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Statements that the massive losses were "caused" by Canb are grossly misleading.
So, let's do some basic stock price analysis:
Canb hit a 52 week high on May 1st, 2019 of $19.5 (.065 pre split)
The stock price is now $1.90 split adjusted, which is a 90.2%.
Now, let's say I bought Elixinol on 5/1/2019 instead of Canb.
Stock price 5/1/2019: $3.21
Stock price today: $.28
Stock loss: 91.2%
Wow, look at that! If I had bought Elixinol, I would have lost MORE money than Canb. Did Canb cause those losses also?
------
Now, let's say I bought CVSI on 5/1/2019 instead of Canb.
Stock price 5/1/2019: $5.35
Stock price today: $.67
Stock loss: 87.5%
Wow, look at that! If I had bought CVSI, I would have lost 87.5% instead of 91.2%. Did Canb cause those losses also?
-----
Now, let's say I bought CBDMD on 5/1/2019 instead of Canb.
Stock price 5/1/2019: $6.25
Stock price today: $.90
Stock loss: 86%
Wow, look at that! If I had bought CBDMD, I would have lost 84%, which is only 5% better than Canb. Did Canb cause those losses also?
-------
Now, let's say I bought CBD Unlimited on 5/1/2019 instead of Canb.
Stock price 5/1/2019: $.50
Stock price today: $.08
Stock loss: 84%
Wow, look at that! If I had bought CBD Unlimited, I would have lost 86%, which is only 7% better than Canb. Did Canb cause those losses also?
------
Now, let's take Charlotte's Web who is considered top in the sector:
Now, let's say I bought CWeb on 5/1/2019 instead of Canb.
Stock price 5/1/2019: $19.76
Stock price today: $4.87
Stock loss: 75.4%
Wow, look at that! If I had bought CWeb, I would have lost 86%, which is only 16% better than Canb. Did Canb cause those losses also?
------
I think this an extremely fair comparison because I took the date of Canb's 52 week high. Now, let's compare Canb's 91% loss against the others, and their 52 week highs:
Elixinoil
Stock price 4/8/2019: $4.25
Stock price today: $.28
Loss: 93.4%
CVSI
Stock price 3/26/2019: $6.59
Stock price today: $.67
Loss: 90%
CBD MD
Stock price 5/7/2019: $7.24
Stock price today: $.67
Loss: 90.7%
CBD Unlimited
Stock price 5/7/2019: $56
Stock price today: $.08
Loss: 85.7%
CWeb
Stock price 4/4/2019: $25.25
Stock price today: $4.87
Loss: 80.7%
WOW! So if Canb dis cause the 90% price decline, the 90% decline in all the other stocks was just a coincidence?
All of the information above can be substantiated and backed by looking at the stock charts for the tickers above.
Here is my take on the R/S, and why I am maintaining some cautious optimism:
1) The sector sentiment couldn't be worse with all stocks in the cannabis sector down 80-90%. So, the decline that occurs from scared investors (who don't understand what a R/S is) is occurring while the stock had already bottomed. The damage to the stock price had already occurred due to the sector downfall. The split cannot make it much worse.
2) The R/S will quickly be forgotten when the sector heats up and finally takes off again, along with the filings. Within a 4-6 week timeframe we’ll have the 2019 Annual report followed by the 2020 Q1 filing. If the revenue and profit margins are substantial, the reverse split will be long forgotten.
It's true that the track record for a R/S is typically a bad indicator of a struggling company. Most companies are unable to provide positive news following a R/S, and often there is no news for a while.
Take note of the following:
From the last PR:
“Our medical device division is enjoying record results and we will be deploying resources to further bolster this unit.”
From the change of name PR two weeks ago:
“the medical device division, Duramed Inc has been experiencing record growth and will be expanding its product offerings.
In it’s first two quarters of existence, Duramed generated over a half million in revenue ($600k). So, “record results” and “record growth” sounds like a good indicator that the pending filings should see a figure well above $600k.
Also, the first distribution of profits from the NY Hemp subsidiary is due occur at the end of Q1 2020, so we should see this additional revenue in the first Q of the year.
From the 8-k, noting the first scheduled distro:
The “gross profits” from the Joint Venture, which are defined as gross revenues less certain direct operational costs, will be distributed quarterly in arrears with the first distribution scheduled to be made on March 31, 2020, of which 70% is to be distributed to Canbiola
This is still an industry and sector that has the potential for explosive potential growth.
Thanks Sleek, as always, great job with providing your commentary.
Did you know that virtually every stock in the Cannabis sector is also down 90%, not just Canb? It hasn't been good for the cannabis last year and this year.
Factual charts below clearly demonstrate that the other CBD players are also down 80-90%. Considering the drops all follow the same trajectory, it's couldn't be more obvious that this significant decline is related to the sector, and not the fundamentals of Canb itself.
Great set of points on Canb, all supported by real world evidence and facts supporting those points.
There are many references out there being made accusing Canb of being a scam.
Also, claims that all the accomplished Medical Doctors are scam artists.
A distinguished leader in the House and Senate of Florida, who is an independent Director with Canb is also being labeled a scam artist.
All without a trace of evidence supporting those claims and scam artist labels. Notice the total lack of even a single detail, link or actual fact to back any of it up. Ever.
So why would a person with the background below, who was promoted to leadership positions over and over again by his colleagues, who never had so much as a speeding ticket in his life, all of a sudden join Canb to become a "scam artist"?
"Silver was first elected to the Florida House of Representatives from 1978 until 1992. While in the Florida House, he served as majority whip (1984-1986) and majority leader (1986-1988). He also chaired various committees, including the select committee on juvenile justice, criminal justice, ethics and elections, as well as the subcommittee of appropriations on general government. Silver was then elected to the Florida Senate in 1992 and subsequently re-elected, serving as the majority (Democratic) leader for the 1994 session. During his last term in the Senate, he was designated by both the House and Senate as the dean of the legislature for being the longest serving member. In 1993, Silver was elected chairman of the Southern Legislative Conference of the Council of State Governments."
I have spent hours and days searching, and no evidence exists.
But it's dirt cheap CBD! Why would anyone want Pure CBD grown and made in the USA by Canb over dirt cheap imported Chinese CBD with no manufacturing standards?
Pure CBD is everywhere on Alibaba, there are thousands of links to online Chinese merchants selling dirt cheap CBD isolate that is everywhere.
https://www.alibaba.com/product-detail/Large-Stock-Supply-CBD-Isolate-99_60774996303.html?spm=a2700.7724857.normalList.69.1ce84427SiAqOr
Place of Origin:
Shaanxi, China
You do realize that it's not just Canb that is down 80-90%?
Here is another six month comparison, color coded for each stock. Notice Canb's performance is indicated in red, and the same trajectory as some of the other players in the sector. The difference is Canb has performed better than the others (make sure to slide the graph over to see the most recent dates)
The CBD isolate you are buying for "cheap" on Alibaba is from China. 0% of what they sell is pure CBD from the U.S.
I would rather not take anything than buying from foreign countries to save a buck.
Disclaimer on Alibaba website when you try and buy Pure CBD:
"There are 7,391 suppliers who sells cbd isolate on Alibaba.com, mainly located in Asia. The top countries of suppliers are Austria, China, and Thailand, from which the percentage of cbd isolate supply is 1%, 52%, and 3% respectively."
https://www.alibaba.com/product-detail/Hot-Selling-99-99-Hemp-Extract_62097876169.html?spm=a2700.7724857.normalList.58.1ce84427SiAqOr
Supplier:
Guangzhou Daieme Cosmetic Company
Place of Origin: China
https://www.alibaba.com/product-detail/Large-Stock-Supply-CBD-Isolate-99_60774996303.html?spm=a2700.7724857.normalList.69.1ce84427SiAqOr
Place of Origin:
Yunnan, China
I will buy my CBD isolate from Canb, from Hemp grown in New York or Colorado, processed in Colorado, and manufactured into finished goods in the state of Washington.
Canb is diversified, it's misleading to state they are a one dimensional company only trying to sell pure CBD in a retail store.
“Pure Health Products LLC division is aggressively expanding its manufacturing capabilities and growing its private label service division”
Analysis: Selling private label is lucrative since these deals typically are in bulk and have commitments attached. Plus. no need for significant advertising costs.
“The medical device division, Duramed Inc has been experiencing record growth and will be expanding its product offerings.” and “directing more resources to our Duramed Medical Device division, which has been far outperforming projections and poised for a break out year in 2020."
Analysis: The revenue for these devices comes mostly from payments from insurance carriers, after these are prescribed to the patients.
"Can B Corp owns and operates a manufacturing facility under Pure Health Products in Lacey, Washington where all CBD based products are blended and packaged. Can B Corp owns and operates Duramed Inc, which sells medical supplies and devices. Can B Corp owns and operates NY Hemp Depot and Green Grow Farms, which are licensed to grow and cultivate Hemp in the State of New York"
Analysis: Anyone can harp all they want about why they are not in every convenience store, or where the vending machines are located. Canb's diversification and full vertical integration within the CBD supply chain is what really matters.
"This quality will allow us to continue to grow our sales channels through medical professionals, but we will now also be applying our resources to develop robust sales channels for traditional consumers as well”
Analysis: Canb recently acknowledged they need to apply more resources in their sales channels to traditional consumers. I like the fact that they focused on vertical integration first. Looking at a company like CVSI, all they have is traditional sales channel. And that's it (unless you count a faltering pharmaceutical division).
"Q1 2019 revenues increased quarter over quarter from the prior year by 741% to $517,160 with a gross profit margin of 49%
Q2 revenues increased quarter over quarter from the prior year by 311% to $633,579 with a gross profit margin of 52.8%.
Q3 2019 revenues increased quarter over quarter from the prior year by 277% to $615,422 with a gross margin of 77%."
Analysis: What is the first and primary thing an investor looks at when evaluating a potential investment? The answer is current REVENUE and REVENUE GROWTH. The experienced investor will understand that profit versus loss matters little in a speculative company with high growth. Many, many companies have seen significant share price increases based on revenue and revenue growth alone.
So, the answer is that there is plenty to keep Canb in business with continued revenue growth.
"What is it that will keep this in business much longer?" Since you asked, the answer is many many other things:
From company announcements:
“Pure Health Products LLC division is aggressively expanding its manufacturing capabilities and growing its private label service division”
Analysis: Selling private label is lucrative since these deals typically are in bulk and have commitments attached. Plus. no need for significant advertising costs.
“The medical device division, Duramed Inc has been experiencing record growth and will be expanding its product offerings.” and “directing more resources to our Duramed Medical Device division, which has been far outperforming projections and poised for a break out year in 2020."
Analysis: The revenue for these devices comes mostly from payments from insurance carriers, after these are prescribed to the patients.
"Can B Corp owns and operates a manufacturing facility under Pure Health Products in Lacey, Washington where all CBD based products are blended and packaged. Can B Corp owns and operates Duramed Inc, which sells medical supplies and devices. Can B Corp owns and operates NY Hemp Depot and Green Grow Farms, which are licensed to grow and cultivate Hemp in the State of New York"
Analysis: Anyone can harp all they want about why they are not in every convenience store, or where the vending machines are located. Canb's diversification and full vertical integration within the CBD supply chain is what really matters.
"This quality will allow us to continue to grow our sales channels through medical professionals, but we will now also be applying our resources to develop robust sales channels for traditional consumers as well”
Analysis: Canb recently acknowledged they need to apply more resources in their sales channels to traditional consumers. I like the fact that they focused on vertical integration first. Looking at a company like CVSI, all they have is traditional sales channel. And that's it (unless you count a faltering pharmaceutical division).
"Q1 2019 revenues increased quarter over quarter from the prior year by 741% to $517,160 with a gross profit margin of 49%
Q2 revenues increased quarter over quarter from the prior year by 311% to $633,579 with a gross profit margin of 52.8%.
Q3 2019 revenues increased quarter over quarter from the prior year by 277% to $615,422 with a gross margin of 77%."
Analysis: What is the first and primary thing an investor looks at when evaluating a potential investment? The answer is current REVENUE and REVENUE GROWTH. The experienced investor will understand that profit versus loss matters little in a speculative company with high growth. Many, many companies have seen significant share price increases based on revenue and revenue growth alone.
So, the answer is that there is plenty to keep Canb in business with continued revenue growth.
Myth versus reality – 2020 edition
Items will be added to the list as additional false unsubstantiated claims are made.
Myth: The medical field does not want CBD isolate
Reality: There are hundreds of clinical trials utilizing Pure CBD only, some with a combination of pure CBD and pure THC. CBD isolate is all the medical field uses, noted below.
Analysis here:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=153415898
Myth: The CEO is a busted scam artist
Reality: The CEO has two FINRA violations related to management of guidelines. There has been no other proof of anything more than this.
Analysis here:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=152597415
Myth: The Insiders are all scam artists
Reality: The board and advisors are all professionals with accredited backgrounds. No evidence has ever been provided that proves otherwise.
Analysis here:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=152358019
Myth: Lifeguard, who did a licensing partnership with Canb, does not produce income statements
Reality: Proven wrong in the following post, with examples showing the facts
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=153658416
Myth: Canb is selling a “speed like” pill
Reality: The pill contains 150 mg and 50 mg of caffeine. This is less than a Red Bull or small Starbucks coffee.
Analysis here:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=153658865
Actually, after posting this I learned that it has 50 mg caffeine and not 150mg as originally posted.
Myth: Canb is at .01, therefore that proves it’s a bad company
Reality: The entire cannabis sector went down hard in 2019. It was demonstrated throughout the year with analysis against the other players in the sector.
Latest scorecard here:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=154064687
Here is the most recent analysis, which includes a performance overlay that clearly shows Canb followed the same trajectory as the others. When the sector rebounds, Canb will also. If it doesn’t, only then can it be called out as a bad company.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=154094244
Myth: Nobody wants CBD isolate, because it’s not as effective as full or broad spectrum.
Reality: Sleek outlines the prognosis for what the FDA is going to allow in numerous posts. It will only be pure CBD to start. Canopy Growth, Aurora and Charlotte’s Web now have pure CBD products.
Would you want your investment to sell federally legal Pure CBD products, or an investment that is still in the gray area (thereby causing the 80-90% drop last year)?
Also, analysis here on Canb’s Pure CBD:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=151855889
Myth: Canb’s recent paid article and PR was a staged promotion to sell shares
Analysis: This misguided analysis was proven wrong, and the CBD bill introduced in Congress was the initial catalyst.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=154088359
Myth: Canb’s financials are a scam, and the figure for the cost of goods sold is impossible.
Reality: Canb has a partnership with Mile High Labs for Hemp processing. One of the benefits is getting isolate produced at Mile High at cost. That significantly lowered the cost of goods sold.
Analysis here:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=152292582
and here: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=152033062
Myth: Canb has a poor retail site, and it’s made to appear that is all they have going for them.
Reality: Somewhat true, and Canb admitted to needing improvement with their retail segment. However, they have other ventures that are also generating significant revenue.
Analysis here:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=151881739
Be wary of claims speaking out against Canb, that are not backed by details, facts or analysis other than a baseless statement. This is the definition of a myth.
All items which are reality contain detailed analysis and supporting evidence.
Sleeks posts are an even better example than mine of the importance of backing statements with facts. Take note of thee exceptional amount of supporting evidence Sleek provides. Otherwise, they would just merely be one person's opinions.
The absurd declarations that Canb is now officially a failure because it reached .01 demonstrates a clear lack of understanding of sector comparison. This is where one stock is compared to others that are in the same line of industry.
The novice investor will think that Canb's poor stock performance must be due to fundamentals. This narrow focus will fail to analyze the others in the sector.
As an experienced investor, the advice that I will lend is to perform a sector analysis with what's called a "comparison performance chart"
In the example below, the comparison is for:
Canb
CVSI
Endexx
Elixinol
Charlotte's Web
Aurora
CBD MD
As you can clearly see over the 200 day chart, Canb's downward trajectory is better than all the others, with the exception of Charlotte. The experienced eye will take notice that the trajectories of all 7 stocks is the same.
True that all these stocks are performing poorly due to the FDA lack of regulation. However, this clearly demonstrates that Canb dropped (with a few peaks) at the same rate as all the others. Everyone in the cannabis sector has losses, outside of the rare few who are successful at swing trading over time. These losses are not less than Canb's losses.
Take notice to the red line (Canb), which is above all the others except CWeb.
For the below chart, click on it to provide the full view.
Totally incorrect because you are not looking at the charts for any other stock in the sector
The whole "promo" and "fake catalyst" claim was already proved false with facts.
It's easy to see the possibility where there may be confusion, thinking that Canb enacted in some sort of staged "promotional" stunt to increase the stock price
The inexperienced investor will see the paid marketing article from Canb and automatically assume that the rise in stock price in January was solely due to only that event.
Analyzing the stock chart, along with industry and sector news, is something a novice investor will fail to realize is necessary to avoid jumping to conclusions.
To demonstrate, here is the sector news that occured:
January 13th the Bill is introduced to legalize Pure CBD in food products
And the price action that followed:
January 13th through January 24th Canb went from .011 to .024 (over 100%) with 56 million shares traded over those 10 calendar days.
Elixinol went from $.493 to $.85 from 1/13 to 1/24 (increase of 72%, and it hit almost 1/2 million in volume on 1/21, which this stock has not see since August, six months ago)
CVSI went from $1.03 to $1.34 during that week (30% increase, with volume double or triple from normal on a few of those days)
Charlotte's Web went from $6.75 to $9.17 (increase of 36%, with volume it hadn't seen since August)
Kaly went from $.0031 to $.0088 that week (increase of over 100%)
Aurora went from $1.50 to $2.32 (increase of 55% with double the volume)
And, there are others on this list as well.
What does this tell us? The mere introduction of a CBD legalization bill in Congress caused Canb to double in value and trade more than triple the ten day moving average. Prior to Jan 13th, Canb was trading flat. Easy to compare this timeframe to other stocks in the sector, as shown above. They all popped in price and volume, some just not as much as Canb did.
So, Canb did not actively engage in stock promotion to pump the stock price so they can dump shares. Canb issues a press release after the paid marketing article, and clarified that they did not dispose or sell any shares during that period, as identified in their statement:
"Upon inquiry of management, directors, control persons and third-party service providers, to the Company’s knowledge, based upon filings made with the SEC and other information available to the Company, during the past 90 days, no such persons executed any purchase or sales transactions of the Company’s securities.
Further as requested by OTC Markets for the company to state whether the company has issued any shares underlying convertible instruments at the time of any marketing materials, the company represents that no such shares have been issued during this time."
Now, back to anticipation with the bill. When this bill makes it way through Congress and passes, along with the potential for a draft of FDA regs in parallel, Canb will easily reverse what is only a paper loss at the moment.
So, you make the claim "scam CEO"
I have explained in a detailed post the two FINRA violations against the CEO over a decade ago. This is what you are referring to, however it's extremely misleading and exaggerated to indicate this as "scamming" activity versus lack of following the rules.
Here is the post which actually exists, with all facts, explanations and details outlined:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=152597415
Are there any other FINRA, SEC or criminal convictions that you are referencing? If so, nobody is aware of them so now is a good opportunity to share with the board.
Where are the links, facts and details to support this?
"redwood, scam ceo, scam insiders, scam financials, scam partnerships"
Still asking, still waiting...........
So, this week the entire stock market is down over 12%, which is unprecedented and the largest market drop since 2008.
Inexperienced investors won't realize that stocks such as Charlotte's Web, CVSI, CBD MD, Elixnol, CBD Unlimited, Village Farms, Tilray, Aurora, Cann Labs, and many, many others (I could go on and on) hit New 52 week lows.
Declarations of victory for a short lived drop below .01 for a few hours (during a week that the entire market plummeted with the largest drop in 12 years) is pretty cute.
Market will rebound, and Canb will too.
The whole "promo" and "fake catalyst" claim was already proved false with facts.
It's easy to see the possibility where there may be confusion, thinking that Canb enacted in some sort of staged "promotional" stunt to increase the stock price
.
The inexperienced investor will see the paid marketing article from Canb and automatically assume that the rise in stock price in January was solely due to only that event.
Analyzing the stock chart, along with industry and sector news, is something a novice investor will fail to realize is necessary to avoid jumping to conclusions.
To demonstrate, here is the sector news that occured:
January 13th the Bill is introduced to legalize Pure CBD in food products
And the price action that followed:
January 13th through January 24th Canb went from .011 to .024 (over 100%) with 56 million shares traded over those 10 calendar days.
Elixinol went from $.493 to $.85 from 1/13 to 1/24 (increase of 72%, and it hit almost 1/2 million in volume on 1/21, which this stock has not see since August, six months ago)
CVSI went from $1.03 to $1.34 during that week (30% increase, with volume double or triple from normal on a few of those days)
Charlotte's Web went from $6.75 to $9.17 (increase of 36%, with volume it hadn't seen since August)
Kaly went from $.0031 to $.0088 that week (increase of over 100%)
Aurora went from $1.50 to $2.32 (increase of 55% with double the volume)
And, there are others on this list as well.
What does this tell us? The mere introduction of a CBD legalization bill in Congress caused Canb to double in value and trade more than triple the ten day moving average. Prior to Jan 13th, Canb was trading flat. Easy to compare this timeframe to other stocks in the sector, as shown above. They all popped in price and volume, some just not as much as Canb did.
So, Canb did not actively engage in stock promotion to pump the stock price so they can dump shares. Canb issues a press release after the paid marketing article, and clarified that they did not dispose or sell any shares during that period, as identified in their statement:
"Upon inquiry of management, directors, control persons and third-party service providers, to the Company’s knowledge, based upon filings made with the SEC and other information available to the Company, during the past 90 days, no such persons executed any purchase or sales transactions of the Company’s securities.
Further as requested by OTC Markets for the company to state whether the company has issued any shares underlying convertible instruments at the time of any marketing materials, the company represents that no such shares have been issued during this time."
Now, back to anticipation with the bill. When this bill makes it way through Congress and passes, along with the potential for a draft of FDA regs in parallel, Canb will easily reverse what is only a paper loss at the moment.
FYI - Some of these are greater than 90% and they have good revenues as well. These are down just as much, or greater than Canb:
CVSI -90 % ($6.59 to $.645) - hit 52 week low today
ELLXF -93 % ($4.25 to $.29) - hit 52 week low today
CWBHF -80 % ($25.25 to $5.00) - hit 52 week low today
YCBD -86 % ($7.24 to $1.05) - almost hit 52 week low today
EDXC -91 % ($.745 to $.061) - almost hit 52 week low today
Yeah, let's put things into perspective:
Say on the first day of the new year, I bought $1k in each of the following stocks:
If I bought Charlotte's Web, I would be down $309 ($7.68 to $5.31 = 30.9%)
If I bought CVSI, I would be down $206 ($.97 to $.77 = 20.6%)
If I bought Ellixinol, I would be down $225 ($.40 to $.31 = %22.5%
If I bought Canb, I would be down $162 ($.013 to $.0109 = $16.2%)
So, Charlotte's web stockholders who bought on Jan 2 are down 31% compared to 16% for Canb. But hey, CWeb's traded dollar volume was 3.5 million.
That softens the blow.
"No one wants CBD isolate in medical" was already proven false.
Nothing has been presented that refutes the facts below:
If the real medical community would never start with CBD isolate, then why are there hundreds of registered clinical trials utilizing CBD isolate as the active ingredient? This question still has not been answered by anyone.
Sounds like Canb is spot on for specializing in CBD isolate for the medical space. Clinical trials and research studies are extraordinarily expensive to run, so this money would not be wasted if CBD isolate was "garbage". Clinical trials are required to report the exact ingredients in the drugs that are being trialed. The only cannabidiol listed is CBD, and in some cases some THC is added to the isolate.
https://clinicaltrials.gov/ct2/results?cond=&term=CBD&cntry=&state=&city=&dist=&Search=Search
Here is a sampling of active trials using purified CBD exclusively, or mixed with a non-cannabis inhibitor:
This one found CBD isolate to be effective for Parkinsons
https://clinicaltrials.gov/ct2/show/results/NCT02818777?term=purified+cbd&rank=1
Quote:
GWP42003-P oral solution, is purified cannabidiol (purity of ≥98%, 100 mg/ml cannabidiol in sesame oil with anhydrous ethanol with added sweetener (sucralose) and strawberry flavoring).
Started at 5 mg/kg/day and is increased by 2.5-5 mg/kg at 3-5 day intervals to a target dose of 20 mg/kg/day.
cannabidiol: Purified CBD, is a strawberry flavored liquid, in sesame oil, provided as 100 mg/ml, extracted from high CBD plant material.
A component of cannabis that has evidence suggesting it is relatively safe and perhaps neuroprotective, reduces tremor, anxiety and psychosis and is well tolerated in PD. Besides limiting the psychoactive effect of THC, studies support that CBD has anti-inflammatory, anticonvulsant, anti-oxidant, anxiolytic and antipsychotic properties.
__________________________________________________________
Here is a Recruiting study of CBD isolate and chronic back pain
https://clinicaltrials.gov/ct2/show/NCT03891264?term=CBD&rank=1
and here is one on analgesic pain with CBD isolate:
https://clinicaltrials.gov/ct2/show/NCT02751359?term=CBD&rank=11
reduction in PTSD and alchohol abuse with CBD isolate
https://clinicaltrials.gov/ct2/show/NCT03248167?term=CBD&rank=21
Wow - here is one for serious complications from stem cell transplants (GVHD):
(they are adding CBD isolate to an existing GVHD inhibitor)
https://clinicaltrials.gov/ct2/show/NCT03840512?term=CBD&rank=31
Here is one for Medically Refractory Sturge-Weber Syndrome
https://clinicaltrials.gov/ct2/show/NCT02332655?term=CBD&rank=35
This quote is positive about CBD isolate, which Canb specializes in:
Quote:
We hope to gain an understanding of the utility of pure CBD used for the treatment of medically refractory epilepsy in SWS in this open-label, safety dose-finding, study. Recent evidence suggests that CBD has multiple, beneficial, effects in patients (such as those with SWS that undergo neurological deterioration) suffering from medically refractory seizures.
CBD and chronic back pain study taking place at Massachusetts General Hospital
https://clinicaltrials.gov/ct2/show/NCT03891264?term=CBD&rank=1
This one is for HIV inflammation using a combination of CBD isolate and THC from Tilray
https://clinicaltrials.gov/ct2/show/NCT03550352?term=CBD&draw=2&rank=101
This trial uses 98% pure CBD for its study
https://clinicaltrials.gov/ct2/show/NCT03900923?term=pure+cbd&recrs=a&draw=2&rank=1
This list could go on and on and on, but there are just way too many medical trials using pure CBD.
Refreshed cannabis sector scorecard
CVSI -88 % ($6.59 to $.80) - hit 52 week low today
ELLXF -92 % ($4.25 to $.337) - hit 52 week low today
CWBHF -78 % ($25.25 to $5.59) - hit 52 week low today
YCBD -85 % ($7.24 to $1.09) - almost hit 52 week low today
EDXC -89 % ($.745 to $.0795) - almost hit 52 week low today
So, while Canb is still bottomed out, is it any different than ALL the other stocks in the sector????
Refreshed cannabis sector scorecard
The whole "promo" claim was already proved false
It's easy to see the possibility where there may be confusion, thinking that Canb enacted in some sort of staged "promotional" stunt to increase the stock price.
The inexperienced investor will see the paid marketing article from Canb and automatically assume that the rise in stock price in January was solely due to only that event.
Analyzing the stock chart, along with industry and sector news, is something a novice investor will fail to realize is necessary to avoid jumping to conclusions.
To demonstrate, here is the sector news that occured:
January 13th the Bill is introduced to legalize Pure CBD in food products
And the price action that followed:
January 13th through January 24th Canb went from .011 to .024 (over 100%) with 56 million shares traded over those 10 calendar days.
Elixinol went from $.493 to $.85 from 1/13 to 1/24 (increase of 72%, and it hit almost 1/2 million in volume on 1/21, which this stock has not see since August, six months ago)
CVSI went from $1.03 to $1.34 during that week (30% increase, with volume double or triple from normal on a few of those days)
Charlotte's Web went from $6.75 to $9.17 (increase of 36%, with volume it hadn't seen since August)
Kaly went from $.0031 to $.0088 that week (increase of over 100%)
Aurora went from $1.50 to $2.32 (increase of 55% with double the volume)
And, there are others on this list as well.
What does this tell us? The mere introduction of a CBD legalization bill in Congress caused Canb to double in value and trade more than triple the ten day moving average. Prior to Jan 13th, Canb was trading flat. Easy to compare this timeframe to other stocks in the sector, as shown above. They all popped in price and volume, some just not as much as Canb did.
So, Canb did not actively engage in stock promotion to pump the stock price so they can dump shares. Canb issues a press release after the paid marketing article, and clarified that they did not dispose or sell any shares during that period, as identified in their statement:
"Upon inquiry of management, directors, control persons and third-party service providers, to the Company’s knowledge, based upon filings made with the SEC and other information available to the Company, during the past 90 days, no such persons executed any purchase or sales transactions of the Company’s securities.
Further as requested by OTC Markets for the company to state whether the company has issued any shares underlying convertible instruments at the time of any marketing materials, the company represents that no such shares have been issued during this time."
Now, back to anticipation with the bill. When this bill makes it way through Congress and passes, along with the potential for a draft of FDA regs in parallel, Canb will easily reverse what is only a paper loss at the moment.
My version of why I also like Canb
Canbiola is a speculative company in a speculative sector. Given this, there are certainly risks, however there is also great to possibly massive reward. The key ingredients to a speculative company is:
1) Proven revenue growth for the company
Canb has that checked.
Revenue in 2017: $123k
Revenue in 2018: $669k for growth of 440%
Revenue in 2019: on target for at least $2.4 million for growth of at least 260%
2) Potential revenue growth for the company, along with being multidimensional
Between full vertical hemp integration, SAM/TENS medical devices, along with Pure CBD sales through medical, wholesale and retail channels, Canb has several different revenue streams. The most exciting appears to be the hemp cultivation, aggregation and processing, where it has been shown there is a tremendous demand for aggregation and processing.
Canb is checking that box as well
3) Revenue growth potential for the sector
There are many estimates that the Cannabis hemp industry will go from under a billion dollars in 2019, to $20-$24 billion in the next four years. That is absolutely incredible, and no other sector can come close to that potential. This revenue won’t be realized until the regulatory veil has been lifted.
The FDA and Congress need to check this box
Many investors are short term, and revenue along with sentiment are the two factors that far outweigh all the others.
Unfortunately, speculative companies also have their detractors. Often, they are those who got burned by another company that was actually a scam, and then come to the false conclusion that all companies must be scams.
It's been falsely stated that Canb has shady accounting practices. Canb uses industry standard accounting practices to report financials in their filings, and there has been no substantiated proof they are doing anything shady. These statements are in their legal SEC filings. For example, the drastic reduction in cost of cost of product sales from $300k to $141k from Q2 to Q3 this year was declared impossible, and therefore they must be faking numbers. Those who are experienced investors recognize Canb’s announcement that through the hemp processing agreement, they now receive base pure CBD at cost with no markup, which in turn is reflected in a reduction of cost of goods used to manufacture the final product. Also, the high and growing AR figure was called out as fraud, with a lack of understanding the timeframes of invoice payments from insurance companies. In layman’s terms, insurance carries take much longer to pay invoices than other companies. Therefore, companies that perform medical billing typically carry AR balances longer and are higher than normal.
It's been falsely stated that Canb is a scam, run by scam artists who have been busted multiple times. It’s total exaggeration of reality. Over a decade ago the CEO committed two FINRA securities violations. This was for (at a high level) failure to have supervisory procedures in place for investment advisors, and not adequately providing disclosure information for penny stocks. These are the same violations that companies such as JP Morgan, Merrill Lynch and Raymond James were charged with recently which does not constitute actual fraud or scamming. One of the Directors has been brought up on serious SEC charges, and was dismissed from the board immediately afterward. Surprisingly he is still the Florida registered agent for Canb. However, those agents merely serve as a mailing address for companies that are registered in Florida, but the business operates in another state (NY). This is common even amongst the largest companies, as states such as Delaware are used for tax incentive purposes. The Florida registered agent has no direct involvement in the company, with some even charging as little as $35 annually. Read the company filings for CVSI, which was busted in 2017 for actually defrauding investors. They were actually scamming investors, however it didn’t stop investors from investing in the company.
It's been falsely stated that everything Canb says is a lie in order to scam people. For example Canb announced the ordering of product dispensing machines that they anticipate would be installed by August / September, and it was called out as a PR stunt. An experienced investor would recognize that a true PR stunt would have included boastful revenue (see every single one of PURA’s daily PR’s). Canb’s first PR did not even mention revenue. Yesterday’s PR provided an update, where the first 10 machines are now being deployed and the only mention was that it would “increase revenue”, along with their strategy. Those with real business world experience recognize that optimistic project deadlines have a tendency to be missed. This certainly does not make the project or the company a failure. There are numerous reasons for delays, and missing a deadline does not automatically constitute scamming. If yesterday’s PR was just a stunt, it would have clearly touted revenue.
It's been falsely stated that the significant drop in Canb’s share price over the past 9 months is simply because they are a bad company. The inexperienced investor doesn’t understand the influence that industry sector sentiment has which can completely override fundamentals. In the exact same timeframe, and almost similar performance trajectory, a similar and more established company CVSI has also fallen 88% in the past nine months from previous highs. The true test will be when the industry consistently starts to pick up steam after regulatory clarity. If Canb does not rise with the rest, that is the time to be concerned (for the record, I think Canb will wind up rising above and beyond the rest)
It's been falsely stated that reverse splits only occur with companies that are fundamentally bad. Sleek previously outlined the reasons they occur, and why an up listing to the Nasdaq is completely different.
I am not worried about Canb, and confident it will pick up (along with the rest of the sector) when more clarity is gained. However, beware of misleading information that is not substantiated, it should be recognized as just an opinion.
It's easy to see the possibility where there may be confusion, thinking that Canb enacted in some sort of staged "promotional" stunt to increase the stock price.
The inexperienced investor will see the paid marketing article from Canb and automatically assume that the rise in stock price in January was solely due to only that event.
Analyzing the stock chart, along with industry and sector news, is something a novice investor will fail to realize is necessary to avoid jumping to conclusions.
To demonstrate, here is the sector news that occured:
January 13th the Bill is introduced to legalize Pure CBD in food products
And the price action that followed:
January 13th through January 24th Canb went from .011 to .024 (over 100%) with 56 million shares traded over those 10 calendar days.
Elixinol went from $.493 to $.85 from 1/13 to 1/24 (increase of 72%, and it hit almost 1/2 million in volume on 1/21, which this stock has not see since August, six months ago)
CVSI went from $1.03 to $1.34 during that week (30% increase, with volume double or triple from normal on a few of those days)
Charlotte's Web went from $6.75 to $9.17 (increase of 36%, with volume it hadn't seen since August)
Kaly went from $.0031 to $.0088 that week (increase of over 100%)
Aurora went from $1.50 to $2.32 (increase of 55% with double the volume)
And, there are others on this list as well.
What does this tell us? The mere introduction of a CBD legalization bill in Congress caused Canb to double in value and trade more than triple the ten day moving average. Prior to Jan 13th, Canb was trading flat. Easy to compare this timeframe to other stocks in the sector, as shown above. They all popped in price and volume, some just not as much as Canb did.
So, Canb did not actively engage in stock promotion to pump the stock price so they can dump shares. Canb issues a press release after the paid marketing article, and clarified that they did not dispose or sell any shares during that period, as identified in their statement:
"Upon inquiry of management, directors, control persons and third-party service providers, to the Company’s knowledge, based upon filings made with the SEC and other information available to the Company, during the past 90 days, no such persons executed any purchase or sales transactions of the Company’s securities.
Further as requested by OTC Markets for the company to state whether the company has issued any shares underlying convertible instruments at the time of any marketing materials, the company represents that no such shares have been issued during this time."
Now, back to anticipation with the bill. When this bill makes it way through Congress and passes, along with the potential for a draft of FDA regs in parallel, Canb will easily reverse what is only a paper loss at the moment.
Yes - it's getting slippery for non-pure CBD so you are absolutely correct.
It's been a little while, so let's do an updated scorecard comparison from November 1st, 2019 to today:
Pure CBD
CANB -23.5% ($.017 to $.013)
Canb has lost a quarter of its value since early November, so not great.
However, Full Spectrum stocks have lost almost half their value since early November
Full Spectrum CBD
CVSI -54.2% ($2.03 to $.93)
ELLXF -57.8% ($1.02 to $.43)
CWBHF -47.0% ($12.10 to $6.41)
YCBD -69.1% ($3.75 to $1.16)
EDXC -44.5% ($.181 to $.10)
So, Canb is down 23%, but other Full Spectrum stocks are down 44% to 69%. The rest of the sector is also down in the neighborhood of 50% or greater also. I wonder why Canb is doing much better than the rest?
Thanks Penny, this is actually a great article supporting Cabb and their processing partnership.
Here is why:
1) The article acknowledges "The biggest underlying factor, Quarles said, is uncertainty about FDA regulation of CBD....He said he is pressing the Food and Drug Administration to “tell us what direction they are heading for eventual regulation with CBD products.”
This means, more than ever, there will be significant pressure by Congress on the FDA to approve CBD in food products and form regulations.
2) GenCanna needed to sink a lot of money into the construction of processing facilities, which they couldn't complete. Canb already has a partnership with a successful established company - Mile High Labs. Smart move for Canb.
3) It's a restructuring bankruptcy, they are not dissolving their assets and shutting down. They will still exist and operate in 2020.
My version of why I also like Canb
Canbiola is a speculative company in a speculative sector. Given this, there are certainly risks, however there is also great to possibly massive reward. The key ingredients to a speculative company is:
1) Proven revenue growth for the company
Canb has that checked.
Revenue in 2017: $123k
Revenue in 2018: $669k for growth of 440%
Revenue in 2019: on target for at least $2.4 million for growth of at least 260%
2) Potential revenue growth for the company, along with being multidimensional
Between full vertical hemp integration, SAM/TENS medical devices, along with Pure CBD sales through medical, wholesale and retail channels, Canb has several different revenue streams. The most exciting appears to be the hemp cultivation, aggregation and processing, where it has been shown there is a tremendous demand for aggregation and processing.
Canb is checking that box as well
3) Revenue growth potential for the sector
There are many estimates that the Cannabis hemp industry will go from under a billion dollars in 2019, to $20-$24 billion in the next four years. That is absolutely incredible, and no other sector can come close to that potential. This revenue won’t be realized until the regulatory veil has been lifted.
The FDA and Congress need to check this box
Many investors are short term, and revenue along with sentiment are the two factors that far outweigh all the others.
Unfortunately, speculative companies also have their detractors. Often, they are those who got burned by another company that was actually a scam, and then come to the false conclusion that all companies must be scams.
It's been falsely stated that Canb has shady accounting practices. Canb uses industry standard accounting practices to report financials in their filings, and there has been no substantiated proof they are doing anything shady. These statements are in their legal SEC filings. For example, the drastic reduction in cost of cost of product sales from $300k to $141k from Q2 to Q3 this year was declared impossible, and therefore they must be faking numbers. Those who are experienced investors recognize Canb’s announcement that through the hemp processing agreement, they now receive base pure CBD at cost with no markup, which in turn is reflected in a reduction of cost of goods used to manufacture the final product. Also, the high and growing AR figure was called out as fraud, with a lack of understanding the timeframes of invoice payments from insurance companies. In layman’s terms, insurance carries take much longer to pay invoices than other companies. Therefore, companies that perform medical billing typically carry AR balances longer and are higher than normal.
It's been falsely stated that Canb is a scam, run by scam artists who have been busted multiple times. It’s total exaggeration of reality. Over a decade ago the CEO committed two FINRA securities violations. This was for (at a high level) failure to have supervisory procedures in place for investment advisors, and not adequately providing disclosure information for penny stocks. These are the same violations that companies such as JP Morgan, Merrill Lynch and Raymond James were charged with recently which does not constitute actual fraud or scamming. One of the Directors has been brought up on serious SEC charges, and was dismissed from the board immediately afterward. Surprisingly he is still the Florida registered agent for Canb. However, those agents merely serve as a mailing address for companies that are registered in Florida, but the business operates in another state (NY). This is common even amongst the largest companies, as states such as Delaware are used for tax incentive purposes. The Florida registered agent has no direct involvement in the company, with some even charging as little as $35 annually. Read the company filings for CVSI, which was busted in 2017 for actually defrauding investors. They were actually scamming investors, however it didn’t stop investors from investing in the company.
It's been falsely stated that everything Canb says is a lie in order to scam people. For example Canb announced the ordering of product dispensing machines that they anticipate would be installed by August / September, and it was called out as a PR stunt. An experienced investor would recognize that a true PR stunt would have included boastful revenue (see every single one of PURA’s daily PR’s). Canb’s first PR did not even mention revenue. Yesterday’s PR provided an update, where the first 10 machines are now being deployed and the only mention was that it would “increase revenue”, along with their strategy. Those with real business world experience recognize that optimistic project deadlines have a tendency to be missed. This certainly does not make the project or the company a failure. There are numerous reasons for delays, and missing a deadline does not automatically constitute scamming. If yesterday’s PR was just a stunt, it would have clearly touted revenue.
It's been falsely stated that the significant drop in Canb’s share price over the past 9 months is simply because they are a bad company. The inexperienced investor doesn’t understand the influence that industry sector sentiment has which can completely override fundamentals. In the exact same timeframe, and almost similar performance trajectory, a similar and more established company CVSI has also fallen 88% in the past nine months from previous highs. The true test will be when the industry consistently starts to pick up steam after regulatory clarity. If Canb does not rise with the rest, that is the time to be concerned (for the record, I think Canb will wind up rising above and beyond the rest)
It's been falsely stated that reverse splits only occur with companies that are fundamentally bad. Sleek previously outlined the reasons they occur, and why an up listing to the Nasdaq is completely different.
I am not worried about Canb, and confident it will pick up (along with the rest of the sector) when more clarity is gained. However, beware of misleading information that is not substantiated, it should be recognized as just an opinion.
Nope.
It may appear like a denial if there is lack of careful review, leading to statements that are taken out of context.
"Are you denying that CANB has been the subject of professional promotions?"
I stated: "January 21st: - The sponsored marketing article for Canb is released" - Could not be any clearer that there is no denial. Also, not unprecedented for a company to pay to market itself.
What happened was a multitude of false statements that Canb was pumping their stock to dump shares. What I proved, was that Canb's stock price went from an open of .011 on 1/13/2020 to a .0167 close on 1/16/2020 (gain of approx. 52%) prior to any promotional articles that were released. It was in direct correlation with the introduction of the H.R.5587 bill which caused many CBD stocks (CVSI, ELLXF, etc.) to rise a double digit percentage. The PR release on 1/24/2020 caused Canb to rise an additional 24%, however at that point it had already gone up 52%.
What I demonstrated was that the two events that actually caused Canb's stock price to rise were not related to the sponsored article. Canb also released the statement and validated that they did not "dump" any shares during this period:
"Upon inquiry of management, directors, control persons and third-party service providers, to the Company’s knowledge, based upon filings made with the SEC and other information available to the Company, during the past 90 days, no such persons executed any purchase or sales transactions of the Company’s securities.
Further as requested by OTC Markets for the company to state whether the company has issued any shares underlying convertible instruments at the time of any marketing materials, the company represents that no such shares have been issued during this time."
Second statement taken out of context:
"Are you denying that the head of CANB has a murky past in the penny stock world?"
Not at all. I am transparent in my analysis of the FINRA violations, and here is the post with details of the violations from 13 years ago:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=152597415
What I see, are a multitude of comments indicated that the CEO is a scam artist that gets busted every couple of years, has been "convicted" of scamming (convictions are for criminal offenses, not FINRA violation), and "there is way more than just FINRA and the SEC charges" which is basically referring to criminal activity.
Funny, there is never proof of this other than references for everyone to go find it themselves.
So, my objective is not denial, but to post the facts. Notice that many of the accusations and statements against Canb are empty and contain nothing to substantiate them. No links, no details, no facts to support any statements......
The mis-information about Canb continues to go on and on
The latest is the calling out of Canb that their recent PR’s were done as some sort of promotion stunt, versus providing shareholders an update.
I can see that is easy to do with the lack of keeping up to date with sector news, and the lack of understanding with reading charts and performing comparisons from novice investors out there.
Here are facts to dispel the stock promotion mis-information that is being spread. Let’s do some stock performance analysis.
The performance of Canb over the past three weeks:
January 13: +13.6%
January 14: -3.0%
January 15: +19.2%
January 16: +7.7%
January 17: -4.8%
January 21: +6.9%
January 22: +24.7%
January 23: -19.8%
January 24: +.6%
Very similar pattern to competitor stocks
ELLXF
January 13: +5.5%
January 14: -5.2%
January 15: +1.0%
January 16: +20.6%
January 17: +12.6%
January 21: +25.0%
January 22: -5.0%
January 23: +5.1%
January 24: -6.0%
CVSI
January 13: +2.0%
January 14: +10.7%
January 15: +0%
January 16: -4.4%
January 17: +15.6%
January 21: +6.9%
January 22: +24.7%
January 23: -19.8%
January 24: +0.6%
Charlotte’s Web
January 13: +0%
January 14: -0.8%
January 15: +18.3%
January 16: +9.1%
January 17: +0.1%
January 15: +0%
January 16: -4.4%
January 17: +15.6%
January 21: +6.9%
January 22: +24.7%
January 23: -19.8%
January 24: +0.6%
CANB went up 54.5%
ELLXF went up 49.0%
CVSI went up 26%
CWEB went up 23.5%
Why did this happen? Those that don’t follow the sector missed the news of the introduction of the bill to allow CBD in food and beverages. That happened on January 13th, and all Cannabis stocks quickly rose and then dropped a few days or week or so later.
Canb also had some press releases, however the stock price was already rising because of the CBD Congress bill.
January 16th: Canb announces 2019 highlights and 2020 expansion
January 21st: - The sponsored marketing article for Canb is released which was intended to provide factual information only, but also contains the opinions of the author which was not authorized by Canb. The PPS for Canb went up only 6.9%
January 22nd - Canb announces a white label deal. They do not specify the multi unit retail chain, or any revenues on the deal. They do mention the overall capacity potential of their manufacturing facility which is nice to hear. Basically, if they wanted to seriously promote this PR they would have made up some pie in the sky revenue (see just about every PURA press releases). Or, announced some major company deal (see BCCI announcing they had a deal with Ben and Jerry’s a few months ago). The PPS for Canb went up 24.7%, then dropped 19.8% the next day.
Of course, mis-information then comes out that Canb was promoting the stock to dump shares. Canb dispelled these myths (under penalty of perjury) indicating that no insiders sold shares, the company did not issue shares, and no shares were converted.
“Upon inquiry of management, directors, control persons and third-party service providers, to the Company’s knowledge, based upon filings made with the SEC and other information available to the Company, during the past 90 days, no such persons executed any purchase or sales transactions of the Company’s securities.
Further as requested by OTC Markets for the company to state whether the company has issued any shares underlying convertible instruments at the time of any marketing materials, the company represents that no such shares have been issued during this time.
Further at the request of OTC Markets to identify any such instruments, the company has a single Convertible Debenture issued to FirstFire Global Opportunities Fund LLC of New York, the issuance date of this was 12-19-19, with a maturity date of 6-18-20, and the first convertibility possible is 6-19-20 at the lower of .02 per share or 80% of the market close.”
So, talk of stock promotions and PR stunts is completely baseless with no substantiated proof. What is good news, was that the mere introduction of a bill legalizing CBD had a significant impact (although short lived) on many hemp stocks. This provides insight with what we can expect when CBD gets closer to passage and legalization.
I am glad to present this info which are facts, and not random opinions.
And to add, that was a sustained run.
Canopy went from $3 in 9/2016 to $52 in 9/2018 which is 17x during only a two year period.
A ten plus bagger may take longer on the big exchanges, but they do happen.
It may not seem as exciting as a parabolic rise, but in some respects it may be better than a short quick pop for a few weeks for the OTC.
Canb can have just as much success, if not more on the Nasdaq as notabadguy outlined due to additional financing opportunities that exist.
Novice investors are quick to point out that Canb has significantly dropped from .09 to .01 in the past year.
The justification so far have been:
1) Since it dropped so much, that must be proof enough that it's a scam
2) It's a scam because, well, everyone thinks so
3) All they do is dilute, so they must be a scam
4) It's a scam because it's on the OTC, and everything that I have invested so far on the OTC is a scam. Therefore, this must be a scam
Inexperienced investors tendency is to demonstrate a lack of awareness of the entire sector when looking at a company (in this case, the Cannabis sector). Looking at the stocks below (and pretty much everyone else in the sector), lest I remind everyone of the facts below that can be proven by going to a stock chart site (such as stockcharts or Yahoo Finance):
CVSI was trading at 6.59 a year ago and is now .93
ELLXF was trading at 4.25 a year ago and is now .48
YCBD was trading at 7.24 a year ago and is now 1.14
EDXC was trading at .75 a year ago and is now .11
Charlotte's Web (considered the leader of the group was trading at 25.25 and is now 7.00.
Those lacking business knowledge will fail to understand that it takes a massive amount of capital to fund a startup business.
There is no magical way to obtain revenue without the need for capital first. How do you get capital?
1) Sell shares for services, goods and acquisitions (dilution)
2) take on massive amounts of debt and not dillute. That debt is often convertible with high interest rates for small caps
Inexperienced investors will also look at these other companies, noting that they have an impressive share structure and pointing out that it does not increase to any degree. They make a common mistake to ignore the financials, and the fact that these companies have a massive amount of debt.
Canb's total liabilities: $282,000
CBD MD's liabilities: $57,000,000 (yes, that is $57 million dollars in liabilities)
CVSI: $23 million in liabilities
Charlotte's Web: $52 million in liabilities
CBD Unlimited: $8 million in liabilities
The debt within these liabilities suck the life right out of profits. I'll take the dilution anyday with the potential for share buyback and retirement.
Additional items of mis-information being spread about Canb:
Things appear to be getting desperate:
#1 - The reverse split is approved and filed with the SEC, but there is no date that it needs to occur by. There is also the chance it may not happen at all (Sleek already pointed this out). Announcing that it will happen next week is simply just misleading.
#2 - All hemp companies will shut down due to oversupply
All I have to say to this is WTF kind of claim is this? An industry still predicted by many sources to go from less than a billion to $24 billion in a few years is now dying out?
It was already shown that the oversupply is due to lack of processing, aggregation and lack of FDA approval which is severely hampering demand due to legality. Canb is involved in processing and aggregation, and Sleek has shown the coming signs of legalization.
#3 - Any drop in Canb is not due to fundamentals and so called "Promotions" (BTW, OTCMarkets flagged Canb's PR as a promotion because they use computer algorithms that saw the stock go up significantly right after a PR. The algorithm has no idea whether or not it actually is a promotion. There was no person who actually reviewed it and flagged Canb) The significant decline across all of the stocks in the hemp sector has been proven over and over and over again. Inexperienced investors seem to ignore any concept of evaluating the sector as a whole. Let's have another scorecard to show that many of the significant players have also declined:
Change from the 52 week high:
CANB: -86.7%
CVSI: -85.3%
CWBHF: -71.0%
ELLXF: -88.2%
EDXC: -83.9%
YCBD: -83.3%
(Wow, all these numbers are very close to Canb)
Change within the past 3 months:
CANB: -26.4%
CVSI: -50.5%
CWBHF: -36.3%
ELLXF: -50.5%
EDXC: -35.5%
YCBD: -69.0%
(Wow, all these numbers are HIGHER than Canb)
Change within the past 2 months:
CANB: -10.7%
CVSI: -3.1%
CWBHF: -18.1%
ELLXF: -24.2%
EDXC: +30.4% (only up because of the past couple of days for reasons unknown)
YCBD: -58.8%
(Canb still faring well)
Change within the past 1 month:
CANB: +13.6%
CVSI: 0%
CWBHF: +6.39%
ELLXF: +6.38%
EDXC: +34.5% (only up because of the past couple of days for reasons unknown)
YCBD: -45.5%
(Canb is in positive territory)
So, are all these companies also scams because their stock prices also fell over 80%? I think the above figures prove otherwise.
Here are actual facts dispelling rumors that Canb is trying to sell "speed" like pills
Here are the ingredients, along with a description and links to back up the truth:
(400 mg) Yerba mate contains antioxidant compounds, such as caffeoyl derivatives and polyphenols, which may protect against heart disease. Cell and animal studies also report that mate extract may provide some protection against heart disease ( 28 , 29 ). In humans, yerba mate seems to reduce cholesterol levels.
https://www.healthline.com/nutrition/8-benefits-of-yerba-mate
(sounds pretty healthy to me)
(50 mg) Theacrine
Theacrine has demonstrated clinical safety and non-habituating effects in healthy humans over 8 weeks of daily use at up to 300 mg/day. Moreover, there was no evidence of tachyphylaxis.
https://jissn.biomedcentral.com/articles/10.1186/s12970-016-0113-3
(sounds like there is no issues to me)
150mg caffeine/green tea/ginger root - we all know there can be issues with too much caffeine. But 150mg per serving is considered way too much?
That is less than a "short" coffee from Starbucks which has 180mg.
The Venti size has three times that amount at 480mg of caffeine!!
https://www.caffeineinformer.com/caffeine-content/starbucks-grande-coffee
The great benefits of Green Tea
https://www.healthline.com/nutrition/10-benefits-of-green-tea-extract#section4
Also, the capsules have B12 which was not mentioned, but is also healthy.
So, if Canb is expanding from CBD to also include other complimentary health products, then this is all positive. Thanks pointing out this great product, and I am sure Canb will do well with it.
Great post CannaBeast in providing clarification.
What company is profitable within their first 2-3 years? Pretty much none. However, it's the steps towards growth that they take in those first years that will lead to profitability.
The SHI Farm/Mile High Lab partnership, Green Growth Farm deal, and NY Hemp Depot subsidiary required dilution which is transparent in the PR's and filings. Also, keep in mind, Canb stated the profits for Hemp Depot will be realized starting with the Q1 filings for 2020. So, the capital (shares) had to be laid out first, before the profitability comes into play. And it has been previously demonstrated articles outlining the potential profitability of hemp cultivation, aggregation and processing.
The unsubstantiated mis-information has reached an entirely new level of deception.
The latest are claims via a poorly researched argument which alludes to a theory that Lifeguard Licensing (with whom Canb just announced a trademark deal with) does not have income or financial statements.
This is another attempt to discredit Canb and their business dealings.
The claims conveniently leave out the details that reveal the actual truth.
Here is the link to the opinion of Judge Francis IV:
https://casetext.com/case/lifeguard-licensing-corp-v-jerry-kozak-ann-arbor-t-shirt-co-1
This part was true:
"According to Ann Arbor, Lifeguard produced royalty reports for three licensees but produced no income statements, monthly financial statements, or earnings reports. (Declaration of Thomas P. Heed dated Sept. 30, 2016 ("Heed Sept. Decl."), ¶ 21). Popularity produced three spreadsheets: one showing gross revenue related to sales of products bearing the trademarks and two showing unit sales by product number for those products, one for each of the years 2015 and 2016. (Heed Sept. Decl., ¶ 29). In response, Mr. Azrack and Mr. Tebele each asserted that his company "does not create (or have created on its behalf) income statements/monthly financial statements or earning reports relating to the Lifeguard brand." (Azrack Decl., ¶ 2; Tebele Decl., ¶ 2). The plaintiffs further point out that Lifeguard's personnel comprise Mr. Azrack and an assistant, both of whom divide their time among Lifeguard and Mr. Azrack's "numerous other businesses," concluding, "It is not the least bit surprising that a company that consists of two part time staff does not create income statements/monthly financial statements or earning reports." (Plaintiffs' Memorandum of Law ("Pl. Memo.") at 3)."
The statement above were presented by Ann Arbor, the Defendants (Lifeguard / Popularity are the Plantiffs). It's not uncommon for finger pointing and "he said, she said" to occur in a civil court case. The truth and facts get twisted and taken out of context. Obviously, Ann Arbor is trying to get out of their copyright infringement suit. The statements were from Heed, who was a former defendant in another of Popularity/Lifeguard copyright infringment suit.
In Judge Schofield's opinion on a different motion, she even questions the ethics of Ann Arbor and Kozak:
"Defendant Kozak is the founding member and the co-owner of Ann Arbor, designed Ann Arbor's LIFEGUARD branded apparel, directed Ann Arbor's art department to copy Plaintiffs' design in an email and asked his attorney whether he could "bury" the email during discovery. A reasonable juror could find that Defendant Kozak "authorized and approved the acts of unfair competition which are the basis of the . . . corporation's liability."
In a court case, during discovery both sides have a legal obligation to produce every piece of evidence they are aware of. Would you believe any statements from someone who asked his Attorney if he could get away with deleting critical evidence?
Here is the actual link, since I like to actually provide transparency:
https://casetext.com/case/lifeguard-licensing-corp-v-ann-arbor-t-shirt-co-3
Judge Francis even demonstrates he is annoyed with Ann Arbor and their motion of contempt:
"For the third time, I find myself addressing "alleged" deficiencies in the document production of plaintiffs Lifeguard Licensing Corp. ("Lifeguard") and Popularity Products, LLC ("Popularity"). This time, the arguments are presented in the form of a Motion for Contempt and Sanctions filed by the defendants ("Ann Arbor"). The motion is denied." (obviously, Lifeguard has a case here)
So, back to the false "claim" that Lifeguard was deficient in producing reports. The Judge clears it up with the part of the opinion that was left out:
"Ann Arbor points out two areas of concern. The declarations of Mr. Azrack and Mr. Tebele do not state that Lifeguard and Popularity have no income statements, monthly financial statements, or earnings reports, but rather that neither has any relating to the Lifeguard brand. (Reply at 7). However, I fail to see how income statements related to other, non-Lifeguard marks would be relevant here. Second, Ann Arbor alleges that Mr. Tebele testified during his deposition that Popularity employed over one hundred people and that the company had an accounting firm to produce financial statements. (Reply at 8 n.4). Ann Arbor wonders why a company of that size would not produce the financial statements requested. (Reply at 8). But Ann Arbor has not submitted the deposition transcript in connection with this motion (nor has the relevant deposition testimony been submitted in connection with any of the other motions within my purview), so I am unable to review it in context. (basically, the Judge is saying that Ann Arbor was lying since they could not produce evidence)
C. Licenses and Sub-Licenses
Ann Arbor complains that Lifeguard Licensing did not produce any documents relating to the termination of a license with Warnaco other than a single "inconsequential email." (Def. Memo. at 9). In light of this allegedly deficient production, Ann Arbor insists that "[a]ny reasonable reading of [Lifeguard II] makes it clear that [Lifeguard] must either turn over all documents relating to the termination of [the license] . . . or 'provide a declaration by a person with personal knowledge outlining the search that was performed and the results.'" (Def. Memo. at 9 (quoting Lifeguard II, 2016 WL 4733157, at *4)). Ann Arbor is wrong on both counts."
FYI - I like the Lifeguard brand, and think this is a great partnership
"All of our merchandise is provided by the Licensee of Lifeguard® Branded Apparel: Popularity Products, based in NY"
https://www.popularityproducts.com/store
https://www.beachlifeguard.com/about-us/
In summary, Ann Arbor made allegations and claims that the Judge confirmed were not true and they could not back up with any facts.
Wow, this sounds familiar.....
CANB is on track for at least $2.4 million in revenue this year. The NY Hemp Depot profits will be reflected in the 2020 Q1 filings, so I anticipate the significant growth to continue.
Some of the many positive items from the last Q filing:
Profit margin increased 41% ($334k to $473k) from last quarter
Duramed profits are up 76% from last Q, over a half million dollars
Total liabilities is still a very manageable $282k, not in the millions like others Cannabis companies
Assets improved from last Q 23% from $5.47 mil to $6.75 mil
Loss from operations decreased by 35% ($1 mil) from last Q
Compensation for the advisors is mostly in stock and shows as a high expense. But if it drives expansion, growth and revenue, this is the way I look at it:
Would you want to have 1% of a 100 million dollar company, or 5% of a 10 million dollar company?
Canbiola's vertical integration into hemp processing with Mile High Labs and SHI Farms will allow them to reduce costs by $500k to upwards of $1 million per year in cost of goods sold. This is an additional bonus, above the first Q1 profit distribution that Canb will see from this venture
https://www.globenewswire.com/news-release/2019/07/22/1885849/0/en/Canbiola-Becomes-Vertically-Integrated-with-its-Joint-Venture-with-NY-SHI-and-Shi-Farms.html
"Canbiola also has the right to acquire certain isolate from Shi Farms at the cost of processing the isolate from biomass. The biomass would be aggregated and then shipped to Shi Farms’ facility in Pueblo, Colorado, where it would be processed by Shi Farms’ other joint-venture partner, Mile High Labs"
"Canbiola typically buys 150 kilos of isolate per year and this relationship will enable us to save thousands of dollars per kilo."
So, let's say conservatively it's $3k to $5k savings per kilo. That's $450,000 to $750,000 that the partnership will be saving Canbiola. Well worth the investment into the Mile High Lab / SHI Farms partnership, and not factoring in the revenue from the cultivation, aggregation and processing of hemp.
"NY Hemp Depot LLC is providing a building for the operation of the NY Hemp Depot Facility, location services, management, and day-to-day operations, and services for the recruitment of farmers."
Let's also do a scorecard from November 1st, 2019 to today:
Pure CBD
CANB -1.2% ($.017 to $.0168)
Full Spectrum CBD
CVSI -48.3% ($2.03 to $1.05)
ELLXF -26.1% ($1.02 to $.754)
CWBHF -37.4% ($12.10 to $7.57)
Wow, big difference!
My version of why I also like Canb
Canbiola is a speculative company in a speculative sector. Given this, there are certainly risks, however there is also great to possibly massive reward. The key ingredients to a speculative company is:
1) Proven revenue growth for the company
Canb has that checked.
Revenue in 2017: $123k
Revenue in 2018: $669k for growth of 440%
Revenue in 2019: on target for at least $2.4 million for growth of at least 260%
2) Potential revenue growth for the company, along with being multidimensional
Between full vertical hemp integration, SAM/TENS medical devices, along with Pure CBD sales through medical, wholesale and retail channels, Canb has several different revenue streams. The most exciting appears to be the hemp cultivation, aggregation and processing, where it has been shown there is a tremendous demand for aggregation and processing.
Canb is checking that box as well
3) Revenue growth potential for the sector
There are many estimates that the Cannabis hemp industry will go from under a billion dollars in 2019, to $20-$24 billion in the next four years. That is absolutely incredible, and no other sector can come close to that potential. This revenue won’t be realized until the regulatory veil has been lifted.
The FDA and Congress need to check this box
Many investors are short term, and revenue along with sentiment are the two factors that far outweigh all the others.
Unfortunately, speculative companies also have their detractors. Often, they are those who got burned by another company that was actually a scam, and then come to the false conclusion that all companies must be scams.
There are some who will try and fool you into thinking Canb has shady accounting practices. Canb uses industry standard accounting practices to report financials in their filings, and there has been no substantiated proof they are doing anything shady. These statements are in their legal SEC filings. For example, the drastic reduction in cost of cost of product sales from $300k to $141k from Q2 to Q3 this year was declared impossible, and therefore they must be faking numbers. Those who are experienced investors recognize Canb’s announcement that through the hemp processing agreement, they now receive base pure CBD at cost with no markup, which in turn is reflected in a reduction of cost of goods used to manufacture the final product. Also, the high and growing AR figure was called out as fraud, with a lack of understanding the timeframes of invoice payments from insurance companies. In layman’s terms, insurance carries take much longer to pay invoices than other companies. Therefore, companies that perform medical billing typically carry AR balances longer and are higher than normal.
There are some who will try and fool you into thinking Canb is a scam, run by scam artists who have been busted multiple times. It’s total exaggeration of reality. Over a decade ago the CEO committed two FINRA securities violations. This was for (at a high level) failure to have supervisory procedures in place for investment advisors, and not adequately providing disclosure information for penny stocks. These are the same violations that companies such as JP Morgan, Merrill Lynch and Raymond James were charged with recently which does not constitute actual fraud or scamming. One of the Directors has been brought up on serious SEC charges, and was dismissed from the board immediately afterward. Surprisingly he is still the Florida registered agent for Canb. However, those agents merely serve as a mailing address for companies that are registered in Florida, but the business operates in another state (NY). This is common even amongst the largest companies, as states such as Delaware are used for tax incentive purposes. The Florida registered agent has no direct involvement in the company, with some even charging as little as $35 annually. Read the company filings for CVSI, which was busted in 2017 for actually defrauding investors. They were actually scamming investors, however it didn’t stop investors from investing in the company.
There are some who will try and fool you into thinking that everything Canb says is a lie in order to scam people. For example Canb announced the ordering of product dispensing machines that they anticipate would be installed by August / September, and it was called out as a PR stunt. An experienced investor would recognize that a true PR stunt would have included boastful revenue (see every single one of PURA’s daily PR’s). Canb’s first PR did not even mention revenue. Yesterday’s PR provided an update, where the first 10 machines are now being deployed and the only mention was that it would “increase revenue”, along with their strategy. Those with real business world experience recognize that optimistic project deadlines have a tendency to be missed. This certainly does not make the project or the company a failure. There are numerous reasons for delays, and missing a deadline does not automatically constitute scamming. If yesterday’s PR was just a stunt, it would have clearly touted revenue.
There are some who will try and fool you into thinking the significant drop in Canb’s share price over the past 9 months is simply because they are a bad company. The inexperienced investor doesn’t understand the influence that industry sector sentiment has which can completely override fundamentals. In the exact same timeframe, and almost similar performance trajectory, a similar and more established company CVSI has also fallen 88% in the past nine months from previous highs. The true test will be when the industry consistently starts to pick up steam after regulatory clarity. If Canb does not rise with the rest, that is the time to be concerned (for the record, I think Canb will wind up rising above and beyond the rest)
There are some who will try and fool you into thinking that reverse splits only occur with companies that are fundamentally bad. Sleek previously outlined the reasons they occur, and why an up listing to the Nasdaq is completely different.
I am not worried about Canb, and confident it will pick up (along with the rest of the sector) when more clarity is gained. However, when there is misleading information that is not substantiated, it’s should be recognized as just an opinion.