The cannabis industry has been growing in leaps and bounds. Most analysts are bullish about its potential. According to the latest reports by industry insiders, global cannabis sales could hit $15 billion for this year alone. Indeed, the cannabis industry could be the fastest-growing industry of recent years.
However, the current situation of the industry makes it hard, if not impossible, for mainstream investors to benefit from its growth. The average market cap to revenue ratio of the industry, $131 to $1, is too expensive for many investors. Also, the high purchasing cost to revenue ratio of most cannabis businesses is another major barrier for those investors. Interestingly, Cannabinoid Biosciences (“CBDZ”) is seeking to change that narrative.
Cannabinoid Biosciences (“CBDZ”) was established in May 2014. It is a California-based biopharmaceutical company interested in the discovery, development, and commercialisation of novel plant-derived therapeutic products for specific medical conditions and diseases.
Using research and development based approach, the company intends to developcannabinoid therapeutics of botanical origin which it intends to commercialise through collaborations with pharmaceutical companies. Cannabinoid Biosciences (“CBDZ”) also provides professional financial services forlegal cannabis businesses in California and some other states in the country.
Cannabinoid Biosciences, Inc., (“CBDZ”): Seeking to Revolutionise the CBD Market
CBDZ’s mission is simple, yet powerfully noble. It is to revolutionise and standardise both pharmaceutical and non-pharmaceutical cannabidiol (CBD) products in its targeted primary market, the United States, and to some extent, the world.Hence, its goal is to bring standardisation to the industry.
Operating under private brands, the company intends to beselling its products which are in different forms such as tinctures, capsules, gummies, topical creams, and vape oils, directly to customersthrough its website and indirectly via non- affiliated stores in about 40 states.Its lead product, Epidiolex®, an oral-based CBD formulation for treating refractory childhood epilepsies, Dravet syndrome, Lennox-Gastaut syndrome, tuberous sclerosis complex, and infantile spasms,was the first of its kind to be approved by the FDA.
However, the company’smain competition is GW Pharmaceuticals Plc (Nasdaq:GWPH), a biopharmaceutical company also with a focus on the discovery, development, and commercialisation of plant-based cannabinoid drugs. Nevertheless, CBDZ’s crowdfunding success will propel its growth, thereby giving it a strong competitive edge.
Recounting CBDZ’s Crowdfunding Success
Following its submission to the United States Securities and Exchange Commission (SEC) on April 9, 2019, Cannabinoid Biosciences (“CBDZ”) has received the approval to offer a maximum of 5,000,000 shares at a unit price of $10 to the general public. The minimum investment that can be made is nine shares, which amounts to $100.
Ordinary and small investors especially will find CBDZ’s offering easily accessible. Proceeds from thisRegulation A+ crowdfunding campaign will be used by the companyfor continued corporate operations, growth, and expansion. Thus, for as little as $100, the company provides the opportunity to own shares in high-grossing cannabis dispensaries and high-yield cultivation facilities at just $2 per $1 of revenue.
Interestingly, despite having not officially launched the crowdfunding campaign, CBDZ has already been able to attract 178 investors to raise about $4.6 million in pre-launch funding.The company intends to list on a major Canadian or US-based exchange such as CSE, NYSE, or Nasdaq in the success of its Regulation A+ offering.
Do you want to invest in the fund? Great. All you have to do is to create your free investment account on the company’s website here.
About Cannabinoid Biosciences Inc.
Meta description: Cannabinoid Biosciences, Inc., (“CBDZ”) is a biopharmaceutical company with interests in the discovery, development, and commercialization of medical cannabis products.
The global cannabis industry has been witnessing tremendous growth in recent years. In 2018 alone, global cannabis sales hit $12.2 billion, with an expectation of over 30% growth for 2019. The use of medical cannabis has been given the green light in 33 states while 10 states have also legalized its recreational use. The Californian cannabis industry alone is expected to be worth $6.6 billion by 2020. By the same year, the total US-based market might have as well increased to $23 billion — from just the $3.4 billion valuation in 2015.
However, there is a problem. For someone seeking a bargain, getting in on the ground floor of cannabis investment has become prohibitively expensive. This fact can be perfectly illustrated with the $1.8 billion deal whereby Altria, the Marlboro cigarette manufacturer, paid $250 per 1$ of Cronos’ revenue to acquire a 45% stake in the Canadian cannabis company which generated only $16 million in annual revenue in its most recent fiscal year. Also, the current average market capitalization to revenue of $131 per $1 for publicly traded cannabis businesses makes it almost impossible to find bargain deals in the cannabis investment space.
However, then enters CBDZ.
Cannabinoid Biosciences, Inc., (“CBDZ”), is a biopharmaceutical company founded in May 2014. The company is interested in the discovery, development, and commercialization of novel drugs using different cannabis products —proprietary cannabinoid, cannabidiol, endocannabinoids, phytocannabinoids, and synthetic cannabinoid products. Its operating strategy is research and development and pipeline acquisition.
Hence, the aim of the company, using this approach, is to develop quality plant-derived cannabinoid therapeutic products for specific medical conditions and diseases and to commercialise them through collaborations with pharmaceutical companies. Notably, the strategy has already resulted in GW Pharmerceutical’s production of the first cannabis plant-derived medicine ever approved by the FDA, Epidiolex®, a cannabidiol-based formulation for seizures associated with two forms of drug-resistant epilepsy syndromes.
In addition to its biopharmaceutical research and development business segment, Cannabinoid Biosciences also offers investment-related and professional financial services specifically to other cannabis businesses and investors in California and other jurisdictions where cannabis is legal.
Cannabinoid Biosciences, Inc. (“CBDZ”): Making CBD/Cannabis Investment More Accessible
As a result of the currently high barriers, there is a need for the provision of bargain cannabis investment deals for ordinary investors. Cannabinoid Biosciences (“CBDZ”) is currently meeting that need. Driven by the belief that cannabis should be an open investment opportunity for all, the company has proposed a stock offering of 5,000,000 shares available to anyone, accredited or non-accredited investors — and even to those who do not have a stock brokerage account!
At $10 per share, for as little as $100, you can become an owner of nine shares of the company, the minimum investment plan it offers, before it finally lists on an exchange. Hence, with the offering, you would be purchasing licensed cannabis businesses at less than $2 in market cap for every $1 of revenue generated, which is far below the industry average. As spelled out in its Reg A + filing, the company plans to use the expected $50 million crowdfunded funds to purchase 10 dispensaries with cultivation licenses in a multi-state rollup.
CBDZ’s plan is to list on a major Canadian or US-based exchange such as CSE, NYSE, or Nasdaq. After its public listing, compared to the current NASDAQ/NYSE listed pool of Cannabis companies, CBDZ can ultimately have as much as $54 million in revenue. Also, it can attain a robust profitability of $17 million. Most exciting is the prospect that the company’s valuation can be as high as $7.1 billion after the listing.
Contact: Frank Igwealor
Cannabinoid Biosciences, Inc.
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