Protext Mobility Inc (OTCMKTS:TXTM) Looks To Be A Discount Entry Opportunity

Protext Mobility Inc (OTCMKTS:TXTM) is an old company that we covered long time ago in this piece. The company seems to have changed its business activity and is now doing better than when we put out the previous article. TXTM is now engaged in the clinical testing of “bioceutical” products and is also responsible for the development of pharmaceutical applications for other companies. It is one of the companies working with Phytofare®, which is produced by Plandaí Biotechnology Inc, covered too by the team. Have a look at the recent movements of the company. The new business objective and some of the company's announcements seem to have excited the investors:SourceBusinessProtext Mobility, Inc. is a holding company that owns two subsidiaries: Plandaí Biotechnology Inc and Cannabis Biosciences Inc. As email subscribers can find a lot of information about the first subsidiary in this piece, this article will focus on the work of Cannabis Biosciences. It was recently acquired by TXTM, which paid using 50 million shares for the company. The news was put out on March 27, 2017. You can read it here. The business activity of Cannabis Biosciences was formulated as follows:

"Using Plandaí's proprietary processing and extraction technology, the company intends to commence investigations in conjunction with independent researchers to develop and validate a full-profile cannabis extract, one that contains both CBD and the precursor acid form of THC (THC-A and THC-B) found in live cannabis plant. The hypothesis is that the resultant extract will have similar, superior bioavailability of other Phytofare® extracts with the added benefit of being non-psychoactive." Source

For the email subscribers who did not read the article about Plandaí, this company produces highly concentrated extracts that are sold under the name of Phytofare. Cannabis Biosciences is responsible for obtaining new pharmaceutical applications derived from this product. The company seems to be doing a pretty well job according to the recent press releases put out.Recent DevelopmentsThe acquisition of Cannabis Biosciences Inc. was announced on Mar 27, 2017. In our opinion, the most relevant words noted in the press release were said by Roger Baylis-Duffield, Chief Executive Officer of Protext. The strategy of the acquisition was contained in his words:

"Where most pharma companies have chosen to focus on the non-psychoactive CBD chemical, we believe that this strategy limits the potential medical benefits. Recent third party studies have demonstrated the synergistic value of retaining the full chemical profile of cannabis. Our objective is to validate Cannabis Biosciences cannabis extracts to be not only full profile but also non-psychoactive, which will give researchers all of the benefits of cannabis without the unwanted side effects. The acquisition of Cannabis Biosciences by Protext properly aligns our pharmaceutical research under one roof, allowing us to further our cannabis studies as we strive to create a cannabis extract that can increase the well-being and potentially improve the lives of so many people." Source

The company is exploring the synergistic value of the whole cannabis plant. While other cannabis companies are only using the CBD chemical, the company believes that other parts of the cannabis extract can also be useful. How can the company explore the other parts? Thanks to the concentrated product that the other subsidiary of the company, Plandaí Biotechnology, produces, the idea was so original that it was noted by Springer.Academic Research and new agreementsThe company seemed to start an ambitious research plan, published by the Research Journal Springer, on January 28, 2018. This research program started delivering results very recently. On May 4, 2017, a press release was put out stating that the company would start its first human trials this year using the know-how of the Centre International Developpement Pharmaceutique (CIDP). The study that the CIDP will perform was called "Clinical Trial on Humans to determine the efficacy of Phytofare® for lowering HbA1C levels in II Diabetes patients" and its objective is to show the efficacy of Phytofare for improving the levels of hypoglycemia in people with diabetes. The Phase one is expected to commence in May and the results will be delivered in June. Right after, the company will implement the Type-II diabetes human clinical trial in the second half of 2017.Market reaction and potential share price movementsWe could see that the company's share price reacted positively to the announcement of Cannabis Biosciences' acquisition. New research means that the company may be able to find new products and applications. However, in April and May, traders seem to be forgetting the potential of the this research and the share price has been declining. Is this an opportunity? Well, maybe. The new results will be delivered in June and the clinical trials may be concluded at the end of 2017. This means that we may not have a lot of news until then. Then, visibility is reduced making the share price less liquid and reducing the share price as well. Savvy traders know it, and may be buying now to profit from the big movements that we may see in June and at the end of 2017. So, for some traders, this decline may represent an opportunity.ConclusionProtext Mobility put out news about a merger that interested the market very much, and from which email subscribers and fast traders profited. Additionally, new potential applications that the company could produce from the Phytofare could be very profitable. Hence, it should be considered an investment catalyst. In our opinion, savvy individuals may be profiting from the lack of action that we have seen in April and May, and that may be the reason to justify the recent decline in the share price. We expect share price movements in June and at the end of 2017, thus investors buying the dip now may profit from them. We will be updating our subscribers as soon as we know more. For the latest updates on TXTM, sign up below!Disclosure: We have no position in any of the securities mentioned and have not been compensate for this article.