Sorry if this has already been posted. January article on Oxis from SeekingAlpha:
Oxis International, Inc. (OTCPK:OXIS) (OXI.PA) through its subsidiary, Oxis Biotech, Inc. has recently come into the space as well. It appears that following the company becoming current with its filings as well as releasing two very prominent pieces of press, activity in the stock has increased with January 14 seeing the highest volume day in the stock. Over the last 30 days, Oxis shares also have seen highs of $0.039 even with the caveat status on OTC Markets. This was an obvious trigger to take a closer look as seemingly, "something's up".
Over recent weeks, the company has made two announcements that put this on the list of possible cannabis investments in 2015 and both are material in nature. Further diligence shows that not only has Oxis executed definitive agreements licensing certain assets for the treatment of multiple myeloma but the company has also brought on one of the foremost authorities in CBD research especially those diagnosed with multiple myeloma, breast cancer, and even research in the stem cell arena, Dr. Sean Xie (Dr. Xiangqun Xie). According to the website cbdligand.org, "Xie's research work is beyond the proof-of-principle stage since his group has already successfully identified several novel CB2 ligands with nanomolar receptor binding affinity (US patents). The methods and results developed will have a significant impact on the other GPCRs drug research in general. Currently, he has established collaboration with MD experts in University of Pittsburgh Medical Center for in vivo animal evaluation."
In addition to this, the Company also announced that Dr. James J. Mulé, Ph.D. who is a Special Government Employee of the NCI and the FDA, joins that company's Scientific Advisory Board. Among many of his accomplishments, Dr. Mulé is recognized for his translational research studies in cancer immunotherapy. Mulé previously worked with Oxis CEO Tony Cataldo when Mr. Cataldo previously formed Genesis Biopharma (previous GNBP) which later became Lion Biotechnologies. Under the helm of Mr. Cataldo, Genesis came from a penny stock and built enough shareholder value to increase to $8+ per share.
As far as paid in capital is concerned, Oxis shows more of a vested interest along the lines of a company like Insys as opposed to one like PEAK. Therefore it could be very possible that the CEO who took Genesis to "the next level" may have found another company to build as OXIS has continued to gain more investor interest this past week. Despite these achievements and increased market liquidity, the obvious risks unassociated with the small market cap, lower share price, and volatility will also include the fact that Oxis will still need to put in place a plan or outline for what the company will focus on specifically. A strong team to conduct R&D is a good start but as the company has just become fully reporting, the need for more company developments regarding production is needed in my opinion.
As noted in several instances, I've mentioned paid in capital in this article for the simple fact that many biotechs generally are pre-revenue through the multiple stages of R & D and phases of FDA approval. This valuation method has been used because when you're not selling product, how can success be determined? By utilizing "paid-in-capital" valuations, investors can clearly see that amount of capital available to fund a biotech company's research.
Investing in cannabis companies in the US at this point remains highly speculative and obvious risks reach far beyond simple market volatility. As far as biotechs go, drugs not passing FDA approval or even reacting negatively during the trial periods can put a huge barrier up for a company. For the cannabis industry as a whole (even though it doesn't necessarily effect biotechs) federal regulation can change at any point and time so just as the government made certain aspects legal, they can easily overturn those to make them illegal. The main point is that by investing in reputable companies focused on biotech may produce significant returns in the current climate as many states have not legalized the drug for over the counter sale.
The real investment right now I feel is in the biotech side of the space. For one, as far as regulatory issues are concerned, these companies do not face the same state-by-state restrictions that many typical marijuana based businesses face. Much of the studies are funded by government-sponsored funds and thus would have to meet the criteria of organizations like the FDA. This makes biotech a great candidate through 2016, which is when the next elections are planned & potential legalization votes go back on the ballot. Second, the biotech space is growing at an annual rate of 11% (market revenue is just under $300B according to IBISWorld). Finally, The Arcview Group forecasts that the legal marijuana industry will increase to $10 billion in 2019, so there is obvious opportunity within the industry just as it is beginning to grow. As history has proven with growth driven industries, the first-movers who take an early foothold manage to gain the largest market share. What companies like Google and Apple have done for tech, cannabis biotechs like those mentioned can do it for the marijuana industry.
