United Cannabis Corp (OTCMKTS:CNAB) has been exploding higher in recent action. If you haven’t had this stock on your radar, you may want to take a look. The company is a cannabis play with a foothold on some international exposure, particularly in the Caribbean. The latest from the name is its announcement that it has secured an industrial building in Colorado where the Company will construct a state-of-the-art industrial hemp processing plant to provide contract manufacturing to farmers working under the 2014 Federal Farm Bill and Colorado’s Department of Agriculture’s Industrial Hemp Program.
According to the release, “the multi-function Facility will include extraction, purification, testing and processing equipment, as well as packaging, fulfillment, and secure storage capabilities.” In other words, this is an investment in expansion in one of the highest ROI market segments on the planet at present. And it goes to show that you don’t have to add “blockchain” to your name to see some money flows into shares.
United Cannabis Corp (OTCMKTS:CNAB) bills 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 United States.
It also provides consulting and product placement services related to marijuana industry. The company focuses on developing therapeutics, including Prana Bio Nutrient Medicinal products for supplement deficiencies related to the endocannabinoid system, including pain, neuropathy, arthritis, MS, IBS, autism, seizures, eczema, sleep, anxiety, head trauma, opioid dependency, and clinical endocannabinoid deficiencies; and Prana Aromatherapy Transdermal Roll-on line that provides targeted and large surface relief with combinations of aromatherapy.
CNAB has strategic partnerships with WeedMD RX Inc.; Harborside Health Center; and Westside Enterprises, LLC. The company also has a production and placement agreement with Jason Emo and Emotek LLC; licensing and exclusive distribution agreement with DNA Holding, LLC; and consulting and licensing agreement with Marcus Richardson.
The company was formerly known as MySkin, Inc. and changed its name to United Cannabis Corporation in May 2014. United Cannabis Corp was founded in 2007 and is based in Denver, Colorado.
According to company materials, “The Company’s Prana Bio Medicinal products provide patients a way to mix/match cannabinoids for therapeutic purposes. These products, licensed to regulated marijuana dispensaries, are broken into 5 categories that are available in capsules, sublingual’s, and topical delivery methods. The Company uses a patent-pending infusion process utilizing select fatty acids, lipids, and specific combinations of cannabis-derived terpenes to increase bioavailability.”
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Earnest Blackmon, Chief Executive Officer of United Cannabis, commented on the announcement saying, “We decided to establish this facility in the face of growing demand for Colorado-grown hemp products. Farmers are dedicating their resources to optimizing grows to yield high-quality plants, but many do not have the expertise or equipment on-site to process the plants, and are therefore left to sell their harvest at commodity pricing.”
Blackmon went on to say, “By applying the technologies and GMP protocols we have developed through our previous medical cannabis experience, our Facility will enable them to extract the highest quality phytocannabinoids, terpenes, terpenoids, and flavonoids from their harvest. We will provide Colorado hemp farmers with the resources necessary to generate real value added, and in turn, higher margins, by creating finished products suitable for research or distribution in the State of Colorado.”
Note that this is a small-float play, with just about 15M shares in play. That often has a key impact on how patterns play out.
Earning a current market cap value of $117.6M, CNAB has a store ($648K) of cash on the books, which compares with virtually no total current liabilities. CNAB is pulling in trailing 12-month revenues of $464K. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -61.3%. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $CNAB stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $CNAB, either long or short, and we have not been compensated for this article.