• CannaRoyalty Corp. (CNNRF) and (CSE:CRZ), has a unique business model in the cannabis space that minimizes risk and maximizes reward
  • Has 22 strategic, diverse cannabis assets throughout North America
  • Just one $850,000 investment in one cannabis asset now valued at $7.1M
  • Exceptionally strong management team and board of directors positioning company to capitalize on high-growth cannabis market

This article will provide an overview of CannaRoyalty’s intriguing business model and distinguished management team, and identify the company’s diversified cannabis assets. A future article will take closer look at the CannaRoyalty assets and determine a valuation range for the company.


CannaRoyalty Corp. at a glance:

Tickers: (OTC:CNNRF), (CSE:CRZ)
Shares outstanding: 42.5 million
Recent Price 4/17/17: $1.82 USD
Market cap: $78.6 million
Float: 31.4 million
Insider ownership: 20%
Web site

 

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CannaRoyalty Corp. is a fully integrated, active investor and operator in the legal cannabis sector. The Company’s focus is to build and support a diversified portfolio of growth-ready assets in key segments of the cannabis sector, including research, consumer brands, devices and intellectual property. CannaRoyalty’s management team combines a hands-on understanding of the cannabis industry with seasoned financial know-how, assembling a platform of holdings via royalty agreements, equity interests, secured convertible debt and licensing agreements.

CannaRoyalty was formed in late 2014 and began trading publicly on December 8th of 2016.


CannaRoyalty’s $850,000 Investment in Resolve Digital Health Grows to $7.1M Asset

CannaRoyalty’s December 2015 $850,000 investment in Resolve Digital Health is a perfect example of an early win for CannaRoyalty and the company’s business model.

Resolve Digital is launching the world’s first smart inhaler for medical cannabis to help patients suffering from cancer, arthritis, migraine headaches, chronic pain and other diseases. The company’s Breeze Smart Inhaler connects with the user’s smart phone to deliver rich information and integrated care. CannaRoyalty Smart Breeze Inhaler

 

The system uses color-coded, modular Smart Pods with preloaded extracts or dried herb tuned to users’ specific health condition. Together, the Breeze Smart Inhaler and Smart Pods create a complete system that patients and health care professionals can rely on to assure well-monitored, well-informed and holistic cannabis treatments.

 

CannaRoyalty Smart Pods from Resolve Digital Health

In late March, Resolve Digital Health announced the completion of a $5M Series A financing that values the company at just over $25.6 million CAD. See also “Resolve Digital Health Lands $5M to Launch First Smart Inhaler for Medical Cannabis.”

As a result, CannaRoyalty’s $850,000 investment in Resolve Digital Health back in December of 2015 now has an implied value of $7.1M, with CannaRoyalty owning 27.2% of existing shares. 

Marc Lustig, CEO of CannaRoyalty stated:

“We are thrilled about participating in the closing of this financing. It provides third party validation of our initial investment in Resolve at a significantly higher valuation. It is an example of the success of our business model that includes identifying high-value cannabis assets, partnering through investment and assisting in the growth and commercialization of brands, products and devices – while increasing value for our shareholders.”

Resolve Digital is launching the Smart Breeze medical device this spring at exclusive dispensary partners in California before expanding into additional key markets across the U.S. and Canada throughout 2017 and into 2018.


The North American Cannabis Market: High Growth with High Risk

The North American cannabis market is expected to achieve a whopping compound annual growth rate of 25% thru 2021 when the market will top $20 billion, according to a January 2017 article in Business Insider.  This growth estimate is bolstered by recent news that the Canadian government is beginning work on legislation that will legalize recreational marijuana by July 1, 2018, if not sooner. Meanwhile, in the U.S., recent additions of populous states like Florida, New York, Illinois, Pennsylvania, and Ohio, mean almost 200 million Americans live where they may qualify to use cannabis as medicine. That’s well over 60 percent of the US population, with multiple states still expected to either begin or expand medicinal and/or recreational marijuana legalization this year.

I believe this is a space any risk-tolerant investor should be involved in, however, pitfalls abound. Not only do companies in the cannabis space face the same risks as companies in other industries (competition, financial, market forces, product/service efficacy, etc.) but cannabis companies must deal with varying legal and compliance risks across state and national borders. Moreover, due to the flood of licensed producers, wholesale marijuana prices declined from $2,500 to $1,000 per pound last year, with some dispensaries offering recreational ounces as low as $65 according to Forbes. With margins squeezed thin, non-pharmaceutical grade marijuana is rapidly becoming another commodity, like corn or wheat.

Beyond the risks associated with legitimate cannabis companies, publicly-traded frauds have been launched by crooks and scam artists who will do anything to separate investors from their money. Most recently, the SEC charged a California-based marijuana consulting company formally called Medbox, as a complete fraud. The Medbox stock price ranged from a low of $2.50 to an all-time high of $205 between August 2012 and December 2014…those shares are now at 0.0003. Ouch!

Unfortunately, Medbox wasn’t the first pot stock scam and they certainly won’t be the last.


CannaRoyalty’s Unique Business Model Mitigates Risk, Maximizes Reward

There are many dozens of cannabis stocks trading in the U.S. and Canada, but only CannaRoyalty features a combination of diversified investments in the cannabis space in both countries that minimizes investment risk while maximizing reward.

With over 20 cannabis assets in the areas of research, devices and intellectual property, early stage strategic investments, and consumer brands, investors in CannaRoyalty have reduced risk exposure to any one company.

Furthermore, the potential for outsized gains originating from multiple assets is very real. The future valuation of Resolve Digital Health as a publicly-traded company is just one potential home run for CannaRoyalty. Of course every asset in CannaRoyalty’s portfolio won’t be a home run, but if just a handful of the company’s holdings (outlined below) are successful, investors in the company should reasonably expect to see strong returns on their investment over time.


Management to Successfully Execute Business Model

Having a great business model is meaningless if you don’t have the right people in place to carry it out and drive results. CannaRoyalty’s management team and board of directors possess deep and successful management experience in the areas of finance and capital markets, pharmaceutical development, health care, corporate strategy, marketing, brand development, and more.

This is a group that can not only identify winning assets in the cannabis space, they can provide the necessary support and expertise in key areas of genetics, cultivation, extraction, post-processing and branding for the assets to maximize their potential.


CannaRoyalty’s Investments

CannaRoyalty is a stakeholder in 22 different diverse, cannabis-related properties in four broad areas:

  • Research (3 properties)
  • Devices and intellectual property (3 properties)
  • Early stage strategic investments (4 properties)
  • Consumer brands (12 properties)


CannaRoyalty’s investments in RESEARCH

Research investments target health and wellness applications including:

 

CannaRoyalty / Anandia Labs logo
ANANDIA LABORATORIES
Vancouver, Canada

CannaRoyalty has a 20% equity stake in Anandia.

Anandia Labs is a leader in cannabis testing, extraction and genetics, using genomics and modern plant breeding approaches to develop innovative products and next generation varieties. The company holds key intellectual property positions including cannabinoid pathway patents and is the only independent Canadian testing facility specializing exclusively in cannabis. With its Health Canada dealer’s license in hand, Anandia Labs has the seal of approval to undertake research and development, and to develop products beyond those currently permitted for licensed producers under Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR).

Anandia Lab’s expertise in cannabis testing is essential to ensuring that patients are receiving safe and effective products in the Canadian cannabis sector. In combination with the company’s ability to leverage its dealers license to develop its expertise in developing and producing cannabis extracts, Anandia Labs has positioned itself as a leader in the Canadian cannabis industry.

CannaRoyalty bas-research
BAS RESEARCH
California
CannaRoyalty has a secured convertible loan outstanding with BAS and has concluded a strategic partnership agreement with BAS, assuring the ability to tailor product to CannaRoyalty’s specific needs.
BAS Research is a science-based company of senior PhD-level researchers and chemists, positioned to leverage its first-mover advantage. BAS is developing pharmaceutical-grade cannabis medications, and advancing quality and safety through its Purity Certified™ testing services. Their unique strengths lie in advanced tissue culture and genetics, as well as ailment specific research and product development. BAS produces high-purity extractions plus innovative post processing.

CannaRoyalty bodhi-research
BODHI RESEARCH
Toronto, Canada
CannaRoyalty has made a strategic seed capital investment in return for an equity position in Bodhi Research with an option to increase its equity stake.

CannaRoyalty wagner-dimas-logos
WAGNER DIMAS
California
Through processing, packaging, and targeted brands, Wagner Dimas is adding significant value to producers and a premium user experience for customers.

 

 


See Terms of Use/Disclosure

Cautionary Note on Forward-Looking Statements

Certain statements contained in this interview may be “forward-looking statements” within the meaning of the Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. They are generally identified by words such as “believes,” “may,” “expects,” “anticipates,” “should” and similar expressions. Readers should not place undue reliance on such forward-looking statements, which are based upon the Company’s beliefs and assumptions. The Company’s actual results could differ materially due to risk factors and other items described in more detail in the “Risk Factors” section of the Company’s Annual Reports and MD&A filed with the United States Securities and Exchange Commission and applicable Canadian securities regulators (copies of which may be obtained at www.sedar.com or www.sec.gov ). Subsequent events and developments may cause these forward-looking statements to change. The Company specifically disclaims any obligation or intention to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.


Emblem Corp logo

Emblem Corp. is licensed under the Access to Cannabis for Medical Purposes Regulations (the “ACMPR”) to cultivate and sell medical marijuana. Emblem carries out its principal activities producing marijuana from its facilities in Paris, Ontario pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations.

 

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See also: Emblem April, 2017 Investor Presentation


 

MicrocapResearch: Congratulations on the successful public launch of Emblem Corp (TSX-V: EMC.V) and (U.S. OTC: EMMBF). Can you give investors an overview of your past experience with Purdue Pharma, and how it has prepared you to function as the President of Emblem’s pharmaceutical division?

John Stewart: I was President & CEO of Purdue US from 2007 – 2013, President & CEO of Purdue Canada from 1991 – 2009 and Regional Director for Purdue for Canada, Australia and New Zealand from 2000 to 2009. Among other things, these positions provided me with an in- depth understanding of inter-country differences in healthcare systems, drug regulatory agencies and pharmaceutical reimbursement paradigms – as well as public perceptions of the value of the pharmaceutical industry. These companies were of significantly different sizes in terms of employee numbers, annual revenues and mandates – which certainly impacts daily activities and leadership style. I was fortunate to be able to lead each through period of multiple new product introductions and significant growth.

Prior to becoming President to Purdue Canada, I served as VP R&D, in which I was responsible for formulation R&D, pre-clinical & clinical development of new drugs and regulatory affairs. It was in this position that I saw first-hand the significant importance of pharmaceutical dosage forms in terms of improving healthcare outcomes. I could provide numerous examples, but none is more telling than Purdue’s development of MS Contin (controlled-release morphine sulphate) – the first long-acting opioid which was approved for marketing by Health Canada in late 1985. Within two years MS Contin was recognized as one of the most important new analgesics agents for treatment of chronic moderate to severe pain.

It was also during my time as VP of R&D for Purdue that I first became aware of the therapeutic potential of cannabinoids. One of my UK Colleagues headed clinical drug development activities, and he encouraged the company to initiate a cannabinoid research program targeted toward management of pain and movement disorders.

Purdue did not pursue the opportunity, and that colleague subsequently started what has become a very successful company in the field.


MicrocapResearch: With dozens of other cannabis companies to choose from, what drew you to Emblem?

John Stewart: The executives at Emblem were familiar with the healthcare industry and already invested in healthcare-related businesses. They agreed with me that the therapeutic benefits of cannabinoids are real, but that they would not be fully achieved if the only way the product could be administered (taken) was by smoking or vaporization. They were immediately supportive of the company establishing a “pharma” division, to research the medical benefits of cannabinoids – and help identify which strains have the greatest evidence for benefit in particular conditions. An equally important component of the Division’s activity is the formulation and development of pharmaceutical dosage forms (e.g capsules, inhalers, modified-release tablets)  containing specific cannabinoids – which for a variety of reasons will be both more acceptable and effective than currently available dosage forms.


 MicrocapResearch: Emblem Corp is divided into three distinct operating divisions: Emblem Cannabis (the production division), the division you head at Emblem Pharmaceutical, and GrowWise Health (marijuana education for patients and physicians). How will the three divisions complement and build on each other’s strengths operationally?

John Stewart: The Production Group is in a sense the lead in importance, since their responsibility is to continually and consistently cultivate at the highest quality the cannabis strains we identify as being of the greatest therapeutic impact.  They need to ensure that our core strains have the same cannabinoid profile, irrespective of the time of year they are cultivated. Only via this consistency will the pharma division be able to produce advanced formulations that reach pharmaceutical industry levels of potency and purity.

Cultivating cannabis may be seen as simple and straightforward, but in reality it is far, far from that. One of my CEO Colleagues made this clear when he said, “This my be a simple process, but it is not at all easy”. One need only look at the recalls of cannabis due to excessive microbial levels or the presence of pesticides, to realize that this is a complex process that requires detailed attention and responsible oversight.

The GrowWise Group is comprised primarily of healthcare practitioners, whose activities directly support prescribers and patients achieve optimal therapeutic benefits from cannabis. They conduct research and support the research efforts of others, and greatly assist patients in the initial process of selecting and registering with one of the Licensed Producers.  In the years ahead, they will have much more in the way of important information to share.


MicrocapResearch: What indications are cannabinoids currently used for, and where do you think we might see expansion in the near future, say 12-24 months?

John Stewart: I have seen survey results indicating that the most common reason cannabinoids are used is for the treatment of pain, which is not surprising since pain is among the most common of reasons why individuals visit physicians. In addition, although there have been meaningful advances in analgesic therapy – there remains substantial room for improvement. The Canadian Pain Society was among the first of the professional organizations to formally recognize the efficacy of cannabis in pain management. Back in 2014 they published a Consensus Statement on the Management of Neuropathic Pain – which recommended the addition of cannabis therapy to patients who were experiencing inadequate pain relief from a combination of gabapentinoids and opioid analgesics.

Much more recently, the US National Academy of Sciences published an extensive report on the health effects of cannabinoids and concluded that there is substantial evidence of efficacy in chronic pain, as an anti-nauseant and for improving spasticity symptoms in patients with MS. They noted that there is moderate evidence for efficacy for improving sleep outcomes in patients with sleep disorders and more limited evidence for efficacy for improving symptoms of anxiety and increasing appetite/weight gain.


MicrocapResearch: Medical marijuana is typically taken by inhalation by the end user, either through smoking or vaping. Is this the best delivery method, and is Emblem Pharmaceutical developing other drug delivery options?

John Stewart: From the perspective of reliable and consistent efficacy, it is difficult to imagine a less appropriate method of administration than smoking or vapourization of dried cannabis.  With smoking, a person is inhaling combustion byproducts along with the cannabinoids – certainly undesirable and likely in some ways harmful. With vaporization, there is less in the way of combustion byproducts – but dose to dose consistency remains extremely difficult. The amount of cannabinoids that reach the body depends on the depth of the inhalation, how long one hold the inhalation before exhaling – combined with the crop to crop variability in the cannabinoid content of dried cannabis.

Like pharmaceutical products, our formulations will contain a known amount of cannabinoids (e.g. THC, CBD) measured in mg and this amount will be consistent from batch-to-batch, and supported by stability data. In addition we will have bioavailability and pharmacokinetic data to hep prescribers select the optimal dose for each of their patients.

We plan on bringing to market numerous dosage form, designed to optimize performance depending on the intended use. For example, we will have rapid onset formulations for use by patients seeking an immediate effect as well as long-acting formulations designed to provide for once-daily or twice-daily dosing for patients with chronic condition looking for continuous effects.


MicrocapResearch: What are the variables and key drivers for cannabinoid growth in Canada going forward?

John Stewart: The use of cannabinoids for medical purposes has shown exceptional growth since the Licensed Producer regimen was brought forward under the direction of Health Canada, but the number of individuals being treated is very, very low when compared to the number of patients being treated with existing prescription drugs. I believe that the advanced pharmaceutical formulations we are bringing forward will significantly improve patient and healthcare professional acceptance of cannabinoid therapy, and also help maximize their therapeutic benefits.

Another significant factor will be the willingness of provincial healthcare benefit plans to cover the cost of cannabinoid therapy. I have seen clinical trial data demonstrating equal, and in some cases improved, efficacy from cannabinoid therapy than traditional pharmaceuticals. However, no province currently pays for medical cannabis – leaving patients and their physicians with somewhat of a dilemma. Hopefully this will change, and the provincial healthcare ministries will come to recognize the overall cost-effectiveness of cannabinoids.


MicrocapResearch: What is the current size of the Canadian medical marijuana market, and how big do you believe it will be in 5 years?

John Stewart: Accurate information on the size of the overall MMJ market is not readily available, but on the basis of their being some 130,000 patients registered under the current ACMPR Program, i would estimate that 2016 sales were in the range of $200 million.

Looking at the prescription pharmaceutical market for therapies used for the conditions in which cannabinoids are now recognized as being effective, it is entirely reasonable to see the medical marijuana market being between $1 billion and $2 billion in 5 years time – and note that this does not include sales in the forthcoming Recreational Use Market.


MicrocapResearch: What developments specifically at Emblem Corp. can investors look forward to over the next 12-24 months?

John Stewart:Too many to cover in the short time of this interview. At a high level we will see a very significant expansion of cultivation capacity and advances in cultivation techniques, dedication of a completely new extraction and formulation development laboratory and impressive additions to the nature of information and services available from the GrowWise Operation.


MicrocapResearch: Thank you John, for taking time to update investors on the Canadian marijuana market and Emblem Corp.

John Stewart:

You are welcome, and thanks for the opportunity to connect with your important audience.


Emblem Corp.

DarioHealth Corp. (DRIO) picked at $3.86 (see 2/21/17 report), and  MassRoots Inc. (MSRT) picked at .81. (see 3/16/2017 report) have significant news out this morning.

 


dariohealth-logoDarioHealth Launches Insurance Coverage Option for U.S. Consumers

This morning, DarioHealth announced that it is now offering a 3rd party insurance coverage option for U.S. consumers who want to have their DarioHealth products reimbursed by insurance.

According to the press release, DarioHealth has signed strategic alliance agreements with partners across the U.S. who will be able to verify insurance coverage benefits, and if approved, will supply and bill the customer’s insurance for their Dario™ Blood Glucose Monitoring System and test strip supplies. During DarioHealth’s pilot phase of this insurance coverage option, partners were able to verify benefits for customers covered by Aetna and various Blue Cross Blue Shield plans.

 

Erez Raphael, Chairman and CEO of DarioHealth, stated:

“We are extremely excited with this new opportunity and will continue seeking out partnerships to expand our insurance coverage reach. Our customers asked about this, and we are happy to be able to provide this option to them. Many of these customers are already paying significant out of pocket cost for a variety of healthcare needs, so lowering their financial burden is tremendously gratifying and a big win for everyone in our community.”


Until now, U.S.-based customers paid out of pocket for DarioHealth’s products. Despite that fact, DRIO grew sales by 172% during Q4 of last year, with 67% of quarterly revenues derived from recurring sales of test strips and other consumables.

Insurance coverage is a major win for DRIO and should rapidly accelerate growth in the Company’s major market, the U.S.


About DarioHealth Corp.

DarioHealth Corp. is a leading global digital health company serving tens of thousands of users with dynamic mobile health solutions. We believe people deserve the best tools to manage their treatment, and harnessing big data, we have developed a unique way for our users to analyze and personalize their diabetes management. With our smart diabetes solution, users have direct access to track and monitor all facets of diabetes, without having the disease slow them down. The acclaimed Dario™ Blood Glucose Monitoring System all-in-one blood glucose meter and native smartphone app gives users an unrivaled method for self-diabetes management. DarioHealth is headquartered in Caesarea, Israel with a regional office in Burlington, Massachusetts. For more information, visit http://mydario.investorroom.com/.

 

See also:

DarioHealth February 2017 Investor Presentation

Rodman and Renshaw Report: DarioHealth BUY $12 PT

Joseph Gunnar & Co. Report: DarioHealth BUY $8 PT

 


massroots-logoMassRoots Launches New Website and Accelerates User Acquisition

On the heels of last week’s announcements that MassRoots has registered more than one million users on its platform (press release), and that Google Play has approved its mobile application for distribution to Android devices (press release), the Company has launched a new web site at MassRoots.com.

 

Powered by more than one million registered users, MassRoots enables consumers to rate products and strains based on their efficacy (i.e., effectiveness for treating ailments such back-pain or epilepsy) and then presents this information in easy-to-use formats for consumers to make educated purchasing decisions at their local dispensary. Businesses are able to leverage MassRoots by strategically advertising to consumers based on their preferences and tendencies.

MassRoots Chairman and CEO, Isaac Dietrich stated:

“MassRoots’ new website enables us to broaden our audience and more effectively monetize our users and web-traffic. We are already seeing hundreds of thousands of unique page views per month and are confident that the significant functionality and SEO improvements in MassRoots’ new website will enable us to accelerate our user and web-visitor growth. At the same time, we have greatly expanded the inventory and targeting options available to MassRoots’ advertisers, which will have an immediate and direct impact on our revenue.”

As the 4/20 holiday season rapidly approaches, MassRoots is committed to rapidly growing its market share of cannabis consumers and effectively monetizing them to further drive shareholder value.


About MassRoots


MassRoots is one of the largest technology platforms for the regulated cannabis industry. The Company’s mobile apps enable consumers to make educated cannabis purchasing decisions through community-driven reviews. MassRoots is proud to be affiliated with the leading businesses and organizations in the cannabis industry, including the ArcView Group and National Cannabis Industry Association. For more information, please visit MassRoots.com/Investors.

See also:

MassRoots in the media

MassRoots December 2016 Investor Update


DRIO

Disclaimer/Disclosure/Terms of Use


dariohealth-logoNasdaq-listed mHealth company, DarioHealth (DRIO), (web site) reported record Q4 and 2016 results after yesterday’s close.

 

2016 Highlights

  • Record revenues of $2.8 million, increased 241% compared to the full year 2015
  • Sequential quarterly revenue growth throughout the entire year
  • Direct-to-consumer model launched in U.S. with approximately 18,500 Dario™ Blood Glucose Monitoring System devices sold; accelerated in 2nd half of year with approximately 14,000 sold
  • Direct-to-consumer model launched in Australia and Canada
  • Nasdaq listing in March
  • Commenced investment discussions with OurCrowd Qure, an Israeli Digital Health Specialized Fund; subsequently closed in early 2017

Fourth Quarter Highlights

  • Record revenues of $838,000, increased 172% compared to the fourth quarter of 2015
  • Sequential quarterly revenue growth of 15% over third quarter of 2016
  • 67% of quarterly revenues derived from test strips and other consumables
  • Record 8,500 Dario™ Blood Glucose Monitoring System devices sold in the U.S.; 55% growth from third quarter of 2016
  • Consumable strips growth of 67% over third quarter of 2016
  • Nearly 95% of U.S. users have ordered test strips

According to the press release, DarioHealth expects sales to continue to accelerate in 2017 while reducing overall customer acquisition cost via:

  • execution of insurance reimbursement coverage options for U.S. consumers
  •  an increase in the percentage of higher-margin recurring consumable revenue
  • an expansion of the platform availability to include Android, which has been submitted to the FDA

 

Chairman and CEO of DarioHealth, Erez Raphael, commented,

“Our vision and focus allowed us to achieve a great deal over the last year, and has placed us in an advantageous position for further growth and market penetration for our Dario all-in-one smart glucose monitor and data platform. Our direct-to-consumer strategy in the U.S., launched mid-year, yielded the majority of our sales in this region, and continued to accelerate in the fourth quarter.

“We are encouraged by the fact we delivered on increased device sales, significant monthly user growth and established a predictable stream of high margin recurring subscription revenues from new customers. Furthermore, we are excited by the positive engagement we are achieving with our users, expect user growth to accelerate in 2017, and see revenue growth to continue in each sequential quarter, as it has grown until now.”


DarioHealth Conference Call Today, 9:00am ET

DarioHealth Corp. will hold a conference call today at 9am ET to discuss fourth quarter and full year 2016 results, as well as strategy and outlook for 2017.

  • The conference call will be hosted by Erez Raphael, Chief Executive Officer, and Zvi Ben-David, Chief Financial Officer.
  • The call can be accessed by dialing (866) 682-6100 or (862) 255-5401 and asking for the DarioHealth earnings conference call.
  • A live webcast of the call will also be available at: http://www.investorcalendar.com/IC/CEPage.asp?ID=175764

See also:

 DarioHealth February 2017 Investor Presentation

Rodman and Renshaw Report: DarioHealth BUY $12 PT

Joseph Gunnar & Co. Report: DarioHealth BUY $8 PT

 

About DarioHealth Corp.

DarioHealth is a leader in digital health self-management solutions. DarioHealth delivers the ability to combine and analyze consumer health data to personalize treatment and advance medical knowledge. Dario’s™ smart diabetes management solution is a platform for diabetes management that combines the Dario™ Blood Glucose Monitoring System all-in-one blood glucose meter, native smart phone app, website portal and a wide variety of treatment tools to support more proactive and better informed decisions by users living with diabetes, their doctors and healthcare systems.  Having recently launched in the largest market in the world for glucose monitoring, U.S. sales are expected to have a significant impact on revenues and gross margins. With marketing clearance in Europe and the U.S., the Dario iOS mobile app recently launched with reimbursement in the United Kingdom, Australia, Israel, Italy, and Canada, and has also launched in New Zealand, Netherlands, Italy, and Belgium.  For more information, visit http://mydario.investorroom.com/

 


DRIO

 

 


Terms of use/disclosures/disclaimer

 

  • MSRT shares lost 30% in recent weeks due to uncertainty in how the new administration in Washington will deal with the rapidly growing legalized cannabis industry in the U.S.
  • However, Attorney General Jeff Sessions took a much more pragmatic stance on the cannabis industry in the U.S. just yesterday
  • Expect shares of MSRT to rally in the coming days/weeks on yesterday’s clarification that erases much of the uncertainty that the market hates
  • MSRT shares are bouncing off the 200-day moving average of .78 and look prime for a breakout
  • MSRT is experiencing high sales growth and expects to be cash-flow positive in near term

 

MassRoots chart

 


Cole Memorandum and Legal Cannabis in the U.S.

Essentially, the Cole Memorandum states that jurisdictions that have legalized marijuana in some form are less likely to be a threat to the federal priorities under the CSA if they have implemented strong and effective regulatory and enforcement systems to control marijuana growth and distribution. The Cole Memo also gives wide prosecutorial discretion whether to prosecute state legal marijuana enterprises and hinted that it is probably not efficient use of federal resources to focus enforcement on state legal businesses.

In an appearance yesterday before local, state and federal law enforcement officials in Richmond, Virginia, Attorney General Jeff Sessions stated that:

“The Cole Memorandum set up some policies under President Obama’s Department of Justice about how cases should be selected in those states and what would be appropriate for federal prosecution, much of which I think is valid.”

See:  Jeff Sessions Suggests A Crackdown Isn’t Coming For Legal Weed

Sessions also indicated that the Justice Department doesn’t have the resources to enforce federal prohibition in states across the country.

This is a major shift from the Attorney General’s previous statements on legalized cannabis in the U.S., statements which strongly contributed to a weakness in MSRT shares.


MassRoots Overview

massroots-logoMassRoots Inc. (web site) is one of the largest and most active technology platforms for cannabis consumers and businesses with over 900,000 registered users. It’s “Yelp for Cannabis” mobile applications aim to connect its passionate community with the best products and dispensaries in their neighborhoods.

We see exciting opportunity ahead for this business considering:

  • 28 states have legalized marijuana for medical purposes
  • MSRT is targeting a $7.2 billion cannabis market that is expected to grow to $23 billion by 2020
  • rapidly growing advertising revenue stream now count Uber and Univision as paying advertisers
  • 900,000 registered user base is growing around 30,000 new users organically per month, which does not consider new product roll-outs about to occur, the Ohio market opening up next year, or the wave of new states to join the legalization trend
  • per month costs are currently running $300,000 per month with $150,000 of revenue, but the gap is on track to close by year end 2016
  • a vast array of ancillary business opportunities for the management team, as demonstrated by the recent Flowhub investment

We believe MassRoots will grow rapidly to over $120 million in market capitalization versus the $65 million current market cap considering the business has over 900,000 users and is experiencing extremely rapid growth. Weedmaps was valued at $300 million with only 750,000 users. Leafly was valued at $425 million with only 1 million users.


MSRT at a glance:

Shares outstanding: 78.9 million
Approximate float: 40.5 million
Current Price 3/16/2017: .81
Market Capitalization: 65.2 million

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Market Opportunity

The legal marijuana market is a booming industry that is experiencing record growth. States continue to expand both medical and adult use in the US. According to ArcView Market Research, the US. cannabis market was $5.7 billion in 2015 and is expected to reach $7.2 billion at the end of 2016. By 2020 the market is estimated to reach over $23 billion with a compound annual growth rate of 32%.

The 2016 elections put in place new cannabis laws affecting 22% of the U.S. population, a fundamental growth catalyst for MassRoots.

MassRoots legalized states

 

More States Expected to Legalize Medical and Recreational Cannabis 

Isaac Dietrich, Chairman & CEO of MassRoots stated in a December letter to shareholders,

“Throughout the next two years, we expect five additional states will pass medical cannabis laws: Texas, Louisiana, Utah, Nebraska and South Carolina while an additional five states will pass recreational cannabis laws: Michigan, Maryland, Vermont, Connecticut and New Jersey. We expect that, with the exception of Michigan, these laws will be passed through the state legislature which is a fraction of the cost of running a statewide ballot initiative. Sitting at the intersection of healthcare on the medicinal side and a vice industry on the recreational side, we believe the cannabis industry can continue to grow in any economic climate.”

In a very short period of time, MassRoots has grown its user base to over 900,000 and adds approximately 30,000 users per month. The massive community of the world’s top cannabis enthusiasts collectively engage over 300,000 times per day on the network. Average daily mobile users is 1750,000. The website gets about 200,000 unique visitors per day, and we are told the platform can easily handle 1 billion unique visitors/day. The company has 10-15% of the addressable market in Colorado. Ohio is coming online next year and the company is eager to expand. Customer acquisition costs have been around $0.80 but are now lower. Revenue per user is targeted to soon be running around $1.00.


MSRT Recent Positive Highlights

  • Retired All Remaining Convertible Debt

  • Raised over $2.9 million through warrant exercises so far in 2017, almost entirely from the exercise of the Company’s $0.90 warrants, giving MassRoots its strongest cash position in corporate history

  • Reinstated in Google Play and the launch of display ads on its Andriod applications in February 2017, growing the Company’s revenue channels.

  • Completed acquisition of DDDigtal, d.b.a. “Whaxy,” an online order-ahead and menu management platform. Since launching in May 2016, Whaxy’s online ordering platform has processed over $7 million in volume across 60,000 unique transactions

  • Added Mr. Tom Angell as the Company’s Senior Political Correspondent in early February 2017 and has since increased its blog traffic by nearly 18% and received comment from White House Press Secretary Sean Spicer
  • Plans to launch its revamped website in early March 2017, in anticipation of its annual web traffic surge ahead of the 4/20 cannabis holiday
  • Targeting market share to 25-35% of cannabis consumers in regulated cannabis markets during 2017

 


Valuation

By focusing on community-driven reviews rather than static information, MassRoots believes it will enable users to find the best products in the shortest amount of time. MassRoots’ recurring usage and the ability to push additional services as features rather than standalone apps presents a superior value proposition to users than both WeedMaps and Leafly. WeedMaps a dispensary locator founded in 2007. It has 750,000 users (as of April 2015), a valuation of $300 million (as of June 2014) and $25 million estimated revenue for 2016 (as of April 2015). Leafy a strain resource guide founded in 2010. It has 1 million users (as of October 2015), a valuation of $425 million (Privateer Holding company of Leafly raised in April 2015) and $16 million estimated revenue for 2016.

 


Conclusion

Shares of MassRoots (MSRT) were hit hard in recent weeks due to market uncertainty in how the new administration in Washington would approach the cannabis industry in the United States. Clarity from Attorney General Jeff Sessions yesterday is a welcome development, and MSRT shares should find support at the 200-day moving average of .78. With continued strong sales growth, near term expectation to turn cash-flow positive, retirement of all convertible debt, and the strongest cash position in corporate history, MassRoots has a solid financial footing to execute its business plan.


See also December 2016 Investor Presentation


massroots gary signature

 

 

See site wide Terms of Use/Disclosures/Disclaimer

Vuzix Corporation (VUZI), our February pick at $6.15, closed at $7.55 yesterday for a gain of 23% in just over a month.

News of a development agreement with electronics giant Toshiba for customized smart glasses by Vuzix has resulted in some initial short covering and with a solid rise in volume and share prices. The agreement validates the patented waveguide technology Vuzix has that opens the way for augmented reality glasses that look like something you wouldn’t be embarrassed to wear. I test drove a working pair of the new Blade 3000 series of AR glasses (which will be rolled out the second half of this year) and they looked great, worked great, were surprisingly comfortable, lightweight, and sturdy.

Additionally, Vuzix was featured on the front page of the Wall Street Journal print edition on Sunday in an article titled “Smart Glasses Get a Fresh Look.”

And while the latest numbers show over 25% of the VUZI float short and still to cover, longs and shorts alike shouldn’t be surprised to see more positive news from VUZI on the Toshiba front.

CEO Paul Travers noted that:

“The (Toshiba) agreement demonstrates how we are leveraging and partnering our industry leading technology with top tier global partners.  We trust that this will be the first of many ongoing collaborations between the firms.”

 

Vuzix conference call Friday, March 17th at 9:00 am Eastern Time.

The call will cover Q4 and full-year 2016 financial results and provide a business update.

Dial-in Number for U.S. & Canadian Callers: 877-709-8150
Dial-in Number for International Callers (Outside of the U.S. & Canada): 201-689-8354

Participating on the call will be Vuzix Chief Executive Officer and President Paul Travers and Chief Financial Officer Grant Russell, who will discuss operational and financial highlights for the quarter and year ended December 31, 2016, and will share a business update.

A replay will be available for 30 days, starting on March 17, 2017, at approximately 10:30 a.m. (ET) by dialing 877-660-6853 within the U.S. or Canada, or 201-612-7415 for international callers. The conference ID# is 13656767.

Stay tuned VUZI longs, as all indications are that 2017 is going to be the breakout year for VUZI in sales, strategic partnerships, and investor awareness.


tapimmune-logoTapImmune (TPIV) to Host Inaugural Quarterly Business Update Conference Call and Webcast

TPIV is a more recent pick from two weeks ago at $4.30, see: TapImmune (TPIV): Developing Cutting-Edge Vaccines that Attack Ovarian and Breast Cancer with a Vengeance).

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TapImmune’s current market cap of just $39 million is a bargain given the company’s cash balance + $13.3 million grant from the U.S. government, + four Phase II studies in progress with top tier partners like AstraZeneca (AZN) and Mayo Clinic.

TapImmune will have its inaugural quarterly business update conference call and live webcast today, Tuesday March 14th, at 4:30 pm Eastern Time.

You can register for the live webcast here: http://tapimmune.com/register/

  • To access the call, dial: (877) 870-4263 (U.S.), or (412) 317-0790 (International).
  • To access the live audio webcast, visit the Events section of the TapImmune website http://tapimmune.com/events/.

The webcast will be archived for 90 days beginning at approximately 6:30 p.m. ET, on March 14, 2017.


This should be an exciting call by TapImmune and I’ll be listening intently.

TPIV has 4 different phase 2 studies underway for breast and ovarian cancer with world-class sponsors and collaborative partners, and it’s very reasonable to expect continued share price appreciation as more retail and institutional investors become aware of the company in the coming weeks and months.

 

TapImmune Pipeline


See also: TapImmune January 2017 Investor Presentation.


Disclosure/Disclaimer/Terms of Use


Green Organic Dutchman - gary

  • TapImmune (TPIV) is proceeding on a total of four Phase II clinical trials in the development of a novel vaccine that aggressively attacks ovarian and breast cancers
  • In the earlier Phase I study of TPIV 200 at Mayo Clinic, 100% of patients demonstrated a T-Cell response lasting over 6 months and the drug was found to be safe and effective in treatment of both ovarian and breast cancers  
  • TPIV has collaborative partnerships with AstraZeneca (AZN), Memorial Sloan Kettering Cancer Center, and Mayo Clinic
  • TPIV received a $13.3 million grant from the U.S. Department of Defense which is fully funding a Phase II study of TPIV 200 in 280 patients with triple negative breast cancer being conducted at Mayo Clinic
  • TapImmune is well-funded and has no meaningful long term debt
  • TPIV has several positive forward drivers in coming weeks and months
  • With a Fast Track Designation and Orphan Drug Status under its wing, TapImmune is breaking down barriers at rapid speed and could very well have an up-and-coming commercial pipeline on its hands
  • TapImmune’s current market cap of just $36 million is a bargain given the company’s cash balance + $13.3 million grant from the U.S. government, + four Phase II studies in progress

tapimmune-logo

TapImmune, Inc. (web site) is a clinical-stage immune-oncology company specializing in the development of innovative technologies for the treatment of cancer and metastatic disease. The Company has made considerable clinical and financial progress over the last year, including the completion of positive Phase I clinical trials in breast and ovarian cancer at the Mayo Clinic, which showed that its TPV-100 and TPV-200 vaccines were safe and well tolerated, and demonstrated robust cellular immune responses in over 90% of evaluable patients. Since the results, TPIV has announced multiple Phase 2 clinical studies – and was also granted an Orphan Drug Designation and received fast track designation from the FDA for TPIV 200 in ovarian cancer.

 


Shares outstanding: 8.4 million
Closing Price 2/24/2017: $4.30
Market cap: $36 million
Total Cash (mrq) $9.6 million
Cash/Share (mrq) $1.14
Debt (mrq) 5k
Current Ratio (mrq) 4.40

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Four Phase II Immuno-Oncology Trials Underway with Top Tier Partners

Immuno-Oncology (or cancer immunotherapy) is a ground-breaking approach in the fight against aggressive cancer that uses the body’s own immune system to fight the disease. TapImmune has four clinical trials now in phase II for treatment of ovarian and triple-negative breast cancers.

Investors should note that TapImmune has world-class sponsors and collaborators in these trials, including AstraZeneca (AZN), Memorial Sloan Kettering Cancer Center, Mayo Clinic, and the U.S. Department of Defense. The caliber of these sponsors and partners speaks volumes about the potential for breakthrough research in the cancer immunotherapy space by TapImmune.

TapImmune Pipeline

 


  • Phase II Trial of TPIV 200 for Triple-Negative Breast Cancer with Fast Track designation from the FDA

About 15-20% of all breast cancers are found to be triple-negative (meaning the breast cancer cells tested negative for estrogen receptors, progesterone receptors, and HER2). This form of breast cancer does not respond to hormonal therapy (such as tamoxifen or aromatase inhibitors), or therapies that target HER2 receptors, such as Herceptin (chemical name: trastuzumab). Triple-negative breast cancer tends to be more aggressive with higher mortality rates than other breast cancers.

The open-label, 80 patient clinical trial by TapImmune is designed to evaluate dosing regimens, adjuvants, efficacy, and immune responses in women with triple-negative breast cancer. Key data from the trial is expected to be included in a future New Drug Application submission to the FDA for marketing clearance.

TapImmune announced a key clinical milestone earlier this month in passing a planned safety review that was performed when enrollment had reached 25 percent benchmark (20/80 patients).

In the prior Phase I study of TPIV 200 at Mayo Clinic, 100% of patients demonstrated a T-Cell response lasting over 6 months and the drug was found to be safe and effective in treatment of both ovarian and breast cancers.  

This study has Fast Track designation from the FDA which provides an expedited review to facilitate development of the drug.  This designation is granted in studies that treat serious or life-threatening conditions and fill an unmet medical need.


  • Phase II Mayo Clinic Trial of TPIV 200 in Triple-Negative Breast Cancer Fully Funded by U.S. Department of Defense

This is a separate Phase II study of TPIV 200 for the treatment of triple-negative breast cancer, conducted by the Mayo Clinic and sponsored by the U.S. Department of Defense (DOD). The 280 patient study is being led by Dr. Keith Knutson of the Mayo Clinic in Jacksonville, Florida. Dr. Knutson is the inventor of the technology and an advisor to TapImmune.

$13.3 million worth of non-dilutive capital for trial.

While TapImmune is supplying doses of TPIV 200 for the trial, the remaining costs associated with conducting this study will be funded by a $13.3 million grant made by the DOD. This grant is a direct result of the very positive findings of the Phase I trial of TPIV 200 and validates TamImmune’s technology.

This Phase II launch is expected to begin shortly, and the announcement should be a positive driver for TPIV shares.


  • Phase II Trial at Memorial Sloan Kettering of TPIV 200 in Platinum-Resistant Ovarian Cancer in Collaboration with AstraZeneca on FDA Fast Track

Approximately 22,000 women were diagnosed with ovarian cancer in 2016 and an estimated 14,180 will die from the disease according to the American Cancer Society. Because ovarian cancer tends to be detected at a later stage of the disease, the five-year survival rate for ovarian cancer is 45%. Current treatment options are surgery, radiation and chemotherapy.

There is currently no FDA approved cancer vaccine available for ovarian cancer.

This is a Phase II study of TPIV 200 in ovarian cancer patients who are not responsive to platinum, (a commonly used chemotherapy for ovarian cancer), sponsored by Memorial Sloan Kettering Cancer Center in collaboration with AstraZeneca. The open-label study is designed to evaluate a combination therapy which includes TapImmune’s TPIV 200 T-cell vaccine and AstraZeneca’s checkpoint inhibitor, durvalumab.

Because these patients are unresponsive to platinum-based therapy and have failed chemotherapy, there are unfortunately, no real options left at the present time. If the combination therapy proves effective, it would address a critical unmet need.

TapImmune received the FDA’s Fast Track designation to develop TPIV 200 as a maintenance therapy in platinum-resistant ovarian cancer.

On the Fast Track designation, Dr. Glynn Wilson, Chairman and CEO of TapImmune stated:

“We believe that the FDA’s decision to grant Fast Track designation to TPIV 200 for the treatment ovarian cancer significantly expedites our clinical development program. We believe TPIV 200 has the potential to improve outcomes for ovarian cancer patients for whom current treatment modalities offer a relative short time to recurrence and a poor overall prognosis.”


  • Phase II Trial in Platinum-Sensitive Ovarian Cancer 

TapImmune’s fourth Phase II trial utilizes TPIV 200 in ovarian cancer that is platinum-sensitive, and is being funded by the company. This study is an 80-patient double-blind placebo controlled study designed to examine the potential benefits of using the company’s lead product candidate TPIV 200 in combination with standard of care chemotherapy. The study has Fast Track designation from the FDA and TPIV 200 has orphan drug status for ovarian cancer.

In the January press release announcing the launch of this Phase II trial, Dr. John Bonfiglio, President and COO of TapImmune explained:

“The opening of this study represents the fulfillment of a major 2016 milestone. We now have three clinical studies utilizing TPIV 200 with approvals to enroll patients. A fourth study in triple-negative breast cancer sponsored by the Mayo clinic with a $13.3M grant from the Department of Defense is scheduled to begin shortly. We believe the depth of these clinical programs will give us an excellent understanding of how this exciting T-cell therapy can potentially be used in the treatment of both triple-negative breast and ovarian cancers.”


See video from last week on TPIV:

“Vaccine could prevent breast, ovarian, lung cancer”

 


 


TPIV 100, TPIV 110 Also in Pipeline

The Phase 1 trial of TPIV 100 in 22 patients demonstrated the drug was safe and well-tolerated. The trial also showed that 19 out of 20 patients showed robust T-cell responses to two antigens while 15 out of 20 patients responded to all four antigens. The immune responses in these patients were durable for months after their final treatment.

 

The Phase 1b/2a program for TPIV 110 is designed to examine this novel T-cell vaccine both as a stand-alone therapy as well as a combination therapy with other standard of care therapies and newer experimental therapies. TapImmune plans to initiate TPIV 110 trials in breast cancer in 2017. The strategy is to obtain positive Phase 2 data and then look for a partnership or collaboration to fund the rest of the commercialization for TPIV 110.

TapImmune TPIV 110

Existing treatments such as Herceptin and Parjeta target the Her2/neu receptor and can work well in controlling the disease. However, the patient’s tumor must have the Her2/neu receptor (~30%) and in addition have the receptor in high enough density to make the antibody effective (~18% of the 30%). This leaves a void where patients who have the receptor but are not eligible for antibody treatment are relegated to chemotherapy, radiation and surgery.

TapImmune’s investigational product TPIV 110 also targets Her2/neu by stimulating the body’s own immune system to attack cancer cells with the Her2/neu target.

TapImmune plans to file an IND (Investigational new Drug) application with the FDA this year for TPIV 110.

TapImmune TPIV 110 development plan

 


Positive Upcoming Drivers

TapImmune has multiple positive drivers going forward, including:

  • Participation in multiple oncology and biotech events in March and April
  • Launch of the Phase II trial of TPIV 200 at Mayo Clinic, fully funded by a U.S. Government grant of $13.3 million
  • Clinical data coming out of multiple Phase II trials of TPIV 200
  • IND announcement on TPIV 110 expected during Q1 this year
  • Initiation of the Phase 1b/2a studies using TPIV 110

Preclinical, A Next Generation T-Cell Vaccine: PolyStart

PolyStart is a unique antigen expression system that ‘elevates’ the expression, and consequently the processing and presentation of desired antigenic peptide(s) for the stimulation of T-killer and/or T-helper cells to recognize and kill target cells. This novel vaccine technology platform creates a four-fold or greater increase in presentation of any antigen, giving it unlimited application in oncology and infectious diseases. This allows TapImmune to not only leverage the technology for its own vaccine candidates, but also generates additional value for the platform via licensing to third parties.

In February of this year, TapImmune expanded its patent on the PolyStart Platform for use in next-generation T-cell vaccines. Glynn Wilson, Chairman and CEO of TapImmune stated that:

“This patent significantly enhances our IP position for our PolyStart platform, further positioning TapImmune as a leader in the development of next-generation vaccines for cancer. The allowed claims cover enhanced expression of class I and class II HER2 antigens, enabling us to create future vaccines that should elicit robust and long-lasting T-cell immune responses against HER2/neu+ cancers with enhanced potency. While we focus on advancing our multiple Phase 2 clinical programs in ovarian and breast cancer, we expect to continue developing PolyStart to be used synergistically with our peptide-based vaccines as well as potentially monetized through licensing or partnership with other vaccine developers in oncology and infectious disease applications.”

PolyStart creates a 4 (FOUR) fold or more increase in antigen presentation.  The increased cell surface presentation increases activated Helper and/or long-lived Killer T-cell populations that then effectively seek out and work to destroy a patient’s cancer cells.

PolyStart enhances immune responses in patients not only for cancer drugs but for infectious disease and other products. TapImmune believes PolyStart has unlimited application in oncology and infectious diseases not only in the Company’s own platforms, but that it can be applied to many others via licensing.

The data below is from an earlier study showing the increased presentation and subsequent KILLING of the targeted cell population.

 

 

tapimmune-polystart

Dr. Glynn Wilson, Chairman & CEO of TapImmune explains:

“We are very excited about this technology, as we believe it marks a next generation of T-cell vaccines. PolyStart has unlimited application in oncology and infectious diseases not only within TapImmune’s own platforms but it can be applied to many others via licensing. As we move forward in Phase 2 trials for TPIV 200, which targets folate receptor alpha, and TPIV 100/110 our Her2/neu product, we fully expect to develop PolyStart as both a stand-alone therapy and as a ‘boost strategy’ to be used synergistically with our peptide-based vaccines for breast and ovarian cancer.” 

Along with novel peptides and the PolyStart expression system, the TPIV vaccine platform can address multiple infectious diseases as well as pandemic and biodefense threats. TapImmune’s current Smallpox vaccine study at Mayo Clinic has already shown significant benefits over the current vaccine stockpile. It is naturally processed and peptide based, making it safer, longer lasting, cheaper and as effective (in animal studies) as the current product stockpile. The last DHHS contract for a smallpox vaccine stockpile was worth up to $2.8 billion.


Conclusion

TapImmune (TPIV) is at the forefront of the immuno-oncology space and has world-class collaborative partners in AstraZeneca (AZN), Memorial Sloan Kettering Cancer Center, and Mayo Clinic. The fact that the U.S. government has fully funded the Phase II trial of TPIV 200 for the treatment of triple-negative breast cancer validates the strong data obtained from the preceding Phase I trial. Additionally, the grant provides $13.3 million of non-dilutive funding for TapImmune’s research.

Given that TapImmune has a healthy cash balance of $9.6 million (mrq) and is receiving some $13.3 million in non-dilutive grants from the U.S. government, the market cap of $36 million seems extremely low- especially given the company has four different Phase II trials on progress for what could be a game-changing vaccine in the fight against cancer.

 


See also: TapImmune January 2017 Investor Presentation

Interview With TapImmune, Inc. (NASDAQ: TPIV) President And COO, Dr. John Bonfiglio (SmarterAnalyst- January, 2017)

TapImmune Developing Vaccines for Breast and Ovarian Cancer (Biosience Technology- December, 2016)

One Big Question: How close are we to a cancer vaccine? (NewAtlas- December, 2016)

Vaccine could prevent breast, ovarian, lung cancer (Fox News- February, 2017)


tapimmune -gary pic

 

 

Disclaimer/Disclosure/Terms of Use

 

 

 

Two of our picks for 2017, Vuzix Corporation (VUZI) and DarioHealth Corp (DRIO), are on the move.


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Vuzix Corporation, (web site), a leading supplier of Smart-Glasses, Augmented Reality (AR) and Virtual Reality (VR) technologies and products for the consumer and enterprise markets, announced a significant partnership with Toshiba Client Solutions Co. Ltd., a wholly owned subsidiary of Toshiba Corporation today.

 

This agreement announced today, validates the patented waveguide smart glasses technology held by Vuzix.

In the press release, Carl Pinto, vice president of marketing and product development for Toshiba Client Solutions Division, stated:

“We believe that Toshiba can leapfrog other wearable technology products with Vuzix’ support and look forward to a very successful collaboration between the companies.

and

“We have selected Vuzix as our new smart glasses development and manufacturing partner because we are very impressed with Vuzix’ current line of smart glasses and other technology that the Company has in development.” 

Under the terms of the agreement, Vuzix and Toshiba have embarked on a rapid development program with milestone payments totaling over one million US dollars. With development efforts well under way, Toshiba, subject to a final manufacturing agreement, expects to place additional purchase orders from Vuzix for production deliveries in the 4th quarter of 2017. Further details on the new smart glasses product will be released soon after public marketing of the product commences.

Strong Potential for VUZI Short Squeeze

VUZI can be a volatile stock.  Shorts have been all over it in recent weeks and have now shorted over 25% of the float. With today’s Toshiba announcement, expect more short covering next week, which could lead to the start of a short squeeze if enough new longs as well as covering shorts start hitting the ask.

For a more in-depth look at Vuzix Corporation’s patented technology in the AR space see: Vuzix Corporation (VUZI): New Vuzix Blade 3000 Augmented Reality Glasses a Game-Changer ), presented to subscribers at $6.15/share.

Also see: January 2017 VUZIX Investor Presentation.


dariohealth-logoDarioHealth Corp. (DRIO) has bullish chart pattern going into what will be a record Q4 report.

DarioHealth Corp. (NASDAQ:DRIO), (web site), is a digital health company that develops and commercializes patented and proprietary technologies providing consumers with laboratory-testing capabilities using smart phones and other mobile devices.

Its flagship product is the Dario Smart Diabetes Management Solution, a mobile, real-time, cloud-based, diabetes management solution based on a multi-feature software application combined with Dario Smart Meter, a pocket-sized, blood glucose monitoring device. DarioHealth Corp. has marketing clearance in Europe and the U.S. and the Dario iOS mobile app recently launched with reimbursement in the United Kingdom, Australia, Israel, Italy, and Canada. Additionally, DarioHealth has launched in New Zealand, the Netherlands, Italy, and Belgium.

 

Nothing drives share prices like strong revenue growth of 282% with more to come. Expect a record Q4 and full year 2016 report to come from DRIO for reasons I explained earlier this week. (see: DarioHealth Corp. (DRIO): Growing Sales By 282% With Record Q4 On Tap.)

DRIO shares are up 10% for the week, and I believe the advance is just beginning. The company only has a float of 2.9 million and can move with very little volume. Every indication points to a continuation of ultra-fast revenue growth as DRIO:

  • Continues rapid expansion in the U.S. market that was only fully underway late last year
  • Launches the Android version of the Smart Glucose Monitoring System
  • Launches in Germany

Bullish DRIO Chart

Technical analysis gurus swear by triple bottom formations as being extremely bullish indicators. DRIO put in a beautiful triple bottom formation as you can see:

With a record Q4 (and another record Q1 in my estimation), plus other near-term positive drivers, I expect to see DRIO shares continue the uptrend they’re now in.

See also:  

 

DarioHealth February 2017 Investor Presentation

Rodman and Renshaw Report: DarioHealth BUY $12 PT

Joseph Gunnar & Co. Report: DarioHealth BUY $8 PT


See: Terms of use/disclosures/disclaimer

Green Organic Dutchman - gary

 

 


 

  • Nothing advances share prices like the strong top and bottom line growth DarioHealth Corp. (DRIO) is experiencing
  • DRIO reported a whopping 282% growth in sales for the previous 9 month period ending last September
  • Expect a record Q4 and full 2016 results when DRIO reports next month,a strong catalyst to drive shares higher
  • FDA approval for the Android version of the DarioSmart Diabetes Management Solution is expected by mid-2017, another positive catalyst for the company
  • Near-term launch in Germany pending, further accelerating sales
  • Coming off a $5.1 million raise last month, DRIO has a strong balance sheet to continue rapid market penetration
  • DRIO has a unique business model in the Mobile Health (mHealth) space that helps customers better manage their diabetes, and that model, (along with the Company’s proprietary technology), is the driving force behind the growth

dariohealth-logo

DarioHealth Corp. (NASDAQ:DRIO), (web site), is a digital health company that develops and commercializes patented and proprietary technologies providing consumers with laboratory-testing capabilities using smart phones and other mobile devices.

Its flagship product is the Dario Smart Diabetes Management Solution, a mobile, real-time, cloud-based, diabetes management solution based on a multi-feature software application combined with Dario Smart Meter, a pocket-sized, blood glucose monitoring device.

DarioHealth Corp. has marketing clearance in Europe and the U.S. and the Dario iOS mobile app recently launched with reimbursement in the United Kingdom, Australia, Israel, Italy, and Canada. Additionally, DarioHealth has launched in New Zealand, the Netherlands, Italy, and Belgium.

The company is also pursuing patent applications in various jurisdictions covering the specific processes related to blood glucose level measurement, as well as various general methods of rapid tests of body fluids using mobile devices and cloud-based services. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. The company was founded in 2011 and is headquartered in Caesarea, Israel.


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Share Information

Shares Outstanding: 7.3 million
Insider ownership: ~40%
Float: 2
.9 million
Closing Price 2/17/2017: $3.86
Market Capitalization: $28 million
Revenue/Share 0.51
Quarterly Revenue Growth (yoy) 167%

 


DarioHealth Corp. Experiencing Strong Top and Bottom Line Growth

Nothing drives share price appreciation more than strong fundamentals, something DarioHealth Corp. has in spades. DarioHealth grew sales by 282% during the first 3 quarters of last year as compared to the same period in 2015, from $515,000 to $1,965,000 (see SEC filing).  Moreover, loss/share was trimmed to (.31) from (.90) during Q3 of 2016 vs. the same period in 2015. This strong improvement in top and bottom line growth is no fluke- it’s due to several factors that set DRIO apart from competitors, factors that I’ll discuss below.

Record Q4 Report Pending

DarioHealth will be reporting Q4 and full year results in March, and indications are that Q4 will be a new record for the company. This is due in part to the launch of DarioHealth Blood Glucose Monitoring System in the U.S. market, a launch in its infancy that’s producing very substantial early results. On January 23rd, DRIO gave a peek at the upcoming Q4 results from the U.S. market launch, and the numbers are impressive:

  • More than 8,500 were sold in the U.S during Q4 alone, increasing market presence by 85% compared to the end of the third quarter
  • 18,500 Dario All-in-One Smart Glucose Meter devices were purchased in the U.S. alone during the company’s 2016 U.S. launch
  • Nearly 95% of U.S. users have ordered test strips
  • DarioHealth generates recurring revenue between $150-$500/user annually from sales of disposable monitoring strips

DRIO is the classic “razor-razorblade model” on steroids. FDA approval of Android version will increase market penetration + launch in Germany also pending.

By taking the lower end of annual recurring revenue/user of only $200 and the 95% U.S customer conversion rate to disposable test strip consumers (or approximately 17,500 of U.S. customers), DRIO is looking at $3.5 million in annual recurring sales from the U.S. market alone for 2017 ($200 x 17,500). Keep in mind this is using the lower end of the $150-$500 annual recurring revenue/customer range and includes just the U.S. market alone, where DRIO is still ramping up sales. It does not account for growth in multiple other markets, (including the United Kingdom, Australia, Israel, Italy, and Canada, New Zealand, the Netherlands, Italy, and Belgium), or Germany where DarioHealth has a launch pending.

DRIO also submitted the Android version of the Smart Diabetes Management System to the FDA and expects approval in Q1 or early Q2 of this year. There are approximately 107 million users of android devices in the U.S., so this is a noteworthy market for expansion.

Given the facts above, investors can look forward to a record Q4 and full year 2016 to be reported in the DRIO 10-K filing due in early March, followed closely by a record Q1 2017.


Recent Capital Raise Will Fuel Rapid Expansion and Strong Sales Growth

DarioHealth has a strong balance sheet with current assets of $5.6 million and current liabilities of $2 million for a healthy current ratio of 2.8. Keep in mind the balance sheet is from Q3 of 2016 and does not include the cash infusion of approximately $5 million in gross proceeds expected from the Company’s recent raise announced January 12, 2017.

The financing deal was led by OurCrowd Qure, a dedicated digital health fund that invested $2.5 million of the $5.1 million. OurCrowd Qure has been granted two board seats which will be selected and announced at a later date.

On the recent funding, Erez Raphael, Chairman and CEO of DarioHealth stated:

We have received great support and belief in our product, vision, and growth strategy from investors. With this funding, we will accelerate adoption of our innovative and user-friendly remote glucose monitor platform across current markets and also expand into new geographies, such as Germany, in 2017.”

 


Analyst Sees $8 Million in Sales for 2017 and $19 Million for 2018

Analyst Joseph Gunnar & Co has a well-researched report on DarioHealth you can read here. In the report you’ll find sales estimates of $2.9 million for 2016, $8 million for 2017, and $19 million for 2018. Using a reasonable metric of 4.5X sales, Joseph Gunner has an $8/share price target on DRIO shares.

DarioHealth (DRIO) Sales Growth Chart

Additionally, Rodman and Renshaw has a $12 price target on DRIO shares, using a net present value (NPV) model, and assuming just 6.6% diabetes market penetration and $400/year sales/user (includes hardware, strips, licensing, etc.)

DarioHealth - rodman valuation

 

Clearly, DarioHealth Corp. is on to something in the rapidly expanding mobile health space.


The Diabetes Management Market

Diabetes is the 7th leading cause of death in the United States according to the Centers for Disease Control. Moreover, it greatly increases the risk for heart disease, end-stage renal disease, blindness, amputation, and complications during pregnancy. It is a chronic medical condition that has increased in its numbers at a faster pace than most other chronic conditions. In 2015, the International Diabetes Federation estimated that more than 415 million people had been diagnosed with the disease, and that number is expected to balloon to 642 million by 2040.

The importance of carefully managing diabetes cannot be overstated. In a recent study by the National Institutes of Health, people with type 2 diabetes who intensively managed their blood sugar levels were found to have cut their risk of diabetic retinopathy in half. Multiple studies have shown that well managed blood sugar levels in diabetics dramatically reduces risk of complications including heart and blood vessel disease, nerve damage, and kidney disease as well.

Mayo Clinic puts it simply and directly:

“Controlling your blood sugar levels can help prevent these complications.”

And this is where DarioHealth Corp. comes in- with 12% of all global health expenditures spent on diabetes, having a real-time diabetes management solution that is practical and user-friendly while reducing risk of costly and life-threatening complications represents an urgently needed paradigm shift in the management of the disease.


Moving the Market from “Monitoring” to “Management” is Driving Growth

The company’s focus on helping consumers manage and not just monitor diabetes is why sales are skyrocketing. Investors should understand that DarioHealth Corp. is not simply a diabetes monitoring or blood sugar measurement device company. Dario is a pioneer in effective disease management solutions, and diabetes is the first, “low hanging fruit” the company is addressing.

Unlike traditional glucose meters offered by competitors, the Dario App provides:

  • Real-time, easy-to-access information
  • Test results automatically logged and synced in the cloud for physician access (no need to write in paper log books)
  • Data insights, analysis, and pattern recognition so users can easily understand why their personal blood glucose levels change and what changes them
  • Actionable alerts and reminders
  • Insulin dose tracking
  • Log of carbs and calories
  • Database showing carbohydrate counts of half a million foods
  • Users can even set extreme hypoglycemic result alerts to text message family member(s) with GPS tracking

DarioHealth also intends to increase penetration in both the direct to consumer market and to other businesses by offering diabetes management coaching services in the future. The company plans to reduce medical complications of employees with diabetes (and improve clinical outcomes, reduce sick time, reduce health care costs) by using a team of nurses and other health care professionals that will provide diabetes management coaching services.

The video below gives an overview of the DarioHealth Smart Diabetes Management System in action.

 

 

The DarioHealth Smart Diabetes Management System includes a sleek, accurate, all-in-one Smart Meter combined with a robust, real-time mobile app that allows users to record their data: blood glucose measurements, carbs & insulin intake, and physical activity. Users can view, analyze, list and compare all of this valuable information and share it with family and medical staff.

 


DarioHealth is the only diabetes management system that includes all of the features below:

 

dariohealth-features

 


Innovative B2C Sales Model = High Margins and Rapid Sales Growth

Going beyond technological innovation in disease management, DarioHealth Corp. has an innovative approach to sales. The company is using a direct business to consumer sales approach with a strong presence on social media. DarioHealth is creating demand directly from the consumer, skipping the middlemen, and generating high margins.

Ultimately, DarioHealth intends to dramatically ramp revenue by expanding the company’s diabetes management solution beyond individual consumers to include businesses by offering a cost effective mobile health solution for employees with diabetes. DarioHealth plans to reduce medical complications of employees with diabetes (and improve clinical outcomes, reduce sick time, reduce health care costs) by using a team of nurses and other health care professionals to provide diabetes management coaching services. This is a huge, untapped market for Dario to penetrate with an early mover advantage.


Conclusion

DarioHealth is a pioneer in the digital health space, addressing a global market of > 400 million diabetics with patented technology that can help them better manage their disease and reduce expensive and life-threatening complications in a cost-effective manner.

With sales just beginning to dramatically increase following last year’s U.S. launch and the enormous market the Diabetes Management System addresses, the current low market capitalization of DarioHealth ($28 million) is not likely to last. To date, the company has been focused on the successful launch of the system itself, including FDA and other regulatory hurdles, obtaining patent protections, and regularly upgrading the software based on user feedback. During my conversation with management it was clear the company intends to begin doing much more in terms of investor awareness and investor relations, including taking steps to increase institutional awareness and participation in the company in 2017.

Relative to other digital health data solutions, both retail and institutional investors should find DRIO shares attractive at a $28 million market cap, especially given the “hockey-stick” growth curve the company is experiencing.

Fundamentals matter, and as a result DRIO shares shares should have a very strong showing in 2017 as the company rapidly expands revenues and is introduced to a larger investor base. 

Look for a record Q4 report in early March, followed up by another new record for Q1 2017, a launch in Germany, and FDA approval of the Android version as positive catalysts for near term share price appreciation.


DarioHealth - gary siggy

 

 

Supplemental: DarioHealth February 2017 Investor Presentation

Rodman and Renshaw Report: DarioHealth BUY $12 PT

Joseph Gunnar & Co. Report: DarioHealth BUY $8 PT


See: Terms of use/disclosures/disclaimer

Green Organic Dutchman logo

The Green Organic Dutchman (TGOD) grows the highest quality Organic medical cannabis in small batches using craft growing, all natural and organic principles. With experienced, passionate growers with over 8 years of MMAR growing experience, 120 acres of land, and immediate revenue from wholesale market.

 

Green Organic Dutchman expects to generate $90 million by 2018.

 


The Green Organic Dutchman, (IPO expected in Q3), is announcing a second round of financing following a heavily oversubscribed initial round.

Green Organic Dutchman is backed by the same financial team that brought together the successful IPO of Emblem Corp. Emblem’s last financing round prior to its 12/12/2016 IPO on was priced at $1.15. We rated Emblem a STRONG BUY prior to the IPO in this article. Shares opened at $2.99 on December 12th and closed last week at $3.65. No doubt, investors in Emblem’s non-brokered financing are very happy.

 

Accredited investors can now access what I strongly believe will be another very successful cannabis IPO in The Green Organic Dutchman

  • First round of financing was oversubscribed by 300%
  • Offers investors the opportunity to invest in a licensed medical cannabis producer before it goes public
  • Experienced, accomplished, and successful management team with experience in structuring large JV transactions
  • Early mover in high-demand 100% certified organic space will translate into strong demand under a recreational model
  • Retailers want more organic choices for customers
  • Patients demand quality and pay a premium price for organic product over irradiated products
  • Rob Anderson is the financier who was instrumental in the $47 million in Emblem financing, taking it to a $450 million valuation since it debuted, and will be the CEO and Director of The Green Organic Dutchman. This deal is his legacy project

 


Financing Details

The Green Organic Dutchman Holdings Ltd. (“the Company”) is pleased to announce that it is conducting a best efforts equity financing to raise aggregate gross proceeds of $10,000,000 (the “Offering”) through the issuance of common share units (the “Units”) at a price of $1.15 per Unit. Each Unit will consist of one common share of the Company (a “Common Share”) and one common share purchase warrant of the Company (a “Warrant”). Each Warrant is exercisable into one Common Share (the “Warrant Share”) at the exercise price of $2.15 per share for a period of 24 months from the closing date (“Closing Date”) of the Offering. It is intended that the Warrants will be transferable and will be subject to acceleration in the event that the volume weighted average price of the Common Shares is equal to or greater than $2.80 over a period of ten consecutive days. The Common Shares and Warrants will be subject to a 6 month contractual escrow period from the date the Company’s common shares (or derivative thereof) are listed on an exchange (“Listing Date”). The Warrant Shares will be subject to a twelve-month contractual escrow period from the Closing Date.

“This is a unique retail shareholder driven financing, that allows as many potential patients to participate as an investor, in the upside of our Company,” states Rob Anderson, CEO of TGOD.

Recent Development Highlights:

  • The company successfully completed a heavily over-subscribed $13,200,000 initial financing announced in December 2016.
  • TGOD has secured an additional and contiguous 75-acre property bringing the incumbent land package to 100 acres. This additional land sets TGOD apart from much of its peers, allowing for large-scale and accelerated expansion plans.
  • The company has added significantly to both the corporate, operational and project management teams. (See corporate presentation for details and full bios — http://www.tgod.ca/)
  • Engaged Larssen Greenhouse Engineering, who specialises in the technical design and building of the most modern and sophisticated hybrid greenhouses in the industry.
  • Engineering and design for Phase 1 Expansion of 145,000 sq. ft. commenced in January. This expansion will increase the current annual productive capacity from 1,000KG’s to over 14,000KG’s.

 

Phase I Expansion:

Engineering and design for Phase 1 expansion are well underway, and management anticipates construction to begin late in Q2, 2017. The Company has expedited its original plan, increased its size and scope, and will be executing a 2-part expansion of Phase 1:

Hybrid Expansion:

  • A 125,000 sq. ft. of state-of-the-art, automated, hybrid facility
  • Additional annual capacity of ~11,000KG’s
  • Anticipated Q2 2018 initial harvest

Enclosed Expansion:

  • A 20,000 sq. ft. state-of-the-art indoor facility
  • Additional annual capacity of ~2,000KG’s
  • Anticipated Q1 2018 initial harvest

Following the completion of the Phase 1 expansion, TGOD’s production capacity is expected to be ~14,000KG’s annually.

The Company has built a team of highly experienced power, energy optimization and construction professionals to ensure this expansion is delivered not only on-time and on-budget but also completed to the highest possible standards, potentially setting a new standard for the industry.

“This is our last planned pre-IPO financing, and fully funds the first stage of our expansion plans,” states Marc Cernovitch, President of TGOD.


Phase 1 facility expansion underway + newly acquired adjoining 75 acre property

god-production-license1Production license received on 8/17/16

god-annual-capacity1,000 kg annual operating capacity

god-wholesale-contractsWholesale contract agreements in place

god-25-acres 25 acres of potential facility footprint + newly acquired adjoining 75 acre property

god-level-8-vaultLevel 8 Vault holding up to 625Kg

god-production-expansionPhase 1 expansion ready to commence

 


Licensed to Produce by Health Canada as of Aug 17, 2016

Green Organic Dutchman is licensed under the access to cannabis for medical purposes regulations (ACMPR) to cultivate medical marijuana. Green Organic carries out its principal activities producing marijuana from its facilities in Ancaster, Ont., pursuant to the provisions of the ACMPR and the Controlled Drugs and Substances Act (Canada) and its regulations.


3 Pillar Marketing Strategy

god-marketing1

Wholesale

  • Significant demand from fellow LP’s for organic product
  • Forward sale agreements allow for immediate revenue in early stages of development while retail following is being built
  • No fulfillment and minimal shipping costs
  • Wholesale platform operates at high margin with low overhead

god-marketing2

Retail

  • As patient acquisitions increase and as recreational market comes on line, sales will shift from wholesale to much more profitable retail/recreational
  • Patients demand quality and pay a premium price for organic product over irradiated products
  • Developing Strategic partnerships with marijuana clinic networks, pain clinics, and veteran networks

god-marketing3

Joint Ventures

  • In discussion with significant distribution partners: LPs, drug stores, pharma companies, liquor stores, & dispensaries for recreational
  • Creates instant distribution to the much more profitable retail/recreational market
  • Management team has significant experience in structuring large JV transactions

Proven and Experienced Leadership Team, Backed by the Financiers of OrganiGram and Emblem Corp.

jeff-paikin-green-organic-dutchmanJeff Paikin
Chairman of the Board – Green Organic Dutchman

Mr. Paikin is the president and founder of New Horizon Development Group. In 2013 he was named RBC Distinguished Citizen of the Year for Hamilton. He is very active in the home building industry as a past president of the Hamilton Halton Home Builders’ Association and a former board member of both the Ontario Home Builders’ Association and the Canadian Home Builders’ Association. Jeff is a member of the Hamilton Tiger- Cats advisory board and the Hamilton Bulldogs Community Foundation board, as well as being the current Chair of the Hillfield Strathallan College Capital Campaign and past Chair of the board of both Hillfield Strathallan College and the Canadian Accredited Independent Schools (CAIS.ca).

Rob Anderson
CEO & Director – Green Organic Dutchman

Mr. Anderson brings 20 years of experience working with micro-cap companies in a broad range of sectors. Having spent 12 years in the Canadian brokerage Industry with one of Canada’s leading independent firms, and having financed hundreds of micro-cap companies he has an impressive track record of success, with multiple companies reaching market valuations in excess of $1B. Mr. Anderson is a strong advocate for retail shareholders, believes in a staged financing to address a company’s capital requirements, as well as advising on the development of business plans, recruiting management, negotiating transactions, joint ventures, and supporting management during the company’s growth cycle. Value of Investment into Green Organic Dutchman: $1,000,000.

scott-skinner-green-organic_dutchmanScott Skinner
Co-founder, Director & COO – Green Organic Dutchman

Mr. Skinner is a cofounder and COO of The Green Organic Dutchman. Scott engineered, designed and oversaw the construction of the Green Organic Dutchman’s production facility. This state-of-the-art facility now houses over 35 varieties of Cannabis. Scott’s current ongoing projects are the research and development of LED based Light Spectrum Optimization Technology for best cannabis production yields along with the development of Tissue Culture Propagation Protocols for the rapid cloning of cannabis plants.

Dave Doherty
Director – Green Organic Dutchman

Mr. Doherty brings over 20 years of investment and finance experience to the company. Mr. Doherty was an investment adviser with Canaccord Capital, Canada’s largest independent securities dealer covering the North American capital markets specializing in developing, structuring and financing venture and growth companies in the Resource sector. Mr. Doherty has sat on numerous boards including Organigram Holdings and presently is on the Board of Saber Capital, to be renamed Emblem Cannabis. He holds a degree from Simon Fraser University, with a major in finance. Value of Investment into Green Organic Dutchman: $900,000.

marc-cernovitch-green-organic_dutchmanMarc Cernovitch
President – Green Organic Dutchman

Mr. Cernovitch brings over 20 years of investment and corporate finance experience to the company. Marc studied Economics at McGill University and has focused on corporate development, funding and building companies primarily in the resource and energy technology fields. He has a strong background in corporate governance and finance. For the past 20 years, Mr. Cernovitch has been providing capital markets advisory services to companies across both public & private sectors. In this capacity, Mr. Cernovitch has served as a director and advisor to numerous small and mid-cap companies contemplating and/or executing financing and M&A transactions. Value of Investment into Green Organic Dutchman: $600,000.

jeannette-vandermarel-green-organic_dutchmanJeannette Vandermarel
Co-founder – Green Organic Dutchman

Mrs. Vandermarel grew up on a commercial scale fruit farm in Southern Ontario and learned about agricultural business management. Jeannette’s daughter Breanne passed away in 2003 as a result of Dravet Syndrome, a severe seizure disorder. Breanne spent most of her 8 years of life on powerful anticonvulsant drugs that did little to control her seizures and unfortunately caused serious side effects. She was never given cannabis. Around 2008, anecdotal reports began showing potential for cannabis based medicines. Jeannette, while caring for children with severe seizures in the Paediatric ICU became aware that some children were having great seizure control by using cannabis medicines.


Founders and Management Heavily Invested

As mentioned above, the CEO, Rob Anderson, is heavily invested in The Green Organic Dutchman, as are other founders and the management team.

Shares held by the Lines Founder Group and Green Organic Dutchman Founders account for nearly 40% of outstanding shares, and will be held in escrow for a full 36 months from the start of trading. This is a strong vote of confidence in the future success of the business.

# of shares % of shares
Green Organic Dutchman Founders* 11,500,000 12.4%
Lines Founder Group* 24,750,000 26.7%
Management Team 21,450,000 23.1%
Retail Investors 35,050,000 37.8%
Pre-money valuation $106,720000
Cash $12,500,000
Options outstanding 9,280,000
Debt $0

*Shares have a 36 month escrow period from the start of public trading

 


How to Participate in the Financing*

Accredited investors can email Brett Allan at: Placement@tgod.ca   

See also Green Organic Dutchman Presentation @ http://greenorganicdutchman.com/dl/TGOD.pdf

Corporate site: www.tgod.ca

*If the Emblem Corp financing and initial round of Green Organic Dutchman financing are any indication, this deal will be oversubscribed.


Best wishes for profitable investing!

Green Organic Dutchman - gary

 

 


Disclaimer: The information above is not a recommendation to buy shares of The Green Organic Dutchman. The publishers of MicrocapResearch.com are not registered as Investment Advisors in any jurisdiction whatsoever. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. Investing in nanocap, microcap, and small cap stocks is highly speculative. See full disclaimer.

Disclosure: The publishers of MicrocapResearch own shares of The Green Organic Dutchman