MyDx Inc (OTCMKTS:MYDX) is a sub-penny play in the pick and shovel segment of the cannabis patch. The stock has clearly fallen out of favor over the past eight months following the stock’s dramatic 900% rally back in March. Support has been holding strong of late, with shares continually tracing along, and failing to break down through, the $0.003-0.004 area. But the company has been lacking in new catalysts to motivate shares higher – that is, until this week when shares spiked on Thursday on heavy trading volume in reaction to a new release that could have some strong implications for the company’s outlook heading into 2018.

Specifically, the company just hit the market with news that it has now formally submitted an application seeking medical device designation in Canada for its CannaDx Handheld Tester and its ECOSmartPen reportedly in order to make its products more accessible to medicinal users seeking to track and manage their consumption habits and prevent abuse.

MyDx Inc (OTCMKTS:MYDX) bills itself as a science and technology company that develops and commercializes technology and devices to accurately measure chemicals of interest in solid, liquid, or gas samples.

It focuses on enabling people to live a healthier life by revealing the chemicals in what they eat, drink, and inhale. The company offers MyDx, a portable chemical sensor that fits in the palm of user’s hands; and MyDx App, which provides the user with additional information to understand the chemicals found by the MyDx Analyzer.

It also develops four sensors, which include CannaDx, a cannabis analyzer; organaDx to analyze food; AquaDx to analyze water; and AeroDx to test air. The company distributes its products through various channels, including distributors, e-commerce through company’s Website, direct to retail, and sales through affiliate partners.

According to company materials, “MyDx, Inc. (OTCQB:MYDX) is a chemical detection and sensor technology company based in San Diego, California whose mission is to help people Trust & Verify what they put into their minds and bodies. The Company developed MyDx, a patented, affordable portable analyzer that provides real-time chemical analysis and fits in the palm of the user’s hand. The multi-use MyDx analyzer leverages over a decade of established chemical detection technology to measure chemicals of interest. The Company owns a substantial and growing intellectual property portfolio of patents covering its technology. The MyDx AquaDx, OrganaDx and CannaDx sensors are now commercialized, and the AeroDx application is next in line. All sensors will be compatible with a MyDx App that empowers consumers to live a healthier life by revealing the chemical composition of what they eat, drink and inhale.”

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As noted above, the stock had been listing quietly along support in a tight range over recent months. But shares found some new life in Thursday’s trade in reaction to news that the company had taken steps to formally penetrate the vast Canadian cannabis accessory marketplace.

“Our goal is to enable a more personalized medical experience for every patient by ensuring everyone has access to our smart devices and crowdsourced formulations,” said Daniel Yazbeck, CEO of MyDx. “Our products are used all over the world today to help people Trust & Verify® their cannabis and to monitor and track their consumption habits.”

The chart shows 16% added to share values of the name over the past month of action, a bounce that has taken root amid largely bearish action over the larger time frame. This is emblematic of the stock. MYDX has a track record that includes a number of dramatic bounces. In addition, the name has witnessed a pop in interest, as transaction volume levels have recently pushed 84% over what the stock has registered over the longer term.

At this time, carrying a capital value in the market of $7.8M, MYDX has a bankroll ($162K) of cash on the books, which must be weighed relative to virtually no total current liabilities. MYDX is pulling in trailing 12-month revenues of $553K. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -18.8%. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $MYDX 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 $MYDX, either long or short, and we have not been compensated for this article.