Cannabis Science Inc. (OTC: CBIS)
, a development stage company at the forefront of pharmaceutical grade medical marijuana research and development, on Thursday, provided guidance and outlook for 2012.
CBIS said that currently there are three main markets for Cannabis Science Brand formulations for distribution; FDA approved prescriptions, OTC Non-psychoactive Neutroceuticals and licensed dispensaries in legal medical marijuana states.
CBIS expects 2012 sales to be $6.84 million. The company said that its sales can potentially increase nearly ten times the forecasted 2012 sales in 2014. If CBIS manages to increase sales ten times, the company would have positive earnings of $0.02 per share in 2014.
CBIS said that is dedicated to working with the Federal, State, and Local regulatory agencies, as well as similar agencies in other countries. The company said that its forecast includes sales from both the MEDBOX strategic alliance and the revenues from its licensing fees from cannabis-extract based formulations.
Cannabis Science has also prepared a model to forecast sales upon FDA approval. This model shows average sales of $279.12 million annually. The forecast does not include any potential revenue through signature fees from a distribution agreement for Cannabis Science formulations either in the U.S. or in any international markets.
Dr. Robert Melamede, CEO of Cannabis Science, said that CBIS announced intention to have a quarterly conference call to update shareholders and investors in 2012 to track the progress the company is making towards its goals. Melamede said that this type of sales forecast communication is a great place to start to have a more serious conversation between the company and investors both present and future, in regards to the earnings potential for CBIS in the medical marijuana industry. Melamede said that the projected sales not only translate into shareholder value but the revenues also generate taxes into the economy and create jobs.
Melamede acknowledged the fact that the numbers are just a forecast and may be revised over time as the company goes forward and develops its global sales team.