Canntab Therapeutics

Putting the ‘Medical’ into Medicinal Cannabis

This profile is part of a paid investor education campaign.*

Overview

Canntab Therapeutics (CSE:PILL) is bringing pharmaceutical expertise to the cannabis market through the development of its patent-pending Canntab Extended Release (XR) Tablets™. Using proprietary extended release technology previously developed by the company, Canntab is producing a safe, stable and standardized delivery method for cannabis particles (CBD and THC) that is not burdened with the negative effects associated with smoking, edibles or topicals.

The proprietary extended release technology provides lasting effects of 12 to 18 hours, making the Canntab XR Tablets™ an appealing alternative to other intake methods. The XR Tablets™ have also been designed for doses of 2.5 mg, 5.0 mg or 10.0 mg, making dosing and prescribing much more straightforward for the medical community.

Based in Markham, Ontario, the company will be expanding their operations as they move into an independent 10,000 square-foot area within the FV Pharma facility in Cobourg, Ontario. From there, the company will be producing and distributing its products. Additionally, Canntab has also entered into a licensing agreement with Emblem Corp, a licensed producer (LP), under which Emblem will develop and market Canntab’s XR Tablets™ in Canada. Beyond Canada, Canntab has entered into a joint venture with Vitacann, a subsidiary of Queensland Bauxite (ASX:QBL), under which the companies will work towards the approval of sales of Canntab XR Tablets™ in Australia as well as their export to Asia.

Canntab is led by a management team with proven experience in both the pharmaceutical and capital market spaces. The company’s leaders, Jeff Renwick and Richard Goldstein, have been working with their team to develop Canntab’s proprietary technology for almost a decade and have numerous patents for unique drug formulations, making them leaders within the cannabis pharmaceutical space. The management team is also supported by board members Vitor Fonseca and Sheldon Inwentash, both of which provide extensive insight into financial aspects and business development.

Company Highlights

  • Proprietary Canntab XR Tablets™ provide safe, fast-acting and long-lasting alternative to current cannabis intake methods
  • Licensing agreement with Emblem Corp, leading Canadian LP to develop and market XR Tablets™
  • Co-locating in 10,000-square-foot area within FV Pharma facility in Cobourg, Ontario for production and distribution of products
  • Exploring market opportunities in Australia and the US
  • Entered into joint venture with Australian company Vitacann, seeking approval for sale of Canntab XR Tablets™ within Australia and export to Asia
  • Management team with noted experience in both pharmaceutical and capital markets spaces

The North American Medicinal Cannabis Market

Legalization of the use of medicinal cannabis has been spreading across North America. In the US, regulation sits at the state level, and the November 2016 elections saw four additional states allow or expand access to medical cannabis. Meanwhile, in Canada, medicinal cannabis is federally regulated, and the country is moving towards recreational regularization by summer of 2018.

Within the realm of medical cannabis, increasing numbers of patients are making use of the drug to address symptoms associated with arthritis, chronic pain, diabetes, epilepsy, glaucoma and other conditions. In June of 2017, Health Canada reported a total of over 200,000 registered medicinal cannabis users, over 10,000 more users than the previous month. Meanwhile, in the US, there are an estimated 1.2 million registered patients, with more coming on board as additional states legalize medicinal use. As patients explore the potential issues associated with different delivery methods for CBD or THC, there is an opportunity for Canntab to enter the market as a provider of safe, standardized extended release cannabis tablets.

Providing an Alternate Delivery Method

The issues behind current delivery methods

For the average cannabis user, there are a number of delivery methods available beyond smoking and edibles. Each of these are either accompanied by adverse effects or are proven to be relatively ineffective once the cannabis particles travel through the digestive system or pass through the liver.

When it comes to smoking, the associated issues include a lack of dosage management, stigma perpetuation and the detrimental impacts to the respiratory system. Edibles or orally ingested oils, on the other hand, are becoming more popular, but have unreliable onset times and are significantly diluted as they pass through the gastrointestinal (GI) tract. In addition, topicals that are produced with oils are typically used for localized pain, and are not capable of addressing a broader selection of conditions.

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Canntab XR Tablets™

In light of the current obstacles to effective cannabis particle delivery, Canntab has developed a game-changing medical solution in the form of Canntab XR Tablets™. The tablets hold granulated cannabis in a sustained release core and have a protective film coating that protects the contents from microbes and oxidation.

Using the experience garnered from creating generic drugs in the past, Canntab has enabled its XR Tablets™ with proprietary extended release technology that allows patients to experience their effects for between 12 and 18 hours, something unheard of in other delivery methods.

CannaTab Slide 12

With the primary aim of supporting pain and sleep control, the XR Tablets™ have been designed to hold doses of 2.5 mg, 5.0 mg or 10.0 mg, making it much easier for doctors and patients to manage the dosage. This also allows for patients to test the various dosages and build up to the larger doses with full awareness of their intake. The Canntab XR Tablets™ can also have various combinations of CBD and THC percentages—depending on the condition and requirements pertinent to the patient—and are devoid of the negative effects linked with smoking.

Additional benefits of the Canntab XR Tablets™ include a rapid onset time through the use of Flash Melt delivery, which allows for immediate absorption within the mouth. Alongside the accurate dosing and extended release features, the tablets are also appropriate for consumption by youth patients. The tablet intake method also reduces the stigma of cannabis consumption and makes cannabis more accessible to elderly patients or those who have not interacted with the drug before. These traits collectively position Canntab to help it reach its aim of being the intake method of choice within the medical community.

Deploying Canntab XR Tablets™ to the Market

Co-location

Canntab has deployed a co-location strategy in which it shares space with licensed producers renowned for the quality of their product. To this effect, the company will be occupying 10,000 square feet of the FV Pharma facility in Cobourg, Ontario. This approach will provide Canntab with insight into the production of inputs and have them involved from seed-to-sale. Furthermore, co-location will also reduce the costs associated with developing a facility of their own.

Distribution of Canntab products

As part of their business model, Canntab has entered into a licensing agreement with Emblem Corp, a Canadian licensed producer of dry flowers and oils, in October 2017. This agreement provides Canntab with a distribution channel for its products—once the Canadian government grants the approval of sale—and access to Emblem’s existing customer base of over 2,200 patients.  

As it awaits its approval of sale within Canada, Canntab is also exploring distribution opportunities within Australia and the US and has signed letters of intent to market its products within those countries. To this effect, Canntab has signed an exclusive joint venture agreement with VitaCann, a subsidiary Medical Cannabis, a company owned by Queensland Bauxite. Together, Canntab and VitaCann will be working towards having the Canntab XR Tablets™ formally approved for sale in Australia and prepared for export to Asia.

Recreational Market

In anticipation of the legalization of the recreational market in Canada, Canntab has launched 420 Therapeutics, a wellness cannabis brand. With the goal of tapping into a health and wellness category of cannabis use, Canntab will use this brand to launch non-smoking products that appeal to the market.

Management

Jeff Renwick—CEO, Director

Previously the President and CEO of Orbus Pharma, a generic drug development and manufacturing company. Prior to that Indukern Chemie AG, a Swiss pharma company. More than 20 years of experience in drug formulation and business development. Independent director of 2 public TSX companies.

Richard Goldstein—CFO, Director

Founder of First Republic Capital, co-founder at Fraser Mackenzie, previously executive vice-president and Head of Investment Banking at Standard Securities. Over 26 years of experience in investment banking and institutional sales and trading. MBA in finance from McMaster University.

Robert Lefler—Operations, Director

Director of Operations with over 25 years experience in the manufacturing of pharmaceutical APIs and finished doses, nutraceuticals and cosmetics. Specializes in optimizing processes to scale up production.

Tommy Larocque—Procurement Manager

More than 15 years of procurement management in the pharmaceutical industry. Previously was procurement manager and compliance officer for Orbus Pharma Inc. More than 15 years of Pharmaceutical plant GMP construction experience.

Robert Lefler—Operations

Board of Directors

Jeff Renwick—CEO, Director

Richard Goldstein—CFO, Director

Barry Polisuk—Corporate Secretary and Chairman of the Board

Has been a partner at Garfinkle Biderman, specializing in corporate and commercial work, including securities. Holds a LL.N cum laude and a Quebec civil law degree, both from the University of Ottawa.

Vitor Fonseca—Director

Vitor Fonseca is VP and Treasurer of Romspen Investment Corporation, Canada’s largest non-bank commercial real estate lender. He has held senior finance and operational positions in the real estate, private equity and service-oriented industries. He holds an MBA from the, Rotman School of Business, a CPA-CGA designation and is a member of the Institute of Corporate Directors.

Sheldon Inwentash—Director

Sheldon Inwentash is Chairman and CEO of ThreeD Capital Inc, a Toronto-based VC firm specializing in junior resources, technology and biotechnology. He co-founded Visible Genetics, the first commercial pharmacogenomics company, which was acquired by Bayer. He obtained his B.Comm from the University of Toronto and is a CA/CPA. In 2012, he received an honorary doctor of laws (LL.D) from the University of Toronto for his leadership as an entrepreneur, his philanthropy, and commitment to making a difference in the lives of children, youth and their families.

Advisory Board

Gavin Bogle—Legal

More than 20 years of experience in biotechnology, pharma and supplement industries. Has extensive cross-border transactional experience including IP aspects of corporate transactions.

Sabrina Ramkellawan—Clinical Trials

Sabrina is the Vice President of the Clinical Research Association of Canada and the President of The Canadian Institute for Medical Advancement. She has 20 years of experience conducting clinical trials, including 7 studies on Cannabinoids and as such is renowned as a leader in the field.

Hamish Sutherland—Advisor

Hamish is one of a select few who has real experience in building a successful cannabis company, as the founding COO for Bedrocan Canada, delivering over $400-million in returns for shareholders. He was responsible for the first legal international transfer of live cannabis plant material from Holland to Canada, and was accountable for the “greenfield” construction and commissioning of Bedrocan’s state-of-the-art automated facility, which was acquired by Tweed (now Canopy Growth) to become the leading cannabis company in Canada. Hamish is a Professional Engineer in Ontario, earned his MBA from Schulich, and is the active Chair of the Little Geeks Foundation. He loves basketball, sailing and helping youth achieve their potential.

Dr. Eric Hatashita, MD, CCFOP, FCFP—Advisor

Dr. Eric Hatashita attended the University of Toronto Medical School and rose to be Chief Resident at Mt Sinai Hospital. Invited by the Kingdom of Saudi Arabia to assist in developing their Residency Training program, he lived and taught medicine overseas starting in 1996. During this time, he was chosen to become Family Physician to the Saudi Royal Family of King Abdullah 2000-2005 in recognition of his clinical excellence. Returning to Toronto with his family in 2005, he brings over 30 years of diverse medical experience to a private concierge medical practice, Regal Health Services Inc holding the highest honours in Family Medicine, the “FCFP.”

More than 20 years of experience in biotechnology, pharma and supplement industries. Has extensive cross-border transactional experience including IP aspects of corporate transactions.


 

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