The future looks bright for Cannabis Science, a California-based company that develops marijuana-based medicine.
The firm issued strong financial guidance for 2012 and beyond, saying it expects to generate $6.8 million in revenues this year and as much as $65.7 billion in 2014. Officials said the revenues in 2014 would amount to earnings of two cents per share. The figures include sales through its Medbox alliance and revenue gleaned from licensing fees.
“These projected sales not only translate into shareholder value but these revenues also generate taxes into the economy and create jobs,” Dr. Robert Melamede, the company’s chief executive officer, said in a press release. “We acknowledge and understand that these numbers are just a forecast and may be revised over time as we go forward and develop our global sales team.”
Cannabis Science, which trades over the counter, has a much bigger opportunity on the horizon as well. If the company can get FDA approval of its cannabis-extract formulations, it could bring in $279.1 million annually in revenues, according to Cannabis Science’s estimates.
Officials said the move to issue an earnings forecast is a step towards the company’s goal of communicating more closely with shareholders and investors.
While the revenue projections are just that – projections, meaning there’s no guarantee the money will actually materialize – the positive guidance is a good sign considering the troubles the medical marijuana industry is facing. Hundreds of dispensaries have closed in the past six months in various states, largely the result of pressure by the federal government. Cannabis Science is hoping to make big inroads with dispensaries in the future, meaning they are key to its distribution model.