Budding Botanical Co.’s Big Vision Ready to Uproot Nutraceutical Industry
– EVITRADE Health Systems Corp.
www.auxellence.com Since the dawn of recorded history – are probably even long before it – humans have used plants and plant derivatives for food, for clothes, for cosmetics, for shelter, for fuel, for communications, and especially for… medicines. Even today, with all the artificial chemicals available, plants still form the backbone of modern medical science.
From simple home remedies to exotic herbal therapies, from basic painkillers all the way to complex cancer treatments, medicines made from plants are an invaluable and irreplaceable marvel. Essential oils and other chemicals from the farm and garden have made their way into numerous high-tech therapies, including tobacco derivatives can cure Ebola, treating Alzheimer’s using daffodil bulbs, etc. As a result, plant-based medicines have become a $70 billion global industry.
However, as wonderful and necessary as plants are, they do have one problem. They are not always to most efficient or consistent manufacturers in the world of nature.
Like a human being, no two are ever alike, even of the same species. And like a human, some are better at making things than others.
For example, every individual plant produces a different amount of active ingredients medical scientists can use. Some plants make more of an ingredient, while others deliver a lesser yield. Or, some produce a higher quality harvest than others. Sometimes you get a hit, sometimes you miss. Simply put, quality control when using plants for medicinal purposes is always a problem.
Or is it?
What if there were a way eliminate the “hit or miss” and ensure each plant delivers a quality yield of medicinal active ingredients? How would that alter the world of medicine and the pharmaceutical industry?
Right now, there is a company working on that game-changing possibility. Of course, as with many innovative pharmaceutical ideas, change doesn’t start in a sterile Big Pharma laboratory. Instead in starts in the ambitious minds of entrepreneurs with a broad vision and the right strategic assets to radically move the needle and disrupt the way business is done.
What is this company? It’s called EVITRADE Health Systems Corp. (CSE:EVA or in the States OTCQB:AXHLF) and at the moment, it’s small in size, but big in ideas and potential. EVA’s market cap today is barely $10 million, reflective of course, of a start-up in its early stages. As a result, some of its connections are low profile – and as it’s on the ground floor, very few people on Bay Street or Wall Street have taken notice yet. But that could well change faster than a weed sprouts in a garden as the company’s story starts to spread.
Let’s take a closer look at how EVA has gotten to where it stands poised to become a potential disruptive market force.
In December 2017, EVA enjoyed a $2.25 million financing round that ended far more successfully than initially anticipated. Company management originally foresaw a $1 million round. However, resulting demand was so great, EVA upsized the offer, enabling early-bird investors to grab another 10 million shares.
Just 24 hours later, an eager investing public had bought 85 percent of those additional shares. This gave EVA $2.25 million to launch their ambitious plant-based medicine vision and assemble the assets needed to make that dream a reality.
EVA put those funds to good use right away. The company immediately engaged with Cantech Molecular Research, a specialty genetics lab. Cantech focuses on plant-based biotech. This includes analyzing biological samples on high-end lab equipment similar to those used in major research universities and breeding large quantities of vegetable clones. Cantech refers to these clones as “elite plants.”
EVA management quickly pointed out the importance of this first acquisition, saying, “The significance of this genetics technology is that it can be coupled along with advanced drug development software. This will provide the ability to engineer tailor-made, patentable drug combinations.”
In layman’s terms, the Cantech potential acquisition will enable EVA to use cloned plants to produce made-to-order pharmaceuticals that are of the same high quality each and every batch. As each plant grown and used is identical, they will produce the same mix of active ingredients as every other plant in terms of quality and quantity.
EVA’s ultimate goal is to create “large genetic mapping databases using the latest in next generation genetic sequencing platforms. The mapping will be done at a molecular level and will have the opportunity to identify the organisms’ general health.”
Such a database opens up a wide world of possibilities and opportunities for EVA, not just in the pharmaceutical world, but far beyond as well.
In pharmaceuticals, quality control is the top concern, with exceedingly high standards. Drug makers spend millions to ensure reliability and predictability. Every pill manufactured must contain the same exact mixture and quality of ingredients by law and regulation.
Ensuring constant sameness with chemicals is a tough enough job. Doing it with plants is much more difficult and costly. The process requires expensive equipment and complicated science. However, if you can know in advance that every single sprout used is going to be identical, satisfying the regulators gets a lot easier and cheaper (regulatory compliance makes up 25% of all pharmaceutical manufacturing costs).
Moving over to the $34 billion nutraceutical industry, EVA can make a significant impact there, as well. Quality control is a problem here, too. The effectiveness of each supplement or capsule can vary widely depending ingredient quality. EVA can certify exactly how much of each essential oil, flavonoid or enzyme a plant species makes. Once it maps the tissues and organizes the strains, nutraceutical companies can produce a more reliable product from the farm to pharmacy.
And, of course, EVA’s efforts can lead to healthier agriculture in a time of growing population and greater demand for nutritional food. Farmers looking for certain genetically modified crops to plant can use EVA’s resources to pick the best strains. Organic food companies can scientifically certify there are no unwanted genes in the corn, sugar, chocolate or coffee they produce.
With Cantech in discussions to ink a deal, EVA now looked to build upon its strong start by adding suitable complimentary income-generating assets. First up is a deal to buy health product marketer Artillery Labs in an all-stock deal. In exchange for up to five million shares, EVA and its investors not only gain revenue, but also a seat at the negotiating table beside the nutraceutical companies that already work with Artillery.
This is a good start that sets EVA up for future acquisitions. It’s important to note that not only is there cash remaining from December’s offering, but that the Artillery deal will not dent that fund as Artillery is looking at an all or near all stock deal. So EVA still has plenty of flexibility and momentum to continue to grow and it has a management that is clearly thinking big – big in terms of ideas, big in terms of scientific process and big in terms investor potential.