Stockhouse investors tend to be resource investors: primarily mining and energy. This is not surprising given that Canada is a resource-rich nation and the global capital for the junior mining industry. But what about diversification? Even the most enthusiastic resource investors generally want at least some exposure to other sectors.
Why not animal health? Healthcare is a growth industry with respect to human health, but it’s a mature industry where large cap companies control most of the sector. In contrast, animal health is an emerging growth sector in the healthcare space, offering a level of blue sky potential not available in human healthcare.
The pet-pharma market alone is a $10 billion a year market. In this large-and-growing sector, roughly 60% of all drugs dispensed for use on companion animals like dogs and cats and horses are human drugs, designed for human physiology. This opens up a tremendous opportunity for companies producing pharmaceuticals and related products specifically for animal healthcare. One of the companies seeking to fill this large void is Zomedica Pharmaceuticals Corp (TSX: V.ZOM, OTCQB: ZOMHF, Forum).
In contrast to human pharmaceutical products, drug development for companion animals is lower risk thanks to the less costly R&D model and shorter regulatory process. This adds up to the capacity to deliver pipeline value much earlier when compared to a human pharma company.
The greatest opportunity for investment in animal health is right here in North America. The U.S. alone has 57,000 practicing veterinarians focused on companion animals. We love our pets. We want them to receive quality healthcare. Zomedica’s mission is to assist veterinarians in providing a superior level of health for companion animals – while capitalizing on the market opportunities in this under-served sub-sector.
Luminor Medical Technologies Inc. had a two-part mission. The first challenge was to design a superior means for people with diabetes and pre-diabetes to obtain an accurate diagnosis of their condition. The goal is to save lives, and improve the quality of life for diabetes/pre-diabetes sufferers. According to the World Health Organization:
The starting point for living well with diabetes is an early diagnosis – the longer a person lives with undiagnosed and untreated diabetes, the worse their health outcomes are likely to be.
The numbers here are sobering:
- 422 million adults live with Type-2 diabetes and more than 1.1 billion have pre-diabetes, 272 million diabetes sufferers are undiagnosed.
- Blood glucose testing (the standard diabetes test) is available in less than 50% of the developing world
- In China alone; >600 million people are estimated to currently suffer from diabetes or pre-diabetes, with more than half unaware of their condition
Besides efforts in treating and preventing diabetes, screening for diabetes is paramount. But why is modern medicine performing so poorly in diagnosing diabetes around the World? Researchers submit that some of the reasons are related to the fact that tests are time-consuming, need a complex laboratory setting and validation, or require prolonged fasting.
Luminor’s solution to this health crisis is its Scout DS® Diabetes Screen. While offering equal reliability with conventional testing, the Scout DS is faster, easier to use, and non-invasive (no needles/blood required). In addition, there is no fasting requirement prior to testing.
This leads Luminor’s management team to the second part of their mission: bringing the Scout’s life-saving/life-improving technology to the world, and selling Scout DS® devices to nations around the world which have an urgent need for this technology.
PyroGenesis Canada is a Canadian hi-tech company which is designing, developing, manufacturing, and commercializing advanced technologies through the use of plasma-based systems and plasma torch products. Via the Company’s proprietary technology, PyroGenesis is able to efficiently convert a variety of waste products into energy, fuel, synthetic gas, and other reclaimable resources.
With plasma applications which the Company has pioneered in conjunction with the U.S. Department of Defense, PYR has been able to design plasma waste-processing systems suitable for installation on aircraft carriers, yet compact enough to be utilized in remote camps. More recently, the Company has been exploring new opportunities in 3-D printing, starting with production systems. However, in more closely-evaluating the market, management saw much more lucrative revenue potential by shifting toward in-house manufacturing of titanium powders versus selling the systems which produced those powders.
PyroGenesis has filed over 60 patents in support of these technological innovations, and continues to rapidly advance its technology as it services the wide spectrum of companies and industries suitable for its hi-tech waste treatment processes. This week the Company announced its operational results for fiscal Q3. Revenues were up 40% from the same period in 2015, while gross margins were up over 64% from one year ago.
FULL DISCLOSURE: PyroGenesis Canada is a paid client of Stockhouse Publishing.
Alexandria Minerals Corporation is a Canadian junior gold mining company focused on exploration and development of prospective gold properties. The Company’s flagship project is its 35 kilometer-long Cadillac Break Property Group, located in the famed Val d’Or Gold Camp. While many junior mining companies have had difficulty advancing their operations in the difficult economic climate of the past few years, AZX has persevered in exploring Cadillac Break and expanding on its resource base.
Recently, the Company was pleased to announce a new joint venture with Probe Metals Inc. Under the terms of the JV, Probe has the opportunity to earn up to a 70% interest on the eastern 1/3 portion of the Cadillac Break package. To earn that full interest, Probe must expend up to $7.0 million on exploration and complete a pre-feasibility study, within the six-year term of the deal. The agreement provided Alexandria with a risk-free means of unlocking shareholder value in this portion of the Company’s Cadillac Break holdings, as the eastern portion of the land package had previously been undeveloped.
Alexandria’s operations are bolstered by the strong partnerships it has forged with institutional investors, as well as the strategic investment by Agnico-Eagle, which currently holds just under 10% of the Company’s outstanding shares. Further information can be found here.
When a formerly illegal industry comes out of the shadows, it takes a little time for folks to legitimize things properly. In the medical marijuana arena, one thing has always been missing that's kept the industry from being truly recognized by insurance, the medical establishment, and large companies that could make use of the products. That element has been data.
Canabo Medical (CMM.V) is a chain of clinics that help patients navigate the marijuana world in an interesting way, that gathers immense levels of data, and turns it into an ongoing and fast growing research project to be utilized by patients, doctors, academics, and even growers.
We talked to Canabo Director Dr Neil Smith about how his company is less a weed play, and more a biotech big data opportunity that could help the entire industry become mainstream at last.
Deveron UAS Corp. is a new company in the rapidly emerging UAV sector. The Company began trading on the Canadian Securities Exchange in July, under the symbol “DVR”. Deveron’s corporate mission is to become the industry leader with respect to UAV agricultural services. Its fleet of drones are operated by licensed pilots, fully complying with Canadian and U.S. regulations regarding the commercial use of UAV aircraft.
The Company’s co-founders are David MacMillan and Norm LaMothe. MacMillan has extensive experience working for publicly traded companies and has successfully raised more than $30 million in debt and equity financing for these companies. LaMothe is a licensed, fixed-wing pilot who previously ran a flight academy, and is also general manager of his family’s multi-generational, 500-acre farm.
Through the enhanced data collection provided by drone aircraft, Deveron UAS is working with farmers in Canada and the U.S. to increase agricultural yields while reducing their operating costs.
Vulcan Minerals Inc. (TSX: V.VUL, OTCQB: VULMF, Forum) is a Canadian junior mining company with its operations based in the Province of Newfoundland. Vulcan’s business model is as a project generator and explorer.
The Company was a leading explorer for petroleum in western Newfoundland from 2007 - 2012. It made two unconventional natural gas discoveries which Vulcan subsequently sold to its partner for a royalty and cash payment. Since late 2012 the Company has focused on delineating a salt/potash project in western Newfoundland through its subsidiary Red Moon Potash. Over the last year the company has expanded its mineral activities into precious and base metals in Newfoundland. The Company has already identified and acquired two prospective land packages: the Colchester Copper/Gold Project, and the Lizard Pond Gold Project. Vulcan is planning initial exploration work on both of these properties this Fall.
Concurrent with this, the Company has been developing its Red Moon salt/potash project. In 2012; Vulcan spun-out Red Moon Potash to its shareholders as a new, public company. Vulcan Minerals retains a 65% ownership interest in Red Moon. The salt deposit is of high quality, and has access to existing infrastructure which improves its commercial potential.
Coro has been advancing its projects through a combination of internal development as well as outsourcing projects to JV partners. The Company’s corporate strategy is to emphasize profitability over production rate in order to maximize shareholder value. COP’s first success was in fast-tracking its Berta Copper Project to production, and acquiring the Nora SXEW plant to process that ore.
Revenues from the Berta Project have helped to facilitate development of Coro’s new, flagship Miramaca Copper Project. The Company has produced a series of long copper intercepts in its Miramaca drilling program, demonstrating the commercial potential of the project. Simultaneous with this, COP recently signed a letter of intent to acquire a second production facility to process Miramaca ore into copper cathode.
Peter Clausi, CEO of Greenswan Resources, was a featured speaker at the Mines and Money America Advanced Battery symposium, and he is part of a growing movement of financiers and investors who expect a global cobalt supply squeeze to make cobalt a hot commodity through 2017. Greenswan Resources is a Canadian explorer focusing on cobalt development in the famous Sudbury Basin.