Claritas Pharmaceuticals Inc V.CLAS.H

RE:RE:RE:RE:RE:Upside move

[AngelaL]

Claritas raised funds recently from Obsidian. So presumably they have the resources to advance and carry out the Australian Phase 1 trial that they have described. If this is indeed the case then that trial will transform the company into a clinical-stage enterprise. The current sp is depressed because it includes the insecurity that the company may not have the resources or ability to start clinical trials. Once the company does in fact start the trial then this uncertainty would be removed and the sp should rebound strongly, initially to a dollar I think. If the trial concludes successfully, showing safety (a relatively low bar) then the market cap almost reflexy should hit US$40-100M. Given the number of outstanding shares, this should equal a sp on the TSXV of $1.25-3.12. It could go higher if the company has a better balance sheet and/or if the perception is that the clinical indication is an important unmet medical need and the technology is broadly applicable, ie a platform technology of a paradigm shift in treatment approach. I believe that all of those criteria could be met. If so, I think it's a relatively conservative expectation to anticipate a 6-15 fold ROI in the next 6 months. Delays or a safety failure will temper that expectation.