TETRA BIO PHARMA I COM NPV (OTCMKTS:TBPMF) Set To Make New Highs This Year

TETRA BIO PHARMA I COM NPV (OTCMKTS:TBPMF), the medical marijuana company, recently made considerable amount of corporate changes, and announcements that caused an upward trend in the share price. Everybody is talking about it on the Yahoo Finance Forum and the iHub Forum. The company elected new directors to the Board of Directors, and made several updates on its research and development on its drug candidate PPP001; the first smokeable cannabis drug product for the treatment of pain in late-stage cancer patients.If the current trend continues, we will likely see new highs this year. Have a look at the price action. We will tell you later the fundamental information that is responsible to sustain such share price returns.SourceTetra Bio-Pharma TBPMF was created on May 17, 2007 in Canada. Initially, it was called Mazorro Resources Inc., but on December 29, 2014, it merged with GrowPros MMP Inc. and 9048073 Canada Inc. According to the business combination agreement, the resulting company was called GrowPros Cannabis Ventures Inc. Finally, on September 28, 2016, the company again changed its name to Tetra Bio-Pharma Inc. Currently, the Company’s head office is located in Orleans, Ontario.The company focuses on pain management research by the use of medical marijuana. TBPMF is in the process of obtaining a license to become a producer of medical marijuana in Canada pursuant to Health Canada’s Marijuana for Medical Purposes Regulations. That is the first catalyst that we found. Once the company obtains this permit, revenues will start rolling in. Thus, the share price may jump on the day of its announcement. So, be prepared for that event.What are the patents and intangible assets owned by TBPMF?

Since this is R&D company, so the most relevant assets that we need to check out are the patents and intangible assets acquired, or developed. In the last quarterly report, we could read that the company "acquired 9 natural health product numbers related to the initiation of manufacturing and distribution of products for natural health care including products containing extracts or oils derived from Cannabis sativa for 1,800,000 common shares". This amount of common shares was worth $216,000 in the open market. Hence, it was not a small acquisition.

What's the company working on right now?The most relevant drug candidate is PPP001, which is expected to be approved by Canada and the United States by early 2019. The company already announced the next step; the Phase III clinical trial in collaboration with Quebec's leading medical cannabis clinic, Sante Cannabis. According to the document distributed to the market, it works as follows:

"PPP001 will be sold as a titanium pipe and blister pack containing drug pellets with a standardized amount of delta-9-tetrahydrocannabinol (THC) and cannabidiol (CBD). A single drug pellet is pushed out of the blister pack, inserted into the titanium pipe, and smoked to deliver the active ingredients." Source

Other drug candidates are the PPP002, "a Dronabinol-based mucoadhesive wafer designed to manage anorexia and cancer chemotherapy-related pain", PPP003, AGT001, and PTGR, which target chronic pain. The following image is very informative (It is not up to date as PPP001 is not in that phase any more):

SourceRecent DevelopmentsThe company made several changes to the Board of Directors. Market participants usually appreciate these type of activities. So, let's have a look.On May 30, 2017, it announced the appointment of Dr. W.M. (Bill) Cheliak. Dr. Cheliak serves also as CEO of Panag Pharma. He is Director for Solarvest (SVS), and is Vice Chair of the Government of Canada's Networks Centres Excellence (NCE) Standing Selection Committee, and Chair of the NCE Monitoring Committee. Furthermore, he brings deal making experience with the pharmaceutical industry, and 20 years of experience in business.In addition, Mr. Carl A. Merton was also elected. He has over 20 years of financial experience, including 10 years as a CFO. He has worked for Ernst & Young, and KPMG, Atlas Tube Inc. At the moment, he is also the CFO of Aphria. Andre Rancourt, Chairman,and CEO of Tetra Bio-Pharma, said the following about Mr. Merton:

"We are most pleased to welcome Mr. Merton to the board as we continue to work closely with our strategic partner, Aphria in building Tetra as a leading bio-pharmaceutical organization," Source

Regarding the R&D developments, Tetra Bio-Pharma noted on June 7, 2017 that it had submitted its Phase 1 Safety Report of PPP001 to Health Canada. Additionally, in the same communication, it was noted that it was launching the preparation of a Phase III clinical trial in collaboration with Québec's leading medical cannabis clinic, Santé Cannabis. Andre Rancourt, CEO of Tetra Bio-Pharma, explained in the following words:

"Shareholders should be proud to know how quickly we have moved through the Phase I trial and we are now progressing on an accelerated path to the Phase III trial which is, relatively speaking, a tremendous accomplishment for the organization and a testament of the excellent work undertaken by Dr. Chamberland and his team" Source

In our opinion, the new directors of the Board are quite relevant. But, the most significant information is that the company is close to pass its Phase III. Market participants are expecting that the company will be able to distribute the PPP001 soon. Hence, they are pushing up the share price expecting a big share price jump when the commercialization is announced.The balance sheet is solidThe financial situation of the company is quite solid. Have a look, and note the tons of cash on hand and the small amount of liabilities.Period Ending11/30/201611/30/201511/30/2014Current AssetsCash And Cash Equivalents906.32115.11331.258Short Term Investments---Net Receivables46.6333.8348.24Inventory---Other Current Assets67.5810.62615.098Total Current Assets1,020.53519.57354.596Long Term Investments---Property Plant and Equipment---Goodwill---Intangible Assets160.643160.643160.643Accumulated Amortization---Other Assets--13.155Deferred Long Term Asset Charges-10.43711.334Total Assets1,181.17730.0179.085SourceHere you can see the liabilities:Current LiabilitiesAccounts Payable142.546202.89382.025Short/Current Long Term Debt--4.4Other Current Liabilities---Total Current Liabilities142.546202.89386.425Long Term Debt---Other Liabilities---Deferred Long Term Liability Charges---Minority Interest-39.201-39.201-39.201Negative Goodwill---Total Liabilities103.345202.89386.425SourceConclusionTBPMF has several good points that we need to note. Firstly, the company's R&D developments are being celebrated by market participants, more specifically the FDA approval of the drug candidate PPP001. Additionally, the company is adding a lot of talent to the Board of Directors. This is always good as new contacts, financial and operational experience will be useful once the company can commercialize its drugs. Finally, the balance sheet is sound. The amount of cash standing on the balance sheet will provide a lot of gasoline for its pipeline. To sum up, stay alert on new announcements that may push up the share price even more.We will be updating our subscribers as soon as we know more. For the latest updates on TBPMF, sign up below!Disclosure: We have no position in TMPMF and have not been compensated for this article.Image courtesy of Flickr.