, look out below if revenues don’t beat.
So, the SA author admitted that he was wrong about his bullish thesis for CVSI. It seems that his analysis skills were lacking since he was wrong, and now he wants us to believe that his new thesis will be right. Then, he sprinkles the fact that he’s a CWEB fanboy throughout the article. He even says that our super low valuation is justified because of one bad quarter. So, if other Pure CBD plays don’t hit their revenue estimates due to the same exact reasons (competition), then he seems to be suggesting that valuations of other Pure CBD will come crashing to meet CVSI’s valuation of between 2-3X sales. This author may not realize what he just did to his best friend’s CWEB investment, but he put a tremendous amount of pressure on CWEB to beat estimates by correlating our valuation to this last quarter’s revenue results, which I believe are temporary as we navigate around regulatory walls. The pressure is now on CWEB. If they don’t beat, they could drop to 2.5X sales like us. That seems to be what this author is hinting.