Cannabis Sativa Inc (OTCMKTS:CBDS) had been waiting for the Financial Industry Regulatory Authority ("FINRA") to approve its application to spin off $1.50/share dividend for each common shares for months with no word from FINRA. One of the things I've learned over the past thirty years of investing is that the one thing the market dislikes more than anything is uncertainty. It reminds me of how the market reacted when the U.S. invaded Iraq. The market trended down until the deadline and when the U.S. actually, finally delivered the "shock and awe" campaign, many expected the market to plunge. Instead, the market rallied the next day several hundred points. We'll, it's the same situation with CBDS, FINRA finally denied the application, but low and behold, we've seen the stock trade up ever since and expect it to continue to do so.First, you should be aware that CDBS through its subsidiaries, engages in the research, development, and licensing of natural cannabis products comprising cannabis formulations, edibles, topicals, strains, recipes, and delivery systems. Sadia Barrameda is an investor in several cannabis-related companies and owns a little more than 5.2 million shares. Insiders also include former Senator Mike Gravel of Alaska, the CEO of CBDS. Not only is he a former Senator, Gravel sought the US Presidency in the 2008 cycle and served in the Senate from 1969 to 1981.
CBDS’s President, David Tobias, stated "We are disappointed in FINRA's decision to deny this dividend. We are also disappointed that our shareholders had to experience this delay and ultimate denial from FINRA." Tobias owns approximately 4.5 million shares.
FINRA's delay brought the stock under $2. Although the FINRA application didn't go the way CBDS wanted, now that that the dividend decision has been made, it is no longer a factor lingering over the stock, and that has paved the way for CBDS to move forward. And, just like with the Iraqi invasion, instead of plunging, we've seen the stock trade higher, reaching as high as $3.32. We've settled in some, but the stock is still trading at $2.79 and inching higher. It's likely that we may see the stock test the 52-week high of $3.665 that was set back in March.CBDS announced that it will be a participant in the State of Marijuana on September 26-27. The State of Marijuana gathers influential entrepreneurs, advocates, investors and government officials across multiple focused panel discussions and business workshops on topics affecting companies in the cannabis industry. The event's focus is on understanding and navigating political terrain including "The Federal Conflict", wherein industry experts will be talking about managing the challenges of the Federal prohibition on cannabis. The day concludes with the group watching and discussing the first Presidential debate. Cannabis Sativa will promote its brands including its Wild Earth Naturals CBD Water and CBDS brand CBD Capsules, which will be available at the event.
"The State of Marijuana gives Cannabis Sativa a unique opportunity to network with California's industry leaders in taking on the issues. The CBDS Board of Directors, with decades of political experience, is intent on keeping abreast of policy shaping and compliance, and is focusing particularly on California, the largest cannabis marketplace in the country", said President David Tobias. "We also hope that as the first Presidential debate is Monday night, that post-debate, these industry leaders will ramp up support for pro-cannabis Libertarian Presidential candidate Gary Johnson, our former CEO."
According to a report from a cannabis analytics firm New Frontier and Arcview Market Research, sales of recreational pot shot up 184% year over year, up to $998M in 2015 from $351M in 2014. Colorado and Washington state were responsible for a lot of the industry’s growth, the report said. Colorado tax revenue and recreational sales are predicted to be $135M for 2015, a 77% hike from $76M in revenue in 2014. Washington pulled in $70M in tax revenue.It's also an interesting time for the industry and CDBS might garner some interest and move higher, as well as the other stocks in the sector, due to the upcoming election. Come November, voters in at least nine states will decide on whether to legalize either the recreational use or the medical use of marijuana. As it stands now, those states include Arizona, Arkansas, California, Florida, Maine, Massachusetts, Montana, Nevada and North Dakota.Could all of this give rise to Green Rush 2.0? Only time will tell, but coming into November 8th, we like CBDS's prospects and look for a rise as we come closer to the vote. Beyond that, if we break that 52-week high there is no telling where we might end up at. We will be updating our subscribers as soon as we know more. For the latest updates on CBDS, sign up below!
Disclosure: We have no position in CBDS and have not been compensated for this article.
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