NanoSphere Health Sciences

Enhancing the Delivery of Cannabis and other Medications with Nanobiotechnology

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

Overview

NanoSphere Health Sciences (CSE:NSHS) is a nanobiotechnology company paving the way in the development of innovative delivery systems for cannabinoids, medications, nutrients, and animal health. Built on a foundation of over 20 years of research and development, NanoSphere has designed a patent pending delivery system that increases the effectiveness and delivery time of cannabinoids (THC and CBD) by nanosizing the particles and transporting them directly into the bloodstream.

With the aim of further disrupting the medication delivery space, NanoSphere is also in the process of using its platform for additional nano-biotechnology solutions in the delivery of nonsteroidal anti-inflammatory drugs (NSAIDs) and nutraceuticals. NanoSphere’s delivery system makes particles easy to absorb and completely bypasses the gastrointestinal tract (GI), and respiratory system when cannabis is smoked, which can often cause adverse effects to the patient. NanoCanoids bypass first pass liver effect and avoids pre-systematic metabolism.

For its cannabis products, NanoSphere has developed a growth model that is based on developing partnerships with producers of high-grade cannabis extracts that have established distribution channels. Looking to build out this model, the company expects to enter into four such agreements over the course of 2018 while it focuses on growth and on raising awareness on the alternatives to cannabis consumption.

In recognition of the innovative and disruptive work the company is doing, NanoSphere has been recognized with a nomination from the National Cannabis Industry Association (NCIA) for the Excellence in Technology award in infused products and extraction. The award is granted to a company that has developed a new technology that will have a lasting effect on the industry.

“It comes as no surprise to us that our technology is being recognized for its market disruption,” said NanoSphere Chief Science Officer Dr. Richard Kaufman. “We are proud of our achievements so far in the nanoparticle delivery space and look forward to advancing our technology with new applications and new markets.”

NanoSphere is led by a management team with noted experience in its field. This includes Dr. Richard Kaufman, whose patents on delivery system nanobiotechnology have set him apart as a leader in the medical technology world. Management is also significantly invested in the company, holding 50 percent of shares with another 25 percent held by friends and family.

Investment Highlights

  • Last stage patent-pending nanobiotechnology delivery system for cannabinoids, medicine and nutrients that enhances absorption and effectiveness of particles
  • Nominated for NCIA award for Excellence in Technology
  • Developing growth model through partnerships with cannabis companies producing high-grade extracts and with established distribution channels
  • Company looking to use its technology to enter other industries including nutraceuticals, pharmaceuticals (NSAIDs) and animal health
  • Technology development led by Dr. Kaufman, leader in delivery system nanobiotechnology
  • Management team of industry experts, and board of directors holds 50 percent of shares
  • The company plans to penetrate four additional markets in 2018

Problem to Solve

When it comes to the current delivery methods of cannabinoids, there are a number of factors that either impede the effectiveness of the drug or present adverse results to the consumer. For instance, when administered orally, only 6 percent of cannabinoids reach the bloodstream while the rest are dispelled as they traverse the GI tract. Oral consumption also presents significant delays in the onset of effects, with consumers having to wait 45 minutes to two hours. Lastly, due to both of the above factors, the consumption of cannabis edibles also presents the possibility for accidental over-administration.

When it comes to cannabis delivery through smoking, the issues presented here are a lack in standardized dosing—which also presents as problematic for medical professionals trying to prescribe cannabis—and the potential damage to the respiratory system caused by smoke inhalation.

Beyond cannabis, there are other medications such as NSAIDs that also present risks to the patient when consumed. In particular, according to an article published by Harvard Health Publishing, NSAIDs can have negative impacts on the GI tract and kidneys as they are ingested orally. The obstacles presented in the ingestion of cannabis and NSAIDs could be resolved by an enhanced delivery system like NanoSphere’s that standardizes dosing, enhances rapid absorption into the bloodstream and mitigates the risks associated with current delivery systems.

NanoSphere’s Delivery System

In its pursuit to improve the absorption of medicinal particles, NanoSphere has developed a delivery system that adjusts the size of cannabinoids from pharmaceutical-grade extracts and encapsulates them in all-natural, protective nanosized spheres (NanoCanoids™) that the body absorbs with ease. Having researched and determined the ideal particle size for absorption, NanoSphere has implemented a patent-pending design that allows for rapid absorption through intraoral, intranasal or transdermal application. In this way, a high concentration of cannabinoids is directly absorbed into to the bloodstream, bypassing the dilutive effects of the GI tract, the liver and pre-systemic metabolism.

In implementing this technology, NanoSphere has decreased the onset time of effects to 5 to 10 minutes, making the particles much more impactful for consumers. Additionally, consumers are spared the adverse effects caused by smoking.

The company has developed two products, a Nano-Encapsulated intraoral TCH delivery tool and a topical THC NanoSerum for localized relief of pain, inflammation and tension. NanoSphere has enabled consistent and standardised dosing in its proposed products, making them convenient and easy to use. Additionally, the standardised dosing also makes it easier for doctors to prescribe cannabis to patients, as the effects are more practically measured.

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Applications beyond cannabis

NanoSphere’s particle delivery technology has applications beyond the cannabis space as it is commercially applicable to the pharmaceutical, dietary (nutraceutical) and animal health industries. For the pharmaceutical space, NanoSphere has created a patent-pending approach that uses its delivery system to encapsulate NSAIDs, making the drug particles easily absorbed into the bloodstream and thus less potentially harmful to patients.

NanoSphere believes that its technology will act as a disruptor to how cannabis, medication and other nutrients are consumed.

“Prescription and nonprescription medications administered by NanoSphere’s unique encapsulation process show improved bioavailability and more predictable blood levels,” said NanoSphere medical advisor Dr. David Theil. “The NanoSphere technology is also well-suited for transdermal delivery, a great advantage in the use of NSAIDs as well as THC products…I also believe that this technology could open the door for the use of a variety of other non-opioid medications which could greatly enhance our ability to effectively and safely manage pain.”

Growth Through Industry Partnerships

Partnerships

In order to deploy their products, NanoSphere has been exploring partnership opportunities with cannabis manufacturers across the US that can produce the quality of cannabis oils required. In identifying potential partners, NanoSphere is also ensuring that these companies have established distribution channels so that the availability of its products can grow quickly and efficiently within each state. Having already entered into one such licensing agreement, the company expects to establish an additional four agreements within this calendar year and envisions that each of these partnerships will contribute positively to the bottom line. The reason the company has chosen to froge partnerships is to dedicate its resources to continued product development, thus leaving production and distribution to its partners.

NanoSphere has entered into a partnership with  Vertical™. As the largest integrated company in the legal medical cannabis industry,Vertical™ will launchNanoSphere’s Evolve product line in Arizona and California starting the summer of 2018. Vertical™ is set to provide planning, permitting, development and operation of cultivation, extraction, manufacturing, distribution and retail facilities in both Arizona and California, to officially offer Evolve products in these crucial markets.

“This partnership with Vertical™ represents an ongoing phase of growth for Evolve Formulas,” said Robert Sutton, Chairman and CEO of NanoSphere Health Sciences. “Expanding into both Arizona and California this summer allows us to bring our advanced, cutting-edge technology to new consumers and patients in the world’s largest legal cannabis market. This partnership is another important step in bringing our patented technology to all legal states and Canadaover the next 18-24 months.”

As it looks to the nutraceutical space as its next focus for growth, NanoSphere is also discussing potential partnerships with large players in that industry.

Financial projections

Assuming retail costs of $29.99 per 100 milligrams for intraoral products and $39.99 per 100 milligrams of the topical serum, NanoSphere anticipates that total revenues for the first year will be $6 million from license revenue and royalties, having entered the market in one state. This is followed by projections of up to $119 million after two years, having entered five states, and up to $529 million after five years, having entered 20 states.

Management

Robert Sutton—Chairman, CEO, Director

Robert Sutton has over 25 years of successful investment and entrepreneurial experience. Mr. Sutton spearheads the growth of companies in industries such as real estate, oil and gas and venture capital, valued at $2 billion.

David Sutton—President, COO, Director

David Sutton received his MBA in finance from the Daniels College of Business at the University of Denver. He has a Bachelor’s Degree in economics from the University of Colorado. He previously consulted for CeeLite Technologies, an innovator and developer of new lighting sources where he got Apple to use their CeeLite’s technology in Apple products.

Richard Clark Kaufman, PhD—Chief Science Officer, Director

Richard Kaufman is the previous co-director of the Center for Biogerontology Life Extension Medical Clinic and research center in Los Angeles. He is a distinguished scientist, highly respected researcher, author and product developer. His  patents on delivery system nano-biotechnology have distinguished him as a leader in the medical discovery world, including being the lead scientist in inventing the proprietary NanoSphere Health formulations. His PhD in BioNutritional Chemistry from the University of Brussels.

Victor Goncalves—EVP, Director

Victor has nearly 15 year experience in the financial markets as both an analyst and on the public issuer side. He was the top analyst at Harvard Management Fund ($8 billion) and has held several management and directorship positions in multiple public companies, having raised in excess of $30 million.

Bennet Liu—CFO

CFO of Corazon since 2017; also an officer of Brigade Resources Corp. and Secova Metals Corp.

Stephanie Hopper—Director

Co-founder of Root Technologies, a consulting firm of industry professionals helping build a sustainable cannabis industry; Chief Operating Officer of Ballpark Holistic Dispensary and cultivation facility from 2014 to 2016.

Michael Iverson—Director

Michael has over 30 years of success in the financial markets having developed and sold Niogold to Osisko mining. He was also the past president, CEO and founder of Fortuna Silver mines, which he was integral at building it to a Silver producer with a $1.5 billion market cap. He has a rounded career having worked both in the resource space and the technology sector. He is currently CEO of Volcanic Gold Mines.

Toby Lim—Director

Lawyer practicing corporate and securities law since 1998.


 

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