If you’ve followed OWCP or even the Cannabis industry, there’s a good chance you’ve heard of Jeffrey Friedland. In case you need a refresher — Mr. Friedland is the author of “Marijuana: The World’s Most Misunderstood Plant” (available on Amazon), he’s the CEO of INTIVA (and INTIVA BioPharma), he is an Advisory Board Member of OWCP, he is a board member of Israel-based CannRX (a company focused on cannabis-based pharmaceutical development), and he’s been the CEO of companies traded on NASDAQ, NYSE, and Europe/Germany exchanges. With this kind of resume, it’s no wonder I was excited to hear they were taking INTIVA BioPharma public.
Who is INTIVA BioPharma?
INTIVA BioPharma Inc., which will officially be “NTVA” on the OTC Markets by December 26th, is pursuing the formulation of cannabinoid-based drugs for various medical conditions and disorders, all under U.S. Food and Drug Administration (FDA) development pathways.
ArcView Market Research estimates that America’s pharmaceutical cannabis sector could reach over $23 billion by 2020. Research published by New Frontier Data indicates that the United States constitutes 35% of the global pharmaceutical market, the largest market in the world, and a major driver of the U.S. economy. New Frontier has indicated that cannabinoid-derived drugs and related products could replace $4.4 to $4.9 billion annually spent on existing treatments.
INTIVA’s drug development strategy consists of:
- the determination of medical conditions and disorders that could potentially benefit from cannabinoid-based formulations;
- conducting “freedom to operate” investigations on these conditions;
- the preparation of patent applications and the prosecution of such application and/or the licensing of existing patents;
- identifying the regulatory pathway with the U.S. Food and Drug Administration (FDA); and
- proceeding with clinical studies and clinical trials under FDA protocols for submission to obtain approval for the drug(s).
Because of the federal illegality of cannabis in the United States, INTIVA is focusing its initial drug development using synthetic cannabinoids, some of which are approved by the FDA for various medical conditions.
Synthetic cannabinoids generally simplify research development in the U.S. However, INTIVA also intends to proceed with trials using plant-derived cannabinoids. Because of the difficulty in proceeding with those trials in the United States, the INTIVA will likely proceed with those trials in jurisdictions where the research is legal, such as Israel.
Stock & Share Structure Specifics:
By November 29th, 2017, FINRA approved stock splits, name change, and a ticker symbol change. By December 26th (give or take), KDRHD will officially be NTVA.
By time it’s all said and done, there will be just under 43,500,000 Outstanding Shares and INTIVA USA, Inc. owns 24,000,000 shares and Jeffrey Friedland himself owns another 2,208,000 shares and Richard Greenberg, Chairman, owns 800,000 shares. That leaves a measly 16,700,000 shares — which is also mostly locked up by various other management level folks (See the “FORM 4” filings for Evan Wasoff, Alain Bankier, and Robert Goldfarb) and early investors (“H. Leigh Severance” and “Jorada Investment, LLC”, for example, collectively hold 2,000,000 shares). My quick math says the remaining Float is around 14,000,000.
What I’m Expecting:
Because of the low Float, likelihood of PRs and Updates, and because the CEO is always speaking at Cannabis industry events, doing interviews and webcasts, etc… I expect this stock to move. That’s purely my opinion, of course.
If you look at the News portion of their website, you’ll see various PRs about Provisional Patent filings as well as a Request to the FDA for Pre-Investigational New Drug Meeting. The updates stopped in August — which was about the time they were starting to proceed with taking over KDRH as a vehicle to ‘Go Public’.
So, again, it remains my assumption and hope that we’ll see updates right away at the end of December or early 2018 — and those updates could keep coming.
INTIVA actually has a professional “Investor Relations” guy too. That tells me we can expect better communication vs. other companies on the OTC.
Hell, for all these reasons, I wouldn’t be surprised if the ultimate goal for Mr. Friedland was to uplist to NASDAQ — since he’s been there before. Again, that’s complete speculation and hopes my part. I have absolutely no evidence nor have I heard it from anybody associated with the company.
In terms of “what’s possible” with the share price? Well, this is the OTC where hype controls the share price sometimes. But, let’s look at OWCP for comparison reasons. As of December 3rd, 2017, OWCP has a Market Value of $75 million and they’ve been sitting around this range for the last couple weeks. OWCP also ran as high as $3.23 in February, which was over $350 million. (Again, not realistic for where they were by that time. But, that’s why they didn’t stay at that range.)
If NTVA is able to come out of the gate running on news, it could get crazy. Especially if the FDA approves/approved the meeting they requested back in August.
I’ll try and write a follow-up blog closer to Christmas when NTVA is “official”.
Disclaimer: As always, you must decide for yourself whether to buy, hold, or sell. The author of this blog owns shares and intends on acquiring more shares. While there’s no plan or ‘set price’ for me currently sell at — it should be known that I may decide to sell shares at any given time. Pretty obvious, right? Though, I’m still holding OWCP and have held most for beyond 1 year with more hitting the 1 year mark by early 2018 and Fall 2018. Furthermore, I still have NEVER been compensated in any way to write Due Diligence Blogs for any company. I simply do my own Due Diligence for personal investments and choose to share those findings publicly. Simple as that.