LAS VEGAS, Nov. 14, 2014 /PRNewswire/ -- CannaVest Corp.
("CannaVest" or the "Company") is reporting financial results for
the quarter ended September 30,
2014.
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During the third quarter we terminated our Non-Exclusive License
and Distribution Agreement (the "HempMeds Agreement") with HempMeds
PX, LLC ("HempMeds"). The HempMeds Agreement granted HempMeds a
non-exclusive, worldwide license and right to promote, market,
sell, distribute and service the Company's products and an
exclusive right to online sales. The HempMeds Agreement termination
resulted in a significant revenue loss for the Company but provided
an opportunity for CannaVest to better control its sales channels,
brand awareness and future profitability without having to rely on
a single customer relationship. The termination also allowed
CannaVest to pursue revenue from online sales.
"Our worldwide commitment to expanding the science, awareness
and benefit of our PlusCBD™ brand of cannabidiol oil and products
is gaining traction," said Mr. Mona. "The termination of the
HempMeds Agreement required that we immediately expand our sales
and marketing capability to better control the growth trajectory of
CannaVest. We have expanded our sales force, commenced e-commerce
operations and have made strategic marketing investments. Since the
termination, we have made great progress. In less than one month we
have transitioned from a single customer to literally hundreds of
customers." Mr. Mona continued, "Our goal is to make our product
portfolio available to the mainstream consumer market and we
continue to make good progress in that direction."
Third Quarter 2014 Operating Results
The Company's net loss for the third quarter of 2014 was
$482,129, or $0.01 per share (basic and diluted), compared to
a net loss of $810,761, or
$0.08 per share (basic and diluted)
for the same period in 2013.
Selling, general and administrative expenses for the third
quarter of 2014 were $1,350,639
compared to $653,872 for the same
period in 2013. The increase was related to increased personnel in
all functional areas, further investment in technology
infrastructure and increased legal and marketing expense.
Research and development costs for the third quarter of 2014
were $262,065 compared to
$137,496 for the same period in 2013.
This includes the cost of process development, rental of laboratory
space, personnel costs, laboratory supplies and product development
and testing.
Balance Sheet Highlights
As of September 30, 2014, the Company
had cash of approximately $4.7
million. Stockholders equity amounted to approximately
$21.9 as of September 30, 2014.
For further discussion of the Company's financial results for
the period ended September 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 November 11,
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 www.CannaVest.com.
CannaVest Corp.'s subsidiaries include: US Hemp Oil
(www.USHempOil.com) that provides seed procurement, cultivation,
processing, and production consultation, and equipment to support
U.S. farmers, researchers and businesses to cultivate and process
industrial hemp in the US; and CannaVest Laboratories
(www.CannaVestLabs.com), that facilitates cutting edge research and
develops nutraceutical and food products, containing cannabidiol
(CBD) oil, and is the developer and manufacturer of CannaVest's own
award winning CBD Simple™.
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