Today, we are reviewing again United Cannabis Corp (OTCMKTS:CNAB). Many things have happened since my colleague Alex Carlson published this piece about the company. Thus, we believe that an update was necessary. The other article noted that the stock delivered fantastic returns in 2016. The share price went from trading at the level of $0.20 in September to touch the level of $3.0 in November. This movement happened with large amount of volume, close to 3 million shares exchanging hands during some days.
In 2017, we identified an uptrend with high volume too at the end of February. In this new article, we will disclose the news that the company released to generate such a movement and will also provide some information about the share purchases and disposals of the insiders.
New Developments
The first communication that may have affected the share price is a press release, which investors received on January 30, 2017. According to it, the company signed a letter of intent with the Caribbean Institute of Medical Research in order to conduct clinical research on medical cannabis. This institute is the Jamaican-based division of the MPR Development Group, which is, according to its website, a full service global Clinical Research and Development Organization, CRO. With a wide range of resources and expertise, the company assists pharmaceutical and biotechnology companies efficiently to bring new therapies to people who need them. You can find some more information about this new partner on its website. United Cannabis disclosed in this press release that this institute will be responsible for the clinical trials for the Prana P1 thru P5 products.
The Chief Technical Officer of United Cannabis, Tony Verzura , added the following comments in the press release:
“For several years we have been tracking patient outcomes using Prana P1 – P5 products with the help of our A.C.T. Now Program and have collected a wealth of anecdotal evidence supporting the safety and efficacy of our medications. Our collaboration in Jamaica with CARIMER is the first of many steps to formally test and confirm the benefits of the Prana line for a broad range of diseases in preparation for pharmaceutical markets.” Source
We believe that the most important development released in the last month was, without any doubt, the announcement of the agreement with Vessel Life Sciences LLC, which the market got to know on February 23, 2017. According to the press release, Vessel Life Sciences will produce and distribute the products of United Cannabis in Pennsylvania. We investigated this new partner and found out, thanks to its website, that it is an established company with a lot of expertise. It has been involved with medical cannabis in California since 1999.
Tony Verzura added to this communication the following comments:
"Vessel Life Sciences is ideally suited to bring our products to Pennsylvania. Their team has over 30 years' combined experience across the spectrum of the cannabis industry, including engineered facilities, regulatory compliance, genetics, cultivation, good manufacturing practices, proprietary extraction methods, branding, marketing, and wholesale distribution. Their expertise gives us a distinct competitive advantage as we work to execute a fast and efficient launch of our Prana products and ACT Program throughout the state." Source
The market reaction to this news was substantial. The share price went from $1.5 to $2.5 in only a few days. Shareholders, who were properly informed, did well in a very short period of time. It is because of these kind of events that we encourage readers to subscribe to our newsletter, wherein readers get information as it happens and profit from these type of movements.
Finally, very recently, on March 15, 2017, the company published a statement about the company's operations, following the Trump administration's recent comments. The press release included comments of the CEO, Earnest Blackmon as well as Tony Verzura:
"Recent comments by officials in the new administration indicate a potential shift in the federal position on marijuana from that of the Obama administration, and we felt it necessary to assure our shareholders and the public markets that our operations focus solely on medical cannabis, which is now legal in 28 states across the country."
"Our focus has always been to develop naturopathic technology, methods of use, and other IP to be used in the medical cannabis, hemp, and pharmaceutical industries, and we have seen profound improvements in the lives of patients that utilize our patent-pending Prana Medicinal products."
Insider transactions
According to what we found on the SEC Website, the most important stock holders of the company are Earnest Blackmon and Tony Verzura. The first holds 21,584,513 shares, whereas the second holds 13,746,368 shares. The total amount of shares outstanding is 50.65 million, so these business executives hold very important stakes. According to the SEC, the CEO sold 48,000 shares and reported it on March 31, 2017, whereas Tony Verzura sold 17,113 shares and reported the transaction a day before his colleague. Honestly, we believe that these transactions are immaterial since these two executives hold massive stakes in the company. However, we encourage investors to study these transactions either by visiting the SEC website or subscribing to our newsletter. If the CEO and the other officers report purchases of new stock, this fact may represent a very good buying opportunity.
Follow these business executives in the media
Another very interesting recommendation is to follow the CEO and Tony Verzura in the media. I found out that they use the social networks and Youtube.com to communicate about the recent developments of the company. They may also give information about what they plan to do in the future.
This is an example of what you need to look for:
Conclusion
United Cannabis Corp. has delivered massive returns to investors in the past. The company may be able to do the same in the future if it continues to release positive information. We encourage investors to stay informed in real time and check the company's website to acquire the press releases as soon as they are delivered. In addition, shareholders need to check the stakes in the company of the CEO and Tony Verzura for more insight about future share price movements. We will be updating our subscribers about it as soon as we know more. For the latest updates on CNAB, sign up below!
Disclosure: We have no position in CNAB and have not been compensated for this article.
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