Following up on an article written by my colleague Alex Carlson, we are going to make an analysis here of the recent developments of the Canadian marijuana company, traded in the US, Cannabix Technologies Inc (CNSX: BLO) (OTCMKTS: BLOZF). Why now? It is because the company just released good news about the results of its preliminary human subject testing. The market seems to have appreciated the information released by the company, since the shares price jumped from the range $0.40 - $0.45 to touch the level of $0.56. This may seem a small return for those who bought last week, but it is not small for the shareholders who bought shares a year ago, when the stock was exchanged for $0.20.
The new information released this week - Why will this product be useful?
On March 27, 2017, the company communicated to the market that its live testing of the Cannabix Marijuana Breathalyzer showed excellent sensitivity for THC and related Metabolites. We encourage you to go to the previous article on this name for more information about the product that this company is developing. In this article, we will focus on the new data released. According to the new information, the research team of the company was able to demonstrate the successful detection of THC, psychoactive component of marijuana, in real-time, using the product developed by the company. In addition, the product successfully identified 11-hydroxy-delta-9-tetrahydrocannabinol, and three other cannabinoids in the breath of the people tested that were actually identified as well by mass spectrometry.
The press release included further explanation about why this new test is important:
"The ability to detect THC and its metabolites in human breath is a significant scientific breakthrough that allows for real-time pharmacokinetic analysis. Such analysis provides a method for the identification of frequent users of marijuana who tend to retain THC in their body for longer periods of time, relative to infrequent marijuana users who tend to clear THC from their body more quickly." Source
In addition, Dr. Bruce Goldberger, the senior advisor to Cannabix, added the following words, which were noted in the press release:
Dr. Bruce Goldberger, senior advisor to Cannabix, stated, “The Cannabix Marijuana Breathalyzer utilizing FAIMS will allow the Company to zero in on impairment with ‘recency of use’ like no other currently known device out there.” Source
The words of Rav Mlait, the CEO, were as follows:
"This testing marks a major milestone for the Company's research and development of the FAIMS technology and will help guide the company in our goal in developing a device that can detect levels of THC in the blood and correlate this with the level of driver impairment" Source
Do you want to know why these new tests are important and the meaning of this discovery? I found the following video about it, take a look:
We believe that this is great news, so we will continue to monitor communications from this company and its products on the website and in our newsletter.
Some information about the management team
Analyzing recently created companies is quite difficult, since we do not have a track record to assess. In this case, we will do an analysis of the track record of the founders and the CEO. We take a look at what have they done in the past.
Kal Malhi, President and Director: he is "a Vancouver based entrepreneur and the founder of Cannabix Breathalyzer Inc.". He is also a retired member of the Royal Canadian Mounted Police and also President of BullRun Group, a venture capital firm.
Here is an interview with the founder:
Rav Mlait, MBA – CEO, Director: he has brought extensive experience to the company, raising capital for tech companies. He holds an MBA from Royal Roads University in British Columbia and a BA (Economics) from Simon Fraser University. He holds expertise as VP of Corporate development for Knexa Solutions Ltd and working for the web portal, Stockhouse Media Corporation.
Bryan Loree BA, CMA –CFO, Director: he has brought expertise raising capital for private as well as public companies, mainly in the exploration and renewable energy sectors. He also holds experience working as investor relations manager for companies in the banking industry. He has the CMA designation, a diploma in Financial Management from the British Columbia Institute of Technology and a BA from Simon Fraser University.
You can find more information about the management of the firm on the website of the company, wherein you will also find scientific advisors and other technical profiles. But, we believe that the current executives bring outstanding experience both in raising capital and in business development, which are the key aspects that a venture investor should look for in a management team.
Conclusion
This company is bringing very interesting news about the testing of its product, the Cannabix Marijuana Breathalyzer. The market is reacting very well to these new developments, as it has done it in the past. So, we expect that if good news keep coming, the share price should continue the uptrend.
In addition, we were interested in this firm; therefore we made an assessment of its current management team. We found that the team has extensive experience regarding raising capital and developing other ventures, which we appreciate. They are doing a great job and we hope that they continue to work as in the past. We encourage you to research a little further on this team and the business executives in order to make an informed decision. In any case, we believe that this company may have a good future if the news flow keeps coming. We will be updating our subscribers as soon as we know more. For the latest updates on BLOZF, sign up below!
Disclosure: The author has no position in BLOZF. Insider Financial has not been compensated for this article.
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