In this week’s Marijuana Market Update, let’s see what Cannabix Technologies Inc.’s patented THC breathalyzer may do for its stock.
Today, I want to address a YouTube question I received from Vincent A. He wrote:
Hey Matt,
Thanks for all the Marijuana Market Updates. Would like to hear what you think about Cannabix Tech (BLOZF), just recently got a U.S. patent for a THC breathalyzer.
Couldn’t find much on recent financials, but wondering what your thoughts are? I couldn’t find any other publicly-traded company that makes a THC breathalyzer, and with more states legalizing for recreational use, think this might be a good long-term option?
Thanks!
Thank you, Vincent!
About Cannabix Technologies Inc.
Cannabix Technologies Inc. (OTC: BLOZF) trades over the counter in the U.S. and on the Canadian National Stock Exchange.
It’s not a company that cultivates or sells cannabis.
Instead, it creates tools for law enforcement and employers to test for the presence of THC in someone’s system.
Vincent is correct: The company just received a patent for a “Cannabis Drug Detection Device.”
Cannabix has already produced the breathalyzer, and an occupational health clinic in Southern California is performing ongoing field tests.
It works like an alcohol breathalyzer law enforcement uses during traffic stops and car accidents.
An individual blows into the device, and it is supposed the register the amount of THC a person has in their body.
It should reduce the THC identification process from days to seconds.
In August, the company said results from its breathalyzer took less than five minutes.
Cannabix officials said they will continue to work on scaling down the current device and decreasing production costs.
The patent is pretty big news for the company as it is now leading the development of this technology.
Cannabix Technologies Stock
Cannabix stock was trading in the $0.27 to $0.30 range for most of the last 12 months.
It ticked up above $0.66 per share in December, as cannabis stocks across the board surged higher amid the changing U.S. political landscape.
As I’ve said before, investors believe that Democratic control of the White House and both Congressional houses will eventually lead to federal decriminalization of cannabis.
However, Cannabix got its biggest boost when it dropped news of its patent award to the public.
THC Breathalyzer Patent Boosts Cannabix Stock Higher
I dive into the financials and why you should proceed with caution for Cannabix’s stock in this week’s video.
The Problem with Cannabix’s Cash Flow
Cannabix doesn’t have any cash flow because it hasn’t really sold anything yet. You can see that in the chart below.
Cannabix Isn’t Making Money
Overall, this company is a little tricky.
There is another company — Hound Labs — that started on-site testing of its marijuana breathalyzer. The news of this test came just days after Cannabix announced its patent award.
Watch my Marijuana Market Update for a complete analysis of Cannabix’s cash flow and a deep dive into its future.
I’m wary of this stock, but I also know that it’s not alone in the market. Watch my video for more.
Cannabis Watchlist Update
Now, I want to look at our Cannabis Watchlist on Money & Markets.
Our watchlist continues to perform well. Our six positions are averaging more than 40% gains! I explain all the updates to our watchlist in the latest video.
Where to Find Us
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Coming up this week, we’ll have more on The Bull & The Bear podcast and our Money & Markets Week Ahead, so stay tuned.
Until next time…
Safe trading,
Matt Clark
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He’s the host of our podcast, The Bull & The Bear, as well as the Marijuana Market Update. Before joining the team, he spent 25 years as an investigative journalist and editor — covering everything from politics to business.
