There has been a spike in the share price of GB Science Inc (OTCMKTS:GBLX) over the past two days. Readers can view this price movement in the chart below: GBLX Daily ChartThe above price hike came only days after the company made an announcement on one of their novel products receiving a patent. After this announcement, the share price soared from lows of about $.53 to highs of $.73, about 38% increment in their price. This price, however, fell towards the closing time and closed yesterday at $.65 which was still an increment of about 23% from its previous low.Over the course of this piece, we will be taking a look at the evolution of the company and specifically try to understand how the most recent news on their novel drug will affect their prospects as well as their financials. We will seek to answer the question: will the share price above stabilize over time or will it rise further?The Evolution of GBLXBefore going into the intricacies, however, let us first analyze how the company has evolved since inception.GB Sciences Inc was founded back in 2001 and is headquartered in Las Vegas, Nevada. Back then, they were known as Growblox Sciences, Inc but this changed back in October 2016 when they changed their name to its current name.Over the course of their existence, the company has been focused on the development of medicine as well as other treatments – such as therapies – from cannabis plants. Through this, they are producing various cannabis products while harnessing technology in both the extraction and production phase. This is achieved through GrowBLOX – a state of the art medical grade indoor climate technology for agricultural production allowing for the cultivation and growth of cannabis and other extracts through chambers. They are working on both harnessing and leasing of the above technology.Through their dedication and innovation in the cannabis space, the company received a contract from the Universidad de Sevilla for the development of a THC-based pain formulation.Over time, the company has proved to be worth its name and has gained a reputation within the cannabis market. The announcement they recently made has merely come to solidify their position within the industry.The Patent ApplicationAs earlier stated, GB Sciences Inc filed for a patent just two days ago.The patent was meant to cover the company’s cannabinoid-containing mixture which is meant to target a mix of different inflammatory diseases. The diseases quoted in the above patent include arthritis, Crohn's disease, asthma, psoriasis, inflammatory bowel disease and eczema.Through this mix, the company will not only be ensuring the health of individuals affected by inflammations but also tapping into the $200 billion market.Their vision entails the commercialization of this drug and obtaining a patent is the first step towards ensuring that it indeed goes to market. Furthermore, having obtained a single compound that treats a variety of diseases, the company is hopeful that the one-stop solution it is providing to the market will be pivotal to its revenues as individuals benefit not only from the fact that the drugs contain the health benefits of cannabis but also that these benefits are contained in a single solution.The above sentiments were echoed by their Chief Science Officer, Dr. Andrea Small Howard who said:
“GB Sciences also plans to develop a series of distinct anti-inflammatory formulations for sale in cannabis dispensaries. Development through different regulatory pathways and sales channels allows us to get some of these therapies to patients quicker and to implement a diversified sales strategy."
Source:The company’s CEO, John Poss went further to say during a Newswire podcast that the company was not only working at boosting the health services for individuals with inflammatory conditions but also those with other conditions such as Parkinson’s and heart disease. He alluded to the fact that different cannabis strains were usable in the treatment of these disorders and that GB Sciences Inc was working at harnessing their technology to obtain these different strains and combat these diseases in future.FinancialsThe company’s revenues doubled over the third quarter of 2017, 3Q2017, to close the quarter at $136,646 up from $54,099. Furthermore, their working capital position was also positive closing the quarter at $1 million during the same period.This was, however, mitigated by their high operating costs which led the company to close at a loss of over $3.15 million up from $3.08 million over 3Q2017 and 2Q2017 respectively. Furthermore, their negative operating cash flows stood at $3 million at the end of the third quarter.Despite this, management was quite optimistic that the overall increase in their revenues postulates a positive movement and in the long run, given the patent application over the current quarter, the company will be both cash flow positive as well as profitable.ConclusionGBLX is on the overall working towards a better financial position. Their patents will over time past off for them, and once this happens, the company will be swimming in currency. With their current rise in share price postulating the market’s belief in the business, we expect their future performance to be similar to this; thus remain bullish about this stock.We will be updating our subscribers as soon as we know more. For the latest updates on GBLX, sign up below!Disclosure: We have no position in GBLX and have not been compensated for this article.
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