Cannabics Pharmaceuticals Inc (OTCMKTS:CNBX) is suffering a similar fate like nearly every other cannabis stock so far in 2017. The odd perspective is not that the stock is up 32% for the year, but the fact that three months ago they were up 832%. So, depending on where you own shares, you love them or you hate them.
Look at the chart below to see shares trading $7.00 on February 21st and today they are hovering around $1.00. I will also say in defense of CBNX – they are not alone – the entire sector is down 50% to 90% from previous highs. This is as tricky a market to trade as I have seen in years. It is no place for the short-term traders. Cannabis is buy and hold for federal legalization. If you buy in May, just walk away and pray. Let’s look at some recent fundamental news to go with the technical view and the volatility. CNBX said they have begun a scientific collaboration with a medical laboratory in Europe, a world leader in the field of CTC (circulating tumor cells) count and drug sensitivity tests for cancer patients.
Cannabics Pharmaceuticals Inc (OTCMKTS:CNBX) provide blood test results enabling practitioners and patients to monitor the number of circulating tumor cells as an indication for cancer characteristics, treatment efficacy and re-occurrence. Dr. Eyal Ballan, Co-founder and CTO, said: “Many cancer patients are treated with cannabis, either in conjunction with chemotherapy or without. Our aim is to provide them with a lab test to help monitor the effectiveness of the treatment, using a simple blood test.”
CNBX also announced they entered into a securities purchase agreement with D-Beta One EQ, Ltd. D-Beta will purchase 3,000,000 shares of common stock at a purchase price of $1.00 per share, for aggregate proceeds of $3.0 million and may purchase up to an additional 1,500,000 shares of common stock at a purchase price of $2.00 per share over the next 12 months. No warrants are associated with this transaction.
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“This capital raise transaction will help us continue our efforts to create anti-cancer treatments based on natural cannabis medicine, as well as assist us in our strategy to penetrate into more territories, making our vision accessible to cancer patients everywhere,” said Itamar Borochov, CEO of CNBX. “D-Beta has been supportive of our growth strategy as an existing shareholder, and we are gratified to continue our relationship.”
One of the more important announcements had to do with the run up in prices in February. Itamar Borochov, CNBX’s CEO, said: “We are very aware of the increased interest in our science and its apparent results in the marketplace. I wish to reiterate that there is neither any undisclosed material information available nor any paid promotional activity or Investor Relations for the Company at all. The sole source of the Company’s public information has been press releases which we, the Company, authorize and release ourselves”.
The company believes that its planned commercialization of its Liquid Biopsy Diagnostic tests contributed to the recent increased activity. As stated in that release, CNBX is on track to begin testing patients. CNBX believes the rapidly increasing awareness and interest in companies operating in the field of cannabinoid-based biotechnology has simply created heightened demand.
Cannabics Pharmaceuticals Inc. (OTCMKTS:CNBX) is dedicated to the development of Personalized Anti-Cancer and Palliative treatments. CNBX’s R&D is based in Israel, where it is licensed by the Ministry of Health, for its work in both scientific and clinical studies. Similar to many cannabis stocks, they are well off the highs.
The issue here for shareholders will depend on how they hold up at this $1.00 level and keep longer-term holders from impatiently jumping off the ship. My advice is walk away and look at CNBX in the 4th quarter. Cannabis is a buy and hold sector once you have decided on what company shares you choose to own. For continuing coverage on shares of $CNBX stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
