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INMED PHARMACEUTIC (OTCMKTS:IMLFF) Is The Latest Cannabis Winner

INMED PHARMACEUTIC (OTCMKTS:IMLFF) Is The Latest Cannabis Winner
Written by
Jim Bloom
Published on
January 5, 2018
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In recent months, the market has begun to discover just how much potential INMED PHARMACEUTIC (OTCMKTS:IMLFF) has. After over a year of very little movement, the price has started to jump in weeks and investors are now curious about the company. In this article, we give an introduction to the company’s business, its recent capital raise and other latest news surrounding the company.Here is the stock’s price action for the past year: IMLFF Daily ChartCompany ProfileInMed Pharmaceuticals Inc. was founded by Christopher Bogart and Craig Schneider on May 19, 1981, and is headquartered in Vancouver, Canada. The firm is a pre-clinical stage biopharmaceutical company that focuses on the research, development, and commercialization of cannabinoid-based therapies to treat human diseases with high unmet medical needs. The Company has three core assets: a proprietary Bioinformatics assessment tool to match individual (or combination of) cannabinoids against disease targets; a proprietary Biosynthesis cannabinoid manufacturing system to economically produce cannabinoids at pharmaceutical-grade (>99.5% purity); and drug development program enabled by the two tools above.Leaders in the pipeline include treatment for the symptoms and, potentially, the underlying disease in Epidermolysis Bullosa, a rare, devastating genetic skin disorder; and, a once-a-day eye drops formulation of cannabinoids to treat Glaucoma, one of the leading causes of blindness in the developed world. Its product pipeline includes INM-750 for the treatment of epidermolysis bullosa and INM-085 for the treatment of glaucomaThe company’s products under pre-clinical development stage include INM-750 for the treatment of epidermolysis bullosa; and INM-085 for the treatment of glaucoma. It is also developing various drugs for diseases, such as ocular, pain and inflammation, dermatology, central nervous system, metabolic, and respiratory. InMed Pharmaceuticals Inc. has an agreement with Pharmaseed Ltd to develop a final formulation for a topical cannabinoid product candidate intended as a therapy in epidermolysis bullosa (EB) and other dermatological and wound-healing applications; and a research and development collaboration agreement with ATERA SAS to develop 3D human skin models of EB, as well as to evaluate the in vitro drug efficacy of InMed’s lead compound, INM-750. The company was formerly known as Cannabis Technologies Inc. and changed its name to InMed Pharmaceuticals Inc. in October 2014.Recent DevelopmentsThe firm announced a non-brokered private placement of up to 3.5 million units at a price of CAD $0.70 per unit for aggregate gross proceeds of up to CAD$2.5 million. Each unit will consist of one common share, and one non-transferable share purchase warrant each Warrant will be exercisable by the holder to acquire one additional common share at a price of CAD$1.25 for 18 months from the closing of the Offering. Separate Closings for individual subscriptions upon acceptance by the company may take place at such time as the company may determine. Closings are anticipated to commence on or before December 22, 2017, or at such other time or times, the Company may determine.The offering is being made to accredited investors under applicable exemptions from prospectus requirements and may include one or more subscriptions by insiders and other existing shareholders of the company. All or a portion of this Offering could be subject to finder's fees or commissions. The private placement is subject to the approval of the Canadian Securities Exchange, and the securities will be subject to a four-month hold period under securities laws.The company intends to use the net proceeds from the private placement to advance the company's drug development programs and for general working capital and corporate purposes.The firm has closed its previously announced non-brokered private placement for gross proceeds of C$9.4 Million through the issuance of 13.4 million units, with terms as already published on December 18, 2017. The original offering anticipated gross proceeds of CAD $2.5 Million.Finders' fees on a portion of the gross proceeds received by the Company from the sale of Units sold under the financing shall include cash of $0.39 million and 0.44 million warrants. Each agent Warrant shall be exercisable in whole or in part at an exercise price of $1.25 for 18 months expiring on July 3, 2019.Per applicable securities legislation, securities issued under the financing are subject to a hold period of four months plus one day from the date of the completion of the financing.In September, the firm announced the filing of a provisional patent application for the Company's proprietary biosynthesis program for the manufacture of cannabinoids that are identical to those found in nature.The patent application once converted into an international Patent Cooperation Treaty (PCT) application and pursued in crucial jurisdictions throughout the world, will provide significant commercial protection for InMed's E. coli-based expression system to manufacture any of the 90+ cannabinoid compounds that may have a medical impact on critical human diseases.This will be the first in a series of patent applications directed to various aspects of the Company's biosynthesis program. In particular, these applications focus on the superior nature of E. coli-based expression systems over other approaches; gene optimization for maximizing the production of cannabinoids and related compounds; and other proprietary developments and data. The company will actively convert this and subsequent provisional patents into national-stage filings in all significant commercial jurisdictions, in due course.Financial PerformanceA perusal of the firm’s statement of comprehensive income reveals that operating expenses have nearly doubled between 2016 and 2017. With no revenues disclosed within the period, the company had a net loss of $0.34 million in the year.The firm has very low leverage with a significant portion of its coming from its equity. It also has very high liquidity of 18.8, a likely result of the new funds from the private placement done recently.ConclusionThe results of IMLFF’s recent capital raise proves that the market has enough confidence in its ability to progress.We will be updating our subscribers as soon as we know more. For the latest updates on IMLFF, sign up below!Disclosure: We have no position in IMLFF and have not been compensated for this article.

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