With dozens of publicly listed cannabis companies in Canada alone, investors may be thinking that all of the good ideas associated with this emerging industry would have already been rolled out. Think again.
Xanthic Biopharma Inc. (CSE: XTHC, Forum) has a good new idea for the cannabis space. On April 19, 2018; the Company commenced trading on the Canadian Securities Exchange under the symbol “XTHC”.
What is this new idea? Xanthic wants to help many other cannabis companies become much more profitable, and in doing so its own shareholders should benefit nicely.
The “new” idea is to transform cannabis (and their active ingredients, cannabinoids) into powdered beverages. What makes XTHC’s business model so innovative – and potentially lucrative – is that cannabinoid molecules are not water soluble in their natural form.
The Company’s patent-pending technology allows for any cannabis strain to be converted into such a powdered beverage. In doing so, Xanthic creates several product advantages that should prove to be irresistible to many consumers and other cannabis companies.
- Precise dosage/consumption
- Non-combustible
- Discrete
- Improved bioavailability
The ability to measure cannabinoids exactly with nothing more than an ordinary teaspoon, or using convenient pre-dosed pouches, allows for a precision of dosage (for medicinal patients) or precision of consumption (for recreational users) that cannot be duplicated by either smoking or “vaping” cannabis products.
Other consumers will be more attracted by what is not only a healthier consumption option, but is also a delivery system which allows for much greater variety and experimentation with taste. Equally, some consumers will prefer the discrete nature of this technology. Visually, the powdered beverages that are created are indistinguishable from any other powdered beverage.
Xanthic’s business model is to license this revolutionary technology to other cannabis companies, specifically to the licensed producers who will be cultivating (and supplying) the majority of the cannabis/cannabinoid products for this industry.
The reasoning is simple. With this technology representing a superior delivery system in several key respects, this creates another means of adding value (and increasing margins) in the production and retailing of cannabis products – whether medicinal or recreational. That inducement alone should create demand for this technology among cannabis LP’s. As consumers begin to vote for this delivery system (with their wallets), this creates direct market pressure on additional cannabis companies to adopt this technology.
XTHC’s delivery system is also practical. Requiring only limited space and modest cap-ex to incorporate this technology into operations, the licensing opportunity presented by Xanthic becomes even more tempting to cannabis LP’s.
Xanthic Biopharma’s new CSE listing comes by way of reverse take-over (RTO). As part of this qualifying transaction, the Company is presently conducting a private placement. The offering consists of up to three million units at a price of $0.50 per unit, for total gross proceeds of up to $1.5 million.
Each unit is comprised of one common share and one-half of one common share purchase warrant, with each whole warrant entitling the holder to acquire an additional common share at an exercise price of $0.75 per share. Warrants remain valid for a period of 24 months from the date of closing.
Xanthic’s CEO, Tim Moore, offered these thoughts on what is an exciting day for the Company and its shareholders.
We are thrilled to begin trading on the CSE especially on the eve of ‘4/20’. We are excited to have obtained the ticker symbol xTHC, which we feel is memorable and readily connected with “Xanthic”. Our team would like to thank all of our supporters and current shareholders that have made this strategic milestone possible. We are excited to continue to develop and execute on Xanthic’s current vision and business model as we move forward.
Cannabis RTO’s (or IPO’s) don’t come around every day: the opportunity to participate in the birth of a new public company. With Xanthic’s innovative business model in an emerging industry with rising demand, such a ground-floor opportunity merits close scrutiny by investors.
xanthicbio.com
FULL DISCLOSURE: Xanthic Biopharma Inc. is a paid client of Stockhouse Publishing.