Abattis Bioceuticals Corp. (ATTBF)

[GreenBrickRoad]

Goldman Research thinks ATTBF could blow through $0.30+ and here's why.

http://www.goldmanresearch.com/201610201179/Opportunity-Research/this-stock-set-to-double-thanks-to-new-license.html

Recent landmark news has driven ATTBF shares up by six times to the $0.18 level as compared with our $0.03 June 2016 initiation price. Key milestones ahead, along with the revaluation of the Cannabis space mean these shares could blow right through our current $0.30 target price, which itself is essentially a double from current levels.

Abattis’ NVL subsidiary awarded coveted Controlled Substance License. Northern Vine Labs (NVL) is one of the few 3rd party analytical testing labs for Cannabis in British Columbia and 1 of only 18 in all of Canada. As the lab is built out and services launched in the coming months, ATTBF is primed to enjoy meaningful revenue from the testing of potency, microbial and others.

ATTBF subsidiary moves closer to Licensed Producer (LP) status. Experion, owned 25% by NVL, received a “Pending Readiness for Inspection” notification from Heath Canada, a final step before being awarded approval as a LP. Management is preparing to commence construction and will request inspection following the build-out in 6-8 months. We deem it likely that that a LP award could occur thereafter.

An MOU was signed with South Korea’s Global Damon Pharma to distribute and sell its proprietary PhytoNOS and Sassy Tonics in modified formulations. Deal could start generating sales in 2017.

ATTBF has jumped to the forefront of the Canadian Cannabis space, a market that should approve recreational sales shortly. Given the history of valuations afforded Cannabis stocks upon receipt of a LP designation, and the proposed valuations of new firms such as Emblem, a LP designation to the Experion subsidiary could be worth tens of millions in market cap to ATTBF, and that excludes the higher value of the NVL business. Thus, we reiterate our Speculative Buy rating.