Nemus Bioscience
Biotech

Nemus Bioscience Inc (OTCMKTS:NMUS) Turns Bullish On Emerald Health $20 Million Credit Line Boost

Nemus Bioscience Inc (OTCMKTS:NMUS) continues to elicit strong investor interest after reaching an agreement for a $20 million credit facility. With the new financing, the company remains well positioned to launch its first human clinical trial.

Nemus Bioscience Price Analysis

The strengthened balance sheet should also allow the company to develop its pipeline of proprietary Cannabinoid prodrugs and analogs. Investors have also continued to push the stock up the charts, on the signing of a strategic partnership with Albany Molecular Research.

While the stock has pulled down from 52-week highs of $0.60 a share, it continues to trade in a strong uptrend. All indication is that it will remain range-bound with a bullish bias for the time being after the recent pullback.

NMUS Daily Chart

After the recent pullback from 52-week highs, the stock faces immediate support at the $0.39 mark on any drops. A breach of the support level could open the door for the stock to plummet to the $0.30 level, a critical psychological support level.

A sell-off followed by a close below the $0.30 mark could open the door for short sellers to continue pushing the stock lower, on the continuation of the long-term bear trend. However, price action activity indicates that the stock is in a period of consolidation after the recent pull back from 52-week highs.

Bulls face immediate resistance at the $0.54 mark. A breach of the critical resistance level should reaffirm the emerging uptrend and set the stock on another blockbuster run on the upside.

What Does Nemus Bioscience Do?

Nemus Bioscience casts itself as a biopharmaceutical company focused on the discovery, development, and commercialization of new chemical entities. The company is exploring the potential use of cannabinoids for the treatment of various illnesses. The Company is currently working on NB1111 for the treatment of Glaucoma. It is also working on NB1222 for the treatment of nausea and vomiting.

Emerald Health Investment

Nemus Bioscience sentiments among investors appear to have inched higher on the confirmation of a credit facility from Emerald Health. The credit facility is a significant milestone as it underscores confidence on the company’s ongoing trials and product pipeline.

In addition to providing a $20 million credit facility, Emerald is to acquire 10 million shares of Nemus common stock in the open market. The funding will go a long way in financing Nemus Bioscience first human clinical trial for NB1111 a novel treatment for Glaucoma.

“We appreciate the conviction of Emerald Health Sciences to support our drug discovery and development activities. Their deep expertise in drug development along with their financial support allows us to confidently advance our proprietary, bio-engineered cannabinoid-based therapeutics,” said Dr. Brian Murphy, CEO, and CMO of Nemus.

The credit line also provides the company the much-needed financial muscle, needed to accelerate the development of proprietary cannabinoid pro-drugs and analogs. The credit line is available until 2022 and Nemus Bioscience can draw down and repay it at its own discretion.

In addition to the credit Line, Nemus Bioscience has confirmed the appointment of Dr. Avtar Dhillion as the Executive Chairman of the Board. He joins the company with vast experience in building life science companies.

Albany Molecular Cannabinoids Partnership

Renewed investor interest on Nemus Bioscience also follows the announcement of a strategic partnership with Albany Molecular Research. Under the terms of the agreement, Albany is to help Nemus Bioscience on the development and manufacture of Cannabinoid-based active pharmaceutical ingredients.

The joint venture is to capitalize on Albany Molecular’s chemistry expertise in the formulation of a proprietary prodrug of tetrahydrocannabinol. The chemical under development is a key ingredient in NB1111, which the company is developing for the treatment of glaucoma.

“AMRI looks forward to working with Nemus to bring this new class of cannabinoid-based therapies through the developmental process. AMRI will focus on manufacturing synthetic versions of Nemus’ proprietary prodrug of THC,” said Christopher Conway AMRI Senior Vice President.

What Next For Nemus Bioscience

After skyrocketing to 52-week highs of $0.60, the uptrend appears to have lost momentum. Nemus Bioscience has since resorted to trading in a range of between $0.54 and $0.30. The consolidation looks set to continue until the company serves another groundbreaking catalyst.

However, that does not refute the fact that the stock has turned bullish in recent weeks. That said any pullbacks to the $0.30 should provide an opening for investors to bet on Nemus Bioscience long-term prospects.

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

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

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Nemus Bioscience Inc (OTCMKTS:NMUS) Turns Bullish On Emerald Health $20 Million Credit Line Boost
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