Joint Statements With CannaVest

Regarding HEMP OIL HUSTLERS: A Project CBD Special Report On Medical Marijuana Inc., HempMeds And Kannaway

January 8, 2015

CannaVest Corp. (“CannaVest”) and Project CBD, a non-profit organization, jointly issue this statement:

  • Project CBD and CannaVest recently had samples of CannaVest’s hemp oil tested by an independent analytical lab as part of a collaborative effort to determine the absence or presence of heavy metals and industrial solvent residues in these products. The results of this independent testing showed only trace levels of solvents and heavy metals that are well below acceptable levels established by the U.S. Pharmacopeial Convention. Based on the results of this limited testing, Project CBD has concluded the CannaVest hemp oil tested is not contaminated with heavy metals or industrial solvent residues in amounts that pose a threat to human health, according to officially recognized safety standards.
  • Project CBD selected six samples from different batches of hemp oil that had been produced by CannaVest since mid-October 2014>. Project CBD selected three samples of CannaVest’s CBD Gold™ oil and three samples of CannaVest’s CBD Decarb™ oil for testing.
  • All samples were submitted to Exova, an independent testing facility based in Santa Fe Springs, California, for analysis.  Exova tested the samples for 21 industrial solvents, including hexane, heptane, ethyl acetate, chloroform, toluene, and benzene. Exova also tested these samples to determine the presence or absence of four heavy metals—arsenic, cadmium, lead, and mercury.
  • On December 18, 2014, and December 23, 2014, Exova issued its findings in two reports to Project CBD and CannaVest. Exova found no significant levels of arsenic, cadmium, lead or mercury in the tested samples. Exova found no detectable levels of 21 industrial solvents in three CBD Gold™ samples. Three samples of CBD Decarb™ had trace of amounts of toluene that were well below acceptable levels, according to the U.S. Pharmacopeial Convention limit.
  • These findings do not negate or refute the lab data presented in Project CBD’s original report, Hemp Oil Hustlers, as such lab data was based on hemp oil obtained by Project CBD from third parties.

December 5, 2014

CannaVest Corporation (“CannaVest”) and Project CBD, a non-profit organization, along with its Director, Martin A. Lee, jointly issue this statement:

In a special report on the hemp oil industry published on October 14, 2014 titled “Hemp Oil Hustlers”, Project CBD reported that a consumer product, which is labeled as containing hemp oil and which was produced by CannaVest and then sold in 2013 to a distributor in 2013, tested positive for hexane and other solvent residues, none of which were listed as or intended to be ingredients in this product.

Since the October 14 publication, Project CBD corrected its report in some respects and posted those revisions on its web site. In an effort to provide accurate information to consumers and the public about the report and about CannaVest’s products, the parties have been in frequent communication with one another.  As a result, both parties now agree that it is important to emphasize to the marketplace each of the following:

  • The Project CBD report did not conclude that CannaVest was responsible for the presence of solvent residue in the product samples.
  • The Project CBD report did not conclude that other products containing hemp oil manufactured by CannaVest contain residual solvents.
  • The Project CBD report did not conclude that the solvent residues reported by Project CBD were responsible for consumer complaints of adverse health events after consumption of the CannaVest product that was tested by Phytatech and Flora Research Laboratories.

CannaVest acknowledges that at the time of its October 24, 2014 report to its stockholders, it did not have in its possession important facts about the scope of the testing undertaken by Flora Research Laboratories, its testing procedures and equipment used when it tested the samples it received from third parties (not CannaVest) for Project CBD. Flora Research Laboratories’s goal was not to perform quality control testing on the samples nor to determine compliance with any established residue limits, but rather to conduct a phytoforensic examination of the samples to assist PhytaTech lab in investigating unidentified peaks, and completing its analysis. Now with a further understanding of the testing procedures, CannaVest withdraws its comments about the lack of quality of the analytical testing conducted.

Significantly, Project CBD and CannaVest have agreed to jointly test samples of CannaVest’s currently produced  hemp oil product  in order to determine the absence or presence of heavy metals and industrial solvents in that product.  The parties are in the process of agreeing upon the selection and number of samples to be tested, the parameters of the testing, the lab that will conduct the testing, and the timing of the testing, which the parties intend to undertake shortly. The parties will make public the results of that testing.

Finally, both CannaVest and Project CBD acknowledge that this cooperative effort may be the beginning of a more extensive working relationship aimed at providing accurate and meaningful information to the cannabis/hemp industry and to the consuming public.