OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) Is Today's Equity Focus

OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) has quickly turned into a microcap runner on the OTC Markets after securing $300k in funding. The timing couldn't be any better for OWCP ahead of the November elections and what we call Green Rush 2.0. With investors in search of new cannabis related names after getting burned by many in the first Green Rush due to dilution and insider enrichment, we think investors need to pay close attention to OWCP.First up, a little background on the company. OWC Pharmaceutical Research Corp., through its wholly-owned Israeli subsidiary, One Word Cannabis Ltd., conducts medical research and clinical trials to develop cannabis-based pharmaceuticals and treatments for conditions including multiple myeloma, psoriasis, fibromyalgia, PTSD, and migraines. OWCP is also developing unique delivery systems for the effective delivery and dosage of medical cannabis. All OWCP research is conducted at leading Israeli hospitals and scientific institutions, and led by internationally renowned investigators. The Company's Research Division is focused on pursuing clinical trials evaluating the effectiveness of cannabinoids for the treatment of various medical conditions, while its Consulting Division is dedicated to helping governments and companies navigate complex international cannabis regulatory frameworks.Medmar LLC has agreed to loan OWCP a total of $300,000 on a non-interest bearing basis, with no conversion rights. Medmar will fund the Loan in six equal installments of $50,000 each, as follows: (i) 1st installment was released to OWC Ltd on September 22, 2016; (ii) 2nd installment on October 1, 2016; (iii) 3rd installment on November 1, 2016; (iv) 4th installment on December 1, 2016; (v) 5th installment on January 1, 2017; and (vi) 6th installment on February 1, 2017. The Loan, as noted above, bears no interest, is not convertible, is due in 36 months from the Effective Date, and repayment shall be made only by the set off of royalties payable by Medmar to OWC Ltd.The funds will be allocated to complete the development of the Company's proprietary psoriasis cream. Medmar will also have exclusive right to manufacture, produce, publicize, promote and market OWCP's Licensed Products in any state in the U.S. Medmar CEO Steve Weinstein said:

"Medmar has been anxious to advance cannabis as medicine, however US regulation makes it very difficult for companies here to actively pursue any type of development in the sector; fortunately, the environment in Israel is more favorable to the industry. We learned about OWCP as they are one of only a handful of companies taking a true clinical approach to the research and development of medical cannabis, and this was important to us. Once we saw the preliminary results for their clinical studies, particularly in the field of psoriasis, we decided to make an investment and partner with them."

Israel is considered one of the best places in the world for cannabis research. According to The Cannabist, "Unlike the U.S. government, the Israeli government has had few restrictions on doing research on cannabis, whether basic science or clinical studies." OWCP says that its research division "leverages the Company’s extensive network comprising some of Israel’s leading researchers, scientists, universities and hospitals, as well as cannabis breeders and extractors, to study and test the effectiveness of different combinations of cannabinoids in the treatment of disease and chronic conditions."

To date, OWCP has signed three research collaboration and license agreements with Sheba Academic Medical Center, Tel Hashomer, Israel. Sheba is a university-affiliated hospital that serves as Israel's national medical center and the most comprehensive medical center in the Middle East. Within the framework of the agreements with Sheba, OWCP will initiate three studies at the Sheba facilities to explore the effect of three formulations, all based on active ingredients in the cannabis extracts, on multiple myeloma, psoriasis and fibromyalgia (a specific formulation to each indication).

The Company has also signed a Memorandum of Understanding with Emilia Cosmetics Ltd., a large Israeli private label manufacturer, for the development, manufacture and marketing of a cannabinoid-based topical cream to treat psoriasis. The Company will initiate the development of the topical cream at Emilia Cosmetics labs located in Yerucham, Israel. After the completion of the formulation development, the Company will initiate a phase I study at the Sheba facilities to explore the effect of topical cream on psoriasis.To date, One World Cannabis has filed eight provisional patents with the United States Patent and Regulatory Office, all related to its line of activity related to cannabis-based medical products. Assuming the successful completion of the clinical trials, the Company believes that it will be able to retain the intellectual rights and secure patent protections.In looking closely at OWCP, there are 96,799,955 shares outstanding and just 33,515,750 shares in the float. With over 50,000,000 shares traded on October 3, the float was turned over one and a half times. With a low floater like OWCP, it won't take much to get the stock running and the shorts scrambling to cover. Prior to the deal with Medmar, OWCP reported $162,000 in cash and $351,000 in current liabilities. In terms of notes, OWCP only has 2 notes net of $51,969. We will be updating our subscribers as soon as we know more. For the latest updates on OWCP, sign up below!Disclosure: We have no position in OWCP and have not been compensated for this article.