HUMBOLDT, CA--(Marketwired - Feb 24, 2015) - Easton Pharmaceuticals Inc (
Easton Pharmaceuticals has been provided with revenue numbers from Medicated Markets from its medical marijuana operations in California for 2014, revealing revenues that have surpassed $2,000,000. These sales numbers relate to the past year and are derived mainly from sales to dispensaries as shown in past invoices @medimarkets. The invoices exhibited are just a sample, and as such do not represent all sales made.
Responding to many similar type questions posed, Medicated Markets does not sell direct to patients and has no retail locations. Total harvested marijuana is sold on a wholesale level to licensed dispensaries in the greater Los Angeles region. These dispensaries are open to marijuana prescription holders only.
Operations are expected to be ramped up following anticipated investments to infrastructure, which are to be derived from proceeds from its transaction with Easton pharmaceuticals and other possible investment options and sources. With infrastructure upgrades, Medicated Markets can increase the number of plants grown from the current number of 1200, to 10,000 plants, which are tiered to harvest on a weekly basis following a 70-100 day variable cycle based on strain. 2014 yield from plants were approximately 1500 lbs. In 2014 medicated markets donated approximately 10% of its production to financially strained patients on a compassionate basis.
As previously disclosed, Medicated Markets projected $32,000,000 in potential sales for fiscal 2015 if many conditions were met including optimal selling and growing conditions including yields from additional purchased property. Please note this figure is based on January 2015 pricing. Prices have ranged from $1350 to $2000 per pound in 2014 and can significantly affect sales and profits and as such amended revenue range is provided below.
In January of 2015, prices had spiked to $2185 increased for medicinal marijuana In California, which was the estimate used to derive sales numbers. Using adjusted conservative numbers of only 1 pound per plant as a yield and $1350 which was the lowest price sold for in 2014 after upgrades to property, Medicated Markets would yield $13.5 million for 2015 or $3.37 million quarterly. If a conservative SG&A of 30% were used, it would result in a profit of $2.359 Million of which Easton would be allocated 40% ownership or $943,000 per quarter. This is nearly a 100% Return on equity paid for in restricted shares in 1 year of operation.
Medicated Markets were provided an initial upfront cash payment and issued "rule 144 restricted shares" (which are in escrow till maturity) and not free trading shares. These shares were valued at .02 giving the transaction a value of $4,000,000.
Many have noted negative trading activity in Easton pharmaceutical stock in the month of February. We believe it is Marijuana sector related and highly influenced by certain happenings with another sector related company ( FITX ).
In other news, previous investments made by Easton Pharmaceuticals towards its OTC therapeutic products have now resulted in having its 3 products completed and ready for marketing and sale. News on its finalized distributorship agreement and payments made towards attending a leading health show will soon result in the announcement of product launch which was unfortunately made much later than initially planned due to changes in Mexico manufacturing and with the main focus of the company having been transferred to its medical marijuana initiatives. In addition, news stemming from progress on its Canadian medical marijuana ventures and announcements on its AMFIL investment is to be soon provided.
About Easton Pharmaceuticals
Easton Pharmaceuticals is a specialty pharmaceutical company involved in various pharmaceutical sectors and others industries such as medical marijuana. The Company previously developed and owned an FDA approved wound healing drug and currently owns topically-delivered drugs and other therapeutic products that are all in various stages of development. Easton has completed an acquisition that grants 40% ownership interest in Medicated Markets International LLC assets; a California Licensed Medical Marijuana Grower on 20 acres (3 acre growing area). Easton has also made additional investments into AMFIL Technologies and their groZONE anti-microbial airflow system needed for growing pesticide free medicine, and have an exclusive option to purchase up to 49% in a medical marijuana grow-op business post granting of license from Health Canada in Port Perry, Ontario, which has received a letter to build from Health Canada. The company's gel formulation is thought to be an innovative and unique transdermal delivery system that can in the future be adaptable in the delivery of Cannabidiol extracts.
This news release may contain forward-looking statements or expressions within the meaning of the Private Securities Litigation Reform Act of 1995 (The "Act"). In particular, when certain words or phrases such as "hope," "positive," "anticipate," "pleased," "plan," "confident that," "believe," "expect," "possible" or "intent to" and similar conditional expressions are expressed, they are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Any investment made into Easton Pharmaceuticals would be classified as speculative and may contain risks. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the company's products and technologies, competitive factors, the ability to successfully complete additional or adequate financing, government approvals or changes to proposed laws and other risks and uncertainties further stated in the company's financial reports and filings.