The United States is not the only country in the world in which the trend of marijuana legalization is taking place. Canada is also experiencing a similar trend. Fulfilling a campaign pledge made during the last election cycle, Prime Minister Recreationa legislation on April 13, 2017 to legalize the recreational use of marijuana (cannabis) in Canada. There are a few hurdles that the proposed legislation will need to overcome, but most supporters are confident that it will eventually become law. Canada will become only the second nation, after Uruguay, to completely legalize marijuana as a consumer product.
Medical marijuana has been legal in Canada since 1999. Consequently, there already exists an established medical marijuana industry. The significant expansion of the industry to include the demand for the recreational use of marijuana for the entire country of Canada presents an excellent opportunity for companies that already have a foothold in the industry. CanniMed Therapeutics Inc (TSE: CMED)(OTCMKTS: CMMDF) is one such company.
CanniMed Therapeutics Inc. has only been publicly traded since December 21, 2016, when it made its initial public offering of 5 million common shares on the Toronto Stock Exchange (TXS) at an opening price of $12.00. The company’s IPO raised $60 million. CanniMed Therapeutics Inc. trades on the Toronto Stock Exchange, (TSX) under the ticker symbol CMED. The company also trades on the OTC market in the US under the ticker symbol CMMDF.
CanniMed Therapeutics Inc. is a Canadian-based, international plant biopharmaceutical company and a leader in the Canadian medical cannabis industry. CanniMed has an active plant biotechnology research and product development program focused on the production of plant-based materials for pharmaceutical, agricultural and environmental applications. CanniMed Ltd., a wholly-owned subsidiary of CMMDF, was the first producer to be licensed under the Marijuana for Medical Purposes Regulations (MMPR), the predecessor to the current Access to Cannabis for Medical Purposes Regulations (ACMPR).
Prairie Plant Systems Inc., also a wholly-owned subsidiary of CMMDF, was the sole supplier to Health Canada under the former medical marijuana system for 13 years, and has been producing safe and consistent medical marijuana for thousands of Canadian patients, with no incident of diversion. SubTerra LLC, another wholly-owned subsidiary of CMMDF is located in White Pine, Michigan, and is a key strategic asset in the Company’s longer-term strategy to service a growing medical cannabis market in the United States.
The company has since taken several noteworthy steps to further establish itself in the medical marijuana industry. On February 17, 2017, CanniMed Therapeutics Inc. and CTT Pharmaceutical Holdings Inc. (OTCMKTS: CTTH) entered into a definitive contractual relationship for the licensing of CTT’s Orally Dissolvable Thin Film (ODF) Wafer technology. This collaboration is the first of its kind in the industry, and includes the licensing of six patents related to cannabinoid and opioid delivery for pain management. This will enable CMMDF to exclusively develop and commercialize this novel, smoke-free, drug delivery system in Canada. Brent Zettl, President and CEO, CanniMed Therapeutics Inc. commented:
“The CanniMed ODF Wafers will complement the already well-integrated line of CanniMed® Oil products we have in market, broadening our ability to provide patients with standardized, dose-sensitive and discrete delivery systems. Collaborations with innovative companies such as CTT Pharma, and continued research and development into products that will further position medical cannabis as an important therapeutic option is a core focus of our company.”
On March 02, 2017, CanniMed and PharmaChoice signed a letter of intent to collaborate on pharmacist education and the distribution, sale and marketing of medical cannabis products. PharmaChoice is a member-owned cooperative that represents more than 700 independent pharmacy owners across Canada. This industry-leading collaboration will see CanniMed responsible for producing and delivering accredited pharmacy education programs to PharmaChoice pharmacists and pharmacy technicians across Canada. In addition, CanniMed and PharmaChoice intend to enter a definitive agreement for distribution of medical cannabis through PharmaChoice pharmacists in Canada upon completion of the first provincial legislation change that allows such distribution.
On March 22, 2017, CanniMed announced the receipt, through its wholly-owned subsidiary Prairie Plant Systems Inc., of the Company’s first two Health Canada issued export permits for medical cannabis oils. In addition, the Company has received initial purchase orders for all three CanniMed® Oils for distribution to both Australia and the Cayman Islands for pharmacy dispensing.
CMMDF stock is currently trading at $9.08. Current market capitalization stands at $206.08 million, on 3.67 million shares outstanding as of March 16, 2017. Fourth quarter financials for 2016 report $3.4 million in sales, an increase of 93% over the same period of the prior year. We expect this growth to continue, especially with recreational marijuana legalization on the horizon.
credit:insiderfinancial.com
