Lotus Bio-Technology Development Corp (OTCMKTS:LBTD) Getting Into The Cannabis Space

Today, we need to talk about a company that we have been studying for a while. It is called Lotus Bio-Technology Development Corp. (OTCMKTS:LBTD), which operates in the Organic and Bio-technology space.The interesting fact that drew our attention is that after releasing its quarterly report and announcing new investments in CBD and Medical Cannabis product development, the volume commenced to increase.We could see that some days more than 10 million shares changed hands. Have a look at it before we provide more details about what's going on: 1 year chart for LBTDBusinessLBTD was formed on March 24, 2011 as an independent motion picture producer. It was not until 2016 that the management decided to refocus its activities and explore new business opportunities in the organic growth and farming sector in China.The following are the most significant developments that the company has highlighted in the materials given to the market.On May 7, 2016, the company signed a marketing and distribution agreement with Hunan Canshi in China. Under the new contract, LBTD is in charge of the marketing, sale, and distribution of Hunan Canshi's organic products. Additionally, as it is usual in deals with Chinese companies, Lotus needed to create a subsidiary company, which will be 51% owned.In our opinion, the agreement is a great news. LBTD acquired the know-how and products of Hunan Canshi. It helped the company enter the organic market easily. Furthermore, the company will be paying very competitive prices, as this provider is based in China.Recent DevelopmentsWe believe that the most interesting announcement was made on September 6, 2017. The company released that it will be undertaking previously announced investments in CBD and Medical Cannabis product development. We did know that the company intended to commence operation in this sector, as it was noted in November of 2016, but new details were received in this new press release. More information about the partners collaborating with LBTD was provided:

• Hunan Cangshi: as said earlier, it is a Chinese partner, a successful proprietor, developer, and producer of consumer related organic products.
• Phyto Nutraceutical Inc.: it develops, manufactures, exports and supplies plant extracts.
• Changsha Huakang Biotechnology Development Co., Ltd: it focuses on extracting active ingredients of natural herbs and plants.

The company has already made substantial efforts signing agreements with these Chinese providers. Thus, we agree with the company's statement in the press release when it says that it is "positioned to procure and develop high quality products and compete for significant market share in the Cannabis Industry." But, it does not end there. LBTD noted that new partnerships will be signed to "help facilitate with its end user supply chain for new products." Additionally, more opportunities will be researched in the Medical Marijuana space, which, we believe, is also a fantastic news. There's perhaps no better sector to be in today than cannabis.Have a look at the reaction that this news created in September; the market is appreciating the update: Two months chart for LBTDIf it is the first time that you are hearing about this sector and the opportunities arising here, you may need to read our coverage. We have assessed many marijuana stocks and seen large equity increases that may interest you. Furthermore, on September 13, 2017, we received a new quarterly earnings release. We believe that it is a good idea to check the financial statements of the company. We need to look whether the company will be able to finance the new operations in the marijuana industry. The following are the most significant assets and liabilities as of June 30, 2017:

• Property and equipment, net: $3,820
• Due to related parties: $67,448

Additionally, the following share statistics will be useful for calculating financial figures on a per share basis:Authorized Shares300,000,000a/o Sep 11, 2015Outstanding Shares82,775,500a/o Sep 23, 2016-RestrictedNot Available-UnrestrictedNot AvailableHeld at DTCNot AvailableFloat32,000,000a/o Aug 28, 2017Par ValueNot AvailableSourceIn the quarterly report, it was noted that the total outstanding shares remains at 82,775,500. Thus, the company is not issuing new shares, which is a good news, as no dilution risk seems to exist here.Furthermore, regarding the float, please remark that the amount of shares owned by the public is very low, which means that large market orders can create large volatility spikes.ConclusionCurrently trading with a market cap of $0.9 million, LBTD is an exciting story among small caps. We believe that the company's projects in the marijuana industry are seducing the market, which is consequently pushing up the share price. It is true that LBTD will need financing for entering the market, but we believe that equity financing will not be a problem here. To sum up, be ready to focus on the company's new initiatives, as this is what's really driving the stock returns.We will be updating our subscribers as soon as we know more. For the latest updates on LBTD, sign up below!Image courtesy of Anna M via FlickrDisclosure: We have no position in LBTD and have not been compensated for this article.