Here's An Update On MyDx Inc (OTCMKTS:MYDX)

When we last looked at MyDx Inc (OTCMKTS:MYDX), mid March, the company was trading at $0.004 a share. At last close, MyDx shares went for $0.12 – a 200% run. We've had a couple of requests from our readers to update our bias on the stock, taking a number of recent developments in to account.With this in mind, here's where things stand now.Before we get going, a quick introduction to MyDx. The company is a technology/healthcare company that has developed a device that allows users to test organic material. There are a few applications of this technology, including water purity testing, air quality, food testing, etc., but the one that's driving value right now is use as a cannabis testing device. Basically, a user puts a small amount of their cannabis into the device, and it reads back to the user on a number of metrics associated with quality, contaminants, etc. The key to this device bringing in forward revenues for the company, however, isn’t really in device sales. Although sales are what are important right now from a headline perspective, the real value in this device (called CannaDx) is in its linking with a smartphone application that records the data readout from the testing process, and combines this with user inputted data relating to the effect of the cannabis being consumed on feelings, emotion, pain, depression, all the sort of things people might be smoking cannabis to induce and/or relieve themselves from.So this brings us to one of the recent and important updates.This data is coming together to form a database that's now (as per this press release) 40,000 points strong. Last time we got some numbers on the base it was 30,000 points strong, so it's growing fast – MyDx reports that it's growing at a rate of 100% year over year.So why is this so important?Company CEO Yazbeck said this:

"This reminds me of my days at Pfizer where we were looking for new ways to create Active Pharmaceutical Ingredients in a more organic fashion."

What he means by this is that when he was at Pfizer Inc. (NYSE:PFE) (he was a scientist at the pharma giant for a few years in the early to mid 2000's) the company was trying to figure out a way to manufacture the APIs for its development drugs that was more efficient than previously. The way Pfizer achieved this was through a database that logged various API interactions, and the combinations of these API's interactions with certain indications, which could be used to streamline the manufacture of preclinical assets to carry into the lab. That's exactly what MyDx is working to achieve in cannabis. Yazbeck calls them Green APIs or gAPIs, and the MyDx database is expanding to become the equivalent of a big pharme API database, but for the cannabis pharmaceutical space.Again, what's the importance of this?Well, it's not just about selling the data. The real money is in the company converting those that use its database into contract manufacturing clients, and MyDx working as a CMO to provide these clients with the APIs that they need to conduct early stage clinical trials.It's farther down the line, of course, but it's a smart and achievable business model for a company like this – the only company in the world right now with a database like this, of this size.Adding to the long term value thesis is the Mid-March announcement that the company successfully fought off an attempt by some convertible debt lenders to basically suck any value out of shareholders' exposures through conversion induced dilution. The resolution sees just $35,000 left in promissories, which can't be converted to equity and is eligible for payoff at the end of next month. In other words, a serious downside pressure (and risk factor) has just been removed, ahead of next month's first quarter earnings (slated for May 15), at which point we expect an influx of speculative volume.Nothing's guaranteed of course. This is still a young company, and it's currently trading in and around the wrong end of a correction from highs. Some will say it's set to fall deeper before turning. We think current levels are supportable, however, and as MyDx's potential spreads to a wider audience, it's market support will grow, and its capitalization will revalue to accommodate this growth.We will be updating our subscribers as soon as we know more. For the latest updates on MYDX, sign up below!Disclosure: We have no position in MYDX and have not been compensated for this article.