Patenting Cannabis Strands – The Next Level in the Cannabis Space, by Corix Bioscience, Inc. (OTCQB: AHIT)
One of the major growth areas of the cannabis market is Cannabidiol (CBD). CBDs are the non-psychoactive part of the cannabis plant. In other words, CBDs do not get you high. Instead, CBDs are seen as a medical and health application that can treat a wide range of illnesses and ailments. CBD growth is forecast to continue to skyrock through 2020.
According to The Hemp Business Journal, the CBD market will be worth $2.1 billion in 2020, an increase of 700%, over 2016. Some experts say that forecast is not bullish enough. According to Greenwave Advisors’ Matt Karnes, the CBD market could be worth $3 billion by 2021, citing greater legality and application to use CBDs across the United States.
It appears there may be some logic behind Mr. Karnes’s beefed up outlook on the CBD markets. There are 22 U.S. States that allow cannabis in one form or another. If predictions are correct, then an additional six states are positioned to similarly legalize marijuana in 2017. This is great for THC and CBD producers, but with major scrutiny still on THC, CBD will continue to capitalize and become the go-to for medical marijuana.
As more companies utilize CBDs in their pharmaceuticals and treatments, the Cannabidiol market is set to be a major benefactor. After all, it is the CBDs that provide the vast majority of the medicinal qualities in cannabis.
One company well positioned to be among the top contenders in the organic and pharmaceutical-grade CBD market is Corix Bioscience, Inc. (OTCQB: AHIT).
Overview: Corix Bioscience, Inc. (OTCQB: AHIT)
Corix Bioscience, Inc. (OTCQB: AHIT) is in the developing stages of becoming potentially the largest producer of certified organic CBD oil within the United States. The company plans to use a fully integrated business model that covers seed-to-shelf, which includes planting, cultivation, harvesting, processing, and commercialization.
Corix Bioscience, Inc. (OTCQB: AHIT) currently has lease agreements on 200 acres of industrial hemp cultivation fields and plans to have around 400 acres leased by the end of 2017. The company also maintains a series of greenhouses to help expand cloning and proprietary strain development. Greenhouses are able to grow year-round, if environmental controls are in place.
Corix Bioscience, Inc. (OTCQB: AHIT) is currently undergoing a complete transformation from its old entity, American Housing Income Trust, Inc. In a Schedule 14C filing in May 2017, Corix Bioscience, Inc. (OTCQB: AHIT) announced a name change and conversion from a Maryland to a Wyoming corporation.
Tissue Culture and Deep Genetics to Develop New Strains
Being that a vast majority of the company’s cultivation fields are outdoor, there will be an offseason just there is for all other outdoor cannabis growers. However, that won’t stop Corix Bioscience, Inc. (OTCQB: AHIT)…
The company plans to develop unique, proprietary, and patent-able cannabis strains using tissue culture and deep genetics.
Tissue Culture Facility Construction Plans
On June 5, 2017, Corix Bioscience, Inc. (OTCQB: AHIT) announced it has signed a contract with Segra International, Inc. to build a state-of-the-art tissue culture facility in Nevada. The new facility will allow the company to begin making adjustments to cannabis seed cells and ultimately, its DNA. The goal is to create strains with greater production, stability, and higher yield.
These newly developed strains is what will be patented.
In addition to the 44,000 square foot tissue culture facility, the company is working on an attached 180,000 square foot greenhouse. Management says this would be enough to produce over 1 million industrial hemp seedlings, which will then be moved to the standard greenhouse in order to “harden” for a month. Then the plant is moved to the cultivation fields for full growing.
AHIT: Financial and Industry Analysis
Corix Bioscience, Inc. (OTCQB: AHIT) maintains a market cap of $8.91 million, as of June 2017. The organic CBD oil producer has a share structure consisting of 500 million authorized shares, 19.79 million outstanding shares, and a float consisting of 850,000 shares, as of June 2017.
As Corix Bioscience, Inc. (OTCQB: AHIT) continues to go through a reorganization, management estimates that as the company’s industrial hemp operations ramp up later this year and into early next year, the company expects to sees its first major revenue-producing year in 2018.
Here are five other companies that have similar operations to Corix Bioscience, Inc. (OTCQB: AHIT) and could be used to help find a fair valuation for the company:
PotNetwork Holdings, Inc. (OTC Pink: POTN) is a diversified holdings company, which has stake in the premium CBD market through its subsidiary, Diamond CBD. Diamond CBD has been a strong revenue generator for the company and is the most valuable subsidiary under its control. PotNetwork Holdings, Inc. has a market cap value of $5.84 million, as of June 2017.
Furthermore, the company maintains a share structure consisting of 500 million authorized shares, 94.33 million outstanding shares, and a float consisting of 16.87 million shares, as of June 2016. During the first quarter, the company reported revenues of $1.86 million and net income of $153,000.
AXIM Biotechnologies, Inc. (OTCQB: AXIM) is engaged within the research, discovery, development, and commercialization of CBD-based pharmaceutical products. As of June 2017, AXIM Biotechnologies, Inc. has a market cap of $541.47 million. Furthermore, the company maintains a share structure consisting of 300 million authorized shares, 52.57 million outstanding shares, and a float consisting of 35.21 million shares, as of May 2017. During the first quarter, AXIM Biotechnologies, Inc. reported total revenue of $18,000 and a net loss of ($524,000).
GW Pharmaceuticals PLC (NASDAQ: GWPH) is a U.K.-based company that develops and commercializes CBD-based pharmaceuticals. The company’s flagship product, Sativex, is a spray to help treat spasticity from multiple sclerosis. In addition, the company has various other CBD-based treatments currently undergoing clinical trials. As of June 2017, GW Pharmaceuticals PLC maintains a market cap of $2.47 billion, 25.33 million shares outstanding, and a float consisting of 21.83 million shares. During the first quarter 2017, the company reported total revenue of GBP 1.63 million and a net loss of (GBP 34.37 million).
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