X-Spray (CND.C) profits from a culture of impatience

At Equity Guru, we sometimes get news before it hits the street. Such is the case with a company called X-Sprays – which is so new it isn’t born yet. Which is to say, it only exists in its “shell form” – CNRP Mining (CND.C).

Punching holes through the epidermis of the planet isn’t everyone’s cup of tea. CNRP is now officially out of the mining business.

On July 21, 2017 CNRP announced its intention to acquire the world-wide, exclusive license for X-SPRAYS – which delivers “life-enhancement products” administered through oral sprays.

Here’s why we think this company is on to something:  oral sprays work much faster than pills.  Same day delivery, optic fibre internet, bullet trains – we are now accelerating in the age of fast.

In this hyper-speed vortex – what kind of a fuddy-duddy trudges over to the tap, turns it on, pours a glass of water, swallows a pill and twiddles his thumbs while gastric acids trickle out of the stomach-lining and laboriously dissolve the pill?

The mouth-cavity’s soft, absorbent, vein-rich tissue is the ultimate receptor.  Your mouth is the 2nd shortest route to your blood stream that doesn’t involve a needle (the shortest is your nose but even coke-heads will admit that’s a vile way to get your hit).

The company’s product line is ready for market with 8 sprays that include both hemp cannabidiol (CBD) and nutraceutical ingredients. When the legal framework permits, X-SPRAYS intends to expand its product line to include cannabis (THC) sprays.

Each canister is loaded up with about 240 quantised sprays.  The most expansive product is the Cannabidiol (CBD) spray ($54.95) which costs about 23 cents per spray.

Cannabidiol (CBD) is a legal compound found in the cannabis plant.  It doesn’t get you high, but it’s purported medicinal benefits include:

  • Lowering stress and anxiety levels
  • Helping with relaxation and sleep.
  • Controlling mood and concentration
  • Reduction of nausea and vomiting
  • Suppressing seizure activity (as in epilepsy)
  • Combatting psychosis disorders (as in schizophrenia)
  • Anti-inflammatory
  • Anti-oxidant – combatting neurodegenerative disorders
  • Combatting tumor and cancer cells
  • Combatting anxiety and depression
  • Controlling symptoms of Multiple Sclerosis, Glaucoma, Fibromyalgia, Diabetes, PTSD, Crohn’s disease, and insomnia.

The CNRP shell is being cleaned up (rid of debt) and cashed up through a private placement of up to 10 million shares at a price of $0.30 per share.  At the current time, 80% of the private placement has been filled.

The X-Spray’s management team is a hybrid of capital markets’ and scientific DNA.

Dr. Clive Spray has spent the 20 years pursuing plant based medicines that utilize spray as the method of delivery.

X-Spray’s founder, Clay Kahler, is also one of the co-founders of Helius Medical Technologies (HSM.T) that has a $280 million market cap.  We are not chartists, nor do we believe that historical precedent is a reliable predictor of the future.  That said, this is what the one-month chart of HSM looks like:

The “culture of now” is not the only reason we think X-spray could go ballistic.

There is another big factor creating “pill-phobia”: currently, 35 million North Americans are afflicted with digestive system diseases. Twenty million of these have “chronic stomach ailments”.  About 400,000 people are completely disabled by digestive diseases and 1.2 million people are limited in the work they perform.

To people with a digestive disease, medicine in spray-form is a godsend.

Investment is not a sport.  It is serious business.  The difference between a profitable and unprofitable investment could be the difference between home-ownership – and renting; university – and trade school; a 2nd child – and a vasectomy.

For this reason, with retail products, we prefer a dragnet to a fly rod.

Many of the commercially available oral sprays are niche products for ailments like “oral mucositis” – an atrophy of the mucosal lining which causes ulcers after chemotherapy.

X-Sprays are aimed at big targets: hung-over people, horny people, people who lack energy, people who can’t get to sleep at night.

That last category alone is big enough to turn X-Sprays into a monster.

The primary causes of insomnia are stress, illness, inactivity, medications, and bad sleep environment.

“The net effect is a lot of grouchy, depressed, and accident-prone people,” states the X-Spray website.  “Most won’t see a doctor, even though insomnia can lead to depression, traffic accidents, and a pink slip”.

X-Sprays sleep spray contains:

  • Melatonin – A naturally occurring sleep hormone in the body.
  • 5-HTP (Griffonia simplicifolia extract) – A precursor to serotonin and melatonin, which helps you fall asleep by raising the serotonin levels in the brain.
  • L-Theanine – An amino acid from the green tea plant, used in Chinese medicine for hundreds of years to relax and induce sleep.
  • Herbal blend (Cramp Bark, Feverfew, Gingko Biloba, Passionflower, Peppermint, Skullcap and Valerian root.)

Like every new retail product, X-sprays will have to fight to create a brand, fight for shelf space, fight for an internet presence.  It’s never easy. Success is not guaranteed.

But we think they are in a good space with a sexy product.

And by the way, we’ve tried the sprays. They work.

This is truly the ground floor.  If it was any lower it would be subterranean. In fact, the company is so new the corporate communications team hasn’t got round to answering its own questions on the F.A.Q page.

You can buy X-Spray stock in its shell form now, or – if you are an “accredited investor” call the company and see if any of the private placement is left.

Full Disclosure:  Neither CNRP Mining nor X-Sprays are clients of Equity Guru.

Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

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