Uncategorized

Photo: Testing, research and extraction technologies are one of three prime areas where the massive Cannabis boom is being felt immediately. We’ve singled out Abattis Bioceuticals Corp. (OTC: ATTBF) (CSE: ATT) as an example company that cannabis minded investors can get in on ahead of the crowd.

After what was easily the hottest year for cannabis stocks, expectations on the legal marijuana related sector are higher than ever.

Of the dozen main players in the space, the average marijuana stock is up 332% over the past year.¹

What savvy investors are focussing on now is how this rapidly developing sector can support what looks to be massive growth into the future. Apart from the obvious legalization, three areas are emerging that will be critical in the bid to ensure the sector’s meteoric rise: Better Testing and Extraction, More Medical Uses and Ensuring Adequate Supplies.

Companies who can deliver on these promises stand to make Cannabis investors a lot of money.

One company that appears to be well situated to capitalize on the Research, Testing and Extraction segment is Abattis Bioceuticals Corp (CSE: ATT – OTCQB: ATTBF), which we discuss below, along with a few other key players positioned for success.

The overall optimism led researchers at New Frontier Data to project that the cannabis industry will have created a whopping 283,422 jobs, grow to and generate $2.3 Billion in tax revenue—both by 2020.²

The same study predicted that the sector as a whole will grow to $24.1 Billion by 2025.

But in order to maintain the course in order to get to $24 Billion, companies will need to meet the demands of these three key developing areas:

– Our first and favorite sector may surprise you since it is not actually the cultivation, it’s going to be way bigger, and we’ve found a company that is widely undiscovered as noted below in our first example:

1.  BETTER TESTING AND EXTRACTION
   

   Company: Abattis Bioceuticals Corp (CSE: ATT – OTCQB: ATTBF)

   Mkt Cap: $15.21M

   Still very early in its company’s story, Abattis has wisely burst onto the scene as a tester.  Wasting no time in getting its cannabis testing facility opened in Langley, BC, ahead of Canada’s full-scale legalization⁴ of cannabis expected by July 1, 2018, Abattis swiftly got itself into the game and already has garnered revenues.

   Abattis Bioceuticals’ subsidiary Northern Vine Labs opened its doors in May 2017, to serve the rising demand for cannabis testing. The company had been pursuing that license since 2014, and officially became licensed in October 2016.

   What is cannabis testing?

   In order to maintain quality control, and meet both regulatory, and market demands, cannabis laboratories test for potency, purity, and details such as terpene counts. Testing also protects the consumer by screening for contaminants such as bacteria, heavy metals, and unapproved pesticides.

   (For more information on Health Canada’s mandatory testing on medical cannabis click here. )

   For the 52 licensed producers in Canada, Health Canada introduced random testing to address these issues. Abattis’s facility is just 1 of 30 approved facilities in Canada, and one of the eight in BC’s lower mainland. Even better, Abattis is the only company available on the public markets, making it a solid choice in this sector. Once recreational cannabis becomes available in mid-2018, everyone will have to use a facility like what Abattis already has a leg up on, so keep that in mind while the PPS is low here.

   ---

   “Abattis Bioceuticals is one of very few publicly listed companies with comprehensive testing and extraction capabilities. They are also one of only 30 Health Canada approved labs able to handle cannabis for all forms of testing.”

   ---

   Demand for cannabis testing is big and getting bigger fast.

   The global cannabis testing market is expected to grow at a compound annual growth rate of 11.5%, culminating towards a $1.42 billion market by 2021.⁵

   In order to hit the shelves, producers will need to have an accurate depiction of the drug’s potency, including the levels of the most sought after medicinal components of cannabis, THC and CBD. To do that, even the mega producers will require a third party to test their product before it goes to market.

   Abattis is smartly staking itself as a leader in the testing field, having built a lab, and staffed it with industry experts to ensure the quality standard they promise the sector.

   The Northern Vine Labs facility will not just be used for testing, however. Another major component to the facility will be in extraction and formulation.

   This means that the company will be involved in innovation of methods to extract medicinal components from cannabis on a massive industrial scale, and to formulate them for consumer products.

   As a cooperative arm of the company to run in conjunction with Northern Vine Labs, Abattis has formed another subsidiary called Vergence, in order to market and sell natural, safe, and effective health products.

   Those products will target reducing pain caused from inflammation, boost immunity, and increase nutrient absorption. As natural remedies, these products will likely reach the market faster than a pharmaceutical product would, without the lengthy and costly clinical trials.

   According to the CBD Report published by The Hemp Business Journal, the US hemp-derived CBD market will total approximately $115 million this year, with an estimate to grow to $2.1 billion by 2020.⁶

   Abattis is tight-lipped about its ability to extract cannabinoids and terpenoids from cannabis at its facilities, however, it hasn’t been shy about hinting that it aims to be a leader in the extraction space. There’s a possibility that extraction will overtake testing as the company’s primary revenue model in the future.

    

   ---

2.  MORE MEDICAL USES

   Company: Cara Therapeutics (CARA)

   Mkt Cap: $495M

   After a wild month that saw Cara Therapeutics rise to $26 per share, and plummeting to $12 per share within a week, this giant is on its way back to stardom.

   The bounce back came on the announcement of encouraging data from its phase 1 trials of oral CR845, as a treatment for pain and itching in patients with chronic kidney disease and undergoing hemodialysis. All tested doses were well tolerated when administrated daily.

   This came as a relief for shareholders after they saw the value of the company drop upon the same drug’s treatment for patients with osteoarthritis (OA) of the hip or knee. Lower doses achieved statistical significance. Only the highest dose received statistical significance. It’s still possible based on those results to test higher doses for significance.

   Medical marijuana sales, from pharmaceutical extracts to medically cultivated flowers, currently make up the lion’s share of the cannabis sector. Medical sales in 2017 are projected to grow to $5.3 billion in 2017, and account for 67% of total cannabis sales.²

   That means that medical cannabis patients are outspending adult-use consumers at a nearly 3 to 1 basis.

   While medical sales are projected to exceed $13.2 billion by 2020, the medical share of the total cannabis sales is expected to drop to 55% of all sales as well.

   Much of that has to do with the recreational legalization in larger states, like California, and in holiday states like Nevada.

   As cannabis stocks fly, the developers of new medicinal applications and products stand to make the most gains.

   While Cara fluctuated during its trials, new drug development was the reason that AXIM Biotechnologies (NASDAQ: AXIM) absolutely crushed it in 2016-17.

   As stated earlier, the average marijuana stock rose 332% over the last year.

   Much of that increase is skewed by the meteoric rise of AXIM Biotechnologies, whose year-over-year increase was 2,363%.

   You read that right.

   A large portion of that success can be attributed to the development of AXIM’s CanChew Plus Chewing Gum, used for the treatment of irritable bowel syndrome—or IBS. Used as an alternative delivery system to inhalation, CanChew tapped into the act of chewing which bypasses the gastrointestinal system and improves the bioavailability of cannabinoids.³

   Because medical uses for cannabis are still in their infancy, there are plenty of repeatable AXIM-like stories out there yet to be told.

3. ENSURING A SUPPLY CHAIN SURPLUS

          Aurora Cannabis – ACBFF, ACB

          Mkt Cap: $941.6M

Second only to Axim over the last year was top performer Aurora Cannabis (NASDAQ:ACBFF)(TSX: ACB), which grew 465% year-over-year, rising from a low of $0.30 to $2.59 and a market cap just a shade under a Billion, at $941.6 million.

The company’s well deserved move to the TSX from the TSX venture this week is a pat on the back for a solid year that included record yields at Aurora’s Mountain View County production facility, and on the anticipation of the opening of its 100,000+ kg Aurora Sky facility to be located near the Edmonton International Airport.

With the nearing completion of a third production facility in Pointe-Claire, Quebec, Aurora’s production capacity is skyrocketing.

But supplies are still lagging in the market as a whole, especially after shelves emptied rapidly in Nevada after the state began adult-use sales on July 1.

Supply issues reached such dire levels, that Nevada Governor Brian Sandoval had to issue a state of emergency to allow state officials to decide on new rules to ease the shortage.⁷

As Canada (where Aurora is headquartered) inches closer to nation-wide marijuana legalization, it’s doubtful that the country will encounter the same scale of supply problems that hit Nevada.⁸ Especially with massive production coming from companies such as Aurora.

With other major Canadian producers, such as Canopy Growth Corp. (TSX: WEED) growing for both the North American and German markets, it’ll be interesting to see how supplies meet demand on a global scale.

CAPTURING THE TREND

Cannabis has still not been registered as a medicine in any country, and only a small number of cannabinoid medicines have reached the market.

With over 100 cannabinoids, and over 700 other compounds such as flavonoids and terpenes, the cannabis plant is still barely understood, as the legality over researching it, and testing its benefits has provided hurdles until recently.⁹

Hence the need for new, better and more abundant research and testing capabilities to keep pace with the industry’s growth.

“In order to maintain this growth pattern, industry players will need to provide the market with More Medical Uses, Better Testing and Extraction, and to Ensure Supplies.”

Public perception of the drug has changed significantly over the past decade, with it being seen more favorably than ever.

According to a survey² done by New Frontier Data and Full Circle Research this January, 55% of respondents believed “cannabis should be legalized, regulated and taxed like cigarettes and alcohol”, and an additional 26% believed it should at least be “legal for medical use with a doctor’s recommendation.”

In fact, only 9% responded that cannabis should be illegal. Overall, 63% of those surveyed believed that the federal government should legalize cannabis, and 86% believed it has valid medical uses.

In 2016, 4 out of the 5 US states that voted on adult-use of cannabis passed legalization initiatives, with an average adult-use vote of 53% in favour. And all 4 states that voted on medical use passed their initiatives, with an average medical use vote of 62%.

For those that still hold doubt to the growth potential of the cannabis sector, there’s really nothing that will convince you. Sales are growing significantly for retailers, even as more retailers hit the scene.

In order to maintain this growth pattern, industry players will need to provide the market with More Medical Uses, Better Testing and Extraction, and to Ensure Supplies.

If, as all of the indicators suggest, the industry continues on its staggering growth, the opportunity to take advantage of the emerging trends is here, now. The benefactors of the impact like Abattis Bioceuticals, stand to make huge gains, while the leaders like Aurora Cannabis and Axim can build an even bigger lead against competitors who must surely emerge.

For American News Group

By G. Joel Chury

Edited by; American News Group Editorial Staff

FOOTNOTES:

1 – Motley Fool (July 2017) – The Average Marijuana Stock is up 332% over the past year

https://www.fool.com/investing/2017/07/24/the-average-marijuana-stock-is-up-332-over-the-tra.aspx?yptr=yahoo

2 – New Frontier Data – The Cannabis Industry Annual Report: 2017 Legal Marijuana Outlook

https://newfrontierdata.com/wp-content/uploads/2015/11/CIAR_Webinar_FINAL.pdf

3 – YAHOO! Finance – AXIM Biotech: Cannabinoid Potential Worth the Complexity

https://finance.yahoo.com/news/axim-biotech-cannabinoid-potential-worth-130000914.html

4 – Toronto Star – Trudeau government to legalize marijuana by Canada Day 2018: reports

https://www.thestar.com/news/canada/2017/03/26/trudeau-government-to-legalize-marijuana-by-canada-day-2018-reports.html

5 – Markets and Markets (March 2017) – Cannabis Testing Market by Product & Software (LC, GC, Spectroscopy (MS, Atomic), Column, Standards, Accessories, LIMS), Service (Potency, Pesticides, Heavy Metal, Genetic Testing), End User (Lab, Pharmaceutical, Research) – Global Forecast to 2021

https://www.marketsandmarkets.com/Market-Reports/cannabis-testing-market-46932450.html

6 – Hemp Business Journal – The CBD Report

https://www.hempbizjournal.com/the-cbd-report/

7 – Fox News (July 2017) – Nevada marijuana supply running low, state of emergency declared, governor says

https://www.foxnews.com/us/2017/07/11/nevada-marijuana-supply-running-low-state-emergency-declared-governor-says.html

8 – Fortune Magazine – Here’s Why Nevada’s Marijuana Supply Can’t Keep up with Sales

https://fortune.com/2017/07/12/nevada-marijuana-taxes-shortage/

9 – The Medicine Maker (June 2017) – Cannabis Complex

https://themedicinemaker.com/issues/0617/cannabis-complex/

Disclaimer: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Americannewsgroup.com is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Abattis Bioceuticals Corp. from the company direct of ten thousand canadian dollars, as well as two hundred and fifty thousand free trading shares of ATT.CN for advertising and digital media. There may be 3rd parties who may have shares of Abattis Bioceuticals Corp., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision. We have no intentions of selling any shares within the next 72 hours of this publishing date (August 9, 2017), but reserve the right to buy and sell shares thereafter without any further notice.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment

Now that September is here, it’s back to business as usual, especially on Wall Street.

But something to chew on over the next few days is just how well the biotech sector has done. That sector rallied all last week, which helped to drive the Nasdaq to its first record close since July.

The iShares Nasdaq Biotech ETF IBB, +0.27%  finished yesterday at its highest level since December 2015. For the week, the ETF is looking at a rise of more than 7%:

MarketWatch

And among the individual names, Biogen BIIB, +2.06%  marked its best close since July 2015 on Thursday:

MarketWatch

That brings us to our call of the day from Daily Reckoning’s Greg Guenthner, who says now isn’t the time to bet against biotech, a sector that he says could produce the stock market’s leaders for the rest of the year.

Guenthner notes two catalysts that have helped fire up biotechs this week. The first is the buyout of Kite Pharma, by Gilead, which will get Kite’s new technology for harnessing the body’s immune system to fight cancer. The second is Novartis’s, gene therapy treatment for pediatric cancer scored FDA approval.

Others sound more cautious. T3Live’s Scott Redler was also pretty blown away by the performance of biotechs yesterday, but say he wouldn’t be “all-in long.”

Still, he says it isn’t wise to just short this area given how its stocks have powered through big resistance level.

Key market gauges

Ahead of the Labor Day weekend, Dow 22K is looking within reach as the blue-chip gauge DJIA, moves higher at the open, the S&P 500, and the Nasdaq Composite, are also up as investors shake off any jobs-data disappointment. Gold is also trucking higher post data, while the dollar is stumbling.

After what was easily the hottest year for cannabis stocks, expectations on the legal marijuana related sector are higher than ever.

What remains to be of concern, is how this rapidly developing sector can maintain its growth into the future.

Of the dozen main players in the space, the average marijuana stock is up 332% over the past year.¹

One company we believe to be situated near perfect in the Testing and Extraction sector is Abattis Bioceuticals Corp (CSE: ATT – OTCQB: ATTBF), which we will review in length below, along with a few other key players at the moment.

The overall optimism led researchers at New Frontier Data to project that the cannabis industry will have created a whopping 283,422 jobs, grow to and generate $2.3 Billion in tax revenue—both by 2020.²

The same study predicted that the sector as a whole will grow to $24.1 Billion by 2025.

But in order to maintain the course in order to get to $24 Billion, here are 3 Cannabis Trends That Will Ensure the Sector’s Meteoric Rise (and the example companies that go with them)

– Our first and favourite sector may surprise you because it is not actually the cultivation sector, it’s going to be way bigger, and we’ve found a company that is literally untouched as noted below in our first example –

1.  BETTER TESTING AND EXTRACTION
   

   Company: Abattis Bioceuticals Corp (CSE: ATT – OTCQB: ATTBF)

   Mkt Cap: $15.21M

   Still very early in its company’s story, Abattis has wisely burst onto the scene as a tester.  Wasting no time in getting its cannabis testing facility opened in Langley, BC, ahead of Canada’s full-scale legalization⁴ of cannabis expected by July 1, 2018, Abattis swiftly got itself into the game and already has garnered revenues.

   Abattis Bioceuticals’ subsidiary Northern Vine Labs opened its doors in May 2017, to serve the rising demand for cannabis testing. The company had been pursuing that license since 2014, and officially became licensed in October 2016.

   What is cannabis testing?

   In order to maintain quality control, and meet both regulatory, and market demands, cannabis laboratories test for potency, purity, and details such as terpene counts. Testing also protects the consumer by screening for contaminants such as bacteria, heavy metals, and unapproved pesticides.

   (For more information on Health Canada’s mandatory testing on medical cannabis click here. )

   For the 52 licensed producers in Canada, Health Canada introduced random testing to address these issues. Abattis’s facility is just 1 of 30 approved facilities in Canada, and one of the eight in BC’s lower mainland. Even better, Abattis is the only company available on the public markets, making it a solid choice in this sector. Once recreational cannabis becomes available in mid-2018, everyone will have to use a facility like what Abattis already has a leg up on, so keep that in mind while the PPS is low here.

   So what exactly is the demand for cannabis testing like?

   The global cannabis testing market is expected to grow at a compound annual growth rate of 11.5%, culminating towards a $1.42 billion market by 2021.⁵

   In order to hit the shelves, producers will need to have an accurate depiction of the drug’s potency, including the levels of the most sought after medicinal components of cannabis, THC and CBD. To do that, even the mega producers will require a third party to test their product before it goes to market.

   Abattis is smartly staking itself as a leader in the testing field, having built a lab, and staffed it with industry experts to ensure the quality standard they promise the sector.

   The Northern Vine Labs facility will not just be used for testing, however. Another major component to the facility will be in extraction and formulation.

   This means that the company will be involved in innovation of methods to extract medicinal components from cannabis on a massive industrial scale, and to formulate them for consumer products.

   As a cooperative arm of the company to run in conjunction with Northern Vine Labs, Abattis has formed another subsidiary called Vergence, in order to market and sell natural, safe, and effective health products.

   Those products will target reducing pain caused from inflammation, boost immunity, and increase nutrient absorption. As natural remedies, these products will likely reach the market faster than a pharmaceutical product would, without the lengthy and costly clinical trials.

   According to the CBD Report published by The Hemp Business Journal, the US hemp-derived CBD market will total approximately $115 million this year, with an estimate to grow to $2.1 billion by 2020.⁶

   Abattis is tight-lipped about its ability to extract cannabinoids and terpenoids from cannabis at its facilities, however, it hasn’t been shy about hinting that it aims to be a leader in the extraction space. There’s a possibility that extraction will overtake testing as the company’s primary revenue model in the future.

    

   ---

2.  MORE MEDICAL USES

   Company: Cara Therapeutics (CARA)

   Mkt Cap: $495M

   After a wild month that saw Cara Therapeutics rise to $26 per share, and plummeting to $12 per share within a week, this giant is on its way back to stardom.

   The bounce back came on the announcement of encouraging data from its phase 1 trials of oral CR845, as a treatment for pain and itching in patients with chronic kidney disease and undergoing hemodialysis. All tested doses were well tolerated when administrated daily.

   This came as a relief for shareholders after they saw the value of the company drop upon the same drug’s treatment for patients with osteoarthritis (OA) of the hip or knee. Lower doses achieved statistical significance. Only the highest dose received statistical significance. It’s still possible based on those results to test higher doses for significance.

   Medical marijuana sales, from pharmaceutical extracts to medically cultivated flowers, currently make up the lion’s share of the cannabis sector. Medical sales in 2017 are projected to grow to $5.3 billion in 2017, and account for 67% of total cannabis sales.²

   That means that medical cannabis patients are outspending adult-use consumers at a nearly 3 to 1 basis.

   While medical sales are projected to exceed $13.2 billion by 2020, the medical share of the total cannabis sales is expected to drop to 55% of all sales as well.

   Much of that has to do with the recreational legalization in larger states, like California, and in holiday states like Nevada.

   As cannabis stocks fly, the developers of new medicinal applications and products stand to make the most gains.

   While Cara fluctuated during its trials, new drug development was the reason that AXIM Biotechnologies (NASDAQ: AXIM) absolutely crushed it in 2016-17.

   As stated earlier, the average marijuana stock rose 332% over the last year.

   Much of that increase is skewed by the meteoric rise of AXIM Biotechnologies, whose year-over-year increase was 2,363%.

   You read that right.

   A large portion of that success can be attributed to the development of AXIM’s CanChew Plus Chewing Gum, used for the treatment of irritable bowel syndrome—or IBS. Used as an alternative delivery system to inhalation, CanChew tapped into the act of chewing which bypasses the gastrointestinal system and improves the bioavailability of cannabinoids.³

   Because medical uses for cannabis are still in their infancy, there are plenty of repeatable AXIM-like stories out there yet to be told.

3. ENSURING A SUPPLY CHAIN SURPLUS

          Aurora Cannabis – ACBFF, ACB

          Mkt Cap: $941.6M

Second only to Axim over the last year was top performer Aurora Cannabis (NASDAQ:ACBFF)(TSX: ACB), which grew 465% year-over-year, rising from a low of $0.30 to $2.59 and a market cap just a shade under a Billion, at $941.6 million.

The company’s well deserved move to the TSX from the TSX venture this week is a pat on the back for a solid year that included record yields at Aurora’s Mountain View County production facility, and on the anticipation of the opening of its 100,000+ kg Aurora Sky facility to be located near the Edmonton International Airport.

With the nearing completion of a third production facility in Pointe-Claire, Quebec, Aurora’s production capacity is skyrocketing.

But supplies are still lagging in the market as a whole, especially after shelves emptied rapidly in Nevada after the state began adult-use sales on July 1.

Supply issues reached such dire levels, that Nevada Governor Brian Sandoval had to issue a state of emergency to allow state officials to decide on new rules to ease the shortage.⁷

As Canada (where Aurora is headquartered) inches closer to nation-wide marijuana legalization, it’s doubtful that the country will encounter the same scale of supply problems that hit Nevada.⁸ Especially with massive production coming from companies such as Aurora.

With other major Canadian producers, such as Canopy Growth Corp. (TSX: WEED) growing for both the North American and German markets, it’ll be interesting to see how supplies meet demand on a global scale.

GOING FORWARD

As a medicine, cannabis has still not been registered as a medicine in any country, and only a small number of cannabinoid medicines have reached the market.

With over 100 cannabinoids, and over 700 other compounds such as flavonoids and terpenes, the cannabis plant is still barely understood, as the legality over researching it, and testing its benefits has provided hurdles until recently.⁹

Public perception of the drug has changed significantly over the past decade, with it being seen more favourably than ever.

According to a survey² done by New Frontier Data and Full Circle Research this January, 55% of respondents believed “cannabis should be legalized, regulated and taxed like cigarettes and alcohol”, and an additional 26% believed it should at least be “legal for medical use with a doctor’s recommendation.”

In fact, only 9% responded that cannabis should be illegal. Overall, 63% of those surveyed believed that the federal government should legalize cannabis, and 86% believed it has valid medical uses.

In 2016, 4 out of the 5 US states that voted on adult-use of cannabis passed legalization initiatives, with an average adult-use vote of 53% in favour. And all 4 states that voted on medical use passed their initiatives, with an average medical use vote of 62%.

For those that still hold doubt to the growth potential of the cannabis sector, there’s really nothing that will convince you. Sales are growing significantly for retailers, even as more retailers hit the scene.

In order to maintain this growth pattern, industry players will need to provide the market with More Medical Uses, Better Testing and Extraction, and to Ensure Supplies.

For American News Group

By G. Joel Chury

Edited by; American News Group Editorial Staff

FOOTNOTES:

1 – Motley Fool (July 2017) – The Average Marijuana Stock is up 332% over the past year

https://www.fool.com/investing/2017/07/24/the-average-marijuana-stock-is-up-332-over-the-tra.aspx?yptr=yahoo

2 – New Frontier Data – The Cannabis Industry Annual Report: 2017 Legal Marijuana Outlook

https://newfrontierdata.com/wp-content/uploads/2015/11/CIAR_Webinar_FINAL.pdf

3 – YAHOO! Finance – AXIM Biotech: Cannabinoid Potential Worth the Complexity

https://finance.yahoo.com/news/axim-biotech-cannabinoid-potential-worth-130000914.html

4 – Toronto Star – Trudeau government to legalize marijuana by Canada Day 2018: reports

https://www.thestar.com/news/canada/2017/03/26/trudeau-government-to-legalize-marijuana-by-canada-day-2018-reports.html

5 – Markets and Markets (March 2017) – Cannabis Testing Market by Product & Software (LC, GC, Spectroscopy (MS, Atomic), Column, Standards, Accessories, LIMS), Service (Potency, Pesticides, Heavy Metal, Genetic Testing), End User (Lab, Pharmaceutical, Research) – Global Forecast to 2021

https://www.marketsandmarkets.com/Market-Reports/cannabis-testing-market-46932450.html

6 – Hemp Business Journal – The CBD Report

https://www.hempbizjournal.com/the-cbd-report/

7 – Fox News (July 2017) – Nevada marijuana supply running low, state of emergency declared, governor says

https://www.foxnews.com/us/2017/07/11/nevada-marijuana-supply-running-low-state-emergency-declared-governor-says.html

8 – Fortune Magazine – Here’s Why Nevada’s Marijuana Supply Can’t Keep up with Sales

https://fortune.com/2017/07/12/nevada-marijuana-taxes-shortage/

9 – The Medicine Maker (June 2017) – Cannabis Complex

https://themedicinemaker.com/issues/0617/cannabis-complex/

Disclaimer: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Americannewsgroup.com is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Abattis Bioceuticals Corp. from the company direct of ten thousand canadian dollars, as well as two hundred and fifty thousand free trading shares of ATT.CN for advertising and digital media. There may be 3rd parties who may have shares of Abattis Bioceuticals Corp., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision. We have no intentions of selling any shares within the next 72 hours of this publishing date (August 9, 2017), but reserve the right to buy and sell shares thereafter without any further notice.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment

After what was easily the hottest year for cannabis stocks, expectations on the legal marijuana related sector are higher than ever.

What remains to be of concern, is how this rapidly developing sector can maintain its growth into the future.

Of the dozen main players in the space, the average marijuana stock is up 332% over the past year.¹

The overall optimism led researchers at New Frontier Data to project that the cannabis industry will have created a whopping 283,422 jobs, grow to and generate $2.3 Billion in tax revenue—both by 2020.²

The same study predicted that the sector as a whole will grow to $24.1 Billion by 2025.

But in order to maintain the course in order to get to $24 Billion, here are 3 Cannabis Trends That Will Ensure the Sector’s Meteoric Rise (and the example companies that go with them)

– Our first and favourite sector may surprise you because it is not actually the cultivation sector, it’s going to be way bigger, and we’ve found a company that is literally untouched as noted below in our first example –

1.  BETTER TESTING AND EXTRACTION
   

   Company: Abattis Bioceuticals Corp (CSE: ATT – OTCQB: ATTBF)

   Mkt Cap: $15.21M

   Still very early in its company’s story, Abattis has wisely burst onto the scene as a tester.  Wasting no time in getting its cannabis testing facility opened in Langley, BC, ahead of Canada’s full-scale legalization⁴ of cannabis expected by July 1, 2018, Abattis swiftly got itself into the game and already has garnered revenues.

   Abattis Bioceuticals’ subsidiary Northern Vine Labs opened its doors in May 2017, to serve the rising demand for cannabis testing. The company had been pursuing that license since 2014, and officially became licensed in October 2016.

   What is cannabis testing?

   In order to maintain quality control, and meet both regulatory, and market demands, cannabis laboratories test for potency, purity, and details such as terpene counts. Testing also protects the consumer by screening for contaminants such as bacteria, heavy metals, and unapproved pesticides.

   (For more information on Health Canada’s mandatory testing on medical cannabis click here. )

   For the 52 licensed producers in Canada, Health Canada introduced random testing to address these issues. Abattis’s facility is just 1 of 30 approved facilities in Canada, and one of the eight in BC’s lower mainland. Even better, Abattis is the only company available on the public markets, making it a solid choice in this sector. Once recreational cannabis becomes available in mid-2018, everyone will have to use a facility like what Abattis already has a leg up on, so keep that in mind while the PPS is low here.

   So what exactly is the demand for cannabis testing like?

   The global cannabis testing market is expected to grow at a compound annual growth rate of 11.5%, culminating towards a $1.42 billion market by 2021.⁵

   In order to hit the shelves, producers will need to have an accurate depiction of the drug’s potency, including the levels of the most sought after medicinal components of cannabis, THC and CBD. To do that, even the mega producers will require a third party to test their product before it goes to market.

   Abattis is smartly staking itself as a leader in the testing field, having built a lab, and staffed it with industry experts to ensure the quality standard they promise the sector.

   The Northern Vine Labs facility will not just be used for testing, however. Another major component to the facility will be in extraction and formulation.

   This means that the company will be involved in innovation of methods to extract medicinal components from cannabis on a massive industrial scale, and to formulate them for consumer products.

   As a cooperative arm of the company to run in conjunction with Northern Vine Labs, Abattis has formed another subsidiary called Vergence, in order to market and sell natural, safe, and effective health products.

   Those products will target reducing pain caused from inflammation, boost immunity, and increase nutrient absorption. As natural remedies, these products will likely reach the market faster than a pharmaceutical product would, without the lengthy and costly clinical trials.

   According to the CBD Report published by The Hemp Business Journal, the US hemp-derived CBD market will total approximately $115 million this year, with an estimate to grow to $2.1 billion by 2020.⁶

   Abattis is tight-lipped about its ability to extract cannabinoids and terpenoids from cannabis at its facilities, however, it hasn’t been shy about hinting that it aims to be a leader in the extraction space. There’s a possibility that extraction will overtake testing as the company’s primary revenue model in the future.

    

   ---

2.  MORE MEDICAL USES

   Company: Cara Therapeutics (CARA)

   Mkt Cap: $495M

   After a wild month that saw Cara Therapeutics rise to $26 per share, and plummeting to $12 per share within a week, this giant is on its way back to stardom.

   The bounce back came on the announcement of encouraging data from its phase 1 trials of oral CR845, as a treatment for pain and itching in patients with chronic kidney disease and undergoing hemodialysis. All tested doses were well tolerated when administrated daily.

   This came as a relief for shareholders after they saw the value of the company drop upon the same drug’s treatment for patients with osteoarthritis (OA) of the hip or knee. Lower doses achieved statistical significance. Only the highest dose received statistical significance. It’s still possible based on those results to test higher doses for significance.

   Medical marijuana sales, from pharmaceutical extracts to medically cultivated flowers, currently make up the lion’s share of the cannabis sector. Medical sales in 2017 are projected to grow to $5.3 billion in 2017, and account for 67% of total cannabis sales.²

   That means that medical cannabis patients are outspending adult-use consumers at a nearly 3 to 1 basis.

   While medical sales are projected to exceed $13.2 billion by 2020, the medical share of the total cannabis sales is expected to drop to 55% of all sales as well.

   Much of that has to do with the recreational legalization in larger states, like California, and in holiday states like Nevada.

   As cannabis stocks fly, the developers of new medicinal applications and products stand to make the most gains.

   While Cara fluctuated during its trials, new drug development was the reason that AXIM Biotechnologies (NASDAQ: AXIM) absolutely crushed it in 2016-17.

   As stated earlier, the average marijuana stock rose 332% over the last year.

   Much of that increase is skewed by the meteoric rise of AXIM Biotechnologies, whose year-over-year increase was 2,363%.

   You read that right.

   A large portion of that success can be attributed to the development of AXIM’s CanChew Plus Chewing Gum, used for the treatment of irritable bowel syndrome—or IBS. Used as an alternative delivery system to inhalation, CanChew tapped into the act of chewing which bypasses the gastrointestinal system and improves the bioavailability of cannabinoids.³

   Because medical uses for cannabis are still in their infancy, there are plenty of repeatable AXIM-like stories out there yet to be told.

3. ENSURING A SUPPLY CHAIN SURPLUS

          Aurora Cannabis – ACBFF, ACB

          Mkt Cap: $941.6M

Second only to Axim over the last year was top performer Aurora Cannabis (NASDAQ:ACBFF)(TSX: ACB), which grew 465% year-over-year, rising from a low of $0.30 to $2.59 and a market cap just a shade under a Billion, at $941.6 million.

The company’s well deserved move to the TSX from the TSX venture this week is a pat on the back for a solid year that included record yields at Aurora’s Mountain View County production facility, and on the anticipation of the opening of its 100,000+ kg Aurora Sky facility to be located near the Edmonton International Airport.

With the nearing completion of a third production facility in Pointe-Claire, Quebec, Aurora’s production capacity is skyrocketing.

But supplies are still lagging in the market as a whole, especially after shelves emptied rapidly in Nevada after the state began adult-use sales on July 1.

Supply issues reached such dire levels, that Nevada Governor Brian Sandoval had to issue a state of emergency to allow state officials to decide on new rules to ease the shortage.⁷

As Canada (where Aurora is headquartered) inches closer to nation-wide marijuana legalization, it’s doubtful that the country will encounter the same scale of supply problems that hit Nevada.⁸ Especially with massive production coming from companies such as Aurora.

With other major Canadian producers, such as Canopy Growth Corp. (TSX: WEED) growing for both the North American and German markets, it’ll be interesting to see how supplies meet demand on a global scale.

GOING FORWARD

As a medicine, cannabis has still not been registered as a medicine in any country, and only a small number of cannabinoid medicines have reached the market.

With over 100 cannabinoids, and over 700 other compounds such as flavonoids and terpenes, the cannabis plant is still barely understood, as the legality over researching it, and testing its benefits has provided hurdles until recently.⁹

Public perception of the drug has changed significantly over the past decade, with it being seen more favourably than ever.

According to a survey² done by New Frontier Data and Full Circle Research this January, 55% of respondents believed “cannabis should be legalized, regulated and taxed like cigarettes and alcohol”, and an additional 26% believed it should at least be “legal for medical use with a doctor’s recommendation.”

In fact, only 9% responded that cannabis should be illegal. Overall, 63% of those surveyed believed that the federal government should legalize cannabis, and 86% believed it has valid medical uses.

In 2016, 4 out of the 5 US states that voted on adult-use of cannabis passed legalization initiatives, with an average adult-use vote of 53% in favour. And all 4 states that voted on medical use passed their initiatives, with an average medical use vote of 62%.

For those that still hold doubt to the growth potential of the cannabis sector, there’s really nothing that will convince you. Sales are growing significantly for retailers, even as more retailers hit the scene.

In order to maintain this growth pattern, industry players will need to provide the market with More Medical Uses, Better Testing and Extraction, and to Ensure Supplies.

For American News Group

By G. Joel Chury

Edited by; American News Group Editorial Staff

FOOTNOTES:

1 – Motley Fool (July 2017) – The Average Marijuana Stock is up 332% over the past year

https://www.fool.com/investing/2017/07/24/the-average-marijuana-stock-is-up-332-over-the-tra.aspx?yptr=yahoo

2 – New Frontier Data – The Cannabis Industry Annual Report: 2017 Legal Marijuana Outlook

https://newfrontierdata.com/wp-content/uploads/2015/11/CIAR_Webinar_FINAL.pdf

3 – YAHOO! Finance – AXIM Biotech: Cannabinoid Potential Worth the Complexity

https://finance.yahoo.com/news/axim-biotech-cannabinoid-potential-worth-130000914.html

4 – Toronto Star – Trudeau government to legalize marijuana by Canada Day 2018: reports

https://www.thestar.com/news/canada/2017/03/26/trudeau-government-to-legalize-marijuana-by-canada-day-2018-reports.html

5 – Markets and Markets (March 2017) – Cannabis Testing Market by Product & Software (LC, GC, Spectroscopy (MS, Atomic), Column, Standards, Accessories, LIMS), Service (Potency, Pesticides, Heavy Metal, Genetic Testing), End User (Lab, Pharmaceutical, Research) – Global Forecast to 2021

https://www.marketsandmarkets.com/Market-Reports/cannabis-testing-market-46932450.html

6 – Hemp Business Journal – The CBD Report

https://www.hempbizjournal.com/the-cbd-report/

7 – Fox News (July 2017) – Nevada marijuana supply running low, state of emergency declared, governor says

https://www.foxnews.com/us/2017/07/11/nevada-marijuana-supply-running-low-state-emergency-declared-governor-says.html

8 – Fortune Magazine – Here’s Why Nevada’s Marijuana Supply Can’t Keep up with Sales

https://fortune.com/2017/07/12/nevada-marijuana-taxes-shortage/

9 – The Medicine Maker (June 2017) – Cannabis Complex

https://themedicinemaker.com/issues/0617/cannabis-complex/

Disclaimer: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Americannewsgroup.com is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Abattis Bioceuticals Corp. from the company direct of ten thousand canadian dollars, as well as two hundred and fifty thousand free trading shares of ATT.CN for advertising and digital media. There may be 3rd parties who may have shares of Abattis Bioceuticals Corp., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision. We have no intentions of selling any shares within the next 72 hours of this publishing date (August 9, 2017), but reserve the right to buy and sell shares thereafter without any further notice.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment

After what was easily the hottest year for cannabis stocks, expectations on the legal marijuana related sector are higher than ever.

What remains to be of concern, is how this rapidly developing sector can maintain its growth into the future.

Of the dozen main players in the space, the average marijuana stock is up 332% over the past year.¹

The overall optimism led researchers at New Frontier Data to project that the cannabis industry will have created a whopping 283,422 jobs, grow to and generate $2.3 Billion in tax revenue—both by 2020.²

The same study predicted that the sector as a whole will grow to $24.1 Billion by 2025.

But in order to maintain the course in order to get to $24 Billion, here are 3 Cannabis Trends That Will Ensure the Sector’s Meteoric Rise (and the example companies that go with them)

– Our first and favourite sector may surprise you because it is not actually the cultivation sector, it’s going to be way bigger, and we’ve found a company that is literally untouched as noted below in our first example –

1.  BETTER TESTING AND EXTRACTION
   

   Company: Abattis Bioceuticals Corp (CSE: ATT – OTCQB: ATTBF)

   Mkt Cap: $15.21M

   Still very early in its company’s story, Abattis has wisely burst onto the scene as a tester.  Wasting no time in getting its cannabis testing facility opened in Langley, BC, ahead of Canada’s full-scale legalization⁴ of cannabis expected by July 1, 2018, Abattis swiftly got itself into the game and already has garnered revenues.

   Abattis Bioceuticals’ subsidiary Northern Vine Labs opened its doors in May 2017, to serve the rising demand for cannabis testing. The company had been pursuing that license since 2014, and officially became licensed in October 2016.

   What is cannabis testing?

   In order to maintain quality control, and meet both regulatory, and market demands, cannabis laboratories test for potency, purity, and details such as terpene counts. Testing also protects the consumer by screening for contaminants such as bacteria, heavy metals, and unapproved pesticides.

   (For more information on Health Canada’s mandatory testing on medical cannabis click here. )

   For the 52 licensed producers in Canada, Health Canada introduced random testing to address these issues. Abattis’s facility is just 1 of 30 approved facilities in Canada, and one of the eight in BC’s lower mainland. Even better, Abattis is the only company available on the public markets, making it a solid choice in this sector. Once recreational cannabis becomes available in mid-2018, everyone will have to use a facility like what Abattis already has a leg up on, so keep that in mind while the PPS is low here.

   So what exactly is the demand for cannabis testing like?

   The global cannabis testing market is expected to grow at a compound annual growth rate of 11.5%, culminating towards a $1.42 billion market by 2021.⁵

   In order to hit the shelves, producers will need to have an accurate depiction of the drug’s potency, including the levels of the most sought after medicinal components of cannabis, THC and CBD. To do that, even the mega producers will require a third party to test their product before it goes to market.

   Abattis is smartly staking itself as a leader in the testing field, having built a lab, and staffed it with industry experts to ensure the quality standard they promise the sector.

   The Northern Vine Labs facility will not just be used for testing, however. Another major component to the facility will be in extraction and formulation.

   This means that the company will be involved in innovation of methods to extract medicinal components from cannabis on a massive industrial scale, and to formulate them for consumer products.

   As a cooperative arm of the company to run in conjunction with Northern Vine Labs, Abattis has formed another subsidiary called Vergence, in order to market and sell natural, safe, and effective health products.

   Those products will target reducing pain caused from inflammation, boost immunity, and increase nutrient absorption. As natural remedies, these products will likely reach the market faster than a pharmaceutical product would, without the lengthy and costly clinical trials.

   According to the CBD Report published by The Hemp Business Journal, the US hemp-derived CBD market will total approximately $115 million this year, with an estimate to grow to $2.1 billion by 2020.⁶

   Abattis is tight-lipped about its ability to extract cannabinoids and terpenoids from cannabis at its facilities, however, it hasn’t been shy about hinting that it aims to be a leader in the extraction space. There’s a possibility that extraction will overtake testing as the company’s primary revenue model in the future.

    

   ---

2.  MORE MEDICAL USES

   Company: Cara Therapeutics (CARA)

   Mkt Cap: $495M

   After a wild month that saw Cara Therapeutics rise to $26 per share, and plummeting to $12 per share within a week, this giant is on its way back to stardom.

   The bounce back came on the announcement of encouraging data from its phase 1 trials of oral CR845, as a treatment for pain and itching in patients with chronic kidney disease and undergoing hemodialysis. All tested doses were well tolerated when administrated daily.

   This came as a relief for shareholders after they saw the value of the company drop upon the same drug’s treatment for patients with osteoarthritis (OA) of the hip or knee. Lower doses achieved statistical significance. Only the highest dose received statistical significance. It’s still possible based on those results to test higher doses for significance.

   Medical marijuana sales, from pharmaceutical extracts to medically cultivated flowers, currently make up the lion’s share of the cannabis sector. Medical sales in 2017 are projected to grow to $5.3 billion in 2017, and account for 67% of total cannabis sales.²

   That means that medical cannabis patients are outspending adult-use consumers at a nearly 3 to 1 basis.

   While medical sales are projected to exceed $13.2 billion by 2020, the medical share of the total cannabis sales is expected to drop to 55% of all sales as well.

   Much of that has to do with the recreational legalization in larger states, like California, and in holiday states like Nevada.

   As cannabis stocks fly, the developers of new medicinal applications and products stand to make the most gains.

   While Cara fluctuated during its trials, new drug development was the reason that AXIM Biotechnologies (NASDAQ: AXIM) absolutely crushed it in 2016-17.

   As stated earlier, the average marijuana stock rose 332% over the last year.

   Much of that increase is skewed by the meteoric rise of AXIM Biotechnologies, whose year-over-year increase was 2,363%.

   You read that right.

   A large portion of that success can be attributed to the development of AXIM’s CanChew Plus Chewing Gum, used for the treatment of irritable bowel syndrome—or IBS. Used as an alternative delivery system to inhalation, CanChew tapped into the act of chewing which bypasses the gastrointestinal system and improves the bioavailability of cannabinoids.³

   Because medical uses for cannabis are still in their infancy, there are plenty of repeatable AXIM-like stories out there yet to be told.

3. ENSURING A SUPPLY CHAIN SURPLUS

          Aurora Cannabis – ACBFF, ACB

          Mkt Cap: $941.6M

Second only to Axim over the last year was top performer Aurora Cannabis (NASDAQ:ACBFF)(TSX: ACB), which grew 465% year-over-year, rising from a low of $0.30 to $2.59 and a market cap just a shade under a Billion, at $941.6 million.

The company’s well deserved move to the TSX from the TSX venture this week is a pat on the back for a solid year that included record yields at Aurora’s Mountain View County production facility, and on the anticipation of the opening of its 100,000+ kg Aurora Sky facility to be located near the Edmonton International Airport.

With the nearing completion of a third production facility in Pointe-Claire, Quebec, Aurora’s production capacity is skyrocketing.

But supplies are still lagging in the market as a whole, especially after shelves emptied rapidly in Nevada after the state began adult-use sales on July 1.

Supply issues reached such dire levels, that Nevada Governor Brian Sandoval had to issue a state of emergency to allow state officials to decide on new rules to ease the shortage.⁷

As Canada (where Aurora is headquartered) inches closer to nation-wide marijuana legalization, it’s doubtful that the country will encounter the same scale of supply problems that hit Nevada.⁸ Especially with massive production coming from companies such as Aurora.

With other major Canadian producers, such as Canopy Growth Corp. (TSX: WEED) growing for both the North American and German markets, it’ll be interesting to see how supplies meet demand on a global scale.

GOING FORWARD

As a medicine, cannabis has still not been registered as a medicine in any country, and only a small number of cannabinoid medicines have reached the market.

With over 100 cannabinoids, and over 700 other compounds such as flavonoids and terpenes, the cannabis plant is still barely understood, as the legality over researching it, and testing its benefits has provided hurdles until recently.⁹

Public perception of the drug has changed significantly over the past decade, with it being seen more favourably than ever.

According to a survey² done by New Frontier Data and Full Circle Research this January, 55% of respondents believed “cannabis should be legalized, regulated and taxed like cigarettes and alcohol”, and an additional 26% believed it should at least be “legal for medical use with a doctor’s recommendation.”

In fact, only 9% responded that cannabis should be illegal. Overall, 63% of those surveyed believed that the federal government should legalize cannabis, and 86% believed it has valid medical uses.

In 2016, 4 out of the 5 US states that voted on adult-use of cannabis passed legalization initiatives, with an average adult-use vote of 53% in favour. And all 4 states that voted on medical use passed their initiatives, with an average medical use vote of 62%.

For those that still hold doubt to the growth potential of the cannabis sector, there’s really nothing that will convince you. Sales are growing significantly for retailers, even as more retailers hit the scene.

In order to maintain this growth pattern, industry players will need to provide the market with More Medical Uses, Better Testing and Extraction, and to Ensure Supplies.

For American News Group

By G. Joel Chury

Edited by; American News Group Editorial Staff

FOOTNOTES:

1 – Motley Fool (July 2017) – The Average Marijuana Stock is up 332% over the past year

https://www.fool.com/investing/2017/07/24/the-average-marijuana-stock-is-up-332-over-the-tra.aspx?yptr=yahoo

2 – New Frontier Data – The Cannabis Industry Annual Report: 2017 Legal Marijuana Outlook

https://newfrontierdata.com/wp-content/uploads/2015/11/CIAR_Webinar_FINAL.pdf

3 – YAHOO! Finance – AXIM Biotech: Cannabinoid Potential Worth the Complexity

https://finance.yahoo.com/news/axim-biotech-cannabinoid-potential-worth-130000914.html

4 – Toronto Star – Trudeau government to legalize marijuana by Canada Day 2018: reports

https://www.thestar.com/news/canada/2017/03/26/trudeau-government-to-legalize-marijuana-by-canada-day-2018-reports.html

5 – Markets and Markets (March 2017) – Cannabis Testing Market by Product & Software (LC, GC, Spectroscopy (MS, Atomic), Column, Standards, Accessories, LIMS), Service (Potency, Pesticides, Heavy Metal, Genetic Testing), End User (Lab, Pharmaceutical, Research) – Global Forecast to 2021

https://www.marketsandmarkets.com/Market-Reports/cannabis-testing-market-46932450.html

6 – Hemp Business Journal – The CBD Report

https://www.hempbizjournal.com/the-cbd-report/

7 – Fox News (July 2017) – Nevada marijuana supply running low, state of emergency declared, governor says

https://www.foxnews.com/us/2017/07/11/nevada-marijuana-supply-running-low-state-emergency-declared-governor-says.html

8 – Fortune Magazine – Here’s Why Nevada’s Marijuana Supply Can’t Keep up with Sales

https://fortune.com/2017/07/12/nevada-marijuana-taxes-shortage/

9 – The Medicine Maker (June 2017) – Cannabis Complex

https://themedicinemaker.com/issues/0617/cannabis-complex/

Disclaimer: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Americannewsgroup.com is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Abattis Bioceuticals Corp. from the company direct of ten thousand canadian dollars, as well as two hundred and fifty thousand free trading shares of ATT.CN for advertising and digital media. There may be 3rd parties who may have shares of Abattis Bioceuticals Corp., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision. We have no intentions of selling any shares within the next 72 hours of this publishing date (August 9, 2017), but reserve the right to buy and sell shares thereafter without any further notice.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment

How companies like Sports Endurance, Inc. (OTC: SENZ) are closing the gap with major supplement providers.

The Age of Supplements is upon us, as growth in the supplement sector continues at an incredible pace. And for investors, the opportunity couldn’t be more obvious.

According to the 2016 Consumer Survey on Dietary Supplements, conducted by Ipsos Public Affairs, 71% of US Adults take dietary supplements.

This represents a significant rise in adult usage, compared to a 2004 study by the Office of Dietary Supplements, National Institutes of Health, which resulted in only 52% taking dietary supplements.

But the increase in usage is only part of the story.

For investors, the appeal is through the actual scale of the dietary supplement market, which is reaching record levels each year. There are still plenty of opportunities to get in at an early stage with a contender before they take off.

According to a new economic impact report funded by the Council for Responsible Nutrition (CRN), the dietary supplement industry in the US alone is worth $121.6 billion.

And it just keeps growing…

Last month a Global Dietary Supplements Market 2017-2021 report predicted the global dietary supplements market will grow at a CAGR of 6.5 by 2021. And another outlet, Grand View Research, published a report in 2016 predicting the market would reach $278.02 billion by 2024, with the sports nutrition sector expected to be worth $37.16 billion.

U.S. dietary supplements market revenue, by end-use, 2013 – 2024 (USD Million)

Employing more than 750,000 Americans, and generating nearly $15 billion a year in tax revenues, the dietary supplement industry is quietly racking up major milestones, while making people rich.

Unlike the pharmaceutical industry, dietary supplements hold several major advantages from a profitability standpoint. Products in the supplement space don’t typically require lengthy and expensive FDA trials, or extensive development to address legitimate health concerns. Instead, products can be proven effective, and be on shelves in a much, much shorter time frame than their prescription based cousins from the pharma sector.

That’s why investors are looking for the next big supplement company to partake in—they don’t want to miss out on the next big supplement story like Herbalife [NYSE: HLF] has been over the last 10 years.

On the radar for investors looking for a blue-chipper with a lot of upside left is up-and-comer, Sports Endurance Inc. [OTC: SENZ], which carries many similar attributes of Herbalife’s early days, and a growth strategy backed by three effective flagship products: Ultra Peak T, Pain-Freeze Recovery Gel, and Sports Leg and Lung Formula which is now available on Amazon.

Given their high profit margins, and effective marketing strategies, Sports Endurance Inc. has specific strengths that put them ahead of the curve in the sector, and thus are this report’s Sector Spotlight.

SECTOR SPOTLIGHT: SPORTS ENDURANCE INC. [OTC: SENZ]
Mkt Cap: $61.8 million

With a focus on three areas of health that the company believes most directly impact the lives of active adults (Total Wellness, Performance, and Recovery), Sports Endurance Inc. is making strides with its flagship products Ultra Peak T, Pain-Freeze Recovery Gel, and Sports Leg and Lung Formula.

Ultra Peak T targets male testosterone issues, with its all natural formula built to reinvigorate male testosterone levels. The product’s nutrient and ingredient profile is supported by science, endorsed by researchers, and is considered an excellent supplement for men with low testosterone levels seeking alternative treatments to prescription drugs.

There has been an inexplicable generational drop in male testosterone levels, which has been in steady decline for the last few decades.

Low testosterone can have serious detrimental effects to male health, including declines in sex drive and sperm production, deteriorating muscle mass/strength, irregular fat distribution, loss of bone density, and negatively effecting red blood cell production. Low testosterone can also effect mood, sleep patterns, fatigue, and other life altering changes.

As the population ages, and more and more cases of low testosterone levels are diagnosed, there will be an influx of more effected men looking for treatments to pull them out of their low-t situation.

Ultra Peak T is supported by Tavis Piattoly (MS, RD, LDN), who holds the distinction as the Sports Dietitian and Nutrition Consultant for the NFLPA Brain and Body Program at the Tulane Institute of Sports Medicine, Covington Orthopedic, and Fairchild Sports Performance and prior roles as Dietitian for the New Orleans Saints, New Orleans Pelicans, and Tulane University Athletics (2002-2016).

While active males are definitely the target for Ultra Peak T, Sports Endurance does promote products across the genders, in particular athletes looking to boost their athletic performance.

Sports Leg and Lung is a pre-workout drink powder that is designed to boost performance for active adults across a spectrum of athletic activities. With its proprietary blend of primary ingredients that include the patented and clinically-tested performance ingredient, Carnosyn® Beta-alanine, and L-Taurine.

The product’s effectiveness has been solidly proven through Sports Endurance Inc’s studies which resulted in over 90% of test takers experiencing almost immediate benefits. In the endurance business, these are remarkable results.

Based on those two products alone, and the rapid growth in demand for their types of results, Sports Endurance has a bright future ahead for investors looking for an early entry point into the space.

Timing is everything, and Sports Endurance at this stage presents a rare opportunity to get in ahead of the curve.

Within the last 45 days, the stock was given a strong endorsement (72% BUY rating calculated from 13 indicators) by BarChart.com, and that was when the stock was at the $1 level. Technical analysis on SENZ pegged the company to have no problem reaching the $1.97 level, and very little has changed since that assessment was made.

Summer selling and other minor events have presented an even GREATER opportunity for SENZ as an investment, as the stock is now currently trading at just under $0.80. With the announcement of greater market access through selling products on Amazon, there is a pathway for SENZ to find its way back to the $2 level it has already seen in the last year, and with very little traded volume required to get it there.

Given that Ultra Peak T only hit the market 5 months ago, and Sports Leg and Lung followed only a month later, the company will only grow its product line out, and increase its marketing reach for its products further in the year ahead.

Investors who paid attention the growth story of Herbalife will remember its early beginnings with very few products to sell, but that it was backed by a very strong direct-sale strategy that now SENZ is implementing today.

Herbalife is now trading at over $67 per share, and has a market cap of over $6 billion. It was not an overnight success, however, over its company’s history, Herbalife has given its investors several climbing peaks, and smile-inducing dividends over the past decade.

There’s no denying that the business model works, creating impressive profits for marketers, distributors, and all other stakeholders in the company.

Thus there’s reason to see why Sports Endurance has the potential to endure the ride to highs that others in the sector have successfully hit.

At under $1 per share, Sports Endurance has plenty of upside left to carry the company and its investors to towering heights. The company continues to grow sales dramatically year-over-year, and there doesn’t seem to be any indicators of that pattern stopping any time soon. There are still plenty of products left for the company to develop and promote, each bringing new opportunities for market exposure, product diversification, and thus reinforcing the fact that right now is the time for any newcomer to see this as the perfect entry point.

SUPPLEMENT COMPARABLES

With the high profit margins, easier access to market, and growing demand in the sector, it’s no wonder that the dietary supplement space is attracting a faithful investment following.

High returns are the name of the game, and the nutritional supplement producers know this, as do their investors who were lucky enough to come across the space.

So, while SENZ still represents a golden opportunity to get an early start on yet another nutritional supplement growth story, it’s important to examine other players in the space.

Herbalife [NYSE: HLF]
Mkt Cap: $6.5 billion

Herbalife is possibly the most well-known supplement provider on the market. As a global multi-level marketing company that develops, markets, and sells nutrition supplements, weight management, sports nutrition, and personal-care products, Herbalife has grown since 1980 to its latest net sales level of $4.488 billion in 2016. However, the growth for the company was stagnant from 2015, which was practically on par with 2016, and a net income of $260 million, which was a 23% drop from the year prior.

USANA Health Sciences, Inc. [NYSE: USNA]
Mkt Cap: $1.41 billion

USANA is a network marketing company that like Herbalife also develops and manufactures nutritional, personal care, and weight-management products. USANA’s reach goes beyond just North American markets, as the company also boasts its subsidiary BabyCare, Ltd. which operates a similar business in China.

Natural Alternatives International, Inc. [NASDAQ: NAII]
Mkt Cap: $68 million

Natural Alternatives International produces customized nutritional supplements to address specific health conditions. With state-of-the-art manufacturing facilities in San Marcos, California and Lugano, Switzerland, and a sales presence in Yokohama, Japan, NAI fulfills the needs of its customers around the world. NAII has seen steady revenue and earnings growth, with 2016 being a strong year in particular with nearly 44% growth in revenue from $79.5 million in 2015 to $114.2 million in 2016. However, at its current stock price of $9.80, NAII needs to see some other gains to return to its 52-week high of $14.40.

RECOMMENDATION: SENZ GOING FORWARD

With room for significant expansion in its product line, and a history of aggressive marketing, Sports Endurance [SENZ] provides a rare opportunity at an affordable entry point for investors looking for nutritional supplement exposure.

The SENZ team has shown it can take initiative and aggressively market its product lines, while encouraging its growing client base with ample amounts of information through the company’s blogs, social media awareness campaigns, and steadily increasing amount of expert endorsements.

The general population is taking greater personal responsibility for their health, and SENZ is doing a lot of great things to insert itself as leaders in the personal health movement.

The nutritional and dietary supplement sector provides ample reasons to be bullish, and SENZ is adapting quickly to the market in order to establish itself among the heavy hitters such as Herbalife.

If SENZ can even capture one percent of the business that Herbalife and other majors in the sector have already proven is out there, it has the opportunity to be the most profitable nutrition stock you will own this year.

// USA News Group
Staff Writing Team

Disclaimer: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. usanewsgroup.com is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Sport Endurance, Inc. advertising and digital media. There may be 3rd parties who may have shares of SENZ, and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision. The owner/operator of USA News Group does not own any shares of SENZ.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment