Shares of Cannabics Pharmaceuticals Inc (OTCMKTS:CNBX) have received a significant boost on the company announcing plans to expand its footprint in Colombia, in pursuit of new opportunities. Investor sentiments in the stock also appear to have edged higher on the company confirming a $1 million investment in a high tech cannabis company.Price AnalysisThe announcement of a new patent for personalized cannabimetic compositions modeling and production also continues to strengthen the stock sentiments in the market. In response to the positive developments, investors have continued to push the stock up the charts depicted by a 40% surge from all-time lows.Even though the stock is still engulfed in a long-term bear trend, it continues to show signs of bottoming out. The rally comes at the backdrop of one of the longest sell-offs that resulted in the stock losing more than 80% in market value. Cannabics Pharmaceuticals finds itself trading near all-time lows and in dire need of new catalysts to support a rally from current levels. CNBX Daily ChartAfter the recent rally, the stock has resorted to trading in a tight trading range of between $0.43 and $0.40. A breach of the $0.40 could leave the stock susceptible to declines considering the underlying long-term bear trend. Conversely, a rally followed by a close above the $0.44 mark could open the door for the stock to continue powering high in continuation of the emerging uptrend.
About Cannabics Pharmaceuticals
Cannabics Pharmaceuticals bills itself as an early stage biotechnology company focused on the development and licensing of cannabinoid-infused treatments and therapies. The company develops and markets its therapies for the relief of various ailments.
Recent Developments
Cannabics Pharmaceuticals has once again caught the attention of investors on announcing a strategic partnership with NewCanna Hub. The two have since formed a joint venture for the development and marketing of Cannabics Slow Release capsules, for sale in Colombia and other regulated markets.The two companies are currently pursuing international distribution agreements as they seek to diversify their sales channels into new regulated territories
"We are pleased to embark on this potential relationship as we believe it can complement our efforts to bring medical cannabis products to market. We believe that the intrinsic therapeutic potential of cannabinoids for medical application is boundless,” said CEO Eyal Barad.
Patent Filing
The formation of the joint venture comes just weeks after Cannabics Pharmaceuticals announced the filing of a new patent with the U.S patent office. The new patent covers the company’s technology designed to enable data transfer from a proprietary platform of cannabis strains to medical cannabis businesses worldwide.According to the Chief Executive Officer, the new technology has the potential to eliminate limitations on the exportation and importation of cannabinoid compounds, because of regulations. The ultimate goal is to come up with a large database to enable standardization
"It gives us the advantage to enjoy the beneficial facets of the entourage effect while building a matrix of logic behind compound ratios and dosages. We are currently looking for joint ventures that will exercise this ability and implement the technology to identify and create cannabis strains that target cancer," said Mr. Barad.
Seedo Company Investment
In addition to product development and patent portfolio strengthening, Cannabics Pharmaceuticals has also moved to increase its stake in Seedo, a company it inked a partnership with last year, for the development of a device for growing medical cannabis.Cannabics Pharmaceuticals has agreed to convert a $1 million convertible loan into common shares of Seedo. According to Seedo COO, Zohar Levy, the conversion strengthens the two company’s partnership. It should also accelerate the development of a revolutionary product that will accord patients with pesticide-free medical grade cannabis.
What Next For Cannabics Pharmaceuticals
Shares of Cannabics Pharmaceuticals have made up some grounds on rallying from the $0.28 handle to the $0.42 mark. However, the company will have to serve additional catalysts affirming growth prospects for the stock to continue edging higher.For early movers, a rally above the $0.45 mark should open the door to betting on the stock as a bounce-back play. Considering the long-term bear trend, it won't take much to get a rally started.We will be updating our subscribers as soon as we know more. For the latest updates on CNBX, sign up below!Disclosure: We have no position in CNBX and have not been compensated for this article.
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