OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) is banking on Israel’s Cannabis Industry know-how shares of OWC Pharmaceutical Research Corp. (OTCMKTS: OWCP), currently trading in a range of $0.01-$0.03, could be headed higher as a result of growing investor optimism about the future trajectory of the cannabis industry. Over the most recent 52-week period, shares have traded as low as $0.01 and as high as $0.15. At a current share price of $0.03, the company has a total market capitalization of $2.4 million.
OWCP has one wholly owned Israeli subsidiary called One World Cannabis (OWC), which conducts medical research and clinical trials to develop cannabis-based pharmaceuticals and treatments for conditions including multiple myeloma, psoriasis, fibromyalgia, PTSD and migraines. OWC is also developing a unique delivery system for the effective delivery and dosage of medical cannabis.
OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) separates itself from other players in the medical cannabis industry by the fact that all of the cannabis-related R&D takes place in Israel, via OWC. All of this research takes place at leading Israeli hospitals and scientific institutions, including the Sheba Academic Medical Center, a university-affiliated hospital that is not just one of the best hospitals in Israel, but also in the entire Middle East.
The reason for the offshore R&D is simple: Israel is the best place in the world for conducting cannabis research since it is not as tightly regulated and controlled as the U.S. market for cannabis and cannabinoid-based products. That means innovative new products can come to market much more quickly. One example of a product developed within Israel that could be coming to the U.S. market soon is a cannabinoid-based topical cream for treating psoriasis.
In order to get the products into the U.S. market, OWCP recently arranged a unique financial arrangement with U.S.-based MedMar LLC. In exchange for a no-interest, $300,000 loan, OWCP will grant MedMar exclusive right to the manufacture, production, promotion and sale of OWCP’s licensed products in any U.S. state. This includes the proprietary psoriasis cream. In short, instead of charging interest on the loan, MedMar LLC will not have to pay royalties for these licensed product sales.
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Investors are keeping a close eye on possible new innovations in the product line of OWCP. Via its Israel-based subsidiary, OWCP currently owns 8 patents for cannabis-based medical products.
The big financial question, though, is how OWCP plans to generate any profit if all of the potential profits from licensing its intellectual property will be used to pay back the $300,000 loan. One answer could be the services that OWC offers via its Research and Consulting divisions. The Research division pursues clinical trials for cannabinoid-based products, while the Consulting division offers regulatory services to other companies attempting to navigate the complex regulatory environment for cannabis, which can differ widely not just across countries, but also across individual states.
In order to properly value OWCP, investors need to understand the differences in the types of cannabis research being conducted in Israel, as compared to other nations, such as the United States. According to OWCP, the Israeli team is among the best in the world, and has allied with top hospitals and scientific researchers. Plus, the freedom and flexibility of doing the research in Israel means that more innovative uses and applications can be found for cannabis before their rivals in the U.S. discover them.
In their eagerness to profit from “The Green Rush” into the cannabis industry, investors may be willing to overlook the additional complexities of operating an Israeli R&D subsidiary. The hope is that the new debt infusion from MedMar will be enough to take OWCP to the next level and enable the company to monetize its cannabis innovations. For more information on $OWCP, and similar types of fast-moving OTC stocks, sign up for our free newsletter today and get our next hot stock pick!