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A Close Look At GrowBlox Sciences Inc (OTCMKTS:GBLX)

A Close Look At GrowBlox Sciences Inc (OTCMKTS:GBLX)
Written by
Alex Carlson
Published on
October 13, 2016
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As pot stocks across the board heat up, we at Insider Financial are expanding our coverage to keep our subscribers in the loop. The latest cannabis name to pop up on our radar is GrowBlox Sciences Inc (OTCMKTS:GBLX). GBLX has not done much for 2016 and has lagged behind many other cannabis plays. For pretty much the past five months, GBLX has been stuck trading around the $.30 level after reaching a high of $.45 back in June. Can GBLX get things heated up again and shares start running?First up, a little background on the company, which is based in Las Vegas. Growblox Sciences Inc describes itself as "a diverse vertically integrated cannabis company, focused on cultivation as well as biopharmaceutical research and development. The Company's goal is creating safe, standardized, pharmaceutical-grade, cannabinoid therapies that target a variety of medical conditions." The company focuses on the research and development of medical cannabis drugs and treatments. GBLX produces measurable medical-grade cannabis, cannabis concentrates, and cannabinoid therapies through using various technologies in plant biology, cultivation, and extraction techniques combined with biotechnology. It is involved in the development of controlled-climate indoor agricultural technology growing and cultivation suites, including TissueBLOX, GrowBLOX, CureBLOX, and ExtractionLAB.This week, the company announced the filing of the first of several patent applications for life science inventions by its wholly-owned subsidiary, Growblox Life Sciences, LLC. The current provisional patent application covers complex-cannabinoid-containing mixtures capable of enhancing dopamine secretion and protect neurons from the mitochondrial-induced free radical damage that occurs during disease progression in the brains of patients with Parkinson's disease, Alzheimer's disease, Lewy Body Dementia, and Huntington's disease, among others. Chief Scientific Officer Dr. Andrea Small-Howard said:

"This patent application is the first in a series that were invented based on our novel approach to creating cannabis-based therapies. Unlike many other companies and researchers who try to reduce the natural complexity in the cannabis plant, we embrace it and it informs our therapeutic mixtures. Additionally, we test our mixtures in disease systems that include a natural diversity of human cannabis-receptors, not just CB1 and CB2 receptors, which are the only receptors studied by many leading cannabinoid researchers. Our fast and efficient screening system then evaluates the effectiveness of the cannabis-based mixtures containing dozens of individually acting agents in order to make effective therapies for different diseases. We intend to start with Parkinson's disease because these patients are in great need of an effective therapeutic treatment. One additional benefit is that our Parkinson's treatment does not contain substantial amounts of the psychoactive compound, delta-9 tetrahydrocannabinol."

This month, GBLX acquired two additional Medical Marijuana Establishment ("MME") licenses in Clark County, Nevada. Growblox has formed GB Sciences Las Vegas, LLC. in order to acquire these two licenses. Growblox will be the owner/operator of the businesses and own 60% of the entity with the option to own up to 80%.

The production license will be incorporated into its cannabis cultivation facility in Las Vegas, NV. This license will allow Growblox to convert plants to oil, which opens a vast market that utilizes more of the plant, and produces a higher profit margin. These oils can then be used to make personal vaporizer pens, gel caps, edibles, a large number of beauty aids, cosmetics, pure botanicals, extracts, and much more. The cultivation license expands the current Nevada cultivation capacity well beyond the current capacity of 28,000 sq ft, which can support 4000 plants at a $20 million run rate at full production.

Currently trading with a market cap of $18 million, GBLX is an exciting story among pot stocks. The company just reduced authorized common shares from 250 million to 200 million shares and created 50 million preferred shares. The company plans to change its name from Growblox Sciences, Inc. to GB Sciences, Inc., subject to FINRA and SEC approval. GBLX expects to generate $700,000 in revenues by March 2017. Keep in mind that company will need to boost its balance sheet. In looking at the company's financials, we see $178k in cash, $3.5m in total assets, and $4.1m in total liabilities. However, in the short term it won't matter as investors are jumping into cannabis names ahead of the November ballot. We will be updating our subscribers as soon as we know more. For continuing coverage on GBLX and other cannabis names, sign up below!

Disclosure: We have no position in GBLX and have not been compensated for this article.

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