Although many people associate the legal cannabis industry with the growing and selling of marijuana, the industry has evolved into much more than that.
Canada has proven itself to be a profitable new frontier for cannabis investors and we think this is just the first inning of a multi-decade growth cycle. While licensed producers have been at the forefront of this movements, new opportunities have emerged within the Canadian cannabis market and we want to highlight two undervalued opportunities
Reliq Management Converts Debenture at a Premium
One of the most important metrics to look at when it comes to cannabis stocks is insider activity. When insiders are buying stock in their own company, it is a positive and helps reaffirm the long-term value proposition of the company. When insiders are selling, it is typically not a good sign.
Reliq Health Technologies (RHT.V) (RQHTF) is a stock we have been favorable on as the company continues to execute on its previously announced initiatives and work towards creating value for its shareholders.
Earlier this week, Reliq CFO Amandeep Thindal converted his $100,000 debenture into equity at $0.13 cents, a premium to yesterday’s closing price. This is a bullish sign for Reliq and we see value in the shares at current levels. The company significantly strengthened its balance sheet and closed an oversubscribed financing round. The company raise $763,000 after initially planning to raise only $500,000.
Over the last quarter, Reliq has significantly advanced and improved its fundamental story as it created new strategic partnerships, commenced new pilot programs, and started to generate recurring revenue.
Reliq is focused on securing new contracts with home care agencies, assisted living facilities and hospitals in North America. The company expects to achieve profitability by the end of 2017. We are favorable on Reliq due to its ability to disrupt a multi-billion-dollar market, its management team, its pilot programs, and its valuation.
Lexaria Strengthens its Patent Portfolio
Today, Lexaria Bioscience Corp. (LXRP) (LXX.CN) filed a new provisional patent application with the US Patent and Trademark Office. The new patent application expands Lexaria’s lipophilic food and beverage composition claims to include microwave (dielectric energy) processing as well as heating/dehydration in a vacuum environment.
The patent application covers processing of cannabinoids, vitamins, NSAIDs and nicotine. Lexaria believes that its patent portfolio is the broadest of any comparable company in North America. Lexaria has 19 patent applications filed and pending in more than 40 countries worldwide.
This development is significant and follows the company’s successful application in October 2016 when Lexaria was issued United States Patent pertaining to its method of improving bioavailability and taste of certain cannabinoid lipophilic active agents in food products.
Lexaria’s technology makes cannabis edibles taste better and makes the active ingredients enter the bloodstream more quickly and much more effectively. The patent protects Lexaria’s intellectual property related to the primary focus of its business, the infusion of cannabinoid compounds in edible products.
Authored By: Jason Spatafora
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
