Cannabix Technologies (BLO.C) SP pops 29% in wake of Breathalyzer announcement

Cannabix Technologies (BLO.C) pushed further down the road toward commercialization when the company provided an update yesterday on its FAIMS Beta 2.0 (field asymmetric waveform ion mobility spectrometry) based marijuana breathalyzer for the detection of Δ9-tetrahydrocannabinol (“THC”) in human breath.

According to the news release yesterday, the company has been in developmental testing of the Beta 2.0 version of the device since late 2016.

Experiments have also been carried out using THC to characterize individual parts of the instrument as well as improve efficiency of breath collection and sampling.

In that time, improvements have been made to the device’s ionization capabilities which has led to a significantly smaller instrument footprint.

Currently, Cannabix is working with its Vancouver-based engineering firm to ruggedize the breath collection component.

The engineers are also working with a proprietary flow-through heat exchanger technology to stabilize breath temperature in extreme cold as well as humid temperature settings.

The Cannabix Marijuana Breathalyzer Beta 2.0 device is expected to complete developmental testing within the next month while preparing for preliminary human testing.

Cannabix is seeking to fill a need as outlined by the recent report released by Canada’s task force on marijuana legalization.

It’s easy to check if someone behind the wheel is drunk.

Not so when it comes to marijuana, therefore the report stipulated:

  • Supporting the development of an appropriate roadside drug screening device for detecting THC levels, and invest in these tools;
  • Determining whether to establish a per se limit as part of a comprehensive approach to cannabis-impaired driving and re-examine per se limits should a reliable correlation between THC levels and impairment be established;
  • Investing in baseline data collection and ongoing surveillance and evaluation in collaboration with provinces and territories

Legislation regarding the legalization of marijuana in Canada is expected to be tabled early this year.

Cannabix will use key metrics and guidance from Drugs and Driving Committee (“DDC”), an advisory body to the Canadian Department of Justice, to ensure the device meets and exceeds standards.

It’s clear the market was pleased with Cannabix’s progress as the share price for the Burnaby-based company jumped from $0.62 per share yesterday to $0.80 today. That’s a 29% jump on relatively high volume.

With the global drug and alcohol testing market expected to be worth $6.3 billion by 2019, Cannabix has some serious blue sky potential.

If it can get through human trials in time and successfully execute first-mover strategy, it could quite well become the defacto choice of law enforcement as marijuana legalization spreads throughout North America and beyond.

Wonder what the stock will be worth then?

 

 

FULL DISCLOSURE: Cannabix Technologies is an EQUITY.GURU client.

 

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