x min read

KALYTERA THERAPEUT (OTCMKTS:KALTF) Has A Lot Of Potential

KALYTERA THERAPEUT (OTCMKTS:KALTF) Has A Lot Of Potential
Written by
Jarrod Wesson
Published on
December 10, 2017
Copy URL
Share on LinkedIn
Share on Reddit
Share on Twitter/X
Share on Facebook
InsidrFinancial

Today, we need to present a new business profile that seems to be exciting market participants lately. It is KALYTERA THERAPEUT (OTCMKTS:KALTF), which is focused on the development of a next generation of cannabinoid therapeutics.Exciting and growing industry. Don't you think so?For those who are not aware of the marijuana industry in the US and Canada, it is offering interesting opportunities. After the legalization of some forms of medical cannabis in some states of the US and Canada, the demand for this type of products has increased quite a bit. For this reason, a lot of companies have entered the industry and are enjoying great stock returns.Have a look at some of our articles on this industry to see what may be happening to KALTF.Why are we talking about KALTF right now?Because the share price suddenly spiked up; from trading close to $0.1, the share spiked to hit seven-months highs of $0.3. But, that's not all. The trading volume is spiking up as well. More than 1 million shares changed hands recently.Have a look at it: 1 year chart for KALTFBusinessKalytera Therapeutics is presented "as a clinical-stage pharmaceutical company pioneering the development of a next generation of cannabinoid therapeutics." The company is intended to obtain a leading position in the development of novel cannabinoid medicines for a range of important unmet medical needs, with an initial focus on Graft versus Host Disease. Company Logo - KALYTERA THERAPEUT OTCMKTS:KALTFThe company noted in its materials that it is working on new cannabidiol products to overcome the limitations that CBD. The company has already filed applications to obtain patents, which should help reduce competition in the future.It is a Canadian company organized under the laws of British Columbia, but with its principal office in Beverly, Massachusetts, United-States.What has happened in November and December?The most interesting should have been released in November and December. Have a look at the trading spike in the following stock chart: 1 month chart for KALTFOn November 25, 2017, in our opinion, the most interesting information was released. The company noted that the United States Patent and Trademark Office had issued a Notice of Allowance for US Patent Application 15/143,694 covering the use of cannabidiol in the treatment of Graft Versus Host Disease.Market participants obviously pushed up the shares as a result. From trading around $0.07, the share price hit the $0.15 share price level.Read the following quote from Robert Farrell, J.D., Kalytera's Chief Executive Officer. They show the importance of the announcement:

"There are currently few options to treat persons with GVHD, a critically underserved market. The results of the previous four clinical studies that evaluated CBD in the prevention and treatment of GVHD were exceptional and unprecedented. Based on that data, we believe that our proprietary CBD based therapeutic may provide a major advance in the prevention and treatment of this disease, and we anticipate that we will also soon receive Notice of Allowance for our US Patent Application 14/787,515 that covers both the use of CBD in the prevention of graft versus host disease, and the treatment of graft versus host disease.” Source

What now?The company is currently on the Phase 2 clinical program evaluating the use of CBD in the prevention of GVHD. This phase will take about 8 months and the FDA approval will be required to go to the next and final step; a pivotal Phase 3 study. We encourage readers to be very alert now, as news at this stage could make the share price increase even more.On November 22, 2017, the company released that Echelon Wealth Partners Inc. had given the company $5 million. You know how it works; companies release good news and then we have market participants calling the company to acquire stakes. On November 27, 2017, the company noted that it had received a new Notice of Allowance from the United States Patent and Trademark Office for a second patent covering the use of cannabidiol in the prevention and treatment of Graft Versus Host Disease. The new one is the US Patent Application 14/787,515.The CEO celebrated the results. Just read what he said:

"We are now positioned to move forward with our program to obtain FDA approval of CBD in the prevention of GVHD. The next step in this process will be the initiation of a Phase 2 clinical study designed to assess the pharmacokinetic and safety profiles of multiple doses of CBD, and we anticipate that this study will begin prior to year-end." Source

The share price obviously spiked in December as a result of the intangible assets received by the company (the new patents). The share price spike was significant that the company had to issue a press release noting that nothing else was happening:

"Company’s management is unaware of any material change in the Company’s operations that would account for the recent increase in market activity." Source

When you have a company that goes out and says "we have not done anything new," it is time when market participants can conclude that market interest in the stock is out of control. The demand for the stock is high.ConclusionCurrently trading with a market cap of $36 million, KALTF is an exciting story among small caps. With $4.8 million in total assets, $0.6 million in cash and $1.8 in million liabilities, the company seems to have a strong financial situation to continue its innovations. To sum up, keep a close eye on the stock, there is a lot to like!We will be updating our subscribers as soon as we know more. For the latest updates on KALTF, sign up below!Image courtesy of Vaping360Disclosure: We have no position in KALTF and have not been compensated for this article.

Discover Hidden Gems

Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.