It’s been several months since we last touched upon ProText Pharma Inc (OTCMKTS:TXTM) here on Street Register. At that time, trading as ProText Mobility, the company had announced that it would be making a strategic acquisition through an all-stock deal with Plandai Biotechnology Inc (OTCMKTS:PLPL) for its Cannabis Biosciences subsidiary.
The most recent news is also concerning the company’s exploits in the cannabis space, which has to do with the potential loosening of regulatory guidelines on the substance in South Africa. At the present time, even cannabinoids without mind-altering properties are illegal in Africa’s 5th most populous nation.
ProText Pharma Inc (OTCMKTS:TXTM) relayed a message this week, noting that the government of South Africa published recommended amendments to the Medical Innovation Bill that would change the status of cannabis products that do not have psychoactive properties from a Schedule 7 prohibited substance to a Schedule 4 substance. Schedule 4 drugs, which include antibiotics and corticosteroids, may be given verbally to the pharmacist by the doctor, although such instruction must be followed up by a written prescription within 7 days. Under the proposed guidelines, Cannabis sold “on the street” will remain a Schedule 7 substance and be prohibited. Protext Pharma anticipates that its Phytofare® Cannabinoid extract will be non-psychoactive and thus fall under the Schedule 4 classification.
This announcement follows the Medicines Control Council’s (MCC) proposed guidelines for growing cannabis for medicinal purposes, which was published for comment in March 2017. In last week’s Medical Innovation Bill (Cannabis guidelines) briefing of the portfolio committee on health, Dept. of Health (DoH) Deputy Director Law Enforcement, Griffith Molewa, said they would approve regulations in the next few weeks. The MCC indicated that licenses would be issued thereafter.
Roger Baylis-Duffield, Chief Executive Officer of Protext Pharma, commented, “The cannabis business is a large and emerging market anticipated to grow to $55.8 billion by 2025. Our segment of this market, cannabis based medicines, is at the cusp of what could be a new industry for decades to come.”
Once the license is issued, the company intends to use a 10,000 square foot facility in the Mpumalanga province where plants will be grown, cloned and cultivated to ensure a consistent chemical profile. The facility will incorporate an on-site laboratory which will be designed and engineered to process live plant material and after separation and recovery of the oil-phase as a separate income stream, the final stage will be specific to the production of the Phytofare® complex containing cannabinoids, cannabinoid acids, terpenes, limonene and polyphenols. The resulting complex will be subjected to product profiling, analysis and bioavailability in order to determine efficacy and dosage.
The Company will use its proprietary processing and extraction technology to commence investigations and produce a full-profile cannabis extract, one that contains both CBD and the precursor acid form of THC (THC-A and THC-B) found in live cannabis plants. The Company’s investigations will be designed to show that the extraction process, which will use live leaf and low temperatures to extract the phyto-chemicals, should leave the acid forms of THC intact, resulting in a non-psychoactive extract with full medicinal potential and having the heightened bioavailability of other Phytofare® extracts. (Source: Marketwired)
We can honestly say that TXTM is the first South African cannabis play that we’ve run across, but schedule changes in the classification of cannabis there, would likely mean it won’t be the last. We’ll be sure to track the story moving forward. Stay locked to Street Register for updates, and we’ll provide important developments on TXTM as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in TXTM stock, short or long.