Glory Days Awaken the Sleeping GiantGlobe Net Wireless Corp. (OTCMKTS: GNTW) isn’t your typical reverse merger deal because the acquiring asset has a solid base of revenue. The company reversing into GNTW is called Stemtech Corp and it is a direct-to-consumer-based business with nutraceutical products capable of releasing the number of adult stem cells circulating in our system allowing us to unlock rejuvenating healing pathways.The company was founded in 2005 and had exponential growth until 2017 when its run rate was close to $75 million annually. Internal conflicts derailed this highly successful business with over 200,000 distributors. Strategic investors familiar with the business took over custodianship to restructure the company. The restructuring took much longer than anticipated, but demand for the product was so high amongst core consumers that it still generated close to $5.0 million annually. Stemtech has a proven business model with infrastructure in place, a core following of distributors, and a uniquely well-positioned product offering in a fast-growing industry.
Understanding Stem Cells
Some investors might be wary of anything related to biotech so for those investors, it's essential to have a baseline understanding of the topic. Over the past decade, what has been sensationalized in the news about stem cells pertains to the use of embryonic stem cells (ESC’s). This controversy is divided along moral lines primarily regarding the research of ESC’s versus adult stem cells. The good news is that the focus of this article is on adult stem cells, the other class of stem cells, and steers clear of any of the controversial research. There is a mountain of research focused on adult stem cells that supports their use in a variety of diseases and tissue regeneration.The overarching theme behind adult stem cells is that they help you maintain your wellness. They are actually unspecialized cells that are coursing through your veins and turn into specialized cells where they are needed. Look at the pictorial to see all the different cell types that they can differentiate into. It shouldn't come as a surprise that as people age the number of stem cell products in the body decreases. These stem cells represent the primary mechanism to repair damaged tissue and organs. As people get older it takes them longer to heal and this is all attributable to the reduction of the number of adult stem cells produced over time.
Stem Cell Release Degradation
Stem cell production declines over time due to a number of factors. Simple things like sun exposure and oxidative stress from a poor diet and lack of exercise can have an impact on stem cells. Different drug interactions or other toxins could also potentially damage the production. On a more technical level the mitochondria which powers cells could also become damaged. In broad terms, an unhealthy lifestyle and poor nutrition or health maintenance can lead to lower levels of stem cells.TOBI Regenerative Medicine Symposium 2012
Stem Cell Market Burgeoning
The big picture is that stem cells represented a $9.38 billion market in 2020. The marketplace included companies that are developing therapeutics for a number of diseases like cancer and even COVID-19. Since stem cells are the building blocks of healing they are also being used to treat injuries and pain. Some other uses on the fringe are using them for organ and tissue regeneration. Here are some examples of companies in the industry and their diverse approaches. Freeline Therapeutics (NASDAQ: FRLN) is a UK based therapeutic company that offers gene therapy using AAV programming targeting Fabry and Gaucher Disease. Gegenxbio (NASDAQ: REGNX) uses AAV gene therapy to treat retinal, metabolic and neurodegenerative diseases. VistaGen Therapeutics (NASDAQ: VTGN) is developing a stem cell technology that can predict potential heart toxicity early enough to treat it.
Stem Cells in Acute COVID
When COVID-19 patients reach the acute or severe phase of the disease they develop ARDS. The idea is that stem cells help repair the damage quicker than the virus can destroy it. Stem cells normally need an anti-inflammatory environment to thrive and possess some cytokine quieting properties. Athersys, Inc (NASDAQ: ATHX) is focused on regenerative therapies. Their primary product MultiStem is a stem cell therapy for neurological and cardiovascular diseases. They were also running a clinical trial using their MultiStem in COVID-19 induced ARDS. Capricor Therapeutics (NASDAQ: CAPR) is focused on a therapy for severe COVID-19 patients. It is supposed to quiet the cytokine storms in a similar fashion as their Duchenne muscular dystrophy patients. Their phase 2 trial called INSPIRE is nearing completion and is supposed to be read out with data by the end of the year. The reason to be hopeful is that no changes were recommended to their trial at the interim point. Mesoblast Limited - (NASDAQ: MESO) uses its mesenchymal stem cell platform to treat inflammatory diseases including COVID-19 in severe patients. They also have a strong program in Graft vs Host Disease (GvHD). They announced a 77% reduction in mortality in the under 65-year-old group for patients stricken with COVID-19 ARDS.It's these types of results that allow consumers to connect the dots that healthy stem cell levels are an important part of immune function and boosting levels could play a significant role in protecting people from COVID-19. Although the company cannot officially make this claim in a direct-to-consumer marketing approach people are bound to connect the dots more times than not.
Stem Cells in Cancer
One of the problems in treating cancer is that the cancer cells live too long. They are for all practical purposes “immortal.” They don’t die for a number of reasons but one of those reasons is that their mitochondria (powerhouse of the cell) is broken. In a normal cell, after a certain amount of time progress the cell signals its self-destruct mechanism when it senses the DNA is damaged and cannot perform the proper cellular functions. Cancer can actually form from one of these aberrant cells that disabled their self-destruct mechanism.Stem cell therapy in cancer is actually not designed to kill the tumor, but change the local environment from an inflammatory to a restorative environment. Inflammation attracts all sorts of immune cells to the party and even increases the blood flow. Stem cells have this soothing effect that makes the angry inflammatory immune cells calm down and turn into healing cells and doesn’t encourage the growth of new blood vessels to feed the tumor. This is the primary theory driving stem cell research. Applying this to Stemtech and its line of nutraceuticals, a bountiful reserve of stem cells in the system keeps up the body’s defenses against cancer by creating a poor environment for cancer to take root. The StemTech line of products essentially helps the consumers stay healthy enough to ward off any future possible cancer threats.There are a number of companies engaged in this research like Autolous Therapeutics (NASDAQ: AUTL) which has a niche in T-cell programming with an emphasis on hematological cancers and solid tumors. Their treatments primarily target the CD19 receptor. Gamida Cell (GMDA) - enhances the performance of Natural Killer (NK) cells in the treatment of blood and solid tumor cancers. Gamida Cell (NASDAQ: GMDA) is an Israelii based stem cell that hopes to treat hematologic malignancies, severe aplastic anemia, and Non-Hodgkin Lymphoma. All this research is supportive of doing what it takes to boost T-cells to help prevent the occurence of cancer.
Stem Cell Nutrition
It should be very clear now that more stem cells are better. The only question is what methods are there to increase stem cells. Reducing toxins through diet is a great start, but the biggest impact can be seen through stem cell nutrition. That’s the special mix that StemTech has in their products. They use a special optimized mix of botanicals and other ingredients known to boost the production of stem cells.There are also mechanical ways to boost stem cells through injection. Sometimes cells are extracted and cloned in an incubator before injection. There are also therapies that use donor ovarian stem cells for therapy. A whole host of pain clinics nationwide sprung up like US Stem Cell Inc. (OTCMKTS: USRM). The concept is to resculpt the area of injury by localizing the stem cells to the site of injury or pain. RegenerRx Biopharmaceuticals. (OTCMKTS: RGRX) is focused on the tissue repair and regeneration going after indications like Dry Eye Syndrome and Neutrophic keratopathy. Cellular Biomedicine Group (CBMG) is a Chinese immunotherapy company that hopes to use their stem cell treatment in different types of cancer and degenerative disease like osteoarthritis of the knee. Pluristem Therapeutics (NASDAQ: PSTI) is a regenerative medicine company focused on placental cells to treat muscle injuries and radiation exposure during cancer treatments. All these companies are developing therapies based around increasing the levels of stem cell production.
Expanded Product Line
Along with the relaunch, there are going to be new product offerings along with a comprehensive marketing plan. The company has a flagship bundle package called the “RCM System” (see featured image) which has been its bread and butter since inception. When taken these nutraceuticals in tandem it promotes strong healthy personal stem cell growth to maintain longevity and wellness. Incorporating new products will offer their clients and distributors additional options and ultimately increase future company revenue. To view their product line visit Stemtech Corporation. The company also has secured 7 patents on these revolutionary wellness products.
Loyal Distributor Following
Many distributors love the existing products and continue taking them. In fact, their longevity in taking the products demonstrates how efficacious they are. One of the top distributors just signed back up now that the company is in a position to market again. They boast a less than 1% Percent product return rate.
Top-Notch Management Team
When it comes to direct sales and science and network marketing this team has virtually every expertise. It started at the very top with CEO Charles Arnold, a 35+ year veteran of the public markets best known for developing start-up companies. Chuck is responsible for placing more than $1 Billion into public companies with as much as $400 Million in a single transaction. Significant mergers and acquisitions have been accomplished through his network of financial specialists and professionals throughout the world. In 1993 Mr. Arnold was one of the original investors in pre-paid legal “PPD” (now Legal Shield). In 2001 he was engaged by National Health “LEXXUS” the company grew from under $1.00 to over $40. Traded on the American stock exchange.The keys investors need to focus on are ‘team”, “experience” and “global”. This is not a one man show, there is a savvy group of gentlemen with a track record of taking distressed businesses and resurrecting them to vitality. This is a global company with leadership and distributors across the globe. After a few years of playing clean-up, the band is getting back together and it's time to rock and roll.
Company Statistics
All notes in the pubco will be converted into 6,000,000 common shares, as described in the company’s super 8k filed on August 20th. Post-transaction, there shall be 6,540,000 shares held by Globe Net Wireless Corp. shareholders. The company did give guidance of approximately 30,000 new representatives within the next 12 – 24 months.
Investment Summary
The company has existing sales, a highly motivator distributor base, and a credible management team. They have all the key ingredients to potentially experience exponential growth and get back to the levels they achieved just a few years ago. They want and have the capability to go global. Think of them as the rock band Kiss, coming back for a reunion tour. Same players, same sheet of music, with a revitalized fan base and some new hit singles to showcase. What is different now versus a couple of years ago is that they have the huge tailwinds of stem cell science behind them. With so many companies in the biotech space ready to release exciting clinical data it's just a matter of time before people connect the dots and realize these are therapies of the future and Stemtech is selling a nutraceutical product that can essentially do something similar and get it TODAY. There doesn't have to be a wait. It's that first market mover advantage that could be a game-changer when one of these stem cell companies report data. The company has a very small float, money to execute their business plan, and a whole bunch of excited new potential new shareholders that will become distributors. Investors should keep in mind that at its peak there were over 200,000 distributors. Another potential key is the company’s ability to convert loyal distributors into new shareholders. The catalysts exist for some explosive upside once the relaunch commences
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Disclosure: Insider Financial and its owners do not have a position in the stocks posted and have posted this article for free without editorial input. This article was written by a guest contributor and solely reflects his opinions.
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