Cerebain Biotech (CBBT) has turned into a monster runner and a massive win for our subscribers that got our alert in September. Most of our subscribers have averaged in around $.002 and saw a huge run to $.012 this month. While some have booked profits and taken some money off the table, there’s still a lot more room for CBBT to run before the New Year.
The reason for the big run is the acquisition of PKG Inc. by Cerebain Biotech. PKG was doing $21 million in revenues before COVID-19 hit. This year PKG is estimated to post around $14 million in revenues and then return to pre-COVID levels next year. With the acquisition expected to close next month, this puts Cerebain Biotech on track to being a revenue leader on the OTC Markets. This also makes shares of CBBT awfully cheap under a penny. In this article, we take a look at the bull case for Cerebain Biotech and why this bull run is just getting started for CBBT.
First up, here’s a little background info for those not familiar with CBBT. Cerebain Biotech is a development-stage medical device company focused on the creation and clinical development of a minimally invasive implantable device and a synthetic drug solution. The device leverages the clinically observable, positive impact that Omentum stimulation has on cognitive function as related to dementias, and in particular, Alzheimer’s disease.
PKG Inc. was established in 1989 and is a privately held corporation based out of Meridian, ID. PKG, Inc. specializes in contract design, development, and manufacturing of system-level devices with expertise in human-machine interfaces. PKG has about 75 employees.
Cerebain Biotech PKG Deal
On August 25th, Cerebain Biotech signed a Letter of Intent to purchase the assets of PKG, Inc. (PKG). Here is what the CEOs of the two companies had to say.
Almir Garibovic, CEO of PKG Inc., stated “After 30 years in business, PKG, Inc. is thrilled that we have entered into a letter of intent to be acquired by Cerebain Biotech Corp. We are excited by this partnership because of our complementary strengths and it will enable us to fulfill our vision and values, while we continue to provide our customers with innovative design, technologies and manufacturing capabilities as never before.”
Eric Clemons, CEO of Cerebain, added “We are committed to evaluating both Companies strategic core competencies to enhance value for our shareholders while maintaining our focus on the continued development of Cerebain’s device for the treatment of Alzheimer’s Disease as well as aggressively managing PKG’s current operations.”
PKG Becomes The Focus
With the acquisition of PKG and the revenues the company brings in, Cerebain Biotech will turn its attention to bringing ALL SEC filings current. Furthermore, we expect CBBT to uplist to a QB or possibly NASDAQ or NYSE once the PKG acquisition is completed.
Judging from the recent news out of PKG, something big is happening. PKG just registered with the FDA as an establishment producing medical personal protection equipment (PPE), such as surgical masks. PKG also announced the completion of the transfer of its ISO 13485:2016 and ISO 9001:2015 compliance certificates that encompasses the design, development, and production of its devices.
PKG also just announced TÜV SÜD ISO 13485:2016 certification for the contract design, development, and manufacture of non-implantable OEM system-level medical systems, subassemblies, and components for the areas of diagnostics, imaging, patient treatment, monitoring, and surgical devices.
This certification is from TÜV SÜD, one of the few organizations recognized as a designated body under the new European Medical Device Regulation (MDR). It enables PKG to leverage its research, development, and manufacturing strengths for multiple new products addressing novel indications as we advance.
PKG just finalized a joint agreement with Adventus Venture, a medical device incubator, to finalize development and manufacturing plans for two companies in their portfolio: Allevion Therapeutics and Pressao Medical. Allevion Therapeutics and Pressao Medical are part of the portfolio of Adventus Ventures, LLC, a medical device venture capital company. Almir Garibovic, CEO of PKG said:
“For the last five years, PKG has been diligently working to strengthen our position as a future leader in state-of-the-art medical, aerospace, industrial, and government product development and manufacturing. We are excited to continue delivering innovative products that enable us to fulfill our vision and values. As PKG is in the final stages of joining Cerebain Biotech Corporation, we are very eager to continue investing in promising start-up companies. With the addition of these highly sophisticated products for Allevion Therapeutics and Pressao Medical, we will ensure that our vision and long-term strategy are aligned with Cerebain Biotech Corporation. Once the merger is complete, we intend to add several more start-up companies to our investment portfolio in the near future.”
Going by the latest update sent by Cerebain Biotech CEO Eric Clemons to PKG customers, the acquisition of PKG is expected to close mid-November. With PKG posting two press releases within the last two weeks, we expect more PRs to drop and PKG will become the focus and the story of CBBT. We expect a run back to new highs as we get closer to the merger closing. Once the deal is finalized and all filings are brought up to date, it’s nothing but blue skies ahead for CBBT. With a market cap of just $4.8 million, Cerebain Biotech won’t be this cheap for much longer.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in OTCMKTS:CBBT or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.