Cannabics Pharmaceuticals Inc (OTCMKTS:CNBX) Is Primed For Revaluation

When we first looked at Cannabics Pharmaceuticals Inc (OTCMKTS:CNBX) back in November (post recreational legalization ballots in the US), the company was trading in and around $0.8. By mid to late Feb, this had risen to close to $7 a share – a nearly 775% run. Price didn’t hold at those levels, however. By end Feb, Cannabics was trading for around $4.20, and at last count, went for just $2.17.That's a nearly 70% correction from highs, but we’re still looking at more than 200% gain on the 2017 open. Shareholders (and potential trigger pullers) are now asking, what's next?Let's try and figure it out.Before we get started, we'll say one thing. Our bias on this one pretty much remains unchanged on the bias we've held all year. There's plenty to view as promising, and catalysts that we've highlighted as potentially driving volume (and in turn, PPS revaluation) have hit press as and when we expected them to. What hasn’t happened, however, is price respond to these catalysts. It's almost as if markets are ignoring the stock and its updates.What does this mean?Either that there's something we don't know, or that the disparity between PPS and fundamental operations is an opportunity to pick up an exposure ahead of the divergence closing, and PPS rebalancing to reflect the most recent news.Which begs the question – what was the latest news?Well it came from an investigation into the company's technology, and specifically, the application of this technology to various cancer types as a potential therapeutic in the space. Back at the end of March, we noted that the real catalyst for this stock was a data release slated for July (we'll come back to this shortly). We also noted, however, that there was the potential for an update as to the therapeutic application of Cannabics' lead cannabinoids science in the just mentioned cancer types, and that if this hit press, it would likely serve up some upside momentum.It did hit press, but we saw nothing from markets by way of a reaction – if anything, markets sold off on the company.The update is rooted in a study conducted in Israel, investigating the impact of said science on cancerous cells from six distinct types of cancer – breast, ovarian, colon, pancreatic, gastric and glioblastoma. As far as solid tumors go, these are the ones you want to go after as a biotech company. These are the big money cancers.Cannabics applied its science (the cannabinoid compounds) to these cancer cell types, and found that (as measured through High Throughput Screening technology (HTS)) the compounds were able to induce apoptosis in the cells in question. Apoptosis is basically a sort of cell suicide – it's the process through which aged cells die, and the process that is lacking in many cancer cell types (and that, in turn, leads to the unchecked proliferation commonly cited as the root of the disease's aggression).So that's great news, and it paves the way for some clinical confirmatory trials in six of the most lucrative (and deadly) cancer types in the US. Sure, but Cannabics is down nearly 30% since their release.The company just got added to the US Marijuana Index, which again should serve as a bit of a boost at this end of the market, but again, it's down a percentage point or two on the news.So what's next?We alluded to the July release above, and this is the inflection point that we are looking at as sparking a closing of the divergence between PPS and operational progress. It's a palliative care release, detailing the efficacy of some proprietary cannabis based capsules as a treatment to improve appetite and stem weight-loss in cancer patients receiving chemotherapy.If it comes out as indicative of clinical benefit, we'll be looking above and beyond the February highs as a target heading into the third quarter.As a closing note on this one, there's a near term financing on the cards, and this could impact PPS in the months to come. Again, however, if the July data drop comes out a positive, the financing impact should be minimal.We will be updating our subscribers as soon as we know more. For the latest updates on CNBX, sign up below!Disclosure: We have no position in CNBX and have not been compensated for this article.