December 16, 2019, 0 Comments
MCTC CEO Year End Letter – More IP and Products for 2020
It’s near the end of 2019 and we feel this is a perfect time to provide all of our shareholders with a recap of 2019 and an overview of our plans as we move into the new year. All of us at MCTC (OTC PINK:MCTC) wish you and your family a happy holiday season. We are certainly looking forward to having you onboard the MCTC team as we move into 2020.
“ The passage of the Farm Bill has now opened up numerous areas of research for MCTC, and others, to pursue relative to developing the best methods and sciences relating to administering hemp extracts and cannabinoids to the human body. ”
During late May of this year, a new management team lead by Arman Tabatabaei was installed and an experienced board of directors was appointed. The core team has been involved in various aspects of the cannabis and hemp markets for a considerable period of time. We are in the process of changing our corporate identity to Cannabis Global, Inc., which we plan to re-domicile to the state of Nevada.
Arman is highly experienced with a background in commercial/residential lending and as a consultant to public companies in both the hemp and cannabis sectors. Directors Robert Hymers, Edward Manolos and Dan Nguyen all have considerable business and cannabis sector experience. Robert holds a Master of Science in Taxation and a Bachelor of Science in Accountancy, in addition to a CPA license. Formally with Ernst & Young, where he worked in the Firm’s core assurance practice performing audits of publicly and privately held companies, he has numerous interests in a variety of cannabis and non-cannabis businesses. Mr. Manolos is one of the true pioneers of the California medical cannabis marketplace. He has managed and operated over thirty-five dispensaries from Los Angeles to San Jose including twenty in Los Angeles and is credited with starting Los Angeles’ first Medical Marijuana farmer’s market.
The Strategic Plan
After the reorganization in May, we quickly settled on a strategic plan for the rest of 2019 and into 2020. While the Company’s original plan was to enter the hemp cultivation and post-harvest processing segment, during June and July we began to notice several ominous signs within that segment that indicated a looming oversupply of hemp and processed materials. Fortunately, we were early enough in our planning cycle to allow for a business redirection, thus allowing MCTC to avoid many of the well-publicized issues currently being experienced in the hemp sectors. This hemp industry upheaval had a silver lining for MCTC in that it has lead us to our current strategic direction.
Re-Positioning in the Cannabinoid Sciences Arena
It is our team’s strong belief that one of the most underserved submarkets of the hemp and cannabis marketplaces relates to the delivery of hemp extracts and cannabinoids to the human body. The Farm Bill of 2018, which made hemp legal at the federal level, is now one year old. Prior to this time, it had generally been illegal for scientists and researchers to possess hemp extracts, thus there had been very little research accomplished. The passage of the Farm Bill has now opened up numerous areas of research for MCTC, and others, to pursue relative to developing the best methods and sciences relating to administering hemp extracts and cannabinoids to the human body. We have hit the ground running in the area, which is generally being identified as the cannabinoid sciences sub-sector of the cannabis and hemp marketplaces.
R&D and Intellectual Property Accomplishments
In only a few months, through our internal development efforts and through the efforts of our CROs (Contract Research Organizations) we have begun to make an impact within the cannabinoid sciences arena. We recently announced a new cannabinoid delivery system to be marketed as a replacement for alcohol in many beverages. The technology enables formulators to utilize very small amounts of extracts in order to produce similar or superior results compared to other infusions. As the Company recently announced, independent testing laboratories confirm when used as directed, Hemp You Can Feel™ is undetectable in industry-standard testing protocols. MCTC plans to market products based on the novel infusions under its Hemp You Can Feel™ brand and to license the technology were appropriate. On December 12, 2019, we filed a patent application to protect this unique technology. We also believe we are the first organization to develop high load factor polymeric nanoparticles and nanofibers of cannabinoids and the first to combine several delivery technologies with unique bio-enhancers.
Just Getting Started on the Cannabis Technology Front
We think our cutting edge research and development work in the laboratory is just getting started. We recently started a project to produce nanoparticles of our Hemp You Can Feel™ technology and cannabinoid glycosides, the first phase of which is expected to be completed by the end of 2019. Our next phases of research, and our most ambitious, is to create glycosides and nanoparticles of non-psychoactive tetrahydrocannabivarin (THC-V) and cannabinol (CBD), two lesser-known cannabinoids, to be used on appetite suppression and sleep product trials. Our research thus far has resulted in the filing of five patent applications, with several more filings likely during the early part of 2020.
Our Capital Structure
We are especially proud of our capital structure. As of our last filing with the U.S. Securities & Exchange Commission (SEC), there were approximately 14.1 million shares outstanding. The vast majority of these shares are controlled by our board members and a subject to significant sales restrictions. We have also been able to file a registration statement with the SEC, which went effective very quickly, for 1,333,333 shares, which allows us to offer shares to institutional investors in order to finance our future R&D and product programs.
Overall, we are very happy with the progress we have made during 2019 – we feel we have already made an impact within the cannabinoid sciences marketplace. Moving into 2020 we plan to continue to enhance our R&D efforts and to increase our IP portfolio. In addition, during the month of January, we plan to announce several new direct product offerings based on these technologies and to begin our official transition into our new corporate identity of Cannabis Global, Inc.
All of us at MCTC thank you for your interest in MCTC Holdings and look forward to your continued involvement in the Company.