Whitefish, MT / July 15, 2014 / Abattis Bioceuticals Corp. (OTC: ATTBF) (CSE: ATT), a specialty biotechnology company focused on cultivating, licensing, and marketing proprietary products and services to the North American cannabis industry, added to its growing list of accomplishments by becoming the first cannabis stock to list on the prestigious OTCQX tier of the OTC Markets on Monday, July 14, 2014.
"Abattis Bioceuticals is dedicated to providing a high level of transparency to shareholders," said Abattis Bioceuticals Corp. CEO Mike Withrow. "The OTCQX up-listing provides investors with increased transparency in financial reporting and disclosure and awareness of the company's activities within the botanical drug and cannabis industry and inspires confidence within the investment community."
Transparency & Access
The OTC Markets is home to nearly 10,000 securities that generate more than $350 million of daily trading volume. In addition, the exchange covers most U.S.-traded cannabis stocks with the notable exception of NASDAQ-traded GW Pharmaceuticals plc (NASDAQ: GWPH). A handful of other companies trade exclusively on Canadian stock exchanges like the Canadian Stock Exchange or Toronto Stock Exchange.
Within the OTC Markets, companies are divided up into various marketplaces depending on their transparency, financial strength and other factors. These marketplaces include OTC Pink for companies that don't qualify for OTCQX or OTCQB, OTCQB for venture-stage companies that are reporting but don't qualify for the OTCQX, and OTCQX for companies that meet higher quality standards.
The OTCQX marketplace is for qualified, investor-focused U.S. and global companies that meet high financial standards, are current in their disclosure, and receive third-party advisory. According to OTC Markets, these companies are "distinguished by the excellence of their operations and diligence with which they convey their qualifications" making them both more reliable and safer for investors.
Foreign companies that list on the OTCQX marketplace include large-cap names like Adidas Group (OTCQX: ADDYY), Canadian Oil Sands (OTCQX: COSWF), and Roche Holdings (OTCQX: RHHBY), highlighting the marketplace's prominence.
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Stepping Stone for Up-Listing
The OTCQX is also commonly viewed as a stepping-stone for potential up listing to larger national stock exchanges, like the NYSE or NASDAQ. These national exchanges are important since many institutional investors are forbidden from buying OTC-listed companies due to their perceived risk profile. While the up listing from the OTCQB opened the doors a bit, a national listing could help even more.
Bio-Path Holdings Inc. (NASDAQ: BPTH), a biotechnology company focused on therapeutic products utilizing its proprietary liposomal delivery technology, is a prime example of an up listing from the OTCQX to the NASDAQ. In March of 2014, the company went from trading on the OTCQX to the NASDAQ and subsequently experienced new analyst coverage by Maxim Group and increased exposure.
Aside from the potential for an up listing to the NASDAQ or NYSE, Abattis Bioceuticals' OTCQX listing affords it additional nearer term opportunities. For example, OTCQX blue-sky compliance enables financial advisors to discuss Abattis Bioceuticals as a potential investment opportunity for their clients. Each press release is also automatically sent to broker-dealers making markets in the stock.
In the end, the OTCQX listing opens a number of new doors for the company's management team that could enable exposure to a greater number of investors and ultimately help generate long-term shareholder value.
Favorable Timing
Abattis Bioceuticals' up listing to the OTCQX comes at a great time within its corporate history. Over the past couple months, the company has been rapidly advancing its diversified set of subsidiaries closer to commercialization, including its facilities seeking licensed producer status under Canada's newly implemented MMPR and its laboratory testing facilities located within the U.S. market.
In June, the company leased a 16,200 square foot facility zoned for medical marijuana near Vancouver, British Columbia, with the potential to expand to up to 254,000 square feet. Several of its subsidiaries are in the late stages of the MMPR licensing process and management indicated that it continues to have an active dialogue with Health Canada as it works towards the approvals.
In Washington State, the company's Phytalab subsidiary also stands to benefit from the initial tranche of 334 licenses being granted to dispensaries in the state to begin the sale of recreational marijuana. Abattis Bioceuticals also owns a 34% equity interest and 73% economist interest in Washington-based Instant Payment Systems LLC, which offers secure and comprehensive payment processing to the industry.
The company's move to the OTCQX from the OTCQB comes at the perfect time with these near-term catalysts set to drive investor interest. With a great number of investors looking at the stock, the catalysts could have more of an impact on value.
More Information
- Company Website http://www.abattis.com/s/home.asp
- CannabisFN Profile http://www.cannabisfn.com/mdc/abattis-bioceuticals-corp/
Disclaimer:
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SOURCE: Emerging Growth LLC