BEND, OR / ACCESSWIRE / January 18, 2017 / In researching publicly traded companies within the growing cannabis-based arena, GB Sciences (OTCQB: GBLX) stands out as an intriguing investment opportunity. GB Sciences was originally founded based on the development, manufacture, and marketing of proprietary agricultural growth chambers called "GrowBLOX?". GrowBLOX were designed to automate cultivation of cannabis products for the medicinal cannabis industry, but made a significant pivot and is transitioning into a diverse, vertically integrated cannabis-based company. GB Sciences ("GB") has expanded their business strategy from only producing agricultural chambers, to include vertically integrated cannabis operations for the formulation, development, and clinical testing of cannabis-based bio-pharmaceutical therapies.

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Source: GB Sciences

GB Sciences has three distinctive factors that play into the Company's favor moving forward:

  • Current Revenue & Products
  • Standardized Supply Chain, Ensuring Safe and Effective Cannabis Products
  • Streamlined Approach to Research and Development of Drug Candidates

The Company's experienced management team has implemented a strategy that most biotech companies don't have the option to adopt. On January 4, 2017, the Company announced the certification of their grow facility located in Las Vegas, NV. The facility is anticipated to begin generating revenue within the next 3 months. When the facility is operating at full capacity, the Company projects revenue generation of $20+m annually from this facility alone. Of note, this new grow facility utilizes a scientific-based approach, with processes and controls designed to meet strict cGMP and ISO 9001:2015 qualifications. The Company has implemented a cultivation and production process that reduces the degradation of plant genetics (aka "genetic drift") designed to deliver consistency in its products. The process includes a combination of tissue culture, micro-propagation, and strict environmental controls. As the company heads to FDA-approved clinical trials, the ability to produce a consistent and truly standardized product is imperative. (More about this later.)

Additionally, the Company has announced a partial ownership of an operational dispensary facility in Nevada, however the Company has yet to provide guidance on this business opportunity.

The Company anticipates initial revenue from their grow operation beginning as soon as the end of the 1st quarter of the year, and ramping up over the course of 2017. The grow, along with other initiatives, is anticipated to provide the Company an adequate cash flow to fund growth and ongoing R&D expenses, as GB formulates new products and explores therapies for a wide range of serious medical conditions.

The GB management team has also leveraged one of the advantages of operating within the state-regulated medical cannabis environment. With cannabis-based therapies able to be made available without the FDA's approval, the Company's products can be accessible by patients immediately, upon formulation. GB has developed a two-pronged approach on bringing therapeutic products to market. First: GB plans to release some formulations of therapies directly to the marketplace, which generates revenue without the delay of going through an approval process. The Company has adopted a smartphone app and tools where patients will be able to track and report their responses to the different therapies the Company plans to introduce. The information provided is expected to be very beneficial as the Company advances its research and development pipeline. With the revenues anticipated from its grow operations, bolstered by therapeutic product sales, GB's second strategy is to be able to fund development of therapies through a fully approved FDA process. GB's management is optimistic the FDA will allow the Company's smartphone app, and more importantly the data gathered from it, to be utilized in some aspects of pre-clinical, Human Phase I, Phase II, and Phase III trials, which would aide in both the speed and expense burden of going through the FDA approval process.

The Company has already filed its initial patent on a cannabinoid-based therapy for the treatment of Parkinson's Disease, and is working to initiate a FDA-approved pilot study within the year. While GB is planning to target Parkinson's Disease in the study, the Company believes the therapy formulated may also be effective in treating Alzheimer's Disease, and Lewy Body Dementia, among other neurological disorders. According to a March 2016 article in Drug Discovery & Development, the Parkinson's Disease drug market is projected to be $3.2B by 2021, up from $2.1B in 2014.

Primer: The Body and Cannabis-Based Therapies:

Humans have an endocannabinoid system distributed throughout the body in various tissues and organ systems. The reactions between cannabinoids and their corresponding receptors are known to facilitate a variety of responses in the body, including: mood, appetite, memory, and pain, among others. Cannabinoid molecules differ in structure (based on the cannabis plant varietal), with corresponding differences in how specific endocannabinoid receptors react to each cannabinoid. By understanding how separate cannabinoid receptors respond to each cannabinoid variety, GB can formulate targeted formulations of therapies for specific disease-states.

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Source: GB Sciences

Summary:

GB appears sufficiently capitalized to support the Company's operations until its grow operations and other sales initiatives can provide ongoing cash flow. The Company's experienced management team appears qualified and capable of executing GB's business strategy - a strategy that plays on the legalization of medical and recreational marijuana, in order to fund the demanding work of researching and developing drugs for the treatment of serious diseases. Upon your personal due-diligence, we think you will agree that GBLX represents an attractive investment opportunity.

SOURCE: Sylva International, LLC