KannaLife Sciences Inc. will continue to breathe new life to pharmacological products this year through research and development, as they had recently received Series A financing amounting to $1.5 million.
The company’s Founder and Chief Executive Officer Dean Petkanas shares more about this recent achievement in this e-interview with Lead411:
Who are your competitors and how are you different from them?
Our business model has three distinct components two of which have a fairly decent competitive field of participants. Our standardization process for identifying, testing, packaging and labeling botanical medicaments is currently in patent pending status and in this regard, we are the leader in meeting a sizable unmet demand in a burgeoning phyto-medical marketplace. Regarding our target drug candidate for treating Hepatic Encephalopathy, it would be a new structure with a new mechanism of action. This product is currently in pre-clinical development.
What percentage of your marketing budget are spent on the following?
A. Advertising –
B. Social Media Marketing –
C. SEO –
D. PR –
E. Direct Marketing –
F. Other –
On detailed marketing budgets, I defer to Thomas Kikis who is our CVO/CMO and is better suited to provide the answers to the question you are asking. Because we are a late stage start up, our budgets for advertising have not been completed across the spectrum you described. In short, we will likely spend a fairly decent amount on public relations and social media this year. The other areas of focus will likely be attended to in 2014 and as our products begin to come to the marketplace.
What marketing tactic has given you the highest ROI? What percentage ROI do you get back on this?
Believe it or not, the subtle word of mouth organic grass roots approach has been our best asset in this instance. Nearly zero cost and a substantial return. In this regard, our investors, Medical Marijuana Inc. and CannaVEST were able to monitor our development to the point where they saw the time was right to step in. Their involvement goes well beyond funding as they have brought forth incredible resources, business savvy and talented dedicated professionals into the mix for KannaLife.
What do you plan to spend your new funding on? Product development? Marketing?
Product development and revenue drivers.
If this is your first round of financing and you’re the CEO, how many hours did you put into working on getting your financing? Was that taking up the most of your day?
It was the slow culmination of three plus years of trench work, development, constant communication with the capital markets along the way and the patience to wait until certain assets matured to the point where they became fungible. Again, having the relationships with our partners, Medical Marijuana Inc. and CannaVEST, affords KannaLife a significant portal and entry bandwidth for KannaLife’s revenue drivers across the gamut of Medical Marijuana Inc. and CannaVEST’s wholesale and retail outlets.
If you are the CEO, what are your biggest challenges?
The biggest challenges come from working through the demands, obstacles and milestones in any corporate initiative, whether in time, or a spectrum of time frames from short to long term; and the onus of placing these responsibilities upon myself first for the ability to communicate what it takes to succeed to others.
How many employees do you have?
Several under the KannaLife umbrella, and a fair number of advisory board members and collaborators in tow.
When were you founded?
Conceived in late 2009 and formally incorporated August 2010.
How much did you revenue increase(if any) this year over last year?
When we make our first product or service related sale, I will tell you. Hopefully it will be soon and so the answer will be 100%.
Want to know more about their funding? You can check out this news release here.