CANADIAN BIOCEUTIC COM NPV (OTCMKTS:CBICF) Set To Climb Higher

News about CANADIAN BIOCEUTIC COM NPV (OTCMKTS:CBICF) has been gathering pace in the last few weeks.Plans to appoint new auditors from the ‘big four’, agreements to expand their operations, acquisitions of new targets and suggestions of a name change have gotten investors and analysts raving with curiosity. In this piece we give you the scoop on Canadian Bioceutical Corporation and what you can expect in the near future.But first, take a look at the share price action for yourself. CBICF Daily ChartBusinessFor our subscribers who are reading about CBICF for the first time, here is a brief profile of the company.Canadian Bioceutical Corp. was founded on April 2, 1974 and is headquartered in Toronto, Canada.Along with its subsidiaries, the firm operates in the natural health products industry in North America. The company manufactures and distributes nutraceuticals, such as plant-based medicines. It also provides management, staffing, procurement, advisory, financial, real estate rental, logistics, and administrative services to medicinal cannabis enterprises. The company was formerly known as Allegiance Equity Corporation and changed its name to The Canadian Bioceutical Corporation in December 2014.Recently the company has expanded its U.S. footprint, being in the process of acquiring three dispensaries and a production license in Maryland, as well as a further operational dispensary in Arizona. The company also leases a property in Owen Sound, Ontario, for which an application to Health Canada has been made for a cannabis production and sales license. In addition, the Company will continue its efforts to develop its legacy nutraceuticals business.Recent DevelopmentsThe company recently announced that it would be holding its annual and special meeting of shareholders on October 30, 2017 to consider strategic matters such as election of its directors for the next year, to appoint Deloitte LLP as its auditors for the next year and to amend its articles in preparation of its pending name change.The persons nominated by the company management include:Senator Richard S. Segerblom; a prominent lawyer and state senator who authored Nevada’s 2013 Medical Marijuana law and was the Co-Chair of the successful 2016 ballot initiative campaign which approved recreational marijuana, Robert Galvin; the current Chief Financial officer and Senior Vice President of Finance & Administration for Holtec International, Andrew Ryan; a general counsel of Holtec International, Dr Miles Thompson; a former Clinical Research Associate at North York General Hospital in Toronto who initiated the study of cannabinoids in epilepsy at the Department of Pharmacology and Toxicology at the University of Toronto, W. Scott Boyes; the President, Chief Executive Officer and a director of the company and a member of its audit committee, Randall G. Stafford; the current Chief Financial Officer and a director of the Company and sits on the Company’s Compensation Committee and Elizabeth M. Stavola, the President of CGX Life Sciences Inc. (“CGX”), a wholly-owned subsidiary of the Company, and a proposed nominee for director of the company.CBICF in collaboration with CGX acquired a group of Arizona incorporated entities involved in providing real estate rental, administrative, general management and advisory services, financing and logistics to medical marijuana. Due to the acquisition, shareholders have been asked to change the company name to MPX Bioceutical Corporation signifying its expansion and the change in business strategy.On October 13 2017, the company announced that through its wholly-owned U.S. subsidiary CGX Life Sciences Inc., had entered into a definitive membership interest purchase agreement dated and effective October 11, 2017 to acquire 99% of the membership units of GreenMart of Nevada NLV, LLC (“GreenMart”), an award-winning licensed recreational and medical cannabis cultivation and production business located in North Las Vegas, Nevada. Scott Boyes, President and CEO of BCC was quoted saying:

“This is a great acquisition at an attractive valuation, positioning us well in the burgeoning adult use market in Nevada, and we anticipate GreenMart to be accretive in the current financial year. To meet the strong demand in the local market, we are increasing cultivation and production capacity. Our partners at MJardin are moving into the facility, providing important operational capacity, as well as introducing new cultivation techniques to increase yield. Furthermore, upon positive conclusion of our trial program with RotoGro in Arizona, we anticipate implementing this higher-yielding and low-cost technology in our Nevada facility towards the end of the year.”Source

Larger capital, Higher revenuesRevenues generated increased by 14.1% to $5.1 million as compared to the prior fiscal quarter largely as a result of increased sales of higher-margin concentrates products. During the three-month period ending June 30, 2017, the company’s Arizona dispensaries sold 267,927 grams of cannabis products, as compared to 266,587 for the prior quarter.On May 5, 2017, the Company announced the completion of the second and final tranche of a private placement which raised US$2.3 million through the issuance of 4,600,541 common shares.The Company also arranged a US$25 million revolving credit facility with Hi‐Med, LLC. The funds drawn down against the line of credit were reserved particularly for any additional acquisitions, and when necessary, the development of assets of the company.As at June 30, 2017, the Company held cash and cash equivalents of $10.3 million, while current liabilities stood at $2.1 million as at this same date. With a higher than normal current ratio of almost 19, the company is able to easily finance its larger projects without any need to raise capital or plough back all its profits into the business. This is an indicator of high dividend payout, another reason to invest in the company.ConclusionCanadian Bioceutical Corp is rapidly growing, there is no better time to take advantage of this opportunity.We will be updating our subscribers as soon as we know more. For the latest updates on CBICF, sign up below!Image courtesy of Lucas Speyer via FlickrDisclosure: We have no position in CBICF and have not been compensated for this article.