Cannabix Technologies Inc (OTCMKTS:BLOZF) is back on the breakout warpath in recent days. This stock was a major momentum play in November, powering from around fifty cents per share to intraday prints topping the buck-fifty level in just over a week of movement. But the last three weeks have featured mostly lateral consolidative action, narrowing down to tiny ranges in the course of the past 8-10 sessions. But that all ended last Thursday of last week when shares caught a major momentum push and powered as much as 36% in short order.
Part of that story might be linked to recent news of some successful fundraising moves by the company. Specifically, back on December 7, it announced the closure of a private placement of 4,000,000 units at a price of $1.15 per Unit, “for aggregate gross proceeds of $4.6 million. Each Unit consists of one common share of the Company and one common share purchase warrant, each warrant entitling the holder to purchase one additional Common Share at an exercise price of $1.60 for a period of three years following closing. The Offering was underwritten by Cormark Securities Inc., which exercised in full its option to purchase up to an additional 500,000 Units at the Offering Price.”
Cannabix Technologies Inc (OTCMKTS:BLOZF) is developing its FAIMS- (field asymmetric waveform ion mobility spectrometry) based marijuana breathalyzer for the detection of delta-9-tetrahydrocannabinol in human breath.
Testing using the Cannabix Marijuana Breathalyzer Beta prototype device with human subjects after smoking THC cigarettes demonstrated the successful detection of THC, the psychoactive component of marijuana, in real-time. In addition to THC, several metabolites were identified in the breath of the human subjects including 11-hydroxy-delta-9-tetrahydrocannabinol and delta-9-carboxy-tetrahydrocannabinol, and three other cannabinoids related to cannabigerol, were confirmed by mass spectrometry after the inhalation of cannabis.
The ability to detect THC and its metabolites in human breath is a significant scientific breakthrough that allows for real-time pharmacokinetic analysis. Such analysis provides a method for the identification of frequent users of marijuana who tend to retain THC in their body for longer periods of time, relative to infrequent marijuana users who tend to clear THC from their body more quickly.
The Company plans further testing with its Beta and Beta 2.0 prototypes over the coming weeks. The Company will be calibrating decay signal intensities with a refined breath collection component.
According to company materials, “Cannabix Technologies Inc. is a leader in marijuana breathalyzer development for law enforcement and the workplace. Cannabix has established breath testing technologies in the pursuit of bringing durable, portable hand-held tools to market to enhance detection of marijuana-impaired driving offenses on roads at a time when marijuana is becoming legal in many global jurisdictions. Cannabix is working to develop drug-testing devices that will detect THC- the psychoactive component of marijuana that causes intoxication- using breath samples. In particular, Cannabix is focused on developing breath testing devices for detection of recent use of THC, in contrast to urine testing for THC metabolite that requires an invasive collection and reflects use days or even weeks earlier. The devices will also be useful for other practical applications such as testing employees in the workplace where intoxication by THC can be hazardous.”
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Interestingly, in addition to the funding deal described above, the company also announced a concurrent non-brokered private placement of 850,000 units for aggregate gross proceeds of $977,500.
According to the release, the company intends to use the net proceeds of all this fundraising to finance research and development related to its cannabis breathalyzer technologies and for working capital and general corporate purposes.
Now commanding a market cap of $137.5M, BLOZF has a stash ($2.1M) of cash on the books, which is balanced by virtually no total current liabilities. The company is pre-revenue at this point. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $BLOZF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $BLOZF, either long or short, and we have not been compensated for this article.