New Hemp Law Might Put Kali Inc (OTCMKTS:KALY) in High Demand

New Hemp Law Might Put Kali Inc (OTCMKTS:KALY) in High Demand


Kali Inc (OTCMKTS:KALY) has exploded more than 400% in the last 30 days. The passing of a new Hemp Bill, effectively making pure CBD and Hemp products legal, has lifted a majority of the stocks in the sector. KALY has a unique extraction process that it could continually license out as it has done with Puration and Nouveau Pharma. Many investors seems to be bullish on the industry turning to KALY to process bulk material into extract.

“I don’t think any cannabis extractor has more credibility or experience than we do with our patented process and preclinical trial results,” said Frederick Ferri, CEO of Kali-Extracts. “Hemp farmers will need CBD extraction services and can’t afford to risk their crop with an inexperienced or first-time extractor.  Our franchise process will deploy trained extractors with a patented and proven process nationwide.”  Kali-Extracts plans to begin marketing the CBD extraction franchise in February.

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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To elaborate further on the already established deal, Nouveau Pharma has a cannabis cultivation operation with facilities in the North America.  As their part in the deal, KALY will develop a proprietary pharmaceutical grade hemp cultivar in addition to being a source of hemp supply for a myriad of industries in what management anticipates to be exploding demand in 2019.

According to the press release, KALY, NOUV and PURA are partners in a joint venture named US Cannabis Health for the purpose of together developing partnerships with pharmaceutical companies to develop cannabis pharmaceuticals.

Now commanding a market cap of $23.93M, KALY has virtually no cash on the books, and is pulling in trailing 12-month revenues of $26.7M. This a stock to watch as we enter 2019 as CBD appears to enter the hockey stick growth phase. 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.