PreveCeutical Medical Inc. (OTCQB – PRVCF) is a health sciences company that develops innovative options for preventive and curative therapies utilizing organic and nature identical products. The Company has a strategic partnership with Aurora Cannabis, a leading producer and distributor of high-grade medical cannabis and the relationship is key to PreveCeutical in securing the supply of cannabinoids that are consistent and of the highest quality.
In keeping with its vision of becoming a global preventive healthcare company, PreveCeutical is continuing to meet key milestones with its portfolio of research and development programs that will boost shareholder value.
Key recent announcements:
- Update on Sol-gel’ R&D (research and development) work: On July 11, 2018, they provided an update on the soluble gel (“Sol-gel”) drug delivery research and development program (the “Sol-gel Program”), that involves testing an array of cannabis strains for the development and commercialization of cannabinoid-based Sol-gels. The management confirmed that the preliminary findings on its custom soluble gel applicator are encouraging as it updated on its R&D (research and development) work.
- This preliminary screening of non-cannabinoid constituents has heightened the Company’s understanding of how components (other than CBDs and THC) impact the formulation of Sol-gel systems and provided insight into chemical compatibility, physiochemical stability, and biocompatibility of Sol-gels with biological membranes, paving the way for the optimization of engineered Sol-gels that possess the Company’s target gelation and adherence properties.
- Oversubscribed private placing: Before this, the company confirmed about its oversubscribed private placing, which raised C$6.54mln (gross). In all, around 130.8mln units were issued at $0.05 per unit for gross proceeds of $6,539,987.50. The funds would be used for research and development (R&D) programs and general working capital purposes.
- This oversubscribed placement speaks about the investor demand in PRVCF and is a strong endorsement of the quality of its research programs and management team.
- Additional permits by the Australian Government: In May this year, PreveCeutical said it had been awarded two additional permits by the Australian Government, Department of Health, for the importation of a second shipment of cannabis plant materials into Australia for research purposes and the shipment of dried cannabis materials.
- In addition, that month, it inked a non-disclosure agreement (NDA) with a globally recognized, innovative drug delivery device manufacturer. This will allow the firm to enter discussions with the manufacturer for the supply of spray devices for use in the company’s soluble gel drug delivery research program.
The Company’s Sol-gel Program uses five distinct Cannabis sativa L. strains containing a broad
range of CBD: THC concentrations, which allows for the development of medicinal cannabis
products tailored for a broad range of ailments and diseases. The current focus of the Sol-gel
Program is preparing Sol-gel formulations containing fixed CBD: THC concentrations, which,
when sprayed using a custom applicator, will be able to safely and consistently deliver CBD: THC
to the central nervous system in predefined ratios.
Before the Company obtained its medicinal cannabis, import permits and licenses, it laid the
groundwork for the Sol-gel Program by evaluating the non-cannabinoid constituents of
commercially sourced cannabis plants and assessing the feasibility of incorporating them into the
Sol-gel delivery platform. This preliminary screening of non-cannabinoid constituents has
heightened the Company’s understanding of how components (other than CBDs and THC) impact
the formulation of Sol-gel systems and provided insight into chemical compatibility,
physiochemical stability and biocompatibility of Sol-gels with biological membranes, paving the
way for the optimization of engineered Sol-gels that possess the Company’s target gelation and
adherence properties.
PreveCeutical is also currently developing the custom Sol-gel applicator. The Company’s research
partner, The University of Queensland, has received several prototype Sol-gel spray devices from
the Company’s manufacturer. Although evaluations are ongoing, the preliminary results are
promising.
Conventional methods of nasal drug delivery, such as drops and sprays, fail to deliver the
therapeutics far enough into the nasal cavity and are rapidly removed by the nose’s self-cleaning
mechanisms, decreasing their efficacy. The Company’s Sol-gel formulations aims to resolve these
issues, making them an ideal vehicle for the nose-to-brain delivery of a host of therapeutic agents,
including cannabinoids, for the treatment of central nervous system conditions, such as pain,
inflammation, seizures and neurological disorders.
The Company believes its Sol-gel platform is an ideal vector for improving therapeutic outcomes for patients seeking access to cannabinoid-based products and therapies.
Guidance for the near to medium term: As per management, throughout the remainder of 2018 and moving forward, PreveCeutical is focused on key acquisitions and the pursuit of assets/preventative products that are commercially viable in order to create a diverse and robust revenue stream. Additionally, the company is working toward the achievement of several milestones within its R&D pipeline with an intention to advance future clinical trials of its products.
About the Company: PreveCeutical aims to be a leader in preventive health sciences and currently has five research and development programs, including: dual gene therapy for curative and prevention therapies for diabetes and obesity; a Sol-gel platform for nose to brain delivery of medical compounds including cannabinoids; Nature Identical™ peptides for treatment of various ailments; non-addictive analgesic peptides as a replacement to the highly addictive analgesics such as morphine, fentanyl and oxycodone; and a therapeutic product for treating athletes who suffer from concussions (mild traumatic brain injury).
Current Programs: PreveCeutical has partnered with the University of Queensland in multiple research and development programs. Under the agreements, intellectual property and results arising from these programs will be owned by PreveCeutical.
Overall Market Opportunities: PreveCeutical began as a platform to capitalize on the $3.8 trillion preventative health sector and to take advantage of the mostly untapped industry through combining pharmaceuticals and natural products. The company developed the phrase “PreveCeutical” with the vision to research, develop and market products designed with unique delivery technologies while focusing on preventative health.
Financials: The company has made no meaningful revenues thus far. Moving forward, given their investments, they are well poised for substantial traction.
At March 31, 2018, the Company had working capital of $262,416 compared to working capital at December 31, 2017, of $1,066,337. This included cash of $204,038 (December 31, 2017 – $104,478) available to meet short-term business requirements and current liabilities of $1,106,591 (December 31, 2017 – $304,491). The Company might require additional financing. The Company’s accounts payable and accrued liabilities have contractual maturities of less than 30 days and are subject to normal trade terms.
Key risk factors and potential stock drivers:
PRVCF is still an early stage cannabis company and has not yet generated meaningful revenue and will likely operate at a loss as it grows its market position and seeks ways to monetize it.
It said the company is likely to see meaningful results from their current investments. Analysts remain hopeful that these payoffs will take shape quite soon and stay bullish about the stock price.
Regulatory Risk: Notwithstanding the current operational and marketing progress, the company continues to remain exposed to regulatory and legal risk.
Scaling risk: Cannabis is a difficult plant to grow in scale while meeting quality standards. Therefore, any time or cost overrun in PRVCF’ ongoing activities and its impact on business & financial profile will continue to remain a key investor sensitivity factor.
PRVCF’ ability to maintain liquidity and financial flexibility to fund its incremental capital requirements will remain a challenge for the company. Additionally, the industry is competitive, and PRVCF will be competing with many other and better-financed companies.
Stock Performance
Comments:
- On July 17th, 2018, PRVCF was at $0.05, on an above average volume of 401K shares exchanging hands. Market capitalization is $17.457 million. The current RSI is 32.06
- At $0.05, shares of PRVCF are trading below its 50-day moving average (MA) at $0.13 and below its 200-day moving average (MA) at $0.41
- The present support and resistance levels for the stock are at $0.0149 & $0.0541 respectively.
Disclaimer
Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.
Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.
This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.
We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.
When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.
17B Disclosure
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.
Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.
