OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) was one of the real remarkable bullish stories on the OTC in early 2017. However, shareholders in the name have struggled to find success in recent months, and now we are seeing the stock really test support in the $0.50-0.55 zone, with repeated checks at the level. There may be stops under the $0.50 level that could trigger a wave of new selling, and we want to be thinking ahead in case that may present an important opportunity to get involved on the cheap.
The stock’s most recent key catalyst is the company’s announcement this week that its wholly-owned, Israel-based subsidiary, One World Cannabis Ltd. (OWC), has filed a patent application with the European Union Patent and Trademark Office for its active cannabinoid-based psoriasis topical cream. (The patent application number is EP 17178303.8).
OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) casts itself as a company that engages in the research and development of Cannabis-based medical products. The company provides medical products for the treatment of various medical conditions and/or diseases, such as multiple myeloma, psoriasis, PTSD, and migraines; and delivery systems. It also provides consulting services to companies and governmental agencies related to international medical cannabis protocols and regulations.
OWCP through its wholly-owned Israeli subsidiary, One Word Cannabis Ltd., conducts medical research and clinical trials to develop cannabis-based pharmaceuticals, treatments and unique delivery systems for the effective delivery and dosage of medical cannabis.
All OWC research is conducted at leading Israeli hospitals and scientific institutions, and led by internationally renowned investigators.
OWCP’s Research Division is focused on pursuing clinical trials evaluating the effectiveness of cannabinoids in the treatment of various medical conditions, while its Consulting Division is dedicated to helping governments and companies navigate complex international cannabis regulatory frameworks.
The Company is a wholly owned subsidiary of OWC Pharmaceutical Research Corp. The company was formerly known as Dynamic Applications Corp. OWC Pharmaceutical Research Corp. was founded in 2008 and is based in Petach Tikva, Israel.
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As noted above, OWCP has been testing key support of late, and just released news of a new patent filing for its active cannabinoid-based psoriasis topical cream.
Commenting on the filing of the patent application, Mr. Mordechai Bignitz, Chairman and CEO of OWC Pharmaceutical Research, stated, “Our primary short-term objective is to introduce our topical cream for skin conditions including, most importantly, psoriasis to the market. Our necessity to fully protect our intellectual property limited our ability to provide potential customers and partners with the required data for their due diligence and review. Our proprietary data includes specifics regarding the formulation of the topical cream, consisting of cannabinoids and other compounds that facilitate the efficient delivery of the cream to infected areas. The filing of this European patent application also enables us to fully discuss with potential customers and partners the requirements for manufacturing the cream in accordance with national and local regulations. It also enables us to provide potential customers and partners with the manufacturing requirements, based on the highest level of international standards and protocols, and includes specifics regarding the manufacturing process including required equipment and systems.”
Traders will note -9% scraped out of share values of the name over the past month of action. That said, market participants may want to pay attention to this stock. OWCP has a history of dramatic rallies. In addition, the company has witnessed a pop in interest, as transaction volume levels have recently pushed 12% above its longer-run average levels.
At this time, carrying a capital value in the market of $72.8M, OWCP has a reserve ($2M) of cash on the books, which compares with about $300K in total current liabilities. One should also note that debt has been growing over recent quarters. OWCP is pulling in trailing 12-month revenues of $50K. However, the company is seeing recent declines on the top line on a sequential quarterly basis. As more color becomes clear on the name, we will review the situation and update our take. For continuing coverage on shares of $OWCP stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: we hold no position in $OWCP, either long or short, and we have not been compensated for this article.