x min read

United Cannabis Corp (OTCMKTS:CNAB) Has Many Catalysts Ahead

Written by

Jarrod Wesson

Published on

August 23, 2017

Do you remember United Cannabis Corp (OTCMKTS:CNAB)? It was featured by us back in April in an article titled "United Cannabis Corp (OTCMKTS:CNAB) Gets A Closer Look." Many things have happened after we published it, thus we believe that a new update is necessary.The list of news include large amount of transactions with other companies that denote CNAB is trying to grow inorganically at a higher rate. In this article, we will discuss the Memorandum of Understanding signed with Herbal Biotech, a Letter of Intent with a Louisiana company, and the acquisition of a majority position in Prana Therapeutics.But, these are not the most significant developments. In our opinion, the fact that the company recently received a US Patent from the United States Patent and Trademark Office as well as obtained the approval to begin producing CBD Products in Jamaica are very significant news.SourceRecent DevelopmentsLet's recap the business objective of the company for those readers who are hearing the name for the first time. CNAB "provides consulting services, proprietary products and licenses its intellectual property to businesses in the cannabis industry." The company has highlighted its ownership of intellectual property relating to the legalized medical marijuana industry on its OTC Markets profile.What's new? First of all, we recommend our readers to have a look at the reports written by CFN Media. The research is interesting, as it shows how the company has been growing in these past months. We could find three:

On June 13, 2017, the market got to know that a Memorandum Of Understanding had been signed with Herbal Biotech Pathways Labs. Both companies are planning a joint venture in order to advance and support access to medical cannabis in Puerto Rico. This is a very good news, as the company will obtain the contacts owned by Herbal Biotech Pathways Labs in the Puerto Rican community. In addition, CNAB will bring its team and its know-how in the industry. In our opinion, the most interesting news was said by the United Cannabis' CEO, Earnest Blackmon, who highlighted the new opportunity:

"Puerto Rico represents a substantial opportunity within the cannabis market, and we have been working to establish United Cannabis as a leader in that market. Patients in Puerto Rico will not be allowed to smoke medical marijuana, but can use other delivery methods, such as oral drops, pills, topical creams and salves, and our proprietary Prana line fully complies with these requirements." Source

On June 20, 2017, the company released a Letter Of Intent with a Louisiana-based company. As the press release noted, CNAB may be helping the other part in the agreement "prepare a response to a Request for Application anticipated to be issued by Southern University, who has been granted a license by the State of Louisiana to be a therapeutic marijuana producer." We expect the company to report a definitive agreement with this Louisiana-based company as well as with Herbal Biotech Pathways Labs. In our opinion, this type of agreement could be much appreciated by the market and the share price may be pushed up accordingly.On June 11, 2017, the company announced that the Government of Jamaica registered the company's products and approved a partner of CNAB, Caribbean Research & Development Limited, to begin production in the country. This news is good because it means new customers and new revenues. Earnest Blackmon, CEO of United Cannabis, was quoted:

"This is the culmination of a four-year effort by the management of United Cannabis to create a relationship with a supportive government in the Caribbean in order to give patients in the area access to improved, alternative health choices, greater access to research, and to create jobs and tax revenues for the local community. To that end, we have initially budgeted over $2 million for investment in facilities and operations at CRD to help ensure a world class operation in Jamaica." Source

That is not all. On June 20, 2017, the market got to know that the company had acquired a majority share of Prana Therapeutics, Inc. In our opinion, this is again significant news. CNAB is not only growing the business organically, but it is also alert on the developments of other companies. Prana Therapeutics, which is clinical stage biotechnology company, is a good example of this know-how acquisition strategy. In the press release, we could read that CNAB paid with its own shares and Prana will continue to operate independently.Finally, on August 15, 2017, the company released that the United States Patent and Trademark Office had issued a US Patent #9730911 giving the following exclusive rights:

"Its proprietary formulations based on compounds extracted from cannabis plant materials; more specifically, the composition of matter pertaining to the use of phytocannabinoids, cannabinoids, and specific terpene profiles in liquid form. This composition of matter patent provides protection for United Cannabis' proprietary formulations." Source

The most promising information was noted in the same press release by Earnest Blackmon, United Cannabis' CEO. He communicated that this is only the first step as the business plan is to obtain FDA approval.Market Reaction and ConclusionIn our opinion, none of the news released in this piece was considered a game changer by the market. It is true that the share price increased in June, but nothing really astonishing happened. However, we believe that the shares have potential, as several catalysts exist. Firstly, if the company is able to finish the deals with Herbal Biotech Pathways Labs and the Louisiana-based company, the market may push up the share price as news develops. But, that's not all. The company announced that it may start producing in Jamaica, which may bring new revenues. Additionally, the new patent received is an important step to start conversations with the FDA regarding the company's new treatments. To sum up, while the recent news did not move the share price needle, it has opened the doors to good news. Thus, this is a company that we need to follow.Check out our previous coverage of this one here.We will be updating our subscribers as soon as we know more. For the latest updates on CNAB, sign up below!Image courtesy of bbyraee via FlickrDisclosure: We have no position in CNAB and have not been compensated for this article.