CannTab Therapeutics Ltd (CNSX:PILL) Hard Pill Formulation is Patentable, Novel and Useful

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Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

CannTab Therapeutics Ltd (CSE:PILL) (OTCMKTS:CTABF) (FRA:TBF1) CFO Richard Goldstein visits Midas Letter Studios to discuss the recent stock surge and latest company developments. CannTab is a solid oral-dose tablet company, which started in the pharma business and then adapted its technologies to the cannabis space almost four years ago. The stock jumped as high as 98 percent and closed up 62.5 percent from the previous days closing price. The CFO explains “we had the little flurry of activity; we hope to have more trading and more interest behind the stock. We’re getting more eyeballs, and taking advantage of all our hard work.” CannTab recently graduated on the OTC to the QX listing making it easier for US investors to take ownership of the company. Mr. Goldstein believes tablets are truly the medical answer. The company’s bi-layered tablet, which are scheduled to be going into clinical trials soon, combine immediate release and extended release properties, using both CBD and THC. Additionally, the hard pill received an initial assessment from the Geneva-based International Preliminary Report on Patentability indicating the formulation is novel, non-obvious and useful.

Transcript

Fraser Toms: Hey. Joining us now is Richard Goldstein. He’s the CFO and cofounder of CannTab Therapeutics. Richard, how are you doing today?

Richard Goldstein: I’m doing well. Thank you for having me.

Fraser Toms: Great, yeah. It’s been a while since the last time you were on talking specifically about CannTab, and I hear you were telling me you graduated on the OTC to the QB listing?

Richard Goldstein: We started off on the QB, and then when we hit our third anniversary on April 20th, 4/20/2019 of our incorporation, we were then qualified to go on the QX. So now, we are on the OTC QX, have been for a few months, trading under the symbol CTAB and then F for a foreign issuer, so CTABF.

Fraser Toms: Yeah, that’s right, and on the CSE you’re under the ticker PILL.

Richard Goldstein: PILL, yessir.

Fraser Toms: Awesome. So we noticed here you had some kind of renewed interest in the stock; it jumped up quite a bit, I believe it was on the 12th, new volume coming in. What do you attribute that to?

Richard Goldstein: Yeah, I mean, listen: we’re not a big, high-trading stock, high volume trading stock, so when we have a day like that – 300,000 shares – we haven’t had a day like that in a long time. I think you’re seeing a lot of people standing around watching us, seeing us develop. You know, lots of companies have begun generating revenue, and there’s an expectation on CannTab generating revenue, and once that is done, I think you’ll see even a lot more support. But as soon as some buying gets in, I don’t know if it’s fear of missing out or what, but it was just, you know, some interest came in, and then others came in, and it got moved up. I think we hit a high of around 78 on the day, but we closed, you know, into the 60s; 65, I think it was. We’re trading in the 60, 65 range, I guess, somewhere around there today.

But no question, we had the little flurry of activity; we hope to have more trading and more interest behind the stock. We’re getting more eyeballs, and taking advantage of all our hard work.

Fraser Toms: For sure, and just for those who might not have been following the CannTab story, why don’t you just give us a brief overview as to what your company does specifically? I mean, right now your market cap is in the $15 million, $16 million range, so why don’t you…

Richard Goldstein: Yeah, at $15 million, $16 million, we certainly have a lot of assets and of capabilities, and have demonstrated in the past that we think we’re deserving of a way greater valuation than the 15 or 16. But basically, we are a solid oral-dose tablet company. We started in the pharma business; my co-founder, Jeff Renwick, you know, has been 25 years in the pharma business. And so we took all of our knowledge and all of our people that we’ve gained inside that pharma business, including some technology that we had created many years ago, and then adapted it to the cannabis space probably almost four years ago.

Fraser Toms: Yeah. And on the 31st of July, you guys issued a press release, sort of a corporate update. Why don’t we just go over some of that a little bit? So, commercial batch manufacturing of oil-filled gel capsules, construction nearing completion in Markham. So, what do you have going on right now, and what’s sort of developing?

Richard Goldstein: Sure. So I mean, happening right now, I guess, we are a late-stage applicant to be a licensed producer. Non-cultivator, so we don’t intend to grow marijuana, but we do want to be able to process it if we want to. We certainly want to be able to handle oil, and more importantly, create finished product. Capsules, which is approved today, will be made initially in Coburg at the facility there, and will be white labeled through a variety of licensed producers.

I was on this show not that long ago with Clint Sharples at Heritage, and you know, we’ve partnered up with them, as well, to provide them with product – at least capsules, to begin with. Other LPs that we’ve talked to certainly coming down the road. People are looking for a diversification of their product line, and capsules is one way to go. And capsules is important, and that’s what’s live today and what’s being sold, and frankly, to a certain degree, are not necessarily available, especially on the CBD side.

But at the end of the day, we believe tablets are truly the medical answer, and so we call the capsules, if you will, the appetizer to the dinner. But the main course is tablets, an immediate release tablet; a flash melt that melts into the vehicle cavity for quick release. An extended release that lasts over 18 hours. A bi-layered tablet that we’re going to use in the clinical trial in the not-too-distant future, combining immediate release and extended release properties, using both CBD and THC.

Fraser Toms: Okay, so to go over both the – just because I don’t really know – the capsules, is there anything special about delivering cannabis? Is it different than, say, if we put something else in the capsule, or is it sort of the technology with the capsule that can be universally applied to anything?

Richard Goldstein: A capsule is pretty much a commodity; it depends on what the original resin or oil that’s used. Most capsules are essentially diluted 90/10, so you’ve got 10 percent of either CBD or THC, and then you have 90 percent of a carrier oil. They’re all relatively the same. 

There are some negatives associated with capsules; there’s not a long shelf life on them; they are not useful in terms of bypassing or tricking the liver and getting the lion’s share of the active ingredient into the bloodstream – the liver cleans out a lot of the active ingredient from capsules, and then, you know, tablets are essentially cheaper, longer lasting shelf life, they don’t melt in your glove compartment if you went golfing and left your, you know, your capsule supply in your glove compartment.

But most importantly, we think it’s the easiest – it’s an Aspirin. It’s just as easy to take, looks exactly the same, and from a medical point of view, we think that’s the way to go. And then, as a result of today’s announcement, needless to say, you know, we’re really, really excited.

Fraser Toms: Yeah, let’s talk about that in just one second. But with the tablet, do you chew it, or you just put it in your mouth? What do you do?

Richard Goldstein: Yeah, good question. Actually, both. The flash melt is actually something that you just sort of stick in; tastes like almost like a little peppermint, if you will, an Altoid, a mini-Altoid, for lack of a better example.

Fraser Toms: Sure.

Richard Goldstein: But almost like a candy. And it melts, and you can suck on it and it releases CBD and/or THC, depending on which one you’ve taken. But most are just swallowed with, you know, with water.

Fraser Toms: Okay. And then, yeah, so, to get into the release today, which is pretty exciting, the indication of patentability. So, obviously if you’re able to sort of get a patent into the market in the field that you’re in, that would be huge. So walk us through the process. You’re looking to go down that road, and have started, and what’s left to happen along the way? What have you done so far?

Richard Goldstein: So it all starts, so, with this Geneva-based international authority. And what you do is, you apply to them with your application and your desire to gain patent protection on your international portfolio of properties, etcetera, etcetera, and most importantly, the intellectual property that we’ve filed with them. And so they review that, and they take a look worldwide to see, in fact, are we infringing on anybody, etcetera, etcetera. And every company would use this base as a starting point.

In fact, they have satellite offices that do all these reviews, around the world, and so they actually appointed our file to their Canadian satellite office. And so on top of everything else, we have this Canadian satellite office of this international organization basically saying to us, yes, this thing is definitely patent-able, and so we hope in the not-too-distant future, we’ll receive patents where we’ve already applied in Canada, Australia, United States, and now we will go ahead and continue on in the EU.

Fraser Toms: Okay, great. So you have applied for those patents, and obviously, having this indication is probably a big plus because it goes a long way to – 

Richard Goldstein: Well, it does. I mean, we are an IP-focused company. We came out of pharma; we are using GMP standards. We have 13 patents filed. This is the first that we expect to receive approval on; at the end of the day, we expect to receive a handful of others, ranging from how we actually even just make the granulation from an oil, all the way to the sophistication of the extended release tablet, and the bi-layered tablet. But having said that, I mean, we’re a Canadian-based company, but we’re internationally focused. We can sell these tablets anywhere around the world, CBD, THC, and a combination of the two together, with a variety of other terpenes, flavonoids and cannabinoids, if you will, that we can introduce into any form of tablet and deliver it, you know, in a very direct fashion, an easy to take fashion, for, you know, for all – seniors and younger folk.

Fraser Toms: Because I’ve never filed for a patent, and I really have, I’m assuming there’s a lot of legal stuff involved, but is there any way you could provide even the roughest of ballpark timelines from when you apply, assuming you have a good idea, to it actually being patented?

Richard Goldstein: Well, it takes several years, for sure. I think we filed our first patent – geez, I don’t know, maybe back in 2015, ’16?

Fraser Toms: Wow. Yeah.

Richard Goldstein: What happens is, you file, and eventually you get to the top of the pile and you get reviewed, and then there’s comments from the examiner, and they review those comments with you and give you an opportunity to respond. We went through that whole process and we didn’t hear on the patent, probably, for a couple of years. And then, over the last few months, you know, we have heard back, and felt that we would get this, ultimately. And now with the release of the report from Geneva, we are confident. I can’t tell you how long it takes, per se; it could go quick, it could go longer. What’s most important is, we’re the brand, now.

What we’ve learned is, there is nothing that has been filed, at least from an intellectual property portfolio perspective, that is out there in the world. And so, we are first. We are the brand. We kind of grew up in the generic pharmaceutical industry, and to be Number One, where people are going to try to do what you do, you know, is a really great spot to be in. A spot that we think we can use influence right around the world.

Fraser Toms: Great. Well, Richard, thanks so much for the update. I’ll be checking to see if the patent’s coming through on probably a daily basis, because that’s pretty exciting.

Richard Goldstein: It is, it is. You’ll send my best to James.

Fraser Toms: Absolutely.

Richard Goldstein: And thank you for having me.

Fraser Toms: Cheers. Thank you.

Richard Goldstein: All righty.

 

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

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