CannaVEST Corp (OTCMKTS:CANV) Is Today's Cannabis Focus

CannaVEST Corp (OTCMKTS:CANV) is based in Las Vegas and focuses on products containing the hemp plant extract cannabidiol (CBD) as the active pharmaceutical ingredient. CANV is engaged in the sale of CBD and the development, marketing and sale of end consumer products containing CBD, which is refined into its own PlusCBD Oil brand.What we like about CANV is that it’s one of the few pot stocks producing actual sales. It’s one of the leaders in the marijuana industry and will be one of the first names investors flock to when pot stocks get hot again. In the third quarter, CANV reported revenues of $4.2 million compared to just $1.9 million in the prior year. CANV has currently $1.1 million in cash, which is enough working capital to fund current operations.Driving CANV’s growth is the company’s position as the market leader with its hemp-derived bulk and finished cannabidiol (“CBD”) oil products. CBD can be used as a dietary supplement, beauty care product, and as an ingredient for numerous other products from pet foods to vape products to specialty beverages.The two markets that CANV has targeted are the natural products industry and the medical providers market. As of December 2015, CANV’s PlusCBD Oil finished products are available in nearly 400 retail store locations. In the health practitioner market, CANV’s finished products are available in over 200 practitioner offices across the US.In January, CANV underwent a series of transactions where it acquired CanX Inc. and its wholly-owned subsidiary, Canabine LLC. CanX and Canabine have commenced efforts to develop synthetically-formulated cannabidiol for use in drug development activities, and particularly to pursue approval of the FDA for drugs with specific indications utilizing cannabidiol as the active pharmaceutical ingredient. CannaVest has acquired all of CanX’s rights and assets in connection with such development activities, and intends to aggressively pursue drug development as its primary business.On February 3, CANV announced that it prepaid investors holding a series of its Convertible Promissory Notes in advance of conversion, thereby avoiding dilution to its stockholders. Under the terms of certain Convertible Promissory Notes issued by CANV to its investors, the company could, on 10 days advance notice, prepay the debt obligations together with a 30% premium. The company prepaid a total of $535,081 in principal and interest under the notes, and $160,524 in prepayment premium.By prepaying this debt, the company avoided issuing up to 9,000,000 shares of its common stock on conversion of the debt. After the prepayment of this debt, CANV continues to have obligations to its investors on its fourth, and final tranche of Convertible Promissory Notes in the amount of $255,000, as of February 2, 2016. The company issued this debt on September 16, 2015. The company is engaged in efforts to secure further bridge financing to prepay the fourth, and final tranche of Convertible Promissory Notes.CANV did have an issue with one investor who was not happy getting prepaid. Obviously he was hoping to get shares as he would have made more money that way. However, the terms of the agreement were explicit and the company announced on March 3 that the investor accepted the prepayment, which retired 100% of the outstanding convertible promissory notes.Currently trading with a market cap of $35 million, CANV has been climbing up the charts ever since the stock put in its lows earlier this year. We think the worst is behind CANV and much better days are ahead for the company and its shareholders. We will be updating Insider Financial as soon as we know more. For continuing coverage on CANV, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in CANV and have not been compensated for this article.