Shares of Cannabis Sativa Inc (OTCMKTS:CBDS) exploded up the charts on the back of positive news from GW Pharmaceuticals plc (NASDAQ:GWPH). GWPH announced positive results in a Phase 3 clinical trial assessing Orphan Drug- and Fast Track-tagged Epidiolex (cannabidiol) for the treatment of Dravet syndrome, a rare and catastrophic form of childhood epilepsy for which there are no approved treatments. The study met its primary endpoint of a statistically valid reduction in convulsive seizures over the 14-week treatment period compared to placebo. This news was enough to send pot stocks across the board flying and CBDS was no exception.
CBDS considers itself a marijuana branding company. The company is in the business of branding and licensing via its “hi” intellectual properties. The company also offers the Wild Earth Naturals line of CBD Water and cosmetic products which are designed to use organic and natural ingredients, including CBD and hemp seed oil. The company is engaged through its subsidiaries, Wild Earth Naturals and “hi” Brands International, Inc., in the research, development and licensing of specialized natural products, including formulas, edibles, topicals, recipes, and delivery systems. CBDS and its “hi” Releaf products can be found in Washington State and at the “hi” dispensary in Portland, Oregon.
Last month, CBDS signed two deals. First, HI Brands International Inc entered into a trademark and licensing agreement with Trike Candy LLC, an Oregon Limited Liability Company to brand hi chocolate bars for the Oregon recreational marijuana market. Trike Candy is licensed to process marijuana infused products in the State of Oregon for sale in the recreational marijuana market.
Second, Cannabis Sativa entered into an exclusive license agreement with Magnolia Wellness, an Oakland based California Mutual Benefit Corporation, to create, market and distribute “hi” Brands products in the State of California. HI Brands International’s proprietary “hi” Releaf formulations, developed by Cannabis Sativa Inc. subsidiary, Wild Earth Naturals, will be used as the base for the formulations. The infusion process will be done by Mag Wellness, Inc. at their California facilities. The “hi” products are the “hi” Releaf topical ointment containing 50mg of CBD and 50mg of THC, and the “hi” Releaf Plus topical ointment containing 50mg CBD and 100mg THC.
Hi Brands International has been a prime focus for Cannabis Sativa. The company is engaged in negotiations with a team of marketing and communications professionals to develop a turnkey management and marketing solution for its “Hi” brand to be offered to independent dispensaries and cannabis retailers throughout the U.S. and internationally. The first “Hi” branded dispensary opened on October, 2015 in Portland, Oregon. The “Hi” brand aims to help consumers find reliable, trustworthy products in the fast growing but highly fragmented cannabis industry. The “Hi” brand management and marketing solution will give dispensary and retail store owners the management and marketing tools for success in return for an affordable annual fixed license fee or other fixed periodic license fee in accordance with applicable state laws or, where allowed by state law, a royalty on sales.
Shareholders are still waiting on their KUSH certificates. KUSH has received a CUSIP number and that registered shareholders will receive book entry statements in January of 2016. The Record Date was set as of November 16, 2015. Paper certificates were supposed to be mailed out to holders of record beginning in January 2016. However, none have been received. Hopefully, the transfer agent gets this done as soon as possible.
Currently trading at market cap of $27 million, we see current levels as a good area to book profits. We will feel much better about the company when shareholders receive their KUSH certificates. The volume has also quieted down and we think the shorts will start pressing their bets and attacking the company. Overall, we are watching CBDS closely. We will be updating Insider Financial as soon as we know more. For continuing coverage on CBDS, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: We have no position in CBDS and have not been compensated for this article.