CANNAINVESTOR Magazine February / March 2017 | Page 39

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There are others of course and some Retail Investors have bought the shares of such companies in anticipation of M&A activity – spending in the pet industry exceeded $60B in the US alone in 2015. “Pet humanization is driving growth at the premium end of the market” and spending on medications and supplements perceived to enhance and prolong a pet’s life is increasing (www.petfoodindustry.com: “Pet industry spending hits record US$60.28B in 2015”). Investing in a company that services the animal market may be something worth considering as part of your diversification strategy. Remember, unlike Cannabis, Hemp is completely legal to sell in food products including for animals (refer: HIA vs. DEA). These companies along with all others in the Hemp industry are free to sell their eligible products without rigorous approvals other than what would be the norm for the product. Another potential investment focus could be on the emerging technology surrounding sublingual absorption and bioavailability. A leading paper published in the International Journal of Pharmacy and Pharmaceutical Science titled “SUBLINGUAL MUCOSA AS A ROUTE FOR SYSTEMIC DRUG DELIVERY” explains why sublingual absorption may become instrumental to the medical marijuana industry:

Sublingual administration of the drug means placement of the drug under the tongue and drug reaches directly into the blood stream through the ventral surface of the tongue and floor of the mouth. The drug solutes are rapidly absorbed into the reticulated vein which lies underneath the oral mucosa, and transported through the facial veins, internal jugular vein, and braciocephalic vein and then drained in to systemic circulation. The main mechanism for the absorption of the drug in to oral mucosa is via passive diffusion into the lipoidal membrane. The absorption of the drug through the sublingual route is 3 to 10 times greater than oral route and is only surpassed by hypodermic injection. For these formulations, the small volume of saliva is usually sufficient to result in tablet disintegration in the oral cavity. Sublingual absorption is mostly rapid in action, but also short acting in duration.

With respect to Bioavailability, According to Merk Manuals:

Bioavailability refers to the extent and rate at which the active moiety (drug or metabolite) enters systemic circulation, thereby accessing the site of action. Bioavailability of a drug is largely determined by the properties of the dosage form, which depend partly on its design and manufacture. Differences in bioavailability among formulations of a given drug can have clinical significance; thus, knowing whether drug formulations are equivalent is essential.

There are a number of companies currently exploring such delivery systems and an interesting joint venture between two such companies is the focus of case study one. There are other companies including Lifestyle Delivery Systems (CSE:LDS; OTC:LDSYF) and Vinergy Resources Ltd (CSE:VIN; OTC:VNNYF).

Through due diligence and identifying where the sector may be headed you may indeed pick the next “Apple”. The potential in the animal sector and the promising outlook for sublingual based administration are just two of the many forward looking potential investment strategies. But as with all forward looking statements and investment strategies, the future is uncertain and one must incorporate that risk into the investment decision. With the right guides, tools, and references …. are the legal Cannabis and Hemp industries ideal for the prepared Retail Investor? You decide.