Cannabinoid Biosciences ("CBDZ") has reserved September 28, 2019 for the official launch of its crowdfunding campaign to raise $50 million under Regulation A+
Cannabinoid Biosciences ("CBDZ") has reserved September 28, 2019 for the official launch of its crowdfunding campaign to raise $50 million under Regulation A+ of the U.S. Securities Act of 1933, as revised.Venue:9546 Washington Blvd., Culver City, CA 90232Time:Start / End Time: 5:00pm-8:00pm (PST) Investors interested in attending must RSVP at: Tel. (424)358-1048 Email: [email protected]
LOS ANGELES, Sept. 20, 2019 /PRNewswire-PRWeb/ -- Cannabinoid Biosciences ("CBDZ") has reserved September 28, 2019 for the official launch of its crowdfunding campaign to raise $50 million under Regulation A+ of the U.S. Securities Act of 1933, as revised.
Venue: 9546 Washington Blvd., Culver City, CA 90232
Time: Start / End Time: 5:00pm-8:00pm (PST)
Investors interested in attending must RSVP at:
Tel. (424)358-1048
Email: [email protected]
Cannabinoid Biosciences Overview
Cannabinoid Biosciences, Inc.'s ("CBDZ") vision is to revolutionize and standardize the pharmaceuticals and non-pharmaceutical CBD products formulations and applications across the CBD market while developing robust capitalization to finance a more professional ecosystem within the CBD, Hemp and cannabis industry, creating a better work environment for our clients, as well as creating improved patient experiences, and a clear choice for investors in the sector.
Established on May 6, 2014, Cannabinoid Biosciences ("CBDZ") is interested in the discovery, development, and commercialization of plant-derived cannabis products. In December 2018, the company filed a Regulation A+ with the U.S. Securities and Exchange Commission (SEC). In the same month, it added a CBD/THC scientist to its team to act as the Chief Scientific Officer in a deal that required the scientist to transfer all his previous inventions, including CBD-based formulations, to CBDZ.
On April 16, 2019, the SEC approved CBDZ's Regulation A+ Tier 2 Offering Circular filing, thereby fully enabling it to proceed with its crowdfunding campaign. Through the campaign, it seeks to raise $50 million from both accredited and non-accredited investors to purchase 10 dispensaries in a planned multi-state roll-up arrangement. In December 2018, the company initiated negotiation talks with the largest Indian reservation in Portland, Oregon to purchase a large expanse of land to grow cannabis and open a dispensary.
Cannabinoid Biosciences, Inc. ("CBDZ"), a California based Biopharmaceutical Company seeks to revolutionize and standardize the pharmaceuticals and non-pharmaceutical CBD products formulations and applications across the CBD market in the United States of America. Many studies showed that CBD has many amazing health benefits. The CBD market in the US is very fragmented, lack established process control and protocols, and is without formulations standardization. CBDZ is stepping into this space to standardize and reorganize this market, establish process control (benchmarks and protocols), and create formulation standards for the industry. CBDZ seeks to control the production and distribution of verities of consumer cannabidiol (CBD) formulation under private brands in the United States. CBDZ's goal is to bring standardization to the CBD industry, the same way that John D Rockefeller's Standard Oil brought standardization to crude refining in the United States in the nineteenth century.
In addition, CBDZ intends to engage in the discovery, development and commercialization of cures and novel therapeutics from proprietary cannabinoid, cannabidiol, endocannabinoids, phytocannabinoids, and synthetic cannabinoids product platform suitable for specific treatments in a broad range of disease areas. The Company intends to operate through Research and Development, and Pipeline Acquisition. CBDZ intends to establish a leading position in the development of plant-derived cannabinoid therapeutics through a proven drug discovery and development processes, intellectual property portfolio and regulatory and manufacturing expertise.
Just in June, 2018 the U.S. Food and Drug Administration (FDA) has approved CBD based formulation such as Epidiolex® for seizures associated with Lennox-Gastaut syndrome or Dravet Syndrome, two rare and severe early-onset, drug-resistant epilepsy syndromes. This is the first cannabis plant-derived medicine ever approved by the FDA and it has been rescheduled by the U.S. DEA to a schedule V. In similar development, on December 12, 2018, U.S. Congress approved a Bill to Make CBD Federally Legal. Passage of 2018 Farm Bill clarifies CBD legal status and lets U.S. farmers grow hemp, but some regulatory questions remain. Thus, the conclusion that regulatory trajectory of CBD industry in the U.S. is favorably improving daily.
Our business is divided into five segments namely:
1) CBD formulation, production, and distribution;
2) Biopharmaceutical Research and Development;
3) Investments into legal-cannabis businesses and deriving value from rollup/consolidation events that leads to IPO in US or Canada;
4) Financial products in form of asset-backed loans, business property mortgages and other financial products to qualified individuals/businesses in the legal-cannabis businesses; and
5) Professional services including top-level financial reporting, Accounting, CSE Reporting, Business Valuation, Mergers & Acquisitions, GAAP/ IFRS Conversion, Pre IPO/RTO Prep, Section 280E Tax, and Biological Assets Valuation to cannabis businesses and investors in California at first, then to those within the other states that has legalized cannabis.
CBDZ is not a public company quoted on any of the known exchanges. CBDZ is currently working with several owners of dispensaries and cultivation facilities to rollup ten of these dispensaries and IPO it on the NASDAQ or New York stock exchange.
Our experienced management team has a combined thirty-two years of successful experience in the legal cannabis industry in California. Cannabinoid Biosciences is launching throughout California and bringing its array of investments and services to each new state that legalizes the use of cannabis.
Current Financial Position
Our Regulation A+ T2 Offering Circular was qualified by the US Securities and Exchange Commission (SEC) on April 16, 2019. Pursuant to this SEC qualification, we are therefore raising $50 million to acquire 10 dispensaries which we'll rollup into our holding company and IPO on the NASDAQ or New York Stock Exchange.
Although the company has scheduled the formal launching of its crowdfunding campaign for September 28, 2019, CBDZ has already received investment commitment of about $7.6 million from a diverse group of 347 individual and institutional investors. See. http://www.crowdfunder.com/cbdxfund/. Since CBDZ selected KoreConX as our transfer agent and engaged Primetrust's FundAmerica.com, we have been able to bank a material amount of the investment commitment. Our staff alongside FundAmerica are diligently working to bank all investment commitment after the AML and KYC processes.
Growth, Rollup and Consolidation Opportunity
We are raising $50 million to acquire 10 dispensaries which we'll rollup into our holding company and IPO on the NASDAQ or New York Stock Exchange. All our targeted acquisitions are profitable operations. We plan to keep and reinvest 50% of the profits to capitalize on growth opportunities, and pay 50% back to our investors as dividends.
Value Proposition:
● CBDZ provide investors with opportunity to invest in the cannabis industry at the ground floor. For example, if an investor wants to invest in the publicly traded cannabis businesses on the stock market today, the investor would be paying $131.00 for every $1.00 of revenue on average.
● Investing with us would give the investors a better deal because we'll be acquiring cannabis businesses at close to 2:1 investment to revenue. For example, with the 10 dispensaries identified, we'll be buying at less than $2.00 for every $1.00 of revenue.
Value-adding Processes
We project that this project would be worth $4.6 billion on the stock exchange once we have finished rollup and consolidation of all the 10 dispensaries and cultivation facilities. This valuation is based on the weighted average multiple of X-sales and X-net profit of cannabis businesses currently trading on the exchanges.
Capital Requirements for Investment in the Cannabis industry at the ground floor
We need $49.8 million to acquire 10 dispensaries which we'll rollup into our holding company and IPO on the NASDAQ or New York Stock Exchange. Studies showed that a $1.00 invested with CBDZ today could be worth a lot more after our principals have finished their value-adding rollup and consolidation activities with the acquisitions.
A Unique Opportunity to Get in on the Ground Floor of Cannabis Investment
A recent article from 420 Intel discussed the point of getting in on the ground floor of Cannabis Investment. https://420intel.com/articles/2018/12/05/getting-ground-floor-cannabis-investment. It discussed how "Dropbox was a scrappy tech startup in 2007. When the founders of the file-sharing company raised $1.2 million from a venture capital firm, shares were valued at just two cents," but now is worth $12 billion or $29 per share. Prior to the new Reg A+, small investors were not allowed to get in on the ground floor of investments as that of Dropbox. However, today, the new regulation has made it possible for ordinary people to get in if they can identify a good candidate like Cannabinoid Biosciences.
Managing Business and Legal Risks
We believe when looking at future growth and operating inter-state, it is paramount to note that each state's regulations dictate a different approach to market. The local and state laws define in many ways how to adapt the core business models to recognize the unique limitations and therefore opportunities within that state, the laws dictate who can purchase, source, grow or sell. Knowing the legal landscape and being in compliance is more than critical - it is unconditionally fundamental. The key we believe is identifying similar patterns, strengths and standards. What the differences are on a state- by- state regulatory basis, forms barriers to entry for some of competitors and opportunities we believe, for ourselves.
Industry Analysis
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.
CBDZ Comparative Advantage
Cannabinoid Biosciences, Inc. ("CBDZ"): Aims to make CBD/Cannabis Investment More Accessible to the general public at the ground level.
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 million 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.
Investment in CBD / Hemp /Cannabis through Cannabinoid Biosciences today represents a unique moment in history – one that rivals the repeal of prohibition and the power of an upstart industry. Reports show the United States marijuana market is currently developing faster than the smartphone and tablet industry, and ushering in a new era of early investors to compliment this revolution. We believe this happens to be one of the most exciting eras in investing history. This is an age of uprising, of revolution, of new ideals.
Smart investors are doing their homework; and we're thankful that you've taken the time to hear our story and consider us as a part of your portfolio. Early movers in this multibillion dollar market will surely have an advantage in the exciting marijuana industry. The industry is developing weekly.
We see a great market and future for Cannabinoid Biosciences, Inc. and its shareholders and respectfully request your assistance in helping us achieve these goals. It's necessary to take risks and it is always good business practice to be progressive; but we advise you to consult with your financial advisor to determine whether an investment in our company is appropriate for your circumstances and thank you again for the consideration.
Frank Igwealor, Sr. Vice President and CFO
Cannabinoid Biosciences, Inc.
Website: http://www.cbdxfund.com; http://www.cannabinoidbioscience.com
Phone: +1 3108951839
Email: [email protected]; [email protected]
Visit us on social media:
Facebook: http://www.facebook.com/cbdxfund
Twitter: http://www.twitter.com/cbdxfund
LinkedIn: http://www.linkedin.com/company/cbdxfund/
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SOURCE Cannabinoid Biosciences, Inc.
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