United Cannabis Corp (OTCMKTS:CNAB) is a unique cannabis play. Financing is always an issues for smaller companies, and United Cannabis Corp (OTCMKTS:CNAB) has a unique, and sometimes controversial, approach to securing financing (see below).
The company also recently announced that it has entered into a Strategic Partnership with Advesa, a California Corporation, to serve as its flagship product manufacturing facility in California for United Cannabis branded products and technologies, such as Prana Bio Medicinals, as well as affiliate brands Blue River and Bubbleman products.
United Cannabis Corp (OTCMKTS:CNAB) coins itself as a company that owns intellectual properties related to growth, production, manufacture, marketing, management, utilization, and distribution of medical and recreational marijuana, and marijuana-infused products in the U.S.
Advesa was designed and created by the Company’s Chief Technology Officer, Tony Verzura, to facilitate the expansion of United Cannabis branded products, technologies, and its research and development activities for all global partnerships.
Located in Oakland, California, the 6,000 square-foot non-volatile facility comprises automated manufacturing, multiple processing procedures, software tracking systems, employee training programs and research and development functions.
Under the terms of the partnership, Advesa will provide pass-through net product revenues from United Cannabis branded products to the Company, as well as an additional 5% gross technology fee of any other brands produced at the facility and sold state-wide.
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Verzura commented on the announcement, “Many shareholders have expressed concern regarding the number of shares I have liquidated as reported through our public filings. I would like to clarify that, rather than access high cost capital that could negatively affect the company, I elected to undertake the licensing process and fund the project by selling my own personal shares.”
Verzura went on to say, “Since establishing a presence in California, we have worked tirelessly to build a strong product line and brand recognition for United Cannabis and our affiliates, Blue River, Prana, Bubbleman; collectively, these three brands have earned 23 medical cannabis awards including Best CBD Topical, Best THC Topical, Best CBD Concentrate, Best THC Concentrate, Highest Terpene Award, Best Vaporizer, and Best Non-Solvent Hash. Advesa will incorporate all of these technologies and brands in one facility, allowing us to expand across California, providing access to patients throughout the State.”
Earnest Blackmon, United Cannabis’ Chief Executive Officer, added, “This is a transparent transaction, and is what we believe is in the best interest of our shareholders. Advesa will add value and revenue to the Company, and accelerate our ability to expand throughout California at no additional cost to shareholders. In addition, if federal laws governing medical cannabis change throughout the United States, Advesa has extended a purchase option to United Cannabis.”
The company also announced that it is expanding protection of its intellectual properties, and National Stage applications based upon PCT/US2015/056635, and pursuant to the Patent Cooperation Treaty, for “Cannabis Extracts and Methods of Preparing and Using Same” are currently in the process of being filed in Australia, Brazil, Canada, China, Colombia, Europe, Eurasia, India, Israel, Japan, Mexico, New Zealand, the Philippines, South Africa and South Korea.
Tony Verzura, United Cannabis’ Chief Technology Officer, commented on the filing, “We have always taken a scientific approach to medical cannabis, with the objective of providing patients with the highest quality product. This philosophy touches every aspect of our operation – from the genetics we use to acceptable cultivation practices, to the extraction techniques, delivery mechanisms and formulations we create – as we seek to maximize the bioavailability of each of our product profiles. As we broaden our presence in the market, it is critical that we protect the proprietary nature of our intellectual property, as well as the anticipated financial returns on our investment.”
United Cannabis Corporation (OTCMKTS:CNAB) ran the gauntlet like many cannabis stocks in October 2016 trading near $3.00 per shares, and like many of the stocks in the sector they had a pullback from these levels. The company is dedicated to the development of phyto-therapeutic based products supported by patented technologies for the pharmaceutical, medical, and industrial markets.
The Company is a pioneer in the application of cannabinoids for medical applications and is building a platform for designing targeted therapies to increase the quality of life for patients so it is one we will be watching in this exciting sector. We will update you as critical events transpire on CNAB stock. For continuing coverage on shares of $CNAB stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!