Millions of investors across the globe have had their eyes and investment dollars fixated on the Canadian cannabis industry for a myriad of reasons. For starters, medical marijuana is federally legal in Canada with the Trudeau administration signalling that the end goal is full scale legalization in a two prong approach of giving the people what they want and crippling the black markets. This progressive and pragmatic approach is what has investors in the United States salivating for as the consensus is that first mover advantage in an emerging market such as Cannabis will yield massive gains and fuel innovation in many different verticals within the industry. Still not convinced? Raise your hand if you were around for the Dot com era and investing (or aware of it for that matter), now raise your hand if you were around in the 1930’s and investing once prohibition ended. Cannabis and Marijuana Stocks are a once in a generation investment opportunity hands down!
As such the Canadian cannabis opportunity also has captured the attention of the mainstream media and Wall Street, which is becoming increasingly more focused on companies capitalizing on this new emerging market which represents a significant change from 2014 and is a testament to the legitimacy of this sector and the companies profiting off it.
Who Will the Legislation Benefit the Most?
The legislation will most likely support certain industries more than others (i.e. the legislation may benefit lab testing companies more than growers) and this may create ample attractive opportunities for investors. Although the legislation should be fairly straight forward, the complex nature of the cannabis industry may make it more difficult for investors to understand.
We plan to take a very deep dive into the legislation and provide our feedback on the overall structure of the legislations and the companies that may be impacted the most (both positively and negatively).
An Emerging Opportunity
Tetra Bio-Pharma (TBP.CN) (OTC: TBPMF) is an example of a company working to improve its leverage to the emerging Canadian cannabis industry. The company is preparing to commercialize products to sell in North America and expects to start generating revenue from these products in the fourth quarter.
The company commenced the manufacturing process for its first cannabinoid products and opened an office for its manufacturing and sales activities in Moncton, New Brunswick. Tetra Bio selected this location because it believes that New Brunswick is becoming the hub for the Canadian Cannabis industry.
Initiates Clinical Trials on its Cannabis Product
Tetra Bio Pharma is also engaged in the development of cannabis-based biopharmaceutical products and natural health products. In March, the company initiated its Phase I clinical trial after manufacturing the PPP001 cannabis drug product at the Ford Pharma contract manufacturing facility. This facility developed the proprietary process and equipment required to produce PPP001 pellets and packaging operations.
Tetra is also using a New Brunswick-based company, RPC to perform its quality control studies to assure that PPP001 conforms to its drug product specifications and the quality requirements of a prescription drug. The RPC research and technology organization provides Tetra with the high-level expertise required for assessing the quality aspects of PPP001 while keeping the costs associated with these activities within budget due to RPC not-for-profit status.
Event-Driven Catalysts Ahead
Tetra Bio-Pharma’s Chief Science Officer expects Phase 1 trials to be complete by early to mid June. This announcement may be a major catalyst since it will provide a better understanding of the commercial potential of cannabis products and allow Tetra Bio to accelerate towards a Phase III and III trial plans. As cannabis is a known entity for treating chronic pain, Tetra is able to bypass the long and extensive Phase II clinical trials with Health Canada and have expediency with the FDA.
We are favorable on this announcement and think that investors should be a close eye on Tetra Bio as the company plans to manufacture its PPP001 prescription drug as well as additional scheduled products later this year.
Although Tetra Bio has continued to execute, the shares have fallen off a March intraday High that tapped $1.20 CAD, it’s important to note that it also doubled in price from the previous month and needed to pull back technically. Yesterday TEtra Bio Pharma closed at .92 cad which leads us to wonder if investors that were once lacking familiarity with the story are now seeing the forest through the trees should the team at Tetra executing their Biotech model. With Phase 1 trials set to be complete some time next month, we believe the stock is positioned for a significant rise in interest and industry noise. This is a stock to watch! Stay tuned for updates…
And in case you missed their last news release you can read it here, but when you do read it try and look at it as a means for two companies to that have synergistic capabilities to create significant drug therapies jointly… That’s what I did.
Pursuant to an agreement between MAPH and Tetra Bio-Pharma, we were hired for a period of 90 days to publicly disseminate information about (TBPMF) including on the Website and other media including Facebook and Twitter. We are being paid $75,000 (CASH) for and were paid 250,000 restricted common shares of Tetra Bio-Pharma. We may buy or sell additional shares of (TBPMF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
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