April 13th, 2021 | 09:06 CEST
InnoCan Pharma, Cardiol Therapeutics, BevCanna - Watch out: undiscovered cannabis price rockets!
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The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
InnoCan Pharma - Innovative injection system for CBD-based pharmaceuticals
InnoCan Pharma focuses on the development of platforms for the delivery of cannabidiol (CBD)-based pharmaceuticals. The Canadian Company's research and development activities take place exclusively in Israel. CBD-integrated medicines are additionally researched and developed there. InnoCan Pharma focuses on a few narrowly defined fields: diseases caused by viruses, such as Covid-19 or other types of pneumonia, as well as diseases of the central nervous system, such as epilepsy; the topic of effective relief of rheumatic muscle pain; and the treatment of psoriasis.
With regard to its delivery platforms, the Company has developed a revolutionary and patent-pending injection system based on cannabidiol-loaded liposomes that enable targeted and controlled drug release. Currently, there are 15 liposomal drugs approved by the US Food and Drug Administration, while many more are currently in international trials. InnoCan plans to combine steroid drugs with cannabidiols, which are proven to provide lower steroid concentrations and deliver them to targeted disease sites using the liposomal injection method to best dose the active ingredient. InnoCan was recently able to report its figures for the past fiscal year. The Company succeeded in raising CAD 6.2 million in new funds from January to December 2020. In addition, CAD 3.8 million was raised through the exercise of warrants. At the end of the year, the cash balance was approximately CAD 2.9 million with approximately CAD 1.3 million in liabilities.
Six patent applications were filed in the last fiscal year. Currently, the stock is trading at CAD 0.55, giving the Company a market capitalization of CAD 108 million. Two drugs have entered the animal testing phase, so there is still a long way to go before approval. If you are willing to take risks and have patience, you should take a closer look at the stock.
Cardiol Therapeutics - Many arrows in the quiver
Cardiol Therapeutics is also fully committed to CBD. However, it is a particularly pure form of CBD, without any THC normally inherent in the cannabis plant. And for good reason: the focus is on heart diseases, so-called Cardiovascular disease (CVD) in younger and especially older patients, and patients who cannot tolerate THC or are prohibited due to occupational requirements. The THC content in the cannabidiol products used has been reduced to less than 10ppm (ppm = parts per million, i.e. 10 THC molecules to 1,000,000 other molecules). This amount is practically below the detection threshold. Currently, Cardiol Therapeutics' portfolio consists of three therapies in development and the approved product Cortalex, a high-dose CBD concentrate for oral administration. One of the products in the product pipeline is CardiolRX.
Yesterday, the Company reported results from a recent Phase I study. The study was a randomized, placebo-controlled, double-blind study evaluating the safety, tolerability and pharmacokinetic profile of CardiolRx at different dose levels. The study tested 52 subjects (age range 25 to 60 years). The results showed that CardiolRx was safe and generally well-tolerated at all dose levels. While this is good news for shareholders, it also suggests positive results in international studies. In addition, CardiolRx is being investigated for its suitability as a therapy for Covid-19 patients and its area of use in CVD, as CVD patients have a much higher risk of death from SARS-CoV2 infection. Another research area is acute myocarditis, or spontaneous inflammation of the heart muscle, which is the most common cause of infarction in patients under 35 years of age with cardiac arrest.
Cardiol Therapeutics was also recently able to present its figures for fiscal 2020. Characteristically, young companies generate losses (CAD 20.6 million) and invest heavily in research and development (CAD 10.5 million). An important aspect is refinancing via the capital market. The cash balance at the end of the year was a comfortable CAD 14 million. In 2021, Cardiol plans to list on NASDAQ. This should push the valuation of the Company (currently: CAD 160 million) up significantly. The stock is traded on the TSX and in Frankfurt. With the convincing portfolio and the targeted dual listing, the share should continue to climb this year. Analysts at Leede Jones Gable currently estimate the share price potential at CAD 12.50.
BevCanna - White label beverage production with a special kick
BevCanna Enterprises designs and produces "cannabis-infused drinks" and is also active in this area as a white label manufacturer. According to a study by Grand View Research, the Canadian Company is thus in a very fast-growing market. Grand View forecasts a market volume of an impressive USD 2.8 billion for cannabis-infused drinks by 2025. That translates to an annual growth rate of about 18% from 2020 to 2025.
But with a lot of growth and potential, the number of competitors usually increases as well. BevCanna is gearing up for the looming competition in its own way: just last December, it merged with Naturo, a Company with which it had already had an intensive partnership for some time. Valued at around USD 40 million, the Company has since been run as a 100% subsidiary of BevCanna. Naturo brought an extremely valuable gift into the marriage: its alkaline water source, which experts value at USD 18 million. Back in September, BevCanna was able to acquire online direct sales specialist Naturally Pure Therapy. The natural health and wellness products shipper continued its strong 2020 revenue growth in the first quarter of 2021. In the process, the Company acquired more than 3,000 new customers thanks to its affiliation with BevCanna.
In January, BevCanna also completed a CAD 5 million capital increase at prices of CAD 1.50, well above market levels. The high demand proves that investors believe in the future of the Company. In addition, the Canadians received CAD 1.5 million through the exercise of warrants. The share has corrected significantly in recent weeks and is trading at just under CAD 0.90. The share price decline offers a favorable opportunity to invest in the well-positioned Company in a growth market. The stock market value of around CAD 87 million leaves room for increases.
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