MESQUITE, NV / ACCESSWIRE / April 10, 2019 / Cannabis Sativa, Inc. (OTCQB: CBDS) reports that the Company has been busy in 2018 laying the groundwork for future growth in the cannabis arena. Numerous investment opportunities are being screened and detailed discussions held where warranted; significant, ongoing expense reductions have been achieved, and the Company's board of directors gave the green light to potential investments into plant-touching businesses.
While the Company revenue and margins grew 58% and 80%, respectively, during 2018, the $506k revenue number was far short of management's goal. CBDS' growth initiatives are focused on investments in, and partnerships with, revenue-generating, cannabis-related businesses that have management in place and are expected to be accretive within one year.
Management has reviewed 20 investment opportunities and done deep dives on several. Our rigorous screening process has eliminated numerous companies; however, we continue discussions of various levels with several prospects in the cannabis and CBD markets. During the year the Company joined Arcview, a group of high net worth cannabis investors that is a significant source of deal flow.
Presto Doctor was the primary revenue driver for CBDS in 2018. Despite this, an impairment charge of $1.1 million was recorded during the year as a result of the lower-than-expected financial performance. The company is now growing revenue rapidly in the large New York market and expects to open in Oklahoma in Q2 of 2019. The California market is expected to see slow growth, despite recreational legalization, while the Nevada market has slowed. Presto has added additional telemedicine revenue from former competitors that recently exited the medical cannabis recommendation arena.
The iBudtender software development continues and is expected to be a revenue generator in 2019 while becoming a leading source of testing information for cannabis products in CA and other states.
Development of the Company's patented Ecuadorian strain continues with clones in the ground at Kush, Inc., an affiliate of CBDS. Initial discussions are being held with firms interested in pharmaceutical testing of the strain for medical uses.
The Company's operating expenses declined by $2.8 million compared to 2017. The compensation plans for its officers, consultants, and board members were restructured and utilization of consultants reduced. The lower level of spending at the G&A level is expected to continue through 2019.
The Company received $362k cash during the year from the exercise of common stock warrants and $303k cash from borrowings. Management is evaluating the market in planning for a common stock offering during the year.
About Cannabis Sativa, Inc.:
Cannabis Sativa, Inc. ("CBDS") is engaged in the licensing of cannabis related intellectual property, marketing and branding for cannabis based products and services, operation of cannabis related technology services, and ancillary business activities. CBDS licenses the "hi" and "White Rabbit" brands, holds a U.S. patent on the Ecuadorian Sativa strain of Cannabis, a U.S. Patent for a marijuana lozenge; a Cannabis-based pharmaceutical composition for the treatment of hypertensive disorders by submucosal delivery and trade secret formulas and processes, offers the hi benefits discount pharmacy card, and operates subsidiaries including: PrestoDoctor(R) (https://prestodoctor.com),Wild Earth Naturals(R) , (https://wildearthnaturals.com),and iBudtender (https//:ibudtender.com). The Company is the official licensee for Virgin Mary Jane Brand(https://virginmaryjanebrand.com) In addition, CBDS seeks strategic partners for acquisition of operating companies, intellectual property and other assets which fit within the CBDS corporate vision.
This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in our reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Underlying assumptions include without limitation, the ongoing enactment of legislation favorable to the production of and the commercialization of cannabis products and the Company's success in capitalizing on that legislation. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.
SOURCE: Cannabis Sativa, Inc.
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