High Growth Targets To Watch

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1 High Growth Targets To Watch StoneBridge Partners

2 Featured Companies Biotech cannabis stocks are hot and one of them, Zynerba Pharmaceuticals, (ZYNE) recently completed enrollment in the Phase 2 STAR 1 clinical trial evaluating ZYN002 CBD gel in adult epilepsy patients with refractory focal seizures. The company also completed enrollment in the Phase 2 STOP clinical trial evaluating ZYN002 CBD gel for the treatment of osteoarthritis. Zynerba said it is on-track to report top-line data for each trial in July/August. About the Trials The primary endpoint for the STAR 1 trial will assess the median percentage change in seizure frequency over the 12-week treatment period. In the trial, 224 patients with refractory epilepsy were screened and Zynerba expects to exceed the 180 patients target once the 8-week baseline period is complete. The screen failure rate has been between 10% - 15%. The primary endpoint for the STOP trial will assess the change from baseline in the weekly mean of the 24-hour average of worst pain score. In the trial, 418 patients with osteoarthritis knee pain were screened and Zynerba already exceeded the 300 patients target. Additional patients still in the baseline period are expected to be randomized as well and the screen failure rate experienced for this trial has been between 20% - 25%. From the CEO Zynerba Pharmaceuticals Chairman and CEO Armando Anido said, Reaching our target patient enrollment in the STAR 1 and STOP Phase 2 clinical studies represents key clinical milestones for Zynerba and we remain on-track to report top-line data for each trial in July/August of this year. The rapid enrollment and significant interest in our trials is highly encouraging. We will continue working diligently to move these potential treatments through clinical and regulatory development as efficiently as possible. 2

3 Outlook is Bright We were favorable on this update and we expect to see the shares continue to be one of the top performing biotech cannabis stocks. The shares came down from its recent highs and Zynerba is a stock that should be on every investor s radar. Cara Therapeutics (CARA) announced that it will present at the American Academy of Orthopaedic Surgeons Annual Meeting on March 14-18, and at the American Academy of Pain Medicine Annual Meeting on March At the March 14 th event, CMO Dr. Joseph Stauffer will moderate a symposium discussing kappa opioid receptor agonists as a novel approach to acute and chronic pain management. This will highlight clinical trial data for the company s first-in-class peripherally selective kappa opioid agonist. On the 15 th, he will also moderate a satellite symposium reviewing the need for novel therapeutics for acute and chronic pain and the unique pharmacology of CR845, and its potential in these indications. These developments are not significant for the company and will obviously not serve as a catalyst to the shares. CARA has fallen more than 15% in the last week and Technical420 continue to monitor the shares for a bottom. We recently exited our large position in CARA only to re-enter in a much smaller way shortly after. Technical420 plans to average down on its current position and will provide updates on how the shares respond today Innovative Industrial Properties (IIPR) will report its fourth quarter financial results on March 22 nd (after the market closes). The results will be for the period that started on June 15 th (the date of incorporation) and ended on December 31 st. Executive Chairman Alan Gold, President and CEO Paul Smithers, and CFO Robert Sistek will host an investor conference at 10am PST on March 23 rd to discuss the results and 2016 operations 3

4 Innovative Industrial Properties bounced higher as the shares try to reverse its negative trend and ended yesterday up 1.2% (less than 27,000 shares traded). IIPR is still trading in oversold territory and Technical420 remains on the sidelines with the shares at current levels. The reason for our cautious approach is related to the market s expectation for higher interest rates which do not benefit REITs. IIPR is trading at $15.69 and it traded as high as $16 yesterday. We will keep you updated on how the shares move from here. Veritas Pharma Inc. (VRT.CN: CSE) (VRTHF: OTC) announced that its research arm, Cannevert Therapeutics will soon be in the security inspection stage of its Health Canada Dealer's License application. Cannevert submitted its application to Health Canada's Office of Controlled Substances on August 23, About Cannevert and its Plans Cannevert currently holds a Health Canada scientific exemption allowing them to order a set amount of cannabis using one Canadian licensed producer. The new application will let them produce whole-plant extracts, source from multiple licensed producers, and export cannabis materials for research purposes overseas (i.e. clinical trials being conducted). Cannevert wants to be on a public list of licensed laboratories able to conduct such activities with cannabis under the Narcotic Control Regulations ( en/health-canada/services/list-licensed-dealers.html). Cannevert also would like to perform analytical testing of cannabis samples received from holders of a valid license issued under the Industrial Hemp Regulations. This Dealer's License will include analytical testing for persons who fall under the following Section 56 exemption. This exemption is for registered persons and individuals responsible for them or authorized persons to provide, deliver, transport or send fresh and dried marijuana and cannabis oil to Licensed Dealers for analytical testing. From the CEO Veritas CEO Lui Franciosi said, We are pleased with the status of Cannevert's Dealer's 4

5 License Application. Reaching the security inspection stage means that the company is getting closer to being one of the few labs in Canada allowed to perform analytical testing and biological screening of cannabis and hemp for licensed producers. The License also complements Cannevert's research, by removing existing barriers of supply, thereby enabling to progress in faster, more efficient and more comprehensive manner. Acquisition of this Dealer's License when combined with a commercial grower's license will add significant value to Cannevert, Sechelt and Veritas. Relationship with Sechelt Organic Medicine Health Canada recently told Sechelt Organic Marijuana that it successfully progressed into the Final Review stage of the ACMPR application process. Sechelt was formed to become a producer of medical marijuana under the ACMPR license. Sechelt provides Cannevert Therapeutics the ability to grow specific strains and sell certain products. Veritas entered an acquisition agreement with the owners of Sechelt, which is subject to the issuance of ACMPR license. Relationship with Cannevert Therapeutics Cannevert Therapeutics (CTL) is a private company owned by a group of chemists, pharmacologists, and other medical professionals. CTL has offices on the University of British Columbia campus and has obtained permission from Health Canada to conduct research on cannabis strains. CTL has entered a funding agreement with Veritas where, upon advancing $1.5 million to CTL, Veritas will earn an 80% ownership interest in CTL. Although Veritas has advanced $1,250,000 (and has $250,000 in trust which is due April 30 th ) to CTL, no ownership interest will be earned by Veritas until the entire $1.5 million is received. CTL has also entered a licensing agreement with Veritas, licensing Veritas to market all products developed by CTL. Outlook Technical420 is favorable on this update and we expect to see the shares move higher off this news. Technical420 is currently on the sidelines but we will provide updates 5

6 throughout the trading day. These type of company relationships have us further convinced that there is a consolidation cycle within the Canadian cannabis sector. After Tweed acquired Bedrocann in late 2015, we stated that this was just the start of a consolidation trend within the Canadian cannabis sector. Although things slowed down for a while after this acquisition, we have seen activity ramp up significant over the last few months. It is important for investors to look at some of these Canadian cannabis stocks as either an acquirer or an acquisition target. We are invested in companies that fall under both categories and will provide examples of these types of companies later this week. For daily insights into the booming Cannabis Industry head to to sign up for our newsletter. Use Code: annual for 50% your annual membership Use Code: upgrade10 for 10% off monthly membership 6

7 StoneBridge Disclosures Disclosure. Compensated Affiliate. This report was authored by and is property of StoneBridge Partners LLC. All information and data relied upon in drafting this report is publicly available. The author believes and considers its sources to be reliable, but does not guarantee the accuracy or completeness of any information contained in this report. Any and all information, data, analyses and opinions are provided for informational purposes only and is not intended, in any manner, as investment advice. Any projections or other information generated by StoneBridge Partners LLC regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. None of the material contained in this report is intended as a solution or offer to sell or purchase a specific stock or any other investment. This report is not directed to, or intended for distribution or use by, any person or entity that is a citizen, resident or located in any municipality, state, country or other jurisdiction where the distribution, publication, availability, or use of this report is contrary to any governing law or regulation. The securities discussed in this report may not be eligible for purchase and/ or sale in certain jurisdictions or by particular individuals. It is important that you check any and all governing laws and/or regulations that may be applicable in your jurisdiction. Investing in securities of issuers organized outside of the United States, including ADRs, entail certain risks. The securities of non-united States issuers may not be registered with, nor be subject to the reporting requirements of the United States Securities and Exchange Commission. Please contact a Financial Advisor for professional advice regarding any and all securities investments. This report is intended for informational purposes only. StoneBridge Partners LLC s officers, directors, employees, affiliates, or subsidiaries may have positions in securities covered by StoneBridge Partners LLC. StoneBridge Partners LLC receives compensation from the company and/or has a position in the securities mentioned in this report. This report was produced and authored by StoneBridge Partners LLC. Technical420 is not the owner or author of this report. No party shall copy or distribute this report without the prior authorization of StoneBridge Partners LLC. Technical420 does not and cannot guarantee the accuracy or completeness of any information contained in this report. Any and all information, data, analysis and opinions contained in this report are provided for informational purposes only and is not intended, in any manner, as investment advice. Technical420 has no current position or immediate plan to initiate a position within the next 72 hours in any of the stocks mentioned in this report. 7