Richard Cowan, Cannabis Science's chief financial officer, stated: "Obviously, acquiring two revenue producing operations immediately changes the nature of Cannabis Science, giving us a positive cash flow stream much sooner than otherwise would have been possible. We are now entering a new phase of our business and we expect to expand these revenue streams immediately by the acquisition of a larger facility as previously announced to meet the demand for Cannabis Science products. Our main focus remains the development of pharmaceutical cannabis products for [Food and Drug Administration] approval. In fact, these acquisitions will improve our ability to develop pharmaceuticals and increase our ability to serve the rapidly growing patient community."
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Currently, both operations are producing revenues in the hundreds of thousands of dollars and generate significant positive cash flow. The transaction was a share swap in which the company is issuing a total of 2,400,000 shares for both the acquisition of these operations and as compensation for a management contract that will add significant skills to our company's team. The seller of these facilities, Adam Pasquale, is joining the Cannabis Science management team as director of horticulture. Mr Pasquale's responsibilities include overseeing these operations and implementing the company's plans to expand these areas of business across the country, as the laws allow.
Uphill struggle ahead
However, the uphill battle lies ahead, as there are vast amount of government proponents and resources that are standing in the way of the company as it intends to move its products forward. Foremost, while medical marijuana is legal in a select number of states that include Colorado and California, federal law still prohibits the possession and use of the drug.
Robert Melamede, Cannabis Science's president and chief executive, added: "We view this transaction as key to our plans to develop standardized FDA quality pharmaceutical cannabis products. In addition, their profitability will facilitate our product development in accordance with state laws. These acquisitions will allow us to begin pre-testing to establish the efficacy of our pharmaceutical products prior to formal FDA human trials. We are in preliminary negotiations to establish similar operations in other states that have approved medical marijuana programs addressing the ever-increasing demands for medical marijuana as people learn the truth about marijuana's unique medical values. We are creating a new type of patient-oriented pharmaceutical company that will foster social change, and this is a major step in that process."
Has filed pre-IND application for PTSD
Back in March, Cannabis Science officially began its first pre-Investigational New Drug FDA application process for the use of cannabis products for the treatment of post traumatic stress disorder (PTSD). The company announced that it now has the results of its survey of more than 1,300 individuals with PTSD, including a large cohort of veterans. The survey was conducted by Cannabis Science Advisory Board member Mitch Earleywine of the State University of New York (Albany).
The firm has reported several prospective drugs for FDA clinical trials. Based on extensive studies and this survey, it said it now has the substantiated data for its first application for a PTSD drug for FDA clinical trials. The company added that it will sign a pre-negotiated contract with a group of FDA specialists based in Colorado to handle its first FDA filings.
NewsHawk: Ganjarden: 420 MAGAZINE
Source: The Pharma Letter
Contact: The Pharma Letter
Copyright: 2010 thepharmaletter.com
Website: USA's Cannabis Science acquires two revenue producing operations to boost medical marijuana R&D
Enjoying this article? Have the leading Biopharma news & analysis delivered daily on email by signing up for our FREE email newsletter here.
Currently, both operations are producing revenues in the hundreds of thousands of dollars and generate significant positive cash flow. The transaction was a share swap in which the company is issuing a total of 2,400,000 shares for both the acquisition of these operations and as compensation for a management contract that will add significant skills to our company's team. The seller of these facilities, Adam Pasquale, is joining the Cannabis Science management team as director of horticulture. Mr Pasquale's responsibilities include overseeing these operations and implementing the company's plans to expand these areas of business across the country, as the laws allow.
Uphill struggle ahead
However, the uphill battle lies ahead, as there are vast amount of government proponents and resources that are standing in the way of the company as it intends to move its products forward. Foremost, while medical marijuana is legal in a select number of states that include Colorado and California, federal law still prohibits the possession and use of the drug.
Robert Melamede, Cannabis Science's president and chief executive, added: "We view this transaction as key to our plans to develop standardized FDA quality pharmaceutical cannabis products. In addition, their profitability will facilitate our product development in accordance with state laws. These acquisitions will allow us to begin pre-testing to establish the efficacy of our pharmaceutical products prior to formal FDA human trials. We are in preliminary negotiations to establish similar operations in other states that have approved medical marijuana programs addressing the ever-increasing demands for medical marijuana as people learn the truth about marijuana's unique medical values. We are creating a new type of patient-oriented pharmaceutical company that will foster social change, and this is a major step in that process."
Has filed pre-IND application for PTSD
Back in March, Cannabis Science officially began its first pre-Investigational New Drug FDA application process for the use of cannabis products for the treatment of post traumatic stress disorder (PTSD). The company announced that it now has the results of its survey of more than 1,300 individuals with PTSD, including a large cohort of veterans. The survey was conducted by Cannabis Science Advisory Board member Mitch Earleywine of the State University of New York (Albany).
The firm has reported several prospective drugs for FDA clinical trials. Based on extensive studies and this survey, it said it now has the substantiated data for its first application for a PTSD drug for FDA clinical trials. The company added that it will sign a pre-negotiated contract with a group of FDA specialists based in Colorado to handle its first FDA filings.
NewsHawk: Ganjarden: 420 MAGAZINE
Source: The Pharma Letter
Contact: The Pharma Letter
Copyright: 2010 thepharmaletter.com
Website: USA's Cannabis Science acquires two revenue producing operations to boost medical marijuana R&D
