Nemaura Medical (NASDAQ: NMRD), a medical technology company developing sugarBEAT® as a non-invasive affordable and flexible Continuous Glucose Monitor (CGM) for use by persons with diabetes and pre-diabetics, announced data indicating sugarBEAT® could potentially be used as an adjunctive CGM without the need for finger-stick calibration.
Why It Matters: Nemaura retrospectively evaluated a portion of previously completed clinical data for 75 patients (337 in-clinic patient days), using a refined factory calibration constant, based upon newly developed algorithms. 66% of patches worn by 92% of the patients generating 9,863 paired data points were evaluated, with 58% of these paired data points giving a MARD of 13.61%. Nemaura further noted 73% of these paired data points gave a MARD of 17.83%.
What’s Next: Current CGM adoption is minimal and growing rapidly among people with diabetes, with the global total addressable market estimated at $82Bn annually. The U.S. is the largest single market, with CGM being used by an estimated 2.6% (630,000 users) of all diagnosed diabetics in 2018, representing annualized growth of 117%.
Disclosure
Nemaura Medical (NASDAQ: NMRD) is a client of RedChip Companies. NMRD agreed to pay RedChip a monthly cash fee for investor awareness services.
Nutriband (OTCQB: NTRB), a results-driven company focused on the development of novel and unique pharmaceutical and health products, signed a definitive acquisition agreement to acquire Carmel Biosciences and its FDA-approved Prexxartan™, the first and only approved oral liquid dosage form of the angiotensin receptor blocker (ARB) valsartan in the United States.
Why It Matters: Oral liquid dosage medications boast a number of benefits, such as being better for patients with discomfort swallowing pills, as well as providing for faster absorption and flexibility of dosage. Prexxartan™ (valsartan oral solution) is indicated for treatment of hypertension in adults and children six years and older. Prexxartan™ is also indicated for use as therapy for the treatment of heart failure (NYHA class II-IV). Additionally, Prexxartan™ has also been indicated for stable left ventricular failure or left ventricular dysfunction after myocardial infarction.
In 2010, valsartan (trade name Diovan) achieved annual sales of $2.1 billion in the United States and $6.1 billion worldwide. The patents for valsartan and valsartan/hydrochlorothiazide expired in September 2012.
In addition to Prexxartan™, Nutriband’s acquisition of Carmel Biosciences significantly strengthens its development pipeline, including the addition of CAR-509, CAR-510, CAR-511 and CAR-512 currently in Pre-IND phase, plus rights to Carmel's clinically tested nutraceutical line. This includes MET-191, a nutritional supplement which has demonstrated benefit of lipid management, appetite control, and weight management, while improving factors that contribute to the metabolic syndrome.
What’s Next: The acquisition is expected to be valued at $2.7 million and will be paid in 350,000 restricted shares of the NTRB stock. The equity-based transaction enables NTRB to focus its cash resources on moving its development pipeline forward and growing sales of Prexxartan™. We believe NTRB is just getting started and could provide a great reward for longer-term investors accumulating shares at current levels.
Disclosure
Nutriband Inc. (NTRB) is a client of RedChip Companies, Inc. NTRB agreed to pay RedChip Companies, Inc. a monthly cash fee and 10,000 shares of Rule 144 stock for 6 months of RedChip investor awareness services and consulting services.
Level Brands, Inc. (NYSE American: LEVB), an innovative marketing and licensing company that provides bold, unconventional, and socially responsible branding for leading businesses, through its licensing agreement with Isodiol International, Inc. (OTCQB: ISOLF), announced the online launch of five new cannabidiol (CBD) products under the kathy ireland® Health & Wellness brand last week, sending shares soaring. As share price surged, Kathy Ireland and Level Brands were the focus of an article in Fast Company magazine, “People love Kathy Ireland’s curtains. Will they buy her cannabis products?” (Available here: https://www.fastcompany.com/90237625/americans-bought-kathy-irealands-curtains-but-will-they-try-her-cannabis)
Why It Matters: In January 2018, Level Brands and Isodiol signed a 10-year license agreement to work together to develop consumer products for kathy ireland® Health & Wellness, a licensor to Level Brands. The five supplements are available online at https://isodiol.com/kathyireland/. The products are expected to be available at additional online and in-store retailers nationwide in the coming months.
Key Quote: “We continue to believe that the CBD industry will see enormous growth over the next decade on a global scale. Recently, the Brightfield Group reported that the global market for CBD could top $22 billion in the next four years. If passed, the 2018 Farm Bill which includes the Hemp Farming Act of 2018, will remove hemp as a designated controlled substance, thereby legalizing the crop under federal law, which will allow CBD to be legally sold in all 50 states.” – Kathy Ireland, Chairman Emeritus and Chief Brand Strategist
What’s Next: This news comes as no surprise to regular RedChip Money Report readers. We first profiled LEVB earlier this year when it was trading in the $3 range. Its deal with Isodiol has been public since January, providing smart investors plenty of time to accumulate before the crowd showed up. That’s why we always look to build positions when stocks are still under the radar of bigger investors. While investors who own LEVB in the $3 range may consider taking partial profits, and adding back in on weakness, longer-term, the upside for LEVB is just getting started. As their growing portfolio of agreements reaches the commercialization stage, revenue share arrangements should begin to accelerate growth in the months ahead, and this trend doesn’t appear to be slowing any time soon.
The Backstory: Level Brands is extremely tightly focused on the CBD industry, and the article in Fast Company is highly positive. This passage is typical of the vibe of the article: “‘There’s a stigma attached, and there’s no reason for that,’ says Ireland, noting that beyond pain management, CBD can help women feel energized, alert, and well-rested. Cannabis oil products should no longer be relegated to dispensaries or hushed circles, she continues. ‘It belongs in Walgreens.’”
Disclosure
Level Brands (NYSE American: LEVB) is a client of RedChip Companies. LEVB agreed to pay RedChip a monthly cash fee and 5,000 shares of Rule 144 stock for four months of RedChip investor awareness services.
eSports Entertainment (OTCQB: GMBL), a licensed online gambling company with a specific focus on esports wagering and 18+ gaming, announced Affiliate Marketing Agreements with 42 additional esports teams as the Company continues to ramp up affiliate marketing activities in support of its recent launch of vie.gg, the world’s first and most transparent esports betting exchange.
Why It Matters: This announcement, along with the announcement of 36 additional esports teams last week, signifies a significant acceleration in adoption of the company’s P2P esports wagering platform by global esports teams. Teams are overwhelmingly pointing to the P2P model as highly desirable for their fans due to the fact “at VIE.gg a fan always wins,” as opposed to pitting fans against the “bookie” in the traditional model, where the odds are heavily stacked against fans.
Key Quote: “The acceleration of our esports team affiliates is quantifiable and unequivocal validation that our VIE.gg P2P model is best suited for esports teams and their fans. I want to thank these new esports teams for their support and I look forward to working with them as VIE.gg affiliate partners.” – Grant Johnson, CEO
What’s Next: The addition of these 42 esports teams brings the total number of esports team affiliates to 176 since the Company’s first announcement on April 5, representing a major milestone for Esports Entertainment Group. The Company anticipates many more Affiliate Marketing Agreements with esports teams throughout 2018.
Disclosure
Esports Entertainment Group, Inc. (OTCQB: GMBL) is a client of RedChip Companies, Inc. GMBL agreed to pay RedChip Companies, Inc. a monthly cash fee for six (6) months of RedChip investor awareness services.
GSRX Industries (OTCQB: GSRX), a growing cannabis business with operations in Puerto Rico and California, announced it received pre-qualification for its ninth dispensary in Puerto Rico.
Why It Matters: GSRX currently operates Green Spirit RX medicinal cannabis dispensaries in Dorado, Carolina and the Hato Rey neighborhood of San Juan. In addition to Guaynabo, the Company has five more locations that are currently under construction or near completion in Puerto Rico, located in Isla Verde, San Juan, Fajardo, Old San Juan and Bayamón. The Company also owns and operates The Green Room, a cannabis dispensary in Point Arena, California. GSRX recently received pre-qualification and preliminary approval for a medicinal cannabis manufacturing license and a medicinal cannabis transportation license, the latter of which will allow the Company to transport and deliver cannabis between Green Spirit RX dispensaries and patients’ homes in Puerto Rico.
What’s Next: The recent news of Coca-Cola (NYSE: KO) exploring opportunities in the cannabis space has sent many marijuana stocks higher. While the biggest gains have been relegated to Canadian stocks, longer term, the entire space stands to benefit, adding further potential upside to stocks like GSRX.
Disclosure
GSRX Industries (OTCQB: GSRX) is a client of RedChip Companies. RedChip Companies, Inc. received 1,000,000 registered shares of GSRX for consulting services and 50,000 shares for investor awareness services. Be advised RedChip intends to sell some or all of its shares at any time, including when you are buying.
Coca-Cola (NYSE: KO) Sends Shockwaves Through Cannabis Space
Buzz around legalization has gigantic players looking to get in.
Earlier this year, Constellation Brands (NYSE: STZ) entered the cannabis space through a partnership with Canopy Growth (NYSE: CGC), and just last week, Coca-Cola (NYSE: KO) announced it’s working on a deal with Aurora Cannabis (OTCQX: ACBFF).
Coke and companies like it change the game because they’re already hypernational institutions. They already do business across all regulatory frontiers. Entering the cannabis space, they have the power and clout to reshape the landscape fast.
That’s what we’re seeing now. Cannabis stocks have gone berserk in Canada, leading the entire market in terms of both volume and price action.
And investors on all sides of the border need to know the role they want to play from here on out.
For generations, dabbling in this business was still a taboo for any global corporation and a crime for the rest of us. Coke isn’t going to go all in until management sees that the space is stable.
That’s where the scale comes in. Coke is big, but it only does $30 billion a year in sales. What it has is an enormous amount of cash it’s been unable to spend.
And people love to tout cannabis as an industry that went from zero to $10 billion, but it’s extremely fragmented. Even $5 million in the right place can be transformational for most of the mom-and-pop operators.
With $20 billion and an ironclad credit rating, Coke can easily buy out a huge slice of the industry without blinking.
While Coke is going in slowly, management isn’t likely to wake up for anything less than a $300 million placement somewhere in the industry — barely 1% of cash, pocket change for them even though it’s truly disruptive for these cash-starved mom and pop operators.
It brings to mind the old adage, “a rising tide lifts all boats.”
Gold continues to be in a stable position ahead of a U.S. Federal Reserve meeting.
A strong dollar makes dollar-priced gold costlier for non-U.S. investors, while rising U.S. interest rates typically deter investors from buying a non-yielding asset such as gold.
Gold has fallen more than 12 percent since April, marred by rising U.S. interest rates and a global trade war that has led investors to choose the dollar as a safe haven rather than gold.
"If lingering trade war fears or renewed emerging market jitters sour sentiment, the U.S. dollar may reclaim a haven bid, making gold vulnerable," said Ilya Spivak, a currency strategist for Dailyfx.
PHI Group, Inc. (OTCQB: PHIL), a U.S. diversified holding company focused on mergers and acquisitions and investments in select industries and special situations, this week announced that the Company has signed an agreement to acquire 51% of Vinafilms Joint Stock Company (www.vinafilms.com.vn) with Preferred Stock of PHI Group, Inc.
Why It Matters: Vinafilms has been in business for more than 13 years and generated about $25 million in revenues and $765,000 in EBITDA in 2017. It has recently installed a German state-of-the-art plastic film processing system and will add two more of these to meet the growing domestic and international demand for its products. Vinafilms also plans to enter a joint venture with a leading Vietnamese plastic bag manufacturing company with an aim to bring combined revenues to over $150 million per year by the end of 2019. PHI Group’s management believes the acquisition of Vinafilms should enable PHIL to qualify for an uplist to the Nasdaq Stock Market in the very near future.
Key Quote: “We expect to close this transaction before month’s end and believe that the consolidated operating results from this acquisition should have a very positive impact on our company going forward.”— Henry Fahman, Chairman and CEO of PHI Group
The Backstory: PHIL is a fast-growing holding company implementing an acquisition model to acquire established and revenue-generating private companies that PHIL management believes will substantially increase shareholder value. The Company recently announced an agreement to acquire a majority interest in Vinafilms JSC, a Vietnamese plastic manufacturing company (www.vinafilms.com.vn), in order to create a platform to consolidate other businesses in the same industry.
Disclosure
PHI Group Inc. (OTCQB: PHIL) is a client of RedChip Companies, Inc. PHIL agreed to pay RedChip Companies, Inc. a monthly cash fee for 4 months of investor awareness services.
Catasys, Inc. (NASDAQ: CATS), a leading AI and technology-enabled healthcare company, this week announced that it has expanded its OnTrak-A solution into Florida and Georgia with one of the nation’s leading health plans. This follows OnTrak-A’s expansion earlier this month into Iowa and Nebraska.
Key Quote: “We are pleased to see this health plan partner continue to expand their deployment of the OnTrak program, validating the results our program has yielded—their members’ improved quality of life and significantly lower healthcare costs. Our goal is to engage and effectively treat as many members as possible, and we look forward to our continued partnership with this national health plan.” Rick Anderson, President and Chief Operating Officer of Catasys
The Backstory: OnTrak improves member health while reducing inpatient and emergency-room utilization, driving a reduction of more than 50% in enrolled health insurers’ costs. OnTrak is currently available in 19 states to members of several leading health plans, including six of the nation’s largest plans. Company’s billings increased 152% to $5.2 million for 2Q18 and enrolled members increased by 289% year over year as of March 31, 2018. Going forward, the Company has provided financial guidance of $20 million in billings for FY18 and a year-end run rate of at least $25 million.
Disclosure
Catasys (NASDAQ: CATS) is a client of RedChip Companies, CATS agreed to pay RedChip Companies, a monthly cash fee for RedChip investor awareness services and consulting services.
Quote of the Week
"Work hard, be a long-term thinker, develop tenacity and remember nothing happens without taking calculated risks."
Phil Sassower, Chairman, Phoenix Group
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