Cannabics Pharmaceuticals Inc (OTCMKTS:CNBX) continues to ride the roller coaster that is the OTC cannabis patch. And yet, for shareholders of the company, the wild swings seen by the broader market segment are often amplified given the stock’s relatively tight trading float of just over 20 million shares. In a wild week for the space to kick off the new year, just about every cannabis-related play was coming off a torrid rally to close out 2017 only to hit a wall known as Jeff Sessions, as we have covered extensively.
But shares of CNBX bounced back sharply to close out the first week, possibly helped by the company’s announcement earlier in the week that it has filed an international patent application with the PCT authorities on methods for testing which cannabinoids or combinations of cannabinoids are likely to be effective in individual patients.
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.
CNBX has been an exciting story in the space, with reports of a diagnostics technology supposedly positioned to revolutionize the way physicians identify the 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.
CNBX’s scientific focus is on identifying and harnessing the therapeutic properties of specific natural Cannabinoids.
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As noted above, CNBX has been about as volatile a name as you’re likely to find anywhere, with a range of movement marking the opening week of 2018 that spanned the space between $1.25/share to about $3/share, and closed near the middle of this action. While the pullback was steep, the snap-back was quite aggressive as well, and this may have been pushed along by the company’ recent move to invest in locking down international IP protection for its advanced methods of personalization in cannabinoid testing.
According to the company’s latest release, “The determination is made by testing the effects of cannabinoids on CTCs (Circulating Tumor Cells) and biopsies of cancer patients. The integrated approach brings together cannabinoids research, Genetic markers, CTC counting and detection methods, and a drug sensitivity test for cannabinoids developed by Cannabics Pharmaceuticals. This unique method expands the company’s proprietary technology of developing a more precise tool for personalization of cannabinoids based medicine as well as accelerating drug discovery.”
Recent action has seen 91% during the past month in terms of shareholder gains in the company, but that move comes in the context of a larger bearish trend. Market participants may want to pay attention to this stock. CNBX is a stock with a past that has featured a litany of sudden rips to the upside. What’s more, the company has benefitted from a jump in recent trading volume to the tune of greater than 560% above the average volume levels in play in this stock over the longer term.
This should not be overlooked due to the relatively small float size in the stock (under 22M shares). This type of thing is something to watch out for: ramping trading activity can overwhelm available supply in a stock with this type of small float, leading to an upward burst in prices.
Currently trading at a market capitalization of $244.7M, CNBX has a significant war chest ($3.4M) of cash on the books, which must be weighed relative to virtually no total current liabilities. CNBX is pulling in very nominal trailing 12-month revenues. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues diving of late. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $CNBX stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $CNBX, either long or short, and we have not been compensated for this article.