ORLANDO, Fla., Jan. 15, 2020 (GLOBE NEWSWIRE) -- The early adoption of any new technology is always a tricky matter. In the case of most “tech”--namely, machines that offer new functionalities--the market always has the first and final say as to the true value of the product. But in the case of biotech, there’s an additional hurdle that lay ahead of the market mechanism: regulatory testing and approval.
Cannabinoid-based products, popularly referred to as “CBD,” comprise one such category. It’s most popular form of use and consumption as a nutraceutical (e.g. capsule and food forms), CBD products are currently in transition in the US, legal in most states, pending legalization in others. CBD exhibits every characteristic of a budding and promising industry. From an investment perspective, this presents a ground level opportunity for those who have the foresight, means, and (to be quite frank) courage to wager on an industry’s growth potential while still in its nascent phase.
An Emerging Company with a Formidable R&D and Executive Team
Earth Sciences Tech Inc (ETST) is one company jostling for space on the cutting edge of this new industry. When assessing a company in any emerging field, you’d have to look at the factors that may not only differentiate a company from its competitors, but that may also give that one company greater potential in an industry that’s still unformed, uncertain, and in some cases (as in CBD) partly unregulated.
First off, ETST is not a new entrant in the CBD market. Both ETST’s advisory board and executives come with serious scientific and business credentials that many small companies in the CBD space may find difficult to match.
Full Spectrum Products for a Wide Spectrum of Treatments
Although the term “CBD” is often used synonymously with several different types of cannabinoid products, it’s important to realize that there’s a technical distinction. CBD is one of 80 different phytocannabinoid components. Among the more popular derivatives are CBD, CBC, CBG, CBN CBDA, and CBDV--enough to confuse just about everyone besides the scientists who work closely with cannabinoids. Hence, “CBD” is often thrown around as a catch-all term.
But not all CBD products “catch all” of the components derived from the cannabis plant unless it is a “full spectrum” product. And ETST’s product line is full spectrum focused. Their products comprise a wide range, consisting of oils and capsules, their applications encompassing medical to mental health treatments. They even have a dedicated line of products designed for pets (yes, cats and dogs).
For investors, perhaps one of the more exciting aspects of CBD is its applications toward research, particularly instances where such applications may constitute breakthroughs in the medical field. For instance, the University of Central Oklahoma has seen positive results in studies concerning the administration of ETST’s high-grade full spectrum CBD beverages (to which the University shares a provisional patent) in cases of breast cancer and immune cells.
ETST has been developing, manufacturing, and distributing these beverages for public consumption. The company estimates that this product alone can potentially yield $11.7 billion in the coming year, and grow into a $25 billion market within seven years--a prospect that ETST aims to capture, leveraging its medically-tested results as a means to drive product line revenue.
According to ETST’s CEO and CSO, Michel Aube (as quoted in MarketWatch):
"The CBD beverage is a most in the…[inaudible]...poque of legalization of recreative marijuana. Not only does CBD have positive effects on immune cells, it has strong antioxidant and anti-psychotic properties. Indeed, it is now well recognized that CBD is an anti psychotic molecule and that CBD has opposite effect to -9-t…[inaudible]...tetrahydrocannabinol (THC). This is why health professions are concerned by the fact that most marijuana plants have very low concentration of CBD and huge amount of THC molecule. At Earth Science Tech we focused on full spectrum cannabinoids derived from industrial hemp that contains extremely low to no THC since THC is psychoactive causing dependency and mental illness in young individuals. This means that all our products are beneficial for recreational marijuana consumer because it helps them to balance their intake of psychoactive and antipsychotic cannabinoids. Our cannabinoid products help to counter the side effects of THC in addition of having itself other interesting biological activities like anti-inflammatory and antioxidant properties."
In addition, all of the company’s products are “legal in all 50 states,” according to its website, giving it a timing advantage among its peers seeking regulatory approval.
Market Performance at a Low Point May Signal a Speculative Value Opportunity
With its highest high at $5.00 and its lowest low at the current level of $0.07, there’s no doubt that ETST is not an investment for the faint-hearted. You can’t just casually invest in a stock like this in the same manner that you might with other stocks for the sake of portfolio diversification.
Most people following the stock may be aware that one of ETST’s major shareholders, Group, Ltd. Majorca, had sold 129620 shares, according to SEC filings submitted on Oct 9. Very few details are available with regard to the reason behind the sale.
At this juncture, and like every investment in emerging technologies and industries, one would base the worthiness of investment not on current proof of profit but on profit potential.
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