Cannabis Sativa Inc (OTCMKTS:CBDS) has been sliding of late and one gets the feeling that CBDS is searching for something. The company tried to give it that “something” about a week ago when it announced that it acquired a controlling interest in PrestoCorp (a.k.a. PrestoDoctor), an online telemedicine platform providing access to knowledgeable physicians for a safe and confidential way to get a medical marijuana recommendation using secure video conferencing technology. Lets take a closer look.
According to the release, “Appointments through PrestoDoctor’s website are generally completed in 10-15 minutes, and can be scheduled and completed in the same day. This convenience eliminates the need for patients to travel to an in-person appointment or wait in line at a clinic. More than 40,000 users have registered to consult with PrestoDoctor’s 15+ licensed physicians across the United States. PrestoDoctor currently offers services in California and Nevada, and is actively targeting expansion into multiple additional states in the coming months.”
Cannabis Sativa Inc (OTCMKTS:CBDS) is a diversified play in the cannabis space. It’s previous strategic footprint expansion came into place with its grab of iBudtender, Inc., a Colorado corporation that currently offers information and reviews of dispensaries, cannabis businesses, strains, edibles, concentrates and products.
But the PrestoDoctor acquisition changes the narrative.
According to company materials, “PrestoDoctor launched in California in the summer of 2015, and quickly expanded services to Nevada in the summer of 2016. PrestoDoctor has facilitated tens of thousands of appointments and maintains the highest customer satisfaction rating for any telemedicine service online. PrestoDoctor has over 4,000 5-star reviews, is the first medical marijuana company to be accepted into the American Telemedicine Association, and is HIPAA and HITECH compliant. PrestoDoctor plans to expand its services to multiple additional states in Q3 2017.”
That said, the company also directly engages in the research, development, and licensing of natural cannabis products comprising cannabis formulations, edibles, topicals, strains, recipes, and delivery systems.
CBDS plans to develop, produce and market products through joint ventures with companies licensed under state regulations applicable to cannabis businesses. It holds the license for a medicinal cannabis strain called NZT, a cannabis lozenge delivery methodology, and a cannabis trauma cream formula. Cannabis Sativa Inc is also developing a third strain of cannabis plant named CT22.
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As noted above, CBDS recently picked up a new segment. In its 8K from early August, the company notes that it entered into a Securities Purchase Agreement with the owners of PrestoCorp, a Delaware corporation to acquire a 51% ownership interest in PrestoCorp, in exchange for $4,560,000 payable in restricted shares of Cannabis Sativa common stock at a valuation of $4.4686 per share – a total of 1,027,169 shares of CBDS stock.
“We are pleased to bring PrestoDoctor on board as a subsidiary of Cannabis Sativa. Combining our resources should be a great benefit to both companies. We are eager to assist PrestoDoctor in the roll out of their medical marijuana programs in several new states this year, and hope to see the continued growth of PrestoDoctor for years to come. We believe telemedicine is the future.”
PrestoDoctor was founded by an experienced Silicon Valley based team, with Kyle Powers previously at Google, IBM, PayPal, and ClearSlide, and Robert Tankson previously with Google, ClearSlide, and McCullough & Associates.
PrestoDoctor CEO Kyle Powers says: “We are proud to announce our partnership with Cannabis Sativa. The experienced team at Cannabis Sativa will serve a vital role in the continued success of PrestoDoctor as we expand operations into multiple new markets. We believe that the strong portfolio of brands and companies operated by Cannabis Sativa reflects the vast potential of this rapidly growing industry, and we look forward to our joint success.”
Earning a current market cap value of $64.7M, CBDS has a reserve ($886K) of cash on the books, which stands against about $452K in total current liabilities. One should also note that debt has been growing over recent quarters. CBDS is pulling in trailing 12-month revenues of $63K. However, the company is seeing declines on the top line on a quarterly y/y basis. This is an exciting story, and we look forward to a follow-up chapter as events transpire. For continuing coverage on shares of $CBDS stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $CBDS, either long or short, and we have not been compensated for this article.