This Stock Set to Double Thanks to New License

Investment and Company Research
Opportunity Research
COMPANY UPDATE
 

Today we are issuing a new research update on a stock that is up nearly six times from the original initiation price in June 2016. Despite this big move we believe that tremendous upside exists and while a double would enable it to reach our target price, 2017 could bring even greater returns. Why? Glad you asked. See the report below.

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ABATTIS BIOCEUTICALS CORP.

Stock Up Big on Recent News, Greater Gains on Horizon

Rob Goldman
rob@goldmanresearch.com

October 20, 2016
 

ABATTIS BIOCEUTICALS CORP. (OTC – ATTBF - $0.16)

Price Target $0.30 Rating: Speculative Buy
   

COMPANY SNAPSHOT

INVESTMENT HIGHLIGHTS

Abattis is a specialty agricultural technology and biotechnology company which aggregates, integrates, and invests in agricultural technologies and biotechnology services for the legal cannabis industry developing in Canada. The Company has successfully developed and licensed natural health products, medicines, extractions, and ingredients for the biologics, nutraceutical, bioceutical, and cosmetic markets. The Company also is also seeking to acquire exclusive intellectual property rights to agricultural technologies to be employed in extraction and processing of botanical ingredients and compounds.

 

KEY STATISTICS

 
Price as of 10/19/16 $0.16  
52 Wk High - Low $0.1833 - $0.015  
Est. Shares Outstanding* 107.7M  
Market Capitalization* $19.2M  
3 Mo Avg Vol 342,873  
Exchange: OTCQB  
 

COMPANY INFORMATION

Abattis Bioceuticals Corp.
104- 9295 198th Street
Langley, BC
CANADA

Ph: 604.336.0881
Web: www.Abattis.com
Email: news@abattis.com


Conclusion: 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.

 

 

Recent Trading History For ATTBF

(Source: www.Stockta.com)

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Senior Analyst: Robert Goldman

Rob Goldman founded Goldman Small Cap Research in 2009 and has over 25 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification

I, Robert Goldman, hereby certify that the view expressed in this research report or article, accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

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