NEW YORK, NY / ACCESSWIRE / September 26, 2018 / SeeThruEquity, the leading independent equity research firm focused on smallcap and microcap public companies, today announced it has issued an update note on Earth Science Tech, Inc. (OTCQB: ETST).
The report is available here: ETST Update Note.
We are updating coverage of Earth Science Tech, Inc. (OTCQB: ETST, $1.13). Earth Science Tech is a biotechnology company focused on research, development, and sale of hemp-derived CBD based nutraceuticals, pharmaceuticals and dietary supplements. CBD is one of the more than 85 cannabinoids identified in marijuana and hemp plants and is non-psychoactive with a wide array of therapeutic benefits. According to the Hemp Business Journal, the cannabidiol (CBD) market is estimated to grow by 700% to reach $2.1 billion by 2020, versus $202mn in 2017.
ETST appears positioned to compete for its share of this market growth, as the company has established broad distribution for its high purity CBD product line, covering more than 90,000 retail outlets. Moreover, the company's pipeline remains robust with an upcoming direct-to-consumer campaign with As Seen On TV as well as planned pharmaceutical products in coming years, funding permitting. We see ETST as a speculative growth company focused on the burgeoning market for legal cannabis and hemp while targeting the fastest growing sub-segment of the industry (hemp derived CBD).
Highlights from the update include:
We are updating our coverage on ETST following results and recent developments at the company. Highlights were as follows:
- 1Q19 revenues grow by 64.8% to $166,891. ETST reported sharp growth in its FY1Q19 (ended June 20, 2018), with revenues increasing to $166,891 versus $101,275 in the year-ago period.
- Revenue growth is attributed to execution in the company's line of CBD nutraceuticals and supplements, which provide a revenue stream for ETST as it seeks to develop its medical device and pharmaceutical business lines.
- Positive outlook. Revenues are expected to increase throughout the fiscal year as the company meets demand from expanded retail distribution of its products, supported by pre-sales and a recent replenishment of product which should enable conversion to revenue.
- Deal with As Seen On TV likely to raise awareness. On the direct to consumer front, the company has engaged As Seen On TV to develop a direct response TV and web campaign over the next twelve months, which should provide further demand and an increase in awareness for high-grade CBD oil.
- ETST becomes full reporting OTCB company. We were pleased to see ETST catch up on its SEC filings with the reporting of its annual financials and FY1Q19 quarterly report. The company announced that its shares were uplisted to be quoted on the OTCQB, which is expected to offer higher liquidity and visibility than OTC.
Target moves to $3.60 as growth prospects take shape
Our target moves to $3.60 for ETST following recent results and a positive outlook for growth to take shape in coming period driven by expanded CBD sales and the introduction of the company's medical device MSN-2. We see ETST as a speculative company in the fast-growing CBD space.
Please review important disclosures in the report and at www.seethruequity.com.
About Earth Science Tech, Inc. (ETST)
Earth Science Tech, Inc. ("ETST") offers the highest purity and quality high-grade full spectrum cannabinoid oil on the market. There are positive results in studies on breast cancer and immune cells through the University of Central Oklahoma, in addition to studies through DV Biologics that prove the Company's CBD oil formulation lowers cortisol and functions as a neuro-protectant, with positive result case studies through key health organizations. ETST formulates, markets, and distributes the CBD oil used for its studies to the public, offering the most effective quality of CBD on the market. www.EarthScienceTech.com
ETST currently has four wholly owned subsidiaries focused on developing its role as a world leader in the CBD space and expanding its work in the pharmaceutical and medical device sectors:
Earth Science Pharmaceutical, Inc.
Earth Science Pharmaceutical ("ESP") is a wholly owned subsidiary of Earth Science Tech, committed to the development of low cost, noninvasive diagnostic tools, medical devices, testing processes and vaccines for sexually transmitted infections and/or diseases. ESP's CEO and chief science officer, Dr. Michel Aubé, is leading the company's research and development efforts. The company's first medical device, MSN-2, is a home kit designed for the detection of STIs, such as chlamydia, from a self-obtained gynecological specimen. ESP is working to develop and bring to market medical devices and vaccines that meet the specific needs of women. www.EarthSciencePharmaceutical.com
Cannabis Therapeutics, Inc.
Cannabis Therapeutics ("CTI") is a wholly owned subsidiary of Earth Science TechTIh is poised to take a leadership role in the development of new, leading-edge cannabinoid-based pharmaceutical and nutraceutical products. CTI is invested in research and development to explore and harness the medicinal power of cannabidiol. The company holds three provisional application patents for a CBD product that is focused on developing treatments for breast and ovarian cancers, as well as two generic CBD based pharmaceutical drugs. www.CannabisThera.com
KannaBidioiD, Inc.
KannaBidioiD ("KBD") . is a wholly owned subsidiary of Earth Science TechBD that provides a wide variety of products geared toward the recreational space of cannabis. KBD's unique Kanna and CBD formulation is sold and distributed in CBD-infused vapes/e-liquids products. Kanna and CBD synergistically enhance one another, providing optimal relaxation, an uplifting sensation, enhanced focus and the added benefit of assisting with nicotine reduction therapy. www.KannaBidioiDInc.com
Earth Science Foundation, Inc.
Earth Science Foundation. ("ESF") is a wholly owned subsidiary of Earth Science Tech. ESF is in the process of becoming a nonprofit organization to accept grants and donations to conduct further studies and help donate Earth Science Tech's effective CBD products to those in need. www.ETSTFoundtion.org
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SOURCE: SeeThruEquity