The Fundamental Roadmap to $1.00 for NU


NeutriSci ($NU) is a nutraceuticals company that produces chewable tablets, combining pterostilbene with caffeine, CBD and THC. Only the caffeine tablet is on the market now, but the other two should be market ready soon. The benefits of the tablets over similar products are:

Bioavailability

• Preliminary research data [suggests]…using the Cryolisation process increase absorption rates of cannabinoid compounds 4 – 5 times.

• The tested formulations appear to increase the amount of active ingredient the body can absorb while simultaneously increasing the rate of absorption with THC and CBD detected in the bloodstream of subjects within 10 minutes of initial consumption.

Therapeutic

• From Neuenergy FAQ: “Pterostilbene is the active ingredient found in blueberries….fights infections, increases memory, and provides all the anti-oxidants"

• From the package: “Helps promote alertness and wakefulness and enhance cognitive performance”


Neutrisci is still ramping up their production capacity, but they have numerous distribution deals in place:

• Neuenergy deals with 7-11, Mac’s, Sobeys, Loblaws, Meier, Safeway, Esso

• nu.THC deal with $EAT producing and distributing for all U.S. states

• JV with $LXX to distribute nu.CBD in Japan and South Korea using $NSP hemp

• An R&D MOU with Scientus Pharma (partner of $APH)


They have also been ramping up their promotions:

• Sponsorship deal with Genie Bouchard, the Rogers Cup, and Gran Fondo

• Featured on Hockey Night in Canada and Midas Letter


Neutrisci’s long term valuation is difficult to pin down, because their potential distribution network is so large. Couche-Tard alone has 16,000 stores (including Circle K and Mac’s), and they have recently made statements about the possibility of stocking cannabis products.

We don’t know the scope of Neutrisci’s vision, so I wanted look at what it would take to get to a $1.00 USD stock price. At roughly 100 million O/S shares, they would need a market cap of around $100M. They would need about $10M in revenue to reach that market cap if they traded at roughly 10 times revenue.

CV Sciences is currently the top CBD producer, with their PlusCBD brand. Their products are sold in 1,968 stores as of October. Since 2014, they have had around $10M in revenue per year. This year they are on pace for $40M due to increased demand. They currently have a market cap of $421M (or roughly a 10X multiple of revenue).

The service sizes and packaging are different, but CV Sciences is on pace for about $40M in revenue, selling their products in about 2,000 stores. NeutriSci’s products have potential advantage in bioavailability, therapeutic benefit, taste, transportability, marketability, and ease of dosage. They also have connections to distribution partners with tens of thousands of locations globally.

For a short term valuation: $PILL has a current market cap of $33M USD, $NSP is at $20M, Hempco is at $72M. NeutriSci is at $13M.

Again, we don’t know the breadth of their vision, but our best guess may be this quote from Lexaria CEO Chris Bunka:  “NeutriSci has developed a unique form factor that can now be empowered with Lexaria’s complementary technology which also allows consumers EVERYWHERE to benefit.