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Sleek, you make a great point about the Hemp cultivation processing as the driver of significant future revenue. Canb confirmed in the 8-K distribution of profits will be included in future quarters, so the best is yet to be seen.
Here is an interesting article, and what Canb and investors have to look forward to:
https://www.valdostadailytimes.com/news/business/whitney-economics-releases-results-of-u-s-hemp-industry-survey/article_966d0a01-6704-50ce-aa32-e0dd177b281f.html
Some highlights from this independent hemp survey:
"The survey also concluded that, in its first year, even if only a small fraction of the biomass produced by the U.S. during the 2019 season makes it to market, hemp has the potential to become the third largest agricultural crop in the United States by revenue, second only to corn and soy. Based on data from the U.S.D.A., the total revenue from cash crops in the U.S. in 2018 was $197 billion"
This is an awesome statement:
"If hemp supply chain issues are resolved and the full value of the acreage is realized, the total value of the hemp biomass is an estimated $11.3 billion or roughly 6% of the total value of the entire U.S. cash crops."
Is Canb is vertically integrated in the supply chain? Why, yes they are.
The good news continues:
"65% of farmers who responded to the national survey did not have a buyer.
"There is one processor for every four growers and the average acres per processor is 138 acres, signifying a major constraint in the hemp supply chain.
Supply chain issues are impacting the industry resulting in roughly 1/3 of the licensed acres coming to market."
Economics in its purest form is based on supply and demand. The raw hemp supply will definitely be there which will be competitive where Canb can buy for low prices. The demand for aggregation and processing will be extremely high, which presents the opportunity to sell at high prices, and buy at cost for their own products (saving hundreds of thousands of dollars per year).
Although profit will be realized in future quarters, they appear to already be benefiting with lower costs of pure CBD that Canb uses for their products. Their revenue to Cost of product ratio went from $300k last Quarter to $143 this quarter, over a 50% savings for revenue that was inline with last quarter.
The full results of the survey can be downloaded here:
https://whitneyeconomics.com/2019/11/12/the-field-of-dreams-an-economic-survey-of-the-united-states-hemp-cultivation-industry/
CANB is on track for at least $2.4 million in revenue this year.
Some of the many positive items from the Q:
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
Overall, things are in great shape
Nice additional info, Sleek.
200% increase from this year to next year.
1,000 % increase over the next four years.
The cultivation, aggregation and processing will remain a huge need for the industry, and Canb is well positioned to take advantage of this.
NY State also had excellent soil and climate for growing hemp
https://www.climatecolab.org/contests/2016/materials-matter/c/proposal/1330112
"Hemp prefers a mild climate, humid atmosphere, and a rainfall of at least 25-30 inches per year. Good soil moisture is required for seed germination and until the young plants are well established."
The climate for most of New York is humid continental, ideal for growing of hemp
The CEO and CFO have surrounded themselves with very distibguished and accomplished Directors and advisory board members.
In reviewing that list, there are many very impressive accomplishments and achievements with all of them. It's laughable that others have referenced these individuals as "busted scammers" or just plain "scammers", without any credible evidence. I think the below highlights are enough to prove those claims are totally false.
Here is some excerpts from their listing of accomplishments that impressed me, which are convincing that Canb is in good hands:
Mr. Scala served the United States both as a Commissioned Officer in the US Army for five years followed by his 29 years of service with the FBI.
David was farm director and chief environmental scientist for what was once the oldest Organic farm in the state of Colorado before moving into the more advanced world of CBD, hemp production, and custom product development.
During his last term in the Senate he was designated by both the House and Senate as the Dean of the Legislature recognizing his standing as the longest serving member. As Senator, he served on a variety of committees , and was chairman of both the Appropriations Subcommittee on Health and Human Services and Criminal Justice. Most recently, a new prescription drug plan of Medicare-eligible senior citizens in the State of Florida has been named “Silver Saver” in his honor.
Most recently he served as Head of Equities for the New York based investment bank H.C. Wainwright & Co. . Prior to that he worked and or supervised teams at Rodman & Renshaw, Oppenheimer, Piper Jaffray, and Credit Suisse in New York, San Francisco, and Minneapolis.
Mr. Murphy was an Assistant Special Agent in Charge with the Federal Bureau of Investigation, responsible for a territory encompassing more than seven million people. His investigative specialties included organized crime, white-collar crime, labor racketeering and political corruption. From 1976 to 1980, Mr. Murphy was assigned to the Office of Planning and Evaluation at FBI headquarters, Washington, D.C.
Mr. Bach has been Chief Business Development Officer, and General Counsel to The Whitmore Group, Ltd., an full service insurance brokerage and financial services firm During his tenure Whitmore had grown from four-fold to become one of the top 5 independent brokers in New York metropolitan area.
David Woycik was appointed a Special U.S. Attorney for New Jersey for 2003-2006.
Mr. Woycik has demonstrated a true commitment to the people of the region. For many years he has been an active supporter of Big Brothers Big Sisters of Long Island where he instituted an endowment program which has raised substantial funds for children without parents on Long Island. The endowment fund was recently named in his honor along with James Metzger. He has served as its President and is currently a Director on the Board. For his contributions, they have named the Headquarters Building, the "E. David Woycik, Jr. Building". He was a member of the Board of Directors for the Disabled Children's Relief Fund which helped needy children in obtaining medical assistance for serious illnesses. He was a director of the United States Organization for Disabled Athletes Fund Raising Programs for Nassau County. His other philanthropic efforts include volunteer work at the Northport Veterans Hospital where he donates many hours of his time to veterans in need. He is a Board of Director for The Guide Dog Foundation for the Blind/Vet Dogs of America and Canine Companions for Independence. Mr. Woycik is a Retired Colonel in the United States Army Reserves, Judge Advocate General Corps and has received numerous Awards and Ribbons for his service.
Mr. Medina has held training programs for both employees and physicians to better understand and comply with pertinent federal and state statues as well as regulations and standards. Mr. Medina is often called upon to review and revise corporate compliance programs in light of changes in the needs of the practice or changes in the law. Mr. Medina also develops a solid audit procedure for both private and publicly traded companies that establishes a consistent methodology for selecting and examining records to serve as a basis for future audits.
Professionally Mr. Medina brings his expertise into service to oversee and monitor healthcare compliance program implementation, developing, coordinating and participation in compliance training program that focuses on the essential elements of the medical field compliance programs. Mr. Medina has held training programs for both employees and physicians to better understand and comply with pertinent federal and state statues as well as regulations and standards. Mr. Medina is often called upon to review and revise corporate compliance programs in light of changes in the needs of the practice or changes in the law. Mr. Medina also develops a solid audit procedure for both private and publicly traded companies that establishes a consistent methodology for selecting and examining records to serve as a basis for future audits.
Ms. Fessler has run multi-specialty practices including Neurosurgery, Orthopaedic, PM&R, Interventional Pain, Physical Therapy, Psychology and surgical centers.
Mr. Winn worked for the Assistant Public Defender in the Fifth Judicial Circuit. Winn was appointed by Governor Bush to serve a one-year term on the Judicial Nominating Commission for Judicial Compensation Judges.
During that time he served as the President of The Huntington Medical Group as well as being the football team physician for the Huntington, Walt Whitman and Northport school districts. Dr. Weissberg developed and was the CEO of Long Island Physicians Holdings Company which created and managed Long Islands' first physician own medical insurance company in the 1990's. Dr. Weissberg has been using Canbiola CBD products in his practice and has found it to provide excellent relief for many of his patients Orthopedic needs including it's uses for pain, swelling, inflammation and neuropathies
Dr Coe's practice also focuses on treating women with chronic pain, endometriosis, and menstrual and menopausal symptoms.
Dr. Kornfeld has lectured extensively throughout the country, has hosted his own radio shows in NYC, has been featured on local TV shows and is the Founder of The Institute for Integrative Podiatric Medicine. He is a former Assistant Professor – New York College of Podiatric Medicine – Dept. of Integrative Medicine. Fellow – American College of Alternative Medicine. Director - Post-Graduate Preceptorship in Podiatric Medicine and Surgery at Mt. Hope Medical Center – Bronx, N.Y. 1982-1987
After the terrorist bombings of September 11, 2001, Dr. Salerno served as the Medical Director for the World Trade Center Landfill, a position that earned him a commendation from then-mayor Rudy Giuliani. Served as a clinical preceptor at the Yale University School of Medicine. Served as the Medical Director of St. Vincent’s Immediate Health Care in Shelton, Connecticut
He is a professor at the University of Bridgeport College of Naturopathic Medicine for the last three years
Member of the North American Menopause Society
Member of the American Academy of Family Practice
Member of the Society of Teachers of Family Medicine
Diplomate of the American Board of Family Practice & Board
Board Certified in Anti-Aging Medicine
Board Certified in Family Medicine
Board Certified in Obstetrics and Gynecology
Since 2002, he has been working at a Level 1 Trauma Center in Fort Lauderdale, Florida, affiliated with NOVA Southeastern University, School of Osteopathic Medicine, and Florida International University College of Medicine (FIU). He was appointed as assistant clinical professor for NOVA and, several years later, for FIU.
He was twice selected to the Pro Bowl and twice named NFL Defensive Lineman of the Year following the 1985 and 1986 seasons. He won two championships with the Giants, recording three sacks in the two Super Bowl games which he played in.
Here is some info I found about the lack of processing, and the the issues the farmers face. No need to compete in the overcrowded retail areas, and Canb recognizes that. Canb's NY Hemp Depot business venture is well positioned to take advantage of the lack of aggregation and processing throughout the U.S.
This article discusses the issue in Vermont, a neighboring state of NY
https://vtdigger.org/2019/08/06/lack-of-hemp-processing-capacity-brings-vermont-a-problem-and-an-opportunity/
Some highlights:
"hemp biomass grown in 2018 was about four times as much as the estimate of processing capacity"
"Vermont is still well short on processing capacity within the state. With just weeks until the harvest, Matthews said many Vermont processors are booked, including his business, some as far as next summer."
“I think either a large number of farmers are looking to sell their biomass into the national marketplace or they’re looking to contract with other processors out of state,” he said." - Canbiola's NY Hemp depot is close by
"David Muller, who started to grow hemp this year with some neighbors in Woodstock, called processors the “gatekeepers” because they are determining the price."
Here is another interesting piece:
Oversupply Of US Hemp Hampered By Lack Of Processing Outlets
https://finance.yahoo.com/news/oversupply-us-hemp-hampered-lack-141751653.html
Highlights:
"Grower to Processor Ratio: 3.7:1" - this means there is almost 4 times the amount of hemp, as the capabilities to process it. We all know the profitability of things that are in high demand.
"there is a significant economic opportunity for those with the means to go into hemp extraction"
While Canb is being made to appear as only a "retail" CBD seller among the masses, they set themselves apart in vertical integration within the hemp industry. This is something the "mom and pop" CBD providers certainly don't have. Also why the product dispensing machines (aka vending machines) are really not that significant...
Personally, I like the 700k bid this afternoon with the ask fairly normal
Guess there is not too much concern given others predictions that everyone was going to run for the hills.
Nice to see some green this afternoon for Canb after the so called "disastrous" news LOL.
Fascinating to see the 300 share sacrificial trade at .005 to incite panic selling during the morning.
"Actually, this article misses the point. But it’s complicated. FDA can use enforcement discretion to allow CBD in supplements or food so long as levels very low, GMPs, track and trace, assured. But producers would have to commit to prosecuting petitions"
Tweet from this morning. Confirms exactly what Sleek has been saying.
I wouldn't consider very short lived panic selling of a few hundred k in shares as counting towards a declaration of sub penny status.
The drop to .005/.006 was only 10,000 shares, obvious manipulation to prompt a mini panic sell below .01.
Many are affected by the sentiment of the cannabis sector and the impact it has had on price action.
Posters on CVSI said it will never go below $2. Now it's flirting with going under $1
Posters on Aurora said it would never go below $3. Right now, it's on its way to going below $2
Posters on Charlotte's Web said it would never go below $10. It actually went below $9 last week, but has recovered a little.
Posters on Canopy Growth said it would not drop below $18. It dropped below $15.
So, anyone who has been investing in the cannabis sector these past months has been wrong.
Noted, and added to the list of myths.
I also have another one:
Myth: The announcement to uplist is a PR stunt
Reality: Canb has already uplisted in past history, to the OTCQB
There is a qualification criteria that must be met and validated each and every year for companies who have the privilege of being on the QC. This includes a higher set of standards from the SEC.
http://www.legalandcompliance.com/securities-law/otc-market-compliance/otc-markets-listing-requirements/otcqb-listing-requirements/
Given that Canb has a track record with a past uplisting, any speculative opinions about their true intentions are unfounded.
Excellent details to bring clarity to the sea of misinformation and misunderstandings that are out there, relating to requirements to uplist. It's always important to cite actual links, and facts referencing statements in the financial filings.
It's even stated in the 14C:
"Purpose: The Board of Directors proposed the Reverse Split to improve the Company’s capital structure and to meet the listing requirements as part of the Company’s application to the Nasdaq Capital Market."
All the other speculation as to why they are doing the reverse split is false and misleading. It could not be any clearer.
I am still anticipating this was timed prior to the release of the 10-Q because the revenue growth will continue to be significant.
Also, the timing is at a point when the sector is bottoming, thereby minimizing the impact from those who instantly assume this is a bad thing.
Totally wrong, the post assumes that Canb won't drop much further.
Several possibilities support this, and also should lead to a price increase:
1) Canb should be be sitting on another quarter of significant revenue growth. We will know next week. At a time when CVSI, Aurora and Canopy Growth just announced stagnant revenue growth, investors will want to jump ship to seek a better opportunity. Keep in mind, CVSI has fallen more than Canb (80%).
2) If you follow the Cannabis sector, you may notice it's not doing too well over the past 6-8 months. There are tools which allow you to overlay charts which make it clear that Canb has followed the same trajectory as the majority of other Cannabis stocks. Once the sector starts to rise again due to FDA guidance, Canb will follow suit.
A R/S was also announced by CVSI
https://ir.cvsciences.com/press-releases/detail/78/cv-sciences-inc-files-application-for-up-listing-to-the
They shot up after the R/S announcement, so they didn't need it. Not sure why they didn't follow through with it.
Now that the reverse split has been announced, which is not a surprise, the parade of myths will begin.
Here is the facts, not unsubstantiated speculation:
1) Canb has already publicly announced their application to uplist to the Nasdaq months ago.
2) Canb has restructured, to create an independent board of directors which is required for Nasdaq.
3) One of the Nasdaq uplisting requirements is a $4 a share minimum. The terms of the R/S put Canb shares at $4.80 per share. I doubt this is a coincidence.
4) While many reverse splits are for negative reasons, doing one to up list is a very common positive reason.
This is listed in a Cabot Wealth article as one of the four reasons:
https://cabotwealth.com/daily/stock-market/four-reasons-for-a-reverse-split/
"Major stock exchanges have minimum dollar amounts for the price of the stocks they list. So, to stay listed, a low-priced stock may reverse split in order to push its price to those minimums."
5) It's good timing to announce this, since Canb has bottomed with the rest of the Cannabis sector. Remember: bellwether stocks such as CVSI are down 80% since March, and is down more than Canbiola. Any stock price decline (due to misconceptions, many of which you will see on this board) has mostly been priced given the negative sentiment of the cannabis sector.
6) Also good timing because I expect the earnings reported next week to be very positive, with continued exceptional growth.
Of course, there will be false claims that Canb is in distress, a scam, and all the other creative myths. Reality is the reason for this should not be unexpected, and could not be any clearer.
This phrase sums it up best "in my opinion"
The only statement that can actually be substantiated.
Canbiola's nano pure CBD is superior to all basic pure CBD isolate that is out on the market
As for why Canbiola's pure CBD is superior, here is extensive due diligence which provides unquestionable confirmation:
This article describes the Nano process:
https://potstocknews.com/cbd-isolate/
"CBD isolate can only be partially absorbed by the body. These molecules are greater in size than our own cells, and our cells cannot fully utilize a particle larger than itself. Because of this, with typical consumer CBD products, our body has to discard a large percentage of the CBD."
"However, nano-technology reduces the size of the CBD molecules so they are completely absorbable by the body. This means that nano-amplified CBD products are the most absorbable form of cannabidiol. There is literally no waste from this form of CBD isolate as the size of the particles allows the body to utilize virtually all of it."
Here is another independent article on the superior nano-process that Canbiola uses
https://www.cbdhacker.com/water-soluble-cbd/
"Anubhav Pratap Singh, PhD, is a scientist at the University of British Columbia. Singh and his team are currently working on a research study looking specifically at the benefits of nanoemulsification for cannabinoid-rich hemp oil."
"Nanoemulsifying CBD, Singh continues, “means that large amounts of CBD molecules which would either be eliminated (due to poor solubility) or rejected (due to the larger size of general CBD molecules) or destroyed (by chemicals and enzymes in the gastrointestinal tract) will be more readily absorbed.”"
"And, as Singh discussed, the low-bioavailability of any CBD edible or pill that has to go through your digestive tract should, to a large degree, be remedied by nano-emulsification."
"Another scientist with extensive experience with nanoemulsions is Alexey Peshkovsky, PhD. He explained that the possible benefits of nanotechnology are even more far-reaching than increased absorbability. Accurate dosing of CBD at present is very difficult, due to the number of variables which are unique to each person."
"Nanoemulsions, on the other hand, “have a more predictable absorption rate and bioavailability rate, so we have a better idea of how much will be absorbed and how fast. The on/off times are more predictable (when the CBD starts and stops taking effect)…so it becomes much easier to manage.”
New Jersey Health and Wellness is a distributor of Canb with several offices in North Jersey:
https://njhwllc.com/product/canbiola-hemp-extract-nano-drops-1000mg-1oz-30ml/
"Canbiola’s nano cannabinoid delivery system delivers over 450% more CBD action per milligram than using hemp by itself. Why? This is due to the extremely small particle size in Canbiola nano-drops and sprays combined with superior formulation of pure hemp extract and all-natural ingredients."
True Green Essence is another distributor of Canbiola products
https://www.truegreenessence.com/pages/about
For those who don't have time for read the entire article, here are the highlights:
"Canbiola Hemp Extract Nano-drops – Canbiola’s advanced nano-technology has done wonders for the efficacy and success of their CBD drops. Of course, the best effects come from the most bioavailable molecules. Bioavailability means that the body is able to absorb AND utilize the CBD molecules efficiently. CBD is a naturally large molecule and it is oil based. This means that first of all, it is hard to assimilate because of its size. Second is that because it is an oil-based molecule, it requires the presence of fat for the best absorption. Canbiola has created a product where the molecular size of the absorbable molecules is 30 nanometers, making it easy to absorb under the tongue. Sub-lingual absorption puts it directly into the bloodstream where it can be carried to the endocannabinoid receptors for use in the human body Most importantly, the molecules are not treated with chemical processes to create the 30 nanometer size, but rather with sound waves. The CBD molecules are then mixed with coconut oil (to maximize absorption) and pleasant tasting mint. Canbiola Hemp Extract Nano-drops contain 99.5% pure CBD oil from hemp. You will be hard pressed to find a better product on the market today."
"Canbiola offers different strength CBD nano-drop products. Choosing which one is right for you can sometimes be confusing. Suffice it to say that because CBD oil makes your body more efficient, it also can make certain medications work more strongly in your body. If you are taking a lot of medications, such as analgesics, anti-inflammatories, anti-anxiety medications, etc., starting with a lower dose and working your way up to higher doses makes sense. This way, as your body begins to function better, you can slowly wean off the drugs that you currently take."
"My research brought me to a deep understanding that the quality of the CBD oil is critical in obtaining the kind of results we want to achieve. In my research, I came across a company called Canbiola. Canbiola harvests their CBD from the Hemp plant, a cannabis species that contains almost no THC and therefore supplies the medicinal properties of CBD without the associated “high” from THC. It is legal in ALL 50 states without a prescription. Their products are of the highest potency, are prepared via nanotechnology for the best absorption and utilization by the body and they are a company with extremely high integrity and commitment as they are also a publicly traded company. I have been recommending their products to my patients for the past 2 years with great results."
"Since CBD oil has so many conditions that it addresses (such as pain, inflammation, anxiety, depression, GI problems, nausea, and even has been shown to have anti-cancerous properties), I felt certain that I could be a part of helping many more people to improve the quality of their lives by making pure, high potency CBD oil from Canbiola available at discounted rates. With the permission and blessing of Canbiola, True Green Essence, Inc. is an independent, discount distributor of Canbiola products. It is the commitment and joy of True Green Essence, Inc. to offer these amazing products to you at our always discounted prices."
All of this is great detail, and almost forgot to mention:
In addition to the nano process, Canbiola also adds terpenes, which create the "entourage effect". Something the "other" CBD isolates don't have.
Canb's NY Hemp Depot business venture is well positioned to take advantage of the lack of aggregation and processing throughout the U.S.
This article discusses the issue in Vermont, a neighboring state of NY
https://vtdigger.org/2019/08/06/lack-of-hemp-processing-capacity-brings-vermont-a-problem-and-an-opportunity/
Some highlights:
"hemp biomass grown in 2018 was about four times as much as the estimate of processing capacity"
"Vermont is still well short on processing capacity within the state. With just weeks until the harvest, Matthews said many Vermont processors are booked, including his business, some as far as next summer."
“I think either a large number of farmers are looking to sell their biomass into the national marketplace or they’re looking to contract with other processors out of state,” he said." - Canbiola's NY Hemp depot is close by
"David Muller, who started to grow hemp this year with some neighbors in Woodstock, called processors the “gatekeepers” because they are determining the price."
Here is another interesting piece:
Oversupply Of US Hemp Hampered By Lack Of Processing Outlets
https://finance.yahoo.com/news/oversupply-us-hemp-hampered-lack-141751653.html
Highlights:
"Grower to Processor Ratio: 3.7:1" - this means there is almost 4 times the amount of hemp, as the capabilities to process it. We all know the profitability of things that are in high demand.
"there is a significant economic opportunity for those with the means to go into hemp extraction"
While Canb is being made to appear as only a "retail" CBD seller among the masses, they set themselves apart in vertical integration within the hemp industry. This is something the "mom and pop" CBD providers certainly don't have. Also why the product dispensing machines (aka vending machines) are really not that significant...
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.
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."
Canbiola controls the operation of the NY Hemp Depot, not SHI. Also, not the elusive and mysterious "Redwood" with the unsubstantiated and rather comical failed myths they are "controlling" Canbiola,
Not worth asking. You will always wind up getting the same old story.
It's either
"Go look it up yourself"
or
"I posted this in the past, so go reference those posts"
Everything Canb does is labeled a scam, with no real explanation or proof as to why.
For instance, the CEO is being called a scammer who runs scam companies and is out to scam everyone because there are two past FINRA securities violations for "scamming people". Automatically, that makes everyone on the board (Doctors, Attorneys and the Senator) scammers as well.
In reality, there is a significant lack of understanding and interpretation of what those violations were actually for.
Today especially, with 7 million in volume for Canb.
Speaking of a tough sector, Charlotte's Web fell over 8% today and is down a whopping 61% since August 5th. Meanwhile, Canb is down by a lessor amount at 51%. So, CWEB has actually performed worse than Canb during the past three months.
Upon release of the earnings, CWeb stated numerous times where they are being held back significantly by the FDA. However, also several mentions of feeling positive about that guidance the FDA will provide in the near term.
With a very high volume green day, and a half million bid left unfilled at close, appears that many are anticipating Canb's significant revenue growth to continue.
Why would PPE be silly? Seems pretty substantiated by the following that PPE is appropriate for the SAM's, which generate revenue from rental:
From the above definition of property, plant and equipment, three important points are noticeable.
Firstly, property, plant and equipment is a class of assets which includes tangible assets only. Intangible assets such as patents, copyrights and goodwill are not included in this class of assets.
Secondly, the assets termed as property, plant and equipment are held for the purpose of use. The assets can either be used in the process of production or supply of goods or services or they can be used for administrative purposes. Assets which are held for the purpose of earning rentals are also part of property, plant, and equipment.
Thirdly, only non-current assets can be classified as property plant and equipment. These assets are expected to be used for more than one year. Assets which have life less than a year cannot be classified in this class.
https://www.readyratios.com/reference/accounting/property_plant_and_equipment_ppe.html
Above shows PPE is appopriate. Please provide evidence that shows PPE is not appropriate.
Veritas is also vertically integrated seed to sale just like Canb.
They also have a medical advisory board, just like Canb.
Retail is not their strong suit, just like Canb. But they too have other lucrative ventures, just like Canb
They are just further along, but Canb is not too far behind. In fact, Canb has more appeal to investors because there is a longer growth trajectory.
CANB Revenue 1.1m for last 6mo reporting period. Good grief that is tremendous growth
Accumulated Assets is $5,469,204
Total liabilities is a mere $292,037 Good grief that is practically no debt!
C’mon man! The numbers on debt load of other CBD companies are about as nasty as they can get.
CVSI
Total liabilities: $23,295,000
Accumulated Deficit: $34,951,000
ENDEXX
Notes/Loans payable: $2,864,000
Total Liabilities: $4,295,502
Charlottes Web
Total Liabilities: $22,300,000
Good grief, why would anyone want to be in those other stocks? Canb appears to be in the best shape among all of them.
Sounds like you are not familiar with Canb's vertical integration, and medical device subsidiary which make Canbiola multi dimensional.
Canb's NY Hemp Depot business venture is well positioned to take advantage of the lack of aggregation and processing throughout the U.S.
This article discusses the issue in Vermont, a neighboring state of NY
https://vtdigger.org/2019/08/06/lack-of-hemp-processing-capacity-brings-vermont-a-problem-and-an-opportunity/
Some highlights:
"hemp biomass grown in 2018 was about four times as much as the estimate of processing capacity"
"Vermont is still well short on processing capacity within the state. With just weeks until the harvest, Matthews said many Vermont processors are booked, including his business, some as far as next summer."
“I think either a large number of farmers are looking to sell their biomass into the national marketplace or they’re looking to contract with other processors out of state,” he said." - Canbiola's NY Hemp depot is close by
"David Muller, who started to grow hemp this year with some neighbors in Woodstock, called processors the “gatekeepers” because they are determining the price."
While Canb is being made to appear as only a "retail" CBD seller among the masses, they set themselves apart in vertical integration within the hemp industry. This is something the "mom and pop" CBD providers certainly don't have.
Duramed, Inc (revenues over $600k in only its first two quarters of sales)
https://www.sec.gov/Archives/edgar/data/1509957/000149315219009362/ex99-1_033.jpg
Duramed provides wearable bioelectronic devices for the delivery of sustained acoustic medicine (SAMs).
The proprietary miniaturized ultrasound platform is designed for the treatment of acute and chronic musculoskeletal conditions,
and clinically proven to enhance tissue recovery, accelerate the natural healing processes, and relieve pain.
The SAM® family of products are the only FDA-cleared wearable devices for multi-hour continuous low intensity ultrasound therapy.
Duramed also provide the Mobius Therapy Device, a revolutionary new system that combines powerful botanical extracts with modern science and
technology to deliver Endless Relief from many types of pain.
Combining the pain-relief and anti-inflammatory benefits of CBD based medication with Transcutaneous Electrical Nerve Stimulation (TENS),
a proven medical technology successfully used by doctors, hospitals and physiotherapists for over 50 years and is now available for over-the-counter use, is what makes Mobius Therapy so unique. Mobius Therapy Device is registered with the FDA as a Class II Medical Device.
“The use of therapeutic ultrasound to treat a variety of conditions offers great promise to our patients.
In particular, Duramed products represent a breakthrough in our abilities to treat patients in a user friendly,
convenient manner.” Dr. Thomas M. Best, MD, PhD, Director or Sports Medicine, University of Miami
Today I enjoyed seeing the significant bid interest, along with this read:
https://countryfolks.com/hemp-talk-gathers-big-crowd-at-empire-farm-days/
"Per acre, growing hemp for grain or fiber costs $485 for grain and $545 for fiber. The crop value is $1,100 for grain and $800 for fiber. The returns are $625 for grain and $255 for fiber. Compare those figures with CBD dry flowers. The inputs are $20,000 per acre for seed or cuttings, mulch, irrigation and labor. The crop value is $56,000 for a return of $36,000. It’s easy to see why more farmers want to grow hemp for CBD oil"
It shows the importance of needing the right seed, which can be make or break for the Farmer.
"the variety of seeds intended for hemp oil (cannabidiol, also “CBD”) costs about $1 per seed"
Canb will also be selling seeds to Farmers, specializing in high CBD content seed.
According to this:
https://www.thinkhempythoughts.com/learn/hemp101/hempproduction/
CBD requires 25 lbs of seed per acre, and 27,000 seeds per lb. Even at a 50% discount off the original $1 per seed cost (say .50 per seed), the Farmer will need to pay $13,500 per acre on seed. If they have 100 acres of hemp to plant, that would be a cost of $1.3 million per planting season. A 10-20% cut of that sale would be $130k to $260k from just that Farmer.
That can really add up, given that New York alone has grown 18,000 acres of hemp to be one of the top five hemp growing states.
Your welcome. I could have just pointed out that Canb's Seven Chakras site is SSL secured, but that you will have to go verify it yourself.
However, I thought it would be helpful to provide a detailed explanation along with the actual images which lend credibility to the facts being undisputable.
The 500% revenue growth is key. The Hemp Depot cultivation and processing, along with Duramed SAM/TENS subsidiary's make Canbiola multi dimensional in addition to their medical channels and of course retail.
It's laughable to hear all the focused discussions on Canb's retail and E-commerce as if it's the only thing going for them. Sure, it could use a lot of improvement and is not their strong suit. But after what happened yesterday with CVSI, investors will be yearning for a company that is not one dimensional.
This is CVSI's own description:
"The Company has two operating segments; consumer products and specialty pharmaceutical. The consumer products segment develops, manufactures and markets products based on hemp-based Cannabidiol ("CBD"), under the name PlusCBD™ in a variety of market sectors including nutraceutical, beauty care and specialty foods. The specialty pharmaceutical segment is developing drug candidates which use CBD as a primary active ingredient."
What that reveals, is they are fully dependent upon retail for all current revenue and growth. They even increased retail distribution by adding 20% more locations, and still declined 25% in revenue from the last quarter.
It's true they have a pharmaceutical division, however those burn a tremendous amount of cash during the clinical trial phases. Typically, it takes several years to run the trials, obtain FDA approval, market, and finally generate any revenue.
My point is not to discredit CVSI, they still appear to be a good company who is going through growing pains and maturing. However, from an investor point of view, would you want to invest in 30% revenue growth, or Canb's 500% revenue growth?
There is a new round of totally false accusations being made about Canb, now claiming that their Seven Chakras website is not secured for E-commerce with an SSL certificate.
The following claims were made with misleading information:
"No SSL certificate which means it’s not secure for buying with credit card without fear of someone phishing for your financial information"
"Why isn’t seven chakras secure?"
"No SSL certificate which means it’s not secure for buying with credit card without fear of someone phishing for your financial information."
Here is the truth, with links and images to back it up:
When you go to any forms based page on the site (login, register or cart) - https://sevenchakrasllc.com/, these reside on an encrypted SSL page. Claims that customers financial and personal information are being "phished", is totally false.
As proof - here is the certificates right from the website below. They were issued by Digi Cert, one of the major SSL certificate providers. It's clear as day.
It was interesting to watch the total evacuation of CVSI investors, which may continue the remainder of the week. The fact that CWEB was also affected, but Canb remained sideways was also great news.
CVSI revealed sales are now flat, and guidance was also flat. When investors see the continued significant growth of Canb (along with Vate and KG) it should really stand out. THey are going to be seeking opportunities for the next CVSI (2018 version).
CVSI hammered today with a very significant sell off due to disappointing revenue and forecast. CWEB also took a decent hit with high volume sell off.
Perhaps those investors will look for other opportunities in the CBD space?
Canb's Seven Chakras website was always secure, claims that it was not is false and misleading.
There was no post last month that alerted them to anything, it was already secure.
Here was the post allegedly claiming Canb's Seven Chakra's was not a secure site on October 1st:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=151464857
It was replied to immediately afterward that it was secure and provided proof that they had an SSL certificate:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=151464857
Never was unsecure, therefore nothing that needed to be fixed.
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.
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."
Canbiola controls the operation of the NY Hemp Depot, not SHI or the elusive "Redwood" supernatural being that is lurking out there.
Claims that Canbiola's $500k payment to enter the agreement was just a way to pay insiders is false and misleading. Claims that the mysterious "Redwood" controls Canb is also false and misleading. No proof, except references to search for it yourself. That is the first clue that this is merely just speculation and opinion.
It's not DD. It was stated outright: "just my opinion"
Real DD is providing specific examples, and references to actual details. Not generalizations or what someone "thinks".
For example, there is an opinion that Seven Chakras is non SSL compliant.
After doing DD, verification that it is compliant and encrypted with a Digicert Encryption Everywhere SHA 256 bit encryption:
Here is the link:
https://sevenchakrasllc.com/checkout
Again, things taken out of context.
It was stated that right now, the vending machines are not significant in terms of revenue. Canbiola made a PR that they are installing vending machines due to feedback from customers and demand. That was not a lot of info, but keep in mind it was only three months ago, so, let's wait and see. Three months is not a long time.
There were accusations that this was a PR stunt. If it was, wouldn't they have announced revenue numbers in the PR similar to what you posted? The PR said nothing about revenue numbers. The potential numbers you posted are nice, and hope they can see that type of revenue.
I forgot all about the vending machines and the retail.
I was busy thinking about other more lucrative subsidiary ventures for Canbiola:
Canb's NY Hemp Depot business venture is well positioned to take advantage of the lack of aggregation and processing throughout the U.S.
This article discusses the issue in Vermont, a neighboring state of NY
https://vtdigger.org/2019/08/06/lack-of-hemp-processing-capacity-brings-vermont-a-problem-and-an-opportunity/
Some highlights:
"hemp biomass grown in 2018 was about four times as much as the estimate of processing capacity"
"Vermont is still well short on processing capacity within the state. With just weeks until the harvest, Matthews said many Vermont processors are booked, including his business, some as far as next summer."
“I think either a large number of farmers are looking to sell their biomass into the national marketplace or they’re looking to contract with other processors out of state,” he said." - Canbiola's NY Hemp depot is close by
"David Muller, who started to grow hemp this year with some neighbors in Woodstock, called processors the “gatekeepers” because they are determining the price."
While Canb is being made to appear as only a "retail" CBD seller among the masses, they set themselves apart in vertical integration within the hemp industry. This is something the "mom and pop" CBD providers certainly don't have.
Duramed, Inc (revenues over $600k in only its first two quarters of sales)
https://www.sec.gov/Archives/edgar/data/1509957/000149315219009362/ex99-1_033.jpg
Duramed provides wearable bioelectronic devices for the delivery of sustained acoustic medicine (SAMs).
The proprietary miniaturized ultrasound platform is designed for the treatment of acute and chronic musculoskeletal conditions,
and clinically proven to enhance tissue recovery, accelerate the natural healing processes, and relieve pain.
The SAM® family of products are the only FDA-cleared wearable devices for multi-hour continuous low intensity ultrasound therapy.
Duramed also provide the Mobius Therapy Device, a revolutionary new system that combines powerful botanical extracts with modern science and
technology to deliver Endless Relief from many types of pain.
Combining the pain-relief and anti-inflammatory benefits of CBD based medication with Transcutaneous Electrical Nerve Stimulation (TENS),
a proven medical technology successfully used by doctors, hospitals and physiotherapists for over 50 years and is now available for over-the-counter use, is what makes Mobius Therapy so unique. Mobius Therapy Device is registered with the FDA as a Class II Medical Device.
“The use of therapeutic ultrasound to treat a variety of conditions offers great promise to our patients.
In particular, Duramed products represent a breakthrough in our abilities to treat patients in a user friendly,
convenient manner.” Dr. Thomas M. Best, MD, PhD, Director or Sports Medicine, University of Miami
There is significantly misleading and unsubstantiated information regarding the demand and marketability for Pure CBD isolate.
Canbiola specialises in medical grade nano-Pure CBD with terpenes utilized for the entourage effect
Some interesting and unsubstantiated myths floating around:
“99% Pure CBD isolate mixes with anything”
Wouldn’t the versatility of Pure CBD (isolate) mixing with anything actually be a positive? Considering the desire for companies to add CBD to everything from alcoholic beverages to burgers, this is actually great news.
"Real CBD players" can switch to a CBD isolate blend in a blink, but would never do so unless forced to”
A multi billion dollar Canadian cannabis company, Tilray, produces pure CBD isolate products for medical also.
https://www.greenmarketreport.com/tilray-to-buy-hemp-cbd-from-livewell/
“LiveWell Canada will supply Tilray with a minimum of 150 kilograms per month of wholesale CBD isolate. The product will be used for distribution of Tilray-owned wellness and medical products across North America”
That translates to 1,800 Kg per year, which is the equivalent of 2 tons of CBD isolate. I wonder who is “forcing” Tilray to purchase 2 tons of Pure CBD isolate? Guess they are doing so because they were trying to create “sub-par” products.
“Why do you think CANB is offering the same CBD products they have in the medical offices as they are offering in bodegas, bakeries and even donut shops at half price at PureLeafOPil.com”
It has already been proven that distributors receive discounted pricing for Canbiola products. It really could not be any clearer.
“helping many more people to improve the quality of their lives by making pure, high potency CBD oil from Canbiola available at discounted rates. With the permission and blessing of Canbiola, True Green Essence, Inc. is an independent, discount distributor of Canbiola products.”
“Because it is "nothing special" in comparison to the other 1,000+ brands of 99% CBD pure isolate products on the market”
Except that it is special for those who understand the different variations of CBD. Canbiola uses nano technology and add terpenes to create the entourage effect. Those who understand CBD know for a fact that the nano process forms far superior Pure CBD to other basic forms of CBD. Adding terpenes is also an added benefit, unlike what "others" are doing.
“nano-technology has done wonders for the efficacy and success of their CBD drops. Of course, the best effects come from the most bioavailable molecules. Bioavailability means that the body is able to absorb AND utilize the CBD molecules efficiently. CBD is a naturally large molecule and it is oil based. This means that first of all, it is hard to assimilate because of its size. Second is that because it is an oil-based molecule, it requires the presence of fat for the best absorption. Canbiola has created a product where the molecular size of the absorbable molecules is 30 nanometers, making it easy to absorb under the tongue. Sub-lingual absorption puts it directly into the bloodstream where it can be carried to the endocannabinoid receptors for use in the human body Most importantly, the molecules are not treated with chemical processes to create the 30 nanometer size, but rather with sound waves.”
“Good grief you can buy 99% Pure CBD isolate everywhere, it is even listed on Amazon”
Good luck to anyone buying the $20 or $40 bottle of CBD on Amazon.
https://cbdscamreview.com/amazon-hemp-oil-scam-vs-real-cbd/
“Amazon hemp oils… well, now that’s another thing entirely. A keyword search for “CBD oil” on Amazon will literally return thousands of results. You may see a few products on the first page that say something along the lines of “organic hemp oil extract for pain/anxiety/mood/sleep.”
Don’t be fooled. These are your standard “Amazon hemp oil” supplements. They also come in extracts, lotions and creams, but no matter how you look at it, they all lack one very important ingredient: actual CBD.”
Buying from Amazon, expect to be $20 or $40 poorer, with only a bottle of Hemp seed oil to show for it.
So, today's conspiracy theory is the $4 million dollar investors must be insiders.
Next week it will be Mile High Labs turn, and accusations they are manufacturing meth instead of processing CBD.
No, the understanding is there and backed by facts. It is supported by relevant real world information versus ambiguous one or two word ramblings.
how is the service invoiced?
It depends on the submission guidelines of the insurance company and the coding they use (I know this from actual real life experience). The rental agreement period varies, as described by Duramed: "On average, patients with an acute injury should expect to wear the device for two to six weeks. Patients with chronic injuries may require eight to 12 weeks of Duramed product usage to receive its full benefits. Patients may need to continue wearing the device after the recommended number of weeks, on an as needed or preventative basis."
how many days in the month are there?
It depends on the month. Certain months have 30 days, some have 31 days, and 1 month (named February) has 28 or 29 days depending if it's a leap year. This is according to the Gregorian Calendar, which is followed by most of the world. Not sure why this is relevant?
who pays for the service?
The insurance company, once the coverage is confirmed and service approved (if approval is needed). This was explained in the Duramed subsidiary announcement release.
what happens when the service is started mid month?
Makes absolutely no sense... why would it matter when during the month it starts? When a Doctor writes you a prescription for a medical device or medicine, and it's the 15th of the month, do you have to wait until the beginning of the next month until you can get the device?
At the end of January Canbiola announced the Duramed subsidiary along with the SAM/TENS units agreement. One might be confused and think that was the day they actually started it. In reality, that was the day they made the announcement, but things got started prior to that.
I believe those "real life experiences" must be taking place in some alternative universe.
Let's play a game of Canbiola failed myth versus reality. Here are a few of the myths, along with the reality.
Failed Myth: CBD isolate is not used in the medical space, and is useless.
Reality: There are many new and ongoing FDA clinical trials which are using CBD isolate. There are trials with other cannabinoids included, such as THC. However, those compounds are also isolated and added to CBD isolate which serves as the base.
Failed Myth: The CEO has been busted for scamming multiple times
Reality: Although its been claimed many times, there has been zero examples or links provided. That alone automatically makes it a myth.
Failed Myth: The vending machine PR was done to sell shares, and there are no vending machines
Reality: Nothing has been announced yet by the company, so assumptions cannot be made that it was only a ploy. If you read the PR, there was nothing describing revenues. If the true intention was to pump the stock, they would have mentioned revenues (learn by reading PURA's PR's)
Failed Myth: All cannabis vending machine companies have failed
Reality: No evidence provided. Whatsoever. Automatically makes it a myth
Failed Myth: Canbiola charges its medical customers double what they charge for Pure Leaf.
Reality: The pricing on Canbiola.com is MSRP pricing, and Canbiola indicates that medical business accounts get wholesale pricing with an account. Examples were provided to show that one of Canbiola's affiliates, New Jersey Health and Wellness, is charging pricing in line with Pure Leaf
Failed Myth: The medical canbiola cbd isolate is the same as what Pure Health sells. Canbiola is trying to "fool" its medical customers.
Reality: Canbiola has indicated that both are 99.9% CBD isolate, and Pure Leaf is for Consumers and Canbiola is for the medical field. No secrets there. The only way for Pure Leaf to be of less quality would be to intentionally add impurities which is absurd.
Failed Myth: CANB's Duramed revenues in one month are "impossible" because they had no deferred income
Reality: Canb had $300k in revenue from Duramed which was launched in January 2019. A quarter comprises a three month time frame, which is longer than a month. It's not impossible to generate that kind of sales in three quarters, and it's only going to increase from here.
The Accounting concept of deferred income is not appropriate. It's used in a deposit scenario, such as a downpayment with a contractor on a construction job. THe contractor must defer that income, since the work (or service) has not begun, Canb provides the service (use of the SAM/TENS device by the customer) upon completion of the rental agreement. THey invoice and recognize revenue at that point of delivery of the product once the agreement is in place. This follows the GAAP four points of revenue recognition and is appropriate for this circumstance.
Failed Myth: this company is destined to go sub penny so insiders can cash out their shares
Reality: Canb's advisors receive mostly stock based compensation in lieu of cash. That is common business practice to induce incentive for the stock to do well. What logic would ever make sense where they would want the stock to go below .01, rather than .25 or .50 per share?
.25 or .50 has always been > .01
Failed Myth: The website is bad and not top notch
Reality: This one is actually true. No company is perfect, but they have many other lucrative ventures such as Duramed SAM/TENS sales and NY Hemp Depot cultivation and processing. Investors are excited about those subsidiaries. Picking apart their retail sales, and vending machines is lacking an understanding that that these are not that significant with Canb. The main reason Pure Health was purchased was for the production facility and lab, where they shifted manufacturing of the Canbiola products. Duramed, NY Hemp Depot and Canbola CBD wholesale are the core of Canb.
Failed Myth: Criticisms of Canb can all be validated
Reality: Investors and supporters are told to "google it" to validate. Or, to look back on past posts which are nonexistent. No links or backing info has been provided to support any of these links.
Failed Myth: (my personal favorite): Canbiola uses peanut butter and has THC in its CBD isolate
Reality: Canb puts terpenes in the CBD which the CBD described as having the consistency of "peanut butter". Also CEO describes Full Spectrum CBD as having traces of THC which isolate does not. These words taken out of context for the benefit of supporting misinformation.