Cannabics Pharmaceuticals Inc (OTCMKTS:CNBX) shares appear to have gotten a boost in recent days at an important moment for the technical pattern. The company’s most recent catalyst is its announcement that it has executed a Collaboration Agreement with SIMFO GmbH, a world leader in cancer diagnostics and liquid biopsies located in Germany.
According to the release, under the Agreement, Cannabics Pharmaceuticals shall be the exclusive global provider of SIMFO’s CTC diagnostics to cancer patients treated with natural cannabinoids. The diagnostics include a count of circulating tumor cells (CTC) and drug sensitivity tests of different cannabinoids (e.g. THC, THCA, CBD and CBDA).
Cannabics Pharmaceuticals Inc (OTCMKTS:CNBX) bills itself as a U.S based public company dedicated to the development of Personalized Anti-Cancer and Palliative treatments.
Cannabics has been an exciting story in the space, with reports of a diagnostics technology supposedly positioned to revolutionize the way physicians identify disease in cancer patients in terms of a coordinated cannabinoids therapy program.
The Company’s R&D is based in Israel, where it is licensed by the Ministry of Health for its work in both scientific and academic research as well as current clinical studies underway at Rambam Hospital.
CNBX’s focus is on harnessing the therapeutic properties of natural Cannabinoid formulations and diagnostics. Cannabics’ vision is to create individually tailored natural therapies for cancer patients, utilizing advanced screening systems and personalized bioinformatics tools.
Its flagship product is Cannabics SR, a long-acting medical cannabis capsule that shows therapeutic effects as a palliative care therapy for cancer patients.
The Company’s scientific focus is on identifying and harnessing the therapeutic properties of specific natural Cannabinoids. Cannabics’ vision is to create individually tailored therapies for cancer patients, utilizing advanced screening systems and personalized bioinformatics tools.
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As discussed above, the company is starting to get folks fired up again on the strength of its recent announcement that it has executed a collaboration agreement with SIMFO GmbH. That places the company in close quarters with an established world leader in cancer diagnostics and liquid biopsies in the EU.
The action from a technical perspective is somewhat encouraging in recent days, with the stock finally finding some support just under the $1/share level. The company’s latest press release comes at a time when the chart for the stock had been in the process of what appears to be a “higher low” double bottom, which is often an encouraging pattern. It’s been a long, slow, steady correction for shareholders in the name, but the latest development has a chance to offer some healing, and possibly a new tone to the action.
In terms of the new tests that will be available to cancer patients who send blood samples and receive supportive data for their physicians to optimize and personally tailor their cannabinoid treatment, SIMFO has already commenced preclinical studies on cannabinoid antitumor activity and drug development utilizing Cannabics Pharmaceuticals’ proprietary cannabinoid formulations.
Dr. Eyal Ballan, Co-founder and CTO, said: “We are honored to work hand in hand with SIMFO’s noted scientists and physicians. We believe our collaboration will pave the way for highly effective natural anticancer therapy.”
Traders will note 41% piled on for shareholders of the listing during the trailing month, but this action is running counter to the larger trend in the name. This is emblematic of the stock. CNBX has a track record that includes a number of dramatic bounces.
Furthermore, the name has seen interest climb, with an increase in recent trading volume of 17% over what the stock has registered over the longer term. This is particularly important given the stock’s limited trading float of under 22M shares. As savvy traders are well aware, with such a tight trading float, this kind of ramping interest can force a supply-shock squeeze.
Now commanding a market cap of $141.3M, CNBX has a bankroll ($567K) of cash on the books, which stands against virtually no total current liabilities. CNBX is pulling in trailing 12-month revenues of $101K. However, the company is seeing declines on the top line on a quarterly y/y basis, with revenues falling at -90.1%. This may be a very interesting story and we will look forward to updating it again soon. For continuing coverage on shares of $CNBX stock, as well as our other breakout stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: we hold no position in $CNBX, either long or short, and we have not been compensated for this article.