MyDx Inc (OTCMKTS:MYDX)
Cannabis

MyDx Inc (OTCMKTS:MYDX) Making A Comeback

Are you aware of the last market event in the marijuana sector? It has moved hundred of marijuana-related stocks? We are talking about the recent official legalization of marijuana in California. From January 1, 2017, the licensed distributors in this state can sell recreational marijuana to the consumers.

Not only sellers of marijuana pots and cultivators will profit from the new regulations; instead, there are significant industries with some association to the cannabis industry that are also delivering astonishing stock returns these days. Among this group of companies, we have found chemical detection and sensor technology businesses that help cannabis consumers assess what they are consuming. Cannabis growers, as well as sellers, should be interested in getting to know the composition of the marijuana that they deal with. It is a business that should also grow if the demand for marijuana keeps increasing like in 2017.

A clear example of this business model is MyDx Inc. (OTCMKTS:MYDX). This company, based in San Diego California, is already selling a device called MyDx Analyzer that not only provides the chemical contents, but it also tests the quality.

Check out the following video before we provide more details about MYDX:

Business and Technology

MyDx Inc. (OTCMKTS:MYDX) is a science and technology company whose mission is to empower people to live a healthier life by revealing the chemicals in what they eat, drink, and inhale. It develops and deploys consumer products, data analytics, biopharmaceutical products, and Software as a service. A lot of expertise seems to be accumulated in this company. MYDX is said to have over a decade of established electronic nose technology to measure chemicals of interest.

Right now, we believe that the most interesting for the market is the range of products developed for the marijuana sector.

MYDX has successfully launched the CannaDx™ sensor and has three sensors being developed, which should be available in the coming months. This is the information about the sensors that we could obtain from the company website:

  • The CannaDx sensor: it allows to test the cannabis potency on site within a matter of minutes and detects other cannabinoids.
  • AquaDx sensor: it tests for harmful chemicals in water. It was featured by the CNN and ABC News.
  • OrganaDx sensor: as featured by NBC News, it tests for pesticides and heavy metals in cannabis and food.
  • AeroDx sensor: it tests for air quality to ensure the safety of the air you breathe. It is said to be very helpful for users living in the cities or abroad where air quality regulations are less stringent.

Recent Developments

The following are the announcements that were released right before the upward trend in the share price commenced. We believe that they justify the move.

On November 28, 2017, the market understood that the company does not want to stop its innovations coming. It was released that MYDX is now accepting pre-orders for its second smart device – The ECOSmartPen. This new piece of technology is capable of monitoring dosages and consumer feedback. The rationale for this innovation was best explained with the following words:

“Today, doctors only offer prescriptions for medicinal marijuana, generally. They don’t provide any recommendations on what to use and when and how to use it. And that’s a public safety problem. We know from our data that not all cannabis is the same (not even the names), which is why our customers use our handheld testers. But the one piece of data we didn’t have was knowing how much of a certain chemical profile it took to achieve its desired effect. Hence the creation of the ECO Smart Pen,” said Daniel Yazbeck, CEO of MyDx.

How does the ECO Smart Pen work?

The device activates the MyDx App via Bluetooth when the user inhales from any compatible brand cartridge. Once the software receives the brand information, the pen passively monitors consumption habits. That’s not all. In our opinion, the most interesting is that the device will also be able to track the “product relieved and feelings it generated and how many doses it took to generate those feelings and/or reliefs.” We believe that this information will not only be valuable for clients, instead, it could also help doctors, who will have more information about each patient.

On December 14, 2017,  the market received new information regarding the medical use of the CannaDx Handheld Tester and its ECOSmartPen. The company noted that it submitted an application and is seeking medical device designation for these two products. We knew that they are useful for medical users, the company is only making it official. According to the company, these devices will not only help track preferences, and consumption, but they will also be very helpful in preventing abuse.

The company’s innovations seem to be drawing the attention of not only consumers, but rather other companies in the marijuana sector are also becoming interested. We have formed this impression after the company released a Letter of Intent agreement with Highsmen Genetics on January 4, 2018. The companies are expected to create a new Joint Venture agreement, under which Highsmen’s technology to develop stable customized genetic strains for specific effects is supposed to help MYDX360 customers realize additional brand loyalty through end-user input in the MyDx App. This new business combination is, in our opinion, quite promising:

“We are very excited to exclusively partner with the Highsmen team because we believe their unique approach to genetic profiling through stable breeding will help us achieve this goal as MyDx continues to grow one of the largest preclinical databases in the world that ties cannabis chemistry to end user feedback,” concluded Mr. Yazbeck.

The market responded very well, as the expectations are high. We will need to be very alert for the company’s new announcements. A more detailed contract with Highsmen could make the share price spike up.

MyDx Cancels Reverse Stock Split – Market reaction and Conclusion

On December 20, 2017, the company released that the reverse stock split approved earlier this year had been canceled. It is great news, which showed that the company is quite positive about the future. This announcement and the fact that recreational marijuana is now legal in California seemed to make the share price increase at the end of December and in January. We believe that the reaction of the market was quite logical. The only question that we have now is how long the new upward trend will last. Have a look at the recent share price action.

One year stock chart for MyDx Inc OTCMKTS:MYDX

The 1-year chart for MYDX

Currently trading with a market cap of $14 million, MYDX is an exciting story among small caps. We believe that if the company decides to refinance the balance sheet to increase the number of assets, the market participants should be interested.

To sum up, there is a lot to like on this name.

We will be updating our subscribers as soon as we know more. For the latest updates on MYDX, sign up below!

Disclosure: We have no position in MYDX and have not been compensated for this article.

Image courtesy of Jonathan Nausner via Flickr

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MyDx Inc (OTCMKTS:MYDX) Making A Comeback
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