The Remarkable Rise of Kali Inc (OTCMKTS:KALY)

The Remarkable Rise of Kali Inc (OTCMKTS:KALY)


One recent explosion higher on the OTC has been that of Kali Inc (OTCMKTS:KALY). The company is a recent reverse merger shift whereby the KALY ticker has moved into the cannabis patch. To help further flesh out the story, the company just announced the new Kali Cannabis Therapies subsidiary to develop cannabis biotechnology treatment alternatives to chemical pharmaceuticals.

According to the release, “On November 15th, 2018, KALY acquired NCM Biotech to include a patented cannabis extraction process and associated intellectual properties consisting of years of preclinical research studies surrounding a multitude of applications of cannabis extracts derived from the patented cannabis extraction process. The acquired cannabis biotechnology intellectual properties will be contained within the new Kali Cannabis Therapies subsidiary were ongoing research and development will be conducted for the purposes of producing cannabis treatments for specific conditions.”

Kali Inc (OTCMKTS:KALY) trumpets itself as a developer and owner of a patented cannabis extraction process – U.S. Patent No. 9,199,960 entitled “METHOD AND APPARATUS FOR PROCESSING HERBACEOUS PLANT MATERIALS INCLUDING THE CANNABIS PLANT.”

This came about on November 15, 2018, with the acquisition of NCM Biotech.

With the patented intellectual property (IP), to include the existing and ongoing research and development acquired from NCM Biotech, Kali now focuses on the development of pharmaceuticals to treat various illnesses, diseases and chronic pain as a symptom of various diagnoses. Kali also concentrates on the development of health and wellness therapies.

NCM Biotech (acquired by Kali-Extracts) in collaboration with Beech Tree Labs, Inc. (BTL) of Providence, Rhode Island, conducted a series of in vitro genomic experiments to evaluate the potential of cannabis extracts derived from KALY’s patented extraction process in the treatment of respiratory diseases.  The experiments were designed to evaluate pure cannabis extracts and cannabis extracts in combination with other therapies in the treatment of chronic obstructive pulmonary disease (COPD) and Asthma.  There are a significant number of genes associated with COPD and Asthma.  The experiments evaluated the ability of various formulations to change Asthma or COPD associated gene expressions in human small airway epithelial cells.  A cannabis extract alone demonstrated remarkable activity in gene arrays by up- or down-regulating individual genes by as much as 200-fold.  Genes appearing especially sensitive to the introduction of cannabis extract were associated with inflammation, healing and cancer inhibition.  Results from this series of experiments provided a baseline for comparison with data from subsequent studies.

In addition, KALY has entered into a joint venture agreement named US Cannabis Health with Puration, Inc. (USOTC: PURA), and Nouveau Pharmaceuticals, Inc. (USOTC: NOUV) to combine their respective resources for the specific purpose of developing partnerships with major pharmaceutical companies to produce medical cannabis therapies.

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As noted above, KALY just announced the new Kali Cannabis Therapies subsidiary to develop cannabis biotechnology treatment alternatives to chemical pharmaceuticals. In all, the chart shows above 530% tacked on to share pricing for the listing in the past month.

What’s more, the listing has registered increased average transaction volume recently, with the past month seeing topping 170% beyond what we have been seeing over the larger time frame.

“I believe the underlying value of Kali-Extracts cannabis biotechnology properties are as of yet unrecognized by the market,” said Frederick Ferri, CEO of Kali-Extracts. “Doctors involved in research with our extracts have given me feedback that our extracts are superior to those of GW Pharmaceuticals [GW Pharmaceuticals, plc (NASDAQ: GWPH)].  As just one example of what our cannabis biotechnology can lead to, I believe our developing COPD therapies in combination with the potential for us to harness the patented RapidMist buccal cavity drug administration technology of Generex [Generex Biotechnology, Corp. (OTCQB: GNBT)] through our US Cannabis Health partnership, would put Kali-Extracts in front of any cannabis biotechnology company on the market.  For that matter, I think Generex applying its patented RapidMist buccal cavity administration technology would bode well for Generex as well.  I also happen to think that the combination of our COPD technology with the RapidMist technology of Generex would illustrate that GW Pharmaceuticals buccal drug administration is likely an infringement on Generex’s RapidMist patent. In summary, the market has a lot yet to learn about Kali-extracts cannabis biotechnology.  I hope the COPD example herein begins to give a glimpse of that yet to be relized value.  Finally, I think the developing partnership between KALY and its other US Cannabis Health partners with Generex can put KALY, its other US Cannabis Health partners and Generex on top of their respective markets.”

Now commanding a market cap of $27.7M, KALY has virtually no cash on the books, which must be weighed relative to about $434K in total current liabilities. KALY is pulling in trailing 12-month revenues of $26.7M. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 733.2%. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $KALY 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 $KALY, either long or short, and we have not been compensated for this article.

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