NEW YORK, NY / ACCESSWIRE / August 2, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update on Earth Science Tech, Inc. (OTC PINK: ETST)("ETST").
The report is available here: ETST August Update Note.
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 CBDs provide a legal alternative to marijuana based CBD (which is banned at the federal level) and allows the consumer to enjoy CBD without the risk of getting high and breaking any federal laws. ETST recently entered into a JV with Varsity Group, LLC to use their patented Kanna-Blend formula to develop CBD based e-liquids to be sold under ETST's subsidiary, KannaBidoid Inc. The company has already finalized four product labels which will start selling by the end of August 2017. ETST is also planning to commercially launch MSN-2 medical devices by 1Q18 and commence pre-clinical/clinical studies for its CBD based pharmaceuticals by 4Q17. An agreement with Canadian based CBDQ, an agro-food consultant, to roll out three CBD-based nutraceuticals by the end of 2017 will further strengthen ETST's portfolio.
Highlights from the note include:
New partnerships and product launches to boost sales
ETST recently entered into a JV with Varsity Group, LLC to use their patented Kanna-Blend formula to develop CBD based e-liquids to be sold under ETST's subsidiary, KannaBidoid Inc. The company has already finalized four product labels for its e-liquids namely 1) Strawberry Lemonade; 2) Lemon Cream; 3) Grape Berry and 4) Apple Pie. These products will start selling by the end of August 2017. ETST has already received pre-orders and plans to sell ~4,000 units in the first batch. The new products will strengthen ETST's presence in the fast growing niche recreational vape/smoke space. The recreational vape/smoke market is projected to grow to $4.77 billion by 2025, at a double digit CAGR during 2015-2025. ETST is also planning to launch the MSN-2 medical device by 1Q18 and has already appointed a communication agency to brand and market the device. The CBD-based pharmaceutical drug portfolio is beginning to see progress with ETST looking to start pre-clinical study for breast cancer treatment and clinical studies for epileptic and non-epileptic seizures by 4Q17.
Agreement with CBDQ for roll out of CBD-based nutraceuticals
ETST has signed an agreement with the Centre de Développement Bioalimentaire du Québec (CDBQ) to develop a manufacturing process for the roll out of three already prototyped CBD-based nutraceuticals which are expected to be launched by the end of 2017. This will provide further traction to revenues.
New distribution channels and aggressive marketing push to yield strong order flow
ETST in a recent update noted that it is on the cusp on finalizing many international distribution channels and partnerships that will provide a further boost to revenue stream within the current CBD product line. Earlier established strategic partnerships with Karmavore Superfood, Forzagen and Smart Medicines will continue to help ETST to diversify product offerings and accelerate entry into new markets. ETST is aggressively spending on marketing via presence in high profile magazines (Natural Awakenings) and web portals (MassRoots). We believe these initiatives will help ETST reach more users, gain major brand recognition, and build early demand for its innovative new products.
Maintaining price target at $4.12
We are maintaining our price target at $4.12 for ETST. The recent JV with Varsity, agreement with CBDQ and launch of Kanna Blend based e-liquids are positive in our view. Also, ETST noted of finalizing new distributors in the international markets. In our last report, we had noted of continued traction in company's CBD products amid new strategic partnerships and new product launches.
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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.
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