Thank you for providing an objective and comprehensive analysis of CANB in the context of the CBD sector
Your words of wisdom were sorely missed around here
One fact I will add is that the recent legislation filed by the House does nothing to change the FDA’s viewpoint on the presence of THC in CBD products, which they have classified as a “psychoactive contaminant” in CBD products
In addition, both CBD and THC are each subject to the drug exclusion clause in the FDCA, and the legislation filed in the House only explicitly exempted Hemp-derived CBD from this clause — the current illegal status of Hemp-derived THC in Dietary Supplements (and Food, too) was not changed by this legislation
The FDA explains it right here:
9. Can THC or CBD products be sold as dietary supplements?
A. No. Based on available evidence, FDA has concluded that THC and CBD products are excluded from the dietary supplement definition under section 201(ff)(3)(B) of the FD&C Act [21 U.S.C. § 321(ff)(3)(B)]. Under that provision, if a substance (such as THC or CBD) is an active ingredient in a drug product that has been approved under section 505 of the FD&C Act [21 U.S.C. § 355], or has been authorized for investigation as a new drug for which substantial clinical investigations have been instituted and for which the existence of such investigations has been made public, then products containing that substance are excluded from the definition of a dietary supplement. FDA considers a substance to be "authorized for investigation as a new drug" if it is the subject of an Investigational New Drug application (IND) that has gone into effect. Under FDA’s regulations (21 CFR 312.2), unless a clinical investigation meets the limited criteria in that regulation, an IND is required for all clinical investigations of products that are subject to section 505 of the FD&C Act.
There is an exception to section 201(ff)(3)(B) if the substance was "marketed as" a dietary supplement or as a conventional food before the drug was approved or before the new drug investigations were authorized, as applicable. However, based on available evidence, FDA has concluded that this is not the case for THC or CBD.
FDA is not aware of any evidence that would call into question its current conclusions that THC and CBD products are excluded from the dietary supplement definition under section 201(ff)(3)(B) of the FD&C Act. Interested parties may present the agency with any evidence that they think has bearing on this issue. Our continuing review of information that has been submitted thus far has not caused us to change our conclusions.
When a substance is excluded from the dietary supplement definition under section 201(ff)(3)(B) of the FD&C Act, the exclusion applies unless FDA, in the agency’s discretion, has issued a regulation, after notice and comment, finding that the article would be lawful under the FD&C Act. To date, no such regulation has been issued for any substance.
11. In making the two previous determinations about THC, why did FDA conclude that THC is an active ingredient in a drug product that has been approved under section 505 of the FD&C Act? In making the two previous determinations about CBD, why did FDA determine that substantial clinical investigations have been authorized for and/or instituted, and that the existence of such investigations has been made public?
A. THC (dronabinol) is the active ingredient in the approved drug products, Marinol capsules (and generics) and Syndros oral solution. CBD is the active ingredient in the approved drug product, Epidiolex.
The existence of substantial clinical investigations regarding THC and CBD have been made public. For example, two such substantial clinical investigations include GW Pharmaceuticals’ investigations regarding Sativex.
I see that not much has changed, outside of the positive news on the government taking action front. Those signs of movement by Congress is outstanding.
Still seeing references to CANB being a scam stock due to the drop of the stock price over last year.
Still seeing references to CANB going below .01 (remember, 300 shares at .005 to scare someone into selling back in December does not really count)
Still seeing references to how bad of a company CANB must be because of the drop in share price.
The consistent lack of awareness with how sector sentiment shows clear and evident inexperience with investing and the market. The oil industry is a great example of how sentiment (towards oil prices) have a direct and significant influence over the stock price of all oil industry stocks, no matter how good they are with fundamentals. The same holds true for Cannabis. Perform an overlay on the charts of a dozen Cannabis companies (including Canb) and you will see they follow almost the exact same trajectory during the past year. Are we supposed to believe that is all a coincidence?
If only they would make the effort to look at other Cannabis stocks in the sector. Since there is ignorance towards that, here is a little side by side comparison:
CANB Price on 5/1/2019: $.062 Price today: $.0167 Change: -73.1%
Pretty bad, but wait, this gets better:
CVSI Price on 5/1/2019: $5.35 Price today: $1.09 Change: -79.6% (greater loss than Canb)
CBD MD (who sponsored pro golfer) Price on 5/1/2019: $6.25 Price today: $1.11 Change: -82.2% (greater loss than Canb)
CBD Unlimited Price on 5/1/2019: $.50 Price today: $.0805 Change: -83.9% (greater loss than Canb)
Elixinol Price on 5/1/2019: $3.18 Price today: $.59 Change: -81.4% (greater loss than Canb)
POTN Price on 5/1/2019: $.123 Price today: $.03 Change: -75.6% (greater loss than Canb)
HEXO Price on 5/1/2019: $7.94 Price today: $1.78 Change: -77.6% (greater loss than Canb)
To be fair, we can also add Charlottes Web which is the bellwether of the group:
Charlotte’s Web Price on 5/1/2019: $19.30 Price today: $8.81 Change: -54.3% (not as bad, but those shareholders are also not feeling too great)
This list can go on and on, with the common similarity being that they are all down 70 – 85%. I am sure it will be pointed that Canb was at .10. Well, the list above only reflects the price on 5/1/19. All of the above stocks were also much higher as well.
Now, the sentiment for the industry is starting to improve (Sleek – thanks for keeping us up to date with the latest news). I have said it before that Canb will at least rise with the group, but will most likely surpass it. If it does not, only then can Canb be called out for being a bad investment.
I have not relinquished any of my position in Canb, just needed a hiatus during the Holidays and after the New Year to focus on other things. In my investing experience I have seen the rewards patience can truly bring. Now that we have news which should uplift the sector, I think we are entering exciting times again. Yea, it sucked that Canb dropped so much. But so did my other Cannabis investments, and it’s certainly not due to their fundamentals as well. And I am sure it sucks for many others who have the stocks listed above, or for those who gave up. I am sure everyone truly appreciates (sarcasm) those who post “I told you that was a bad stock” messages, despite the fact that they never predicted such a significant downturn in the overall sector. However, we have hit the ground floor and are headed up. For those who understand charts, they will notice the bottoming and leveling that took place over the past few months. Not just with Canb, but other stocks as well. proclamations that Canb is going “sub-penny” or “sub-zero” (which is actually impossible) will simply not come true. I look forward to 2020 Q1, which is the first quarter NY Hemp Depot revenues are announced (it was stated in previous filings that Q1 was the first distribution).
It’s comical to still see year old references to CBD isolate being everywhere, that no one wants it, everyone on the Canb BOD being busted scam artists (including a Senator, chosen as majority leader), A CEO who is allegedly busted every couple of years for penny stock scamming (with no proof, outside of a couple FINRA management violations over 13 years ago which have been grossly misinterpreted as “acts of scamming”), the mysterious, scary and ever elusive Redwood, accountants that are committing felonies for Canb by documenting false revenue on SEC filings, printing shares in some back room, handing out shares to everyone in order to drive this sub penny (which I don’t understand, because if you were awarded shares wouldn’t you want the PPS to increase and not decrease?), references to why other CBD oil on Amazon is cheaper and Canb is overcharging (not realizing that the $20 bottle you are getting on Amazon is hemp seed oil and not CBD), and on and on.
There are still numerous references to the retail part of CANB, along with its shortcomings. Those references are intentional to make it seem like that is all CANB has going for it. I like the fact that Canb has gone after full vertical integration. Actually, this article today validates it:
To summarize, it indicates CVSI will have a hard road ahead because they only do retail and the competition is killer. Past posts (which included actual factual links) on this board have shown how lucrative hemp cultivation, aggregation and processing is, and the revenue from Canb’s ventures will be announced this quarter. Many, if not all of the other Cannabis companies don’t have this.
My favorite so far is the sub-standard research presented (at least that is one step better than telling people to go do their own research) announcing a big glut in biomass supply that will ruin Canb. This merely shows a significant lack of understanding that it’s a domino effect due to lack of processing (BTW – Canb also does that too) and uncertainty without FDA approval. Also, due to poor farming techniques and farming inexperience producing low CBD content hemp.
“Owners blame a massive over-production of hemp and lack of guidance from the FDA, which is creating uncertainty about the legality of CBD in consumer products”
So, when the sideline companies such as Mondalez and Ben & Jerrys that want to make CBD products finally see legalization and need a massive amount of CBD isolate for their products, will the oversupply still exist?
Now my true favorite will always be the allegations against Canb, that were allegedly supported by facts, and those facts were allegedly documented, and were allegedly previously posted and also are allegedly easy to Google, and allegedly easy enough for anyone to see so said allegations don't need to be proven, along with having been allegedly predicted all along.
I stand back, and simply look forward to the future.....
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