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SeeThruEquity Initiates Coverage on Earth Science Tech, Inc. (OTC PINK: ETST) with a Price Target of $4.12

NEW YORK, NY / ACCESSWIRE / June 28, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has initiated coverage on Earth Science Tech, Inc. (OTC PINK: ETST) with a price target of $4.12.

The report is available here: ETST Initiation Report.

Earth Science Tech is a biotechnology company focused on research, development, and sale of hemp derived CBD based nutraceuticals, pharmaceuticals and dietary supplements. CBD is one of the more than 85 cannabinoids identified in marijuana and hemp plants and is non-psychoactive with a wide array of therapeutic benefits. Hemp derived CBD market is projected to grow at a CAGR of ~53% till 2020, positioning it as the fastest growing sub segment within the multi-billion-dollar legal cannabis and hemp market. The recent launch of new flavored CBD oil, organic chocolate CBD line, and pet CBD is expected to boost revenues this year. The JV partnership with Karmavore Superfoods and Forzagen provides ETST with an entry in the lucrative multi-billion dollar sports supplement market and food edibles. Further, the recent new formed wholly owned subsidiary of KannaBidioiD, Inc. diversifies ETST's presence in the niche recreational vape/smoke space. Heavy marketing push via presence in high profile magazines (Natural Awakenings) and web portals (MassRoots) is expected to yield strong order flow going forward. The product pipeline remains robust with series of CBD based nutraceutical being on of the two only CBD companies that recommended by the Institute of Natural Healing (INH) for cancer as well two CBD generic pharmaceuticals, two medical devices (MSN-2), and three patent pending products based off their application claims the benefit of ETST U.S. Provisional Application N. 62/061,577, filed October 8, 2014 and ETST U.S. Provisional Application No. 62/102,538, filed January 12, 2015 anticipated to be launched in 2H17 and early 2018. We see ETST as a speculative play on the burgeoning legal cannabis and hemp market targeting the fastest growing sub segment (hemp derived CBD). Going forward in FY17, we expect ETST to increase revenues approximately 350% to $2 million through new product launches, aggressive marketing initiatives and entry into new markets (sports supplement, recreational vape/smoke).

Highlights from the report include:

Large addressable market opportunity

CBD pharmaceuticals and nutraceuticals are one of the fastest growing sectors in the legal cannabis industry. Clinical research studies have demonstrated that CBD nutraceuticals have the potential to treat arthritis, MS, chronic pain, PTSD, depression, epilepsy and a myriad of other illnesses and disorders. The North American legal cannabis market stood at ~$7 billion in 2016, with strong growth prospects. The market is expected to reach ~$22 billion by 2020, representing a CAGR of 25%. Eight states in the US have legalized the use of recreational marijuana (cannabis), while 29 states allow marijuana to be used for medicinal purpose. We believe favorable regulatory environment will provide further tailwind to ETST. However, the recent stance by DEA that it considers CBD as a Schedule 1 substance has created some overhang.

Strong product pipeline to fuel growth

The product pipeline remains robust with series of CBD based nutraceutical, supplements as well pharmaceutical products anticipated to be launched in 2Q17 and early 2018. The pipeline comprises three sports supplements to be launched in 2017, two CBD based pharmaceuticals drugs to be launched in 1Q/2Q18, new e-liquid and edible gummies from it's newly formed subsidiary to be launched 3Q/2017, and three patent pending CBD based nutraceuticals to be launched by the end of the calendar year 2017.

New product launches to provide fillip to revenues

The recent launch of new flavored CBD oil (Orange Blossom), organic chocolate CBD line, and pet CBD is expected to boost revenues this year. The initial sales of organic chocolates developed in partnership with Karmavore Superfood have been selling rapidly with great excitement and feedback from store owners and customers. The sample test studies conducted by ETST point to Orange Blossom being the best tasting CBD oil available, and the company foresee it being a huge hit.

New strategic partnerships and aggressive marketing push to yield strong order flow

The strategic partnerships with Karmavore Superfood, Forzagen and Smart Medicines will help ETST to diversify product offerings and accelerate entry in new markets. ETST is aggressively spending on marketing via presence in high profile magazines (Natural Awakenings), web portals (MassRoots), and one of the tow only CBD companies recommended by the Institute of Natural Healing (INH) for cancer. We believe these initiatives will help ETST reach more users, gain major brand recognition, and build early demand for its innovative new products.

Initiate coverage with a price target of $4.12

We see ETST as a high risk and high reward play on the burgeoning legal cannabis and hemp industry, targeting the fastest growing sub segment (hemp derived CBD). The target of $4.12 assumes that the company is successful in executing its growth strategy revolving around new product launches, strategic partnerships and aggressive marketing campaigns. Key risks includes any adverse regulatory stance that could materially damage company growth prospects.

Please review important disclosures on our website at www.seethruequity.com.

About Earth Science Tech, Inc.

Earth Science Tech Inc. is a unique Biotechnology company focused on cannabinoid based nutraceuticals, pharmaceuticals and dietary supplements for use in the areas of health, wellness, sports and alternative medicine. It sells its products through its distributors, retail stores and through the Internet. The company comprises of three wholly owned subsidiaries including Cannabis Therapeutics Inc., Earth Science Pharmaceuticals Inc. and Kannabidioid Inc. For more information, visit www.earthsciencetech.com.

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry's most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

For more information visit www.seethruequity.com.

Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity