Precise cannabis dosing an industry-changer

Canntab Therapeutics Inc. has developed a process to incorporate cannabis extracts into pills that administer measured, standardized dosages, and include a unique delivery system to enable time-controlled absorption. Investor’s Digest columnist Mike Kachanovsky says Canntab is positioned for rapid growth and a much higher market value.

Canntab_TherapeuticsWith the launch of legal recreational cannabis use in Canada, barriers are coming down for those who seek relief from a variety of medical issues but were restricted from trying cannabis due to the social stigma associated with the drug. This has enhanced the opportunity for serious therapeutic applications derived from cannabis for legitimate medical purposes to gain traction.

While ongoing research to investigate further medicinal therapies and treatments based on cannabis continues to reveal new benefits from this amazing plant, the options for delivering a precise pharmacological dose were limited.

Smoking cannabis is the most common method for receiving the range of active cannabinoids from the plant, including THC, but some people cannot tolerate smoke and it is unpleasant for them as a treatment. Also, the dosage itself is notoriously difficult to control among those who smoke it.

Cannabis oils and refined CBD extracts are also commonly used in edible cannabis products but again the dosage can vary from one sample to the next, and cannot be administered precisely. Even when taken in capsule form, variances in the dose and efficacy create challenges for treatment.

The need for a more therapeutic approach to cannabis for medicinal purposes has driven the business plan for an innovative Canadian success story in the emerging cannabis sector.

Advanced pharmaceutical grade formulations

Canntab Therapeutics Inc. (CSNX—PILL) has developed a process to incorporate cannabis extracts into pills that administer measured, standardized dosages, and include a unique delivery system to enable time-controlled absorption.

Canntab has developed proprietary cannabis formulations based on various combinations of THC and CBD. This medicine is then delivered through a line of pills available in 2.5-milligram, 5-milligram and 10-milligram standardized doses. The pill format allows specific dosages in order to maintain the ideal THC and CBD concentrations in blood for treatment. It also enables long-term storage and safe packaging options.

There are currently 13 separate patents pending in Canada and the US for technology advances that Canntab developed to make cannabis a more effective medicinal product. One such development is an extended-release tablet to enable a measured dose over a longer period of time, thereby requiring fewer pills to administer a full day of medication. This would appeal to elderly patients who often have many prescriptions for other health issues and so require many pills each day.

Conversely, another pill formulation is designed for immediate response, employing flash melt technology so the body can absorb it right away. In addition, a bi-layered tablet is in development, allowing a combination of formulations in one pill.

Growth opportunities for medical marijuana

While the legal cannabis industry in Canada will initially be driven by adult recreational demand, it is the emerging medicinal market that is expected to deliver growth opportunities thereafter. Meanwhile, current therapeutic treatment options using the drug are practically in the Stone Age compared to the potential of future breakthroughs as more research is completed. Canntab’s formulations are complementary to the sector and may unlock unique therapeutic treatment options for a variety of health complications, from cancer to epilepsy.

By developing pills and capsules that allow precise, timed release of each dose, physicians will have the ability to control the medication administered to each patient and gradually build up or lower the dose according to specific tolerance and conditions on an individual basis. This level of treatment is considered basic for most other accepted medications, but prior to Canntab’s achievement, there was no similar delivery method for cannabis.

Canntab is arguably the most advanced product developer in the entire sector. It has a head start on delivering technology improvements for cannabis therapies that represent a quantum leap forward. Protected by patents, these technologies will then be commercialized through licensing agreements with established partners.

This advantage could position Canntab to become the preferred cannabis delivery system of the entire medical community.

The corporate strategy is already achieving results. Working with top-tier cannabis suppliers, the company has developed potent formulations for its pharmaceutical product line, distributed safely inside tamper-proof packaging.

Joint ventures opening international markets

Canntab signed a licence agreement with Emblem Corp. in September 2017 for distribution and marketing in Canada. Similarly, a joint-venture deal was arranged earlier this year with Queensland Bauxite Ltd. for sales in Australia and Asia.

Most recently, Canntab reported yet another agreement in October, with NewCanna SAS of Colombia, to distribute and market its products in Spain, Chile, Colombia and Paraguay in a 50-50 profit-sharing venture. This deal included a $2-million licence fee payable in instalments to Canntab, along with access to high-quality cannabis for processing.

In addition, the company has established a relationship with licensed Canadian cannabis producer FSD Pharma Inc. (CNSX—HUGE), to source high-quality domestic grown cannabis and share facilities at FSD’s main production centre in Cobourg, Ont.

After securing $5 million in funding through its latest equity offering, the company has a comfortable cushion of more than $3 million in cash to carry on with multiple development objectives, and it remains debt-free. A reverse takeover deal was completed to gain its listing on the Canadian Securities Exchange, and the share structure remains very tight with fewer than 29 million shares fully diluted.

The stock has already been a strong performer in a hot market. However, despite all the positive aspects to this story and the ongoing mania for stocks with leverage to cannabis, Canntab Therapeutics still trades at a relatively modest market cap below $50 million.

With the drive to profitability underway, and a line of effective and superior cannabis-based treatment options in hand, plus exciting technological advances under development for future growth, Canntab represents an appealing story that will remain attractive long after the initial wave of interest in cannabis has peaked.

With long-term licensed sales agreements as well as potential worldwide distribution opportunities to come, this company is just getting started. As serious revenues begin to accrue early in 2019, and the suite of approved and patented products increases, Canntab is positioned to spring upward on rapid growth, destined for a much higher market value.

Mike Kachanovsky is a freelance writer who specializes in junior mining stocks and also covers technology companies.

This is an edited version of an article that was originally published for subscribers in the November 2, 2018, issue of Investor’s Digest of Canada. You can profit from the award-winning advice subscribers receive regularly in Investor’s Digest of Canada.

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