In last trading session, the stock price of CannaVEST Corp (OTCMKTS:CANV) jumped more than 11% to close the day at $0.495. The gains came at a share volume of 1.75 million compared to average share volume of 1.04 million.
CannaVEST released financial report for the fiscal ended December 2015, wherein it stated that the net loss was almost $12 million compared to net loss of approximately $1.31 million for the year closed December 2014. As of December 2015, the company posted cash of nearly $0.5 million. The management confirmed that there is sufficient cash reserve and access to funds to meet working capital requirements.
CannaVEST management reported that the company has the capital required to support its consumer product business division and meet other obligations in coming fiscal from existing cash flow and current revenues due to increased sales. The inventory levels are adequate to boost sales for 2016, resulting in lower cash requirement for inventory purchases.
Additionally, CannaVEST do not plan to purchase raw inventory from supply chain arrangements for the 2016 crop. The pharmaceutical business division will need additional capital of nearly $1.50 million over the next twelve months. As of now, CannaVEST possess an executed term sheet related to a financing deal that would offer this capital.
The management view
Michael Mona, Jr., the Chairman and CEO of CannaVEST, said that they expanded corporate mission last year, closing with the acquisition of CanX, Inc. in December 2015. This acquisition enables the firm to be positioned as a specialty pharmaceutical firm focused on advancing and commercializing unique therapeutics using CBD.
Also, the company continue to serve its consumer product business division in manufacturing, marketing and commercializing plant-based CBD offerings to a range of sectors. The new program builds on company’s reputation, expertise and experience in CBD to support the attributes of CBD to the existing prescription drug market.