OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) has been quickly moving up following an announcement from the company on September 30, stating that it had signed an agreement with Medmar LLC, for $300,000. OWCP stated that it plans to use the funds for the development of its proprietary psoriasis cream. In return, Medmar would have exclusive rights for the production, manufacturing, promotion and marketing of all OWC products, licensed across the US.
The company noted that the loan from Medmar is non-interest bearing and would be paid for by the royalties, generated through the sale of OWCP products through Medmar. Steve Weinstein, the CEO of Medmar, stated that his company was anxious to market cannabis based medications in the US, but has been significantly limited to develop such medications, following the strict regulations. He was of the opinion that the environment in Israel, where OWCP is based, is more favorable, which allows OWC to truly undertake a clinical approach.
The CEO of OWCP, Mordechai Bignitz, expressed his excitement at the agreement and claimed that this reflected Medmar’s confidence in the commercial potential of their products. He also stated that the company was making significant progress with its clinical trials for myeloma and fibromyalgia, in addition to psoriasis. Further details of the agreement reveal that Medmar would be providing the loan in six installments, of $50,000 each, with first and second installment released on September 22 and October 1, respectively. The remainder would be delivered on the first of every month, until February, 2017.
The agreement comes at a crucial time for both companies, as the November elections draw closer. Several analysts already believe that the elections would soon result in a second green rush, with several new candidates taking the lead. In its latest financial statements, filed on August 29, OWC indicated that it had a cash position of just over $162,000 and its convertible debt had climbed by $48,000, over the six months period, ended June 30, 2016.
OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) closed at a share price of $0.0685, at the end of the October 6 trading session, 55.68% higher than the session before, on a trade volume of 33.88 million.
