LAS VEGAS, Aug. 14, 2014 /PRNewswire/ -- CannaVest
Corp. - ("CannaVest" or the "Company") is reporting financial
results for the quarter ending June 30,
2014.
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During the quarter, CannaVest continued investing in its
San Diego headquarters and
laboratory facilities expansion, and in its sales, marketing, and
finance personnel additions; and it completed a major milestone in
establishing a domestic industrial hemp cultivation infrastructure,
via its involvement in one of the first U.S. pilot cultivations of
industrial hemp.
"We continue to expand our infrastructure investment, both
internally, and now, in the field," said Michael Mona, President and Chief Executive
Officer of CannaVest. "By making investments in key personnel and
operating infrastructure, and now, with our historic involvement in
the first legal cultivation pilot at Kentucky's Murray State
University since the passage of the 2014 Farm Bill- we are
positioned to establish industrial hemp as a vital U.S.
commodity."
Second Quarter 2014 Operating Results
The Company's net income for the second quarter of 2014 was
$8,040,430, or $0.24 per share (basic and diluted), compared to
a net loss of $348,134, or
$0.04 per share (basic and diluted)
for the same period in 2013.
Net income for the second quarter 2014 included $7,899,306 of gain on sale of the Company's
equity investment in KannaLife Sciences, Inc. ("KannaLife"). The
Company sold its 24.97% equity investment in KannaLife for 500,000
shares of Company common stock held by PhytoSPHERE Systems, LLC, an
affiliate of KannaLife. There was no cash exchanged in the
transaction. Net income from operations was $131,892 for the quarter ended June 30, 2014, compared to an operating loss of
$327,611 for the same period in
2013.
Selling, general and administrative expenses for the second
quarter of 2014 were $1,507,423
compared to $419,002 for the same
period in 2013. The increase was related to the continued growth of
the operations of the Company, technology infrastructure
investments, and increased legal and marketing costs.
Research and development costs for the second quarter of 2014
were $156,501. This includes the cost
of process development, rental of laboratory space, personnel
costs, laboratory supplies, product development and testing.
Balance Sheet Highlights
As of June 30, 2014, the Company
had cash of approximately $9.3
million. Stockholders equity amounted to approximately
$22.4 million as of June 30, 2014.
For a further discussion of the Company's financial results for
the period ended June 30, 2014,
please refer to the Company's consolidated financial statements and
related Management Discussion and Analysis, which can be found at
www.CannaVest.com or EDGAR at
www.sec.gov/edgar/searchedgar/webusers.htm in the Company's
Quarterly Report on Form 10-Q as filed with the U.S. Securities and
Exchange Commission on August 14,
2014.
About CannaVest Corp.
CannaVest Corp. (OTCBB: CANV), located in Las Vegas, Nevada, focuses on the procurement
and wholesale of the hemp plant extract cannabidiol (CBD), and the
development, marketing and sale of end consumer products containing
CBD, which is refined into its own PlusCBD Oil™ brand. CannaVest
resells raw industrial hemp product to third parties, acquired
through supply relationships in Europe. Additional information is available
from OTCMarkets.com or by visiting http://www.CannaVest.com.
CannaVest Corp.'s subsidiaries include: US Hemp Oil, LLC ("US
Hemp Oil") (http://www.USHempOil.com), CannaVest Laboratories, LLC
("CannaVest Laboratories") (http://www.CannaVestLabs.com) and Plus
CBD, LLC (formerly, Global Hemp Source, LLC) ("Plus CBD"). US Hemp
Oil provides farming, procurement, processing, marketing and
distribution services of bulk wholesale hemp seed. In addition, US
Hemp Oil is involved with industry advocacy, creating greater
public awareness and media exposure for the nutritional profile of
hemp seeds and the environmental benefits of growing industrial
hemp. CannaVest Laboratories (formerly PhytoSPHERE Systems, LLC)
provides processing technology and product development of
hemp-based pharmaceutical and nutraceutical products. Plus CBD is
the operating entity for Company sales and expense of CBD oil and
end consumer products.
FORWARD-LOOKING DISCLAIMER
This press release may contain certain forward-looking
statements and information, as defined within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, and is
subject to the Safe Harbor created by those sections. This material
contains statements about expected future events and/or financial
results that are forward-looking in nature and subject to risks and
uncertainties. Such forward-looking statements by definition
involve risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of CannaVest Corp. to
be materially different from the statements made herein.
LEGAL DISCLOSURE
CannaVest Corp. does not sell or distribute any products that
are in violation of the United States Controlled Substances Act
(US.CSA). The company does grow, sell and distribute hemp-based
products and are involved with the federally legal distribution of
medical marijuana-based products within certain international
markets.
Corporate Contact:
CannaVest Corp.
2688 S. Rainbow Blvd., Ste. B
Las Vegas, NV 89146
Office: 866-290-2157