Bart Mackay, a 57 year-old Las Vegas attorney, invalidated the hype of his net worth and the claim of him becoming the first legitimate cannabis billionaire. Technically on paper, Mackay is the world’s first cannabis billionaire due to his stake in CannaVest. CannaVest is an industry leader of developing, producing, marketing and selling end-consumer goods comprised of industrial hemp-based compounds with much focus on Cannibidiol CBD, which is derived from hemp stalk and seed. The company’s goal is to seize the opportunity of worldwide trends to revitalize the production of industrial hemp to cultivate its various uses for consumers. In the pharmaceutical industry, this legal substance can be used to treat and cure many medical ailments and it can be implemented in combination with foods and nutritional supplements to benefit the health and wellness of consumers.
Its $1.8 billion valuation sounds like a buzzed-induced figure from analysts getting high on cannabis-related stocks, but in reality Mackay is a paper billionaire. In the United States, CannaVest is the best performing stock of 2014 and maintains a market capitalization of more than one billion dollars. In 2013, the stock has risen 680 percent and since January another 300 percent. CannaVest is listed on the Over-The-Counter Bulletin Board, which is thinly-traded and has had an average daily volume of 10,900 shares this year. Somebody is buying into the stock, which closed on Friday at $117, propelling Mackay to become the world’s first pot billionaire because of his holdings of 15.7 million shares in CannaVest.
Mackay claims his net worth that is tied to the soaring stock price of CannaVest is just inflated hype and believes he is not a cannabis billionaire. His reasons are that he has never liquidated a share of CannaVest and if he was to sell a lot of shares, the stock price would inevitably tumble. From Mackay’s perspective, the paper valuation of CannaVest is not solid financial data in retrospect of the dot.com bubble of the late 1990s. He says that CannaVest is more likely the same thing, it is just a bubble and bubbles can burst at any time. Mackay proclaims that CannaVest’s increased value of stock price is due to speculators and loosening legislation of marijuana use. With the recent laws of Colorado and Washington allowing the commerce and use of recreational marijuana, stock promoters have been aggressively campaigning the investment of marijuana and hemp stocks over the last few months. Mackay says contrary to public belief, the company is not a pot stock; it is a hemp company.
As of recent, CannaVest’s financial books are comprised of $10.7 million in assets and the last report of its financials in September 2013 detailed revenues of $1.35 million and losses of $28.4 million. Mackay asserts that CannaVest’s numbers does not intrinsically warrant an astronomically high valuation of its stock price. He claims that market trends are gratuitously rendering over-the-top appraisals on many marijuana stocks, which is fed by analysts blowing smoke on the entire cannabis industry. Mackay says that the hype surrounding marijuana companies and their market worth is out of his hands; his only mission is to focus on CannaVest’s fundamentals of its core business and not play into his superficial net worth from being a cannabis billionaire.
By Isriya Kendrick