Cannabis Best Opportunity Stocks $0.10 to $0.75

[JohnCM]

Nemus Bioscience Inc Set For More Gains On Emerald Health Sciences Investment

ByJim Bloom - Insider Financial
January 24, 2018

Nemus Bioscience Inc (OTCMKTS:NMUS) has taken the New Year by storm as momentum in the legal cannabis sector continues to grow. The last time we looked at the stock, it had taken a hit on announcing a series E preferred stock financing. The selloff persisted, and the stock found itself in unfamiliar territories on plummeting to all-time lows of $0.10 a share.

Price Analysis

2017 was a lousy year for Nemus Biosciences investors, as short sellers remained in full control. The tide has since changed, and we believe the stock could turn out to be a breakout stock for the year given the recent spike and developments in legal cannabis space.


NMUS Daily Chart



Over the past one month, the stock has gained more than 100% in market value on its way to the $0.45 handle. Given the strength of the upward momentum, it could be a matter of time before the stock rises to 52-week highs of $0.50 a share. Immediate support on any sell-off, from the current level, is at the $0.30 mark.

The probability of Nemus Biosciences upward momentum holding on is very high, but before we look at the catalysts likely to push it above the 52-week high, let us review the company’s core business.

Nemus Biosciences

Nemus Biosciences bills itself as a biopharmaceutical company focused on the development and commercialization of cannabinoid-based therapeutics. The company utilizes proprietary technology to develop novel ways for delivering cannabinoid-based drugs for specific indications with the aim of optimizing the effectiveness of drugs.

The company is trying to develop cannabinoid-based drugs to address various medical conditions such as chemotherapy-induced nausea, pain, and macular degeneration. Some of its early stage cannabinoid drugs under development include NB1111, NB1222, and NB3111, indicated for the treatment of glaucoma.

Nemus Biosciences is the subject of renewed investor’s interest on Wall Street on strengthening its balance sheet with the sole aim of advancing its drug development programs.

Strategic Investment

Emerald health Sciences has once again reaffirmed its confidence on Nemus Biosciences long-term prospects by releasing $400,000 under a previously announced bridge loan. The company has also invested a further $1.5 million for the purchase of 15 million shares of common stock and warrants for the purchase of an additional 20.4 million common share at $0.10 a share.

Also, Emerald Health is to invest a minimum of $1 million before February 28, 218 for the purchase of 10 million shares at $0.10 a share.

Closure of the private placement will result in any sums under the bridge loan converting into Nemus Biosciences common stock. Consequently, Emerald Health will become the majority equity holder in the company and entitled to a number of board seats.

“Nemus is delighted to welcome Emerald as our majority shareholder and to bring its leadership and expertise to help us advance our drug development programs,” stated Nemus co-founder, Cosmas N. Lykos. “I look forward to continuing my relationship with Nemus in a consultative capacity.”

The investment could not have come at a better time given that the biopharmaceutical company is fresh from presenting analgesic and ocular data for its upcoming CBD product.

The company plans to use the new funds to explore potential strategic opportunities that include a recapitalization plan. A strengthened cash balance could also help the company on its push to list in a major stock exchange.

Emerald Health Sciences investment is a significant boost given that Nemus Biosciences financial strength had plunged into uncertainty on Schneider Finance turning down an opportunity to invest $20 million as initially agreed. Nemus Bioscience has since sued the company for a breach of contract.

Pipeline Development

Nemus Biosciences has teamed up with the University of Minnesota to advance its pipeline. The learning institution is among the few, authorized by the federal government to grow cannabis for research purposes. The partnership provides the company a competitive edge in the space as the learning institution is an ideal platform for building a robust intellectual property portfolio around cannabis products.

Mid last year, the two presented data on a review of the physiology of a CBD plant as well as the therapeutic activity associated with the analog of CBD in animal studies.

“The CBD molecule is best known for its anti-inflammatory and neuroprotective qualities and Nemus is working with our University colleagues to assess multiple therapeutic utilities for this compound, including the development of effective cannabinoid-based analgesics,” said Brian Murphy, MD, MBA, the Nemus CEO and Chief Medical Officer.

Bottom line

Emerald Health Science investment is the reason why the stock is spiking high on the charts. The new line of financing should allow the biotechnology company to accelerate the development of its pipeline of products to address the expected demand for such products.

Medical marijuana is a multi-billion industry, and any company that gets a head start in the business with the unveiling of drugs to address unmet medical needs should be able to generate significant returns going forward.

Nemus Bioscience is one of the few companies well-positioned to capitalize on the expected demand for medical marijuana products.