Become A Featured Company

Cannabis Chemistry: A Look at Vape Holdings’ Scientific Approach

Ryan Allway

May 12th, 2015

News, Top News

The legal cannabis industry generated about $2.7 billion in revenue in 2014, according to ArcView Market Research. With that figure expected to grow at a double-digit rate over the coming decade, there has been no shortage of companies entering the space. Some companies, like Cannabis Science Inc. (OTC: CBIS) and GW Pharmaceuticals (NASDAQ: GWPH) are focused on pharmaceutical opportunities, while others like Agritek Holdings Inc. (OTC: AGTK) are focused on branding and real estate.

Vape Holdings Inc. (OTC: VAPE) is primarily focused on the manufacture and distribution of healthy and sustainable vaporization products. Since it’s not involved in the manufacture or sale of cannabis – a Schedule I Controlled Substance – the company has the opportunity to commercialize its products over the near-term rather than waiting for regulatory changes to materialize. And unlike many competitors, its products are backed by robust concepts from chemistry and a team of respected industry experts.

In this first article, we’ll take a closer look at the performance of the company’s core business of ceramic vaporizers, and where it may be headed over the coming quarters following the hiring of its new Chief Science Officer.

Ceramic Vaporizers

Vape Holdings’ flagship brand, HIVE Ceramics and HIVE Supply, manufacture and distribute a proprietary blend of ceramic vaporization element for all types of vaporization devices with a number of design and product crossover within existing and emerging markets. With a network of over 1,100 authorized shops in the US, Canada, Europe and South America, the company has already amassed a large wholesale distribution network for its products that has been generating consistent revenue for several quarters.

In early 2015, the Vape Holdings launched its HIVE Supply division, focused on wholesale supply to dispensaries of compliant packaging, high end equipment, branding and merchandising, and top tier consulting services as a competitively priced one-stop shop for all medical and recreational cannabis facility needs.  With the recent acquisition of the talented members of a top tier LA based web design, branding and marketing team, VAPE Holdings now offers a breadth of new services for dispensaries nationwide.  This could create another solid revenue stream for Hive Supply that leverages its existing brands and could further expand market awareness for its own product line-up synergistically over time.

During the fiscal year ended September 30, 2014, the company reported revenue of $841,724 and a gross profit of $383,337. These revenues appear to be rapidly accelerating with Q1 2014 revenue of $386,643 (a $1.5 million annual run rate) and gross profit of $236,757. On the bottom line, the company swung to a profit during the quarter with net income of $582,910, or $0.05 per diluted share (due in part to derivative valuation), which sets it apart from many others in the space.

Different Chemistry

On May 4, 2015, Vape Holdings announced the addition of Mark A. Scialdone, Ph.D., as Chief Science Officer (“CSO”). With two decades of world-class experience in product development and fundamental science research at E.I. DuPont de Nemours (NYSE: DD) and his consulting firm BetterChem LLC, he brings a wealth of experience in chemistry, with a focus on botanical extracts. These dynamics make him an ideal hire to target the burgeoning cannabis industry and the explosive growth that it’s seeing in specialized cannabis extracts, the power of which was recently featured by CNN in the last of their 3 part series WEED 3.

Dr. Scialdone will lead the expansion of the company’s intellectual property portfolio into fundamental and licensable interest in plant extracts and related products. As the inventor or co-inventor of 25 issued U.S. patents and the author of 15 publications in scientific literature, Dr. Scialdone has both comprehensive and highly applicable experience in building valuable intellectual property that could pioneer an entirely new business model for the company over the coming quarters.

A licensing business model focused on the cannabis industry could help accelerate high-margin revenue growth over time. In addition, a growing portfolio of intellectual property could make the company an attractive target if and when cannabis goes mainstream nationwide. The Vape Holdings business model may be comparable to small-cap biotech stocks that out-license their technology to larger pharmaceutical companies, generate significant revenue, and eventually end up being acquired.

Looking Ahead

Vape Holdings represents an attractive potential investment opportunity within the cannabis industry given its profitable vaporizer business and the potential to enter into a new high-margin vertical – intellectual property licensing. Despite this unique combination of short-term revenue and long-term value, the company trades with a market capitalization of just $6.4 million, putting it at the inexpensive end of the cannabis spectrum compared to some larger players in the space.

Investors in the cannabis space, including vaporizer stocks like Vapor Group Inc. (OTC: VPOR) and VaporBrands International Inc. (OTC: VAPR) and mCig Inc. (OTC: MCIG), may want to take a closer look at the stock, particularly given the accelerating growth of HIVE Ceramics and HIVE Supply. In addition, investors interested in the licensing angle may also want to keep an eye on the stock as Dr. Scialdone works to amass patents on plant extracts and build a valuable IP portfolio.

For more information, visit the company’s website at www.vapeholdings.com.

 

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Disclaimer: Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

Network Partners

Follow Us on Social Media

LinkedIn

About CFN Media Group

CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer

loading