Shares of Cannabics Pharmaceuticals Inc (OTCMKTS:CNBX) have struggled for direction on imploding in 2018. With the stock flirting with all-time lows, the need for a groundbreaking catalyst to avert further slides is growing by the day.
CNBX Share Price Analysis
In 2018 alone, the stock shed more than 80% in market value, having felt the full force of short sellers. While the stock did start the year on a roll, soaring short selling pressure now threatens to erase gains accrued over the past few weeks.
However, the management has sought to reinvigorate the stock’s sentiments by serving string updates that paint a positive picture of the company’s long-term prospects. The company has since confirmed the formation of a joint venture with clinical stage biopharmaceutical company Wize Pharma Inc (OTCMKTS:WIZP).
In addition to the Wize Pharma deal, the company has also achieved significant progress as it seeks to carry out clinical studies on biopsies and cannabinoids.
While the stock has struggled to bounce back in view of recent developments, it might be a matter of time before investors take note of the company’s long-term prospects.
With the stock currently trading at the $0.35 level, further sell-offs will have to contend with the $0.30 level, seen as the immediate support level. A breach of the support level could fuel further sell-offs in continuation of the long-term downtrend.
Conversely, bulls have to contend with the $0.45 resistance level, a violation of which could fuel rallies on the upside. Below the critical resistance level, bears remain in firm control given the underlying bear trend.
About Cannabics Pharmaceuticals
Cannabics Pharmaceuticals is an early stage biotechnology company focused on the development and licensing of cannabinoid treatments. The company is currently working on therapies for the treatment of ophthalmic disorders.
The inking of a strategic partnership with Wize Pharma might as well be the catalysts that will reinvigorate Cannabics Pharmaceuticals prospects and sentiments in the market. The two have agreed to form a joint venture that will research and develop cannabinoid treatments targeting ophthalmic disorders.
The two have already identified a potential route that they intend to follow, to accelerate the development and approval of their ophthalmic therapy containing cannabinoids.
“The agreement supports our vision which is to bring cannabinoid-based therapies to modern medicine, which may be used as treatments for a wide variety of conditions. We are pleased to leverage our team and know-how as well as our lab and R&D license to support such joint ventures, and we will continue to explore additional conditions,” said Eyal Barad, Cannabics’ CEO and Co-Founder.
In January, the company in partnership with NewCanna Hub established an equal joint venture. The venture is for the production and selling of Cannabics Slow Release capsules in Colombia and other regulated markets.
The closing of the Wize Pharma partnership comes on the heels of Cannabics Pharmaceuticals submitting protocol for the Helsinki Committee. The protocol details how the company intends to conduct a nationwide study on fresh biopsies supported by cannabinoid compounds and chemotherapies.
Approval of the study will pave the way for Cannabics to obtain from patients, live biopsy and blood sample to perform drug sensitivity and drug resistance tests. The protocol is part of an effort of providing patients and doctors with supportive data for making informed treatment decisions.
“We believe it is the first time Cannabinoids are being tested on live biopsies. Our aim is to incorporate cannabis growers, locally and globally, and invest further in mapping their cannabinoid repertoire in order to provide individual tailored treatments for cancer patients,” says Dr. Eyal Ballan, CTO, and Co-Founder of Cannabics.
Separately, Cannabics Pharmaceuticals has filed four provisional patent applications in Israel. The patents are for the company’s cannabinoid-based drugs and treatments for the treatment of non-epileptic seizures and tremors.
The filling underscores how the company is increasingly broadening its potential offerings in the healthcare industry.
The signing of strategic partnerships should go a long way in strengthening Cannabics Pharmaceuticals bid to come up with one of a kind, cannabinoid therapies. Such a feat should go a long way in strengthening the stock’s sentiments among investors.
The stock appears to have hit rock bottom and due for a bounce back. However, would-be investors should wait for the stock to take out the $0.45 resistance level, signaling that the bear trend is over.
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Disclosure: We have no position in CNBX and have not been compensated for this article.