Kali-Extracts, Inc. (OTC: KALY) said that it has entered into a letter of intent (LOI) under which KALY could receive a $20 million investment to fund its Cannabis Biopharmaceutical Technology. The proposed investment values KALY’s cannabis biopharmaceutical technology at $50 million. The company said in a statement that the confidential terms of the LOI target a planned $5 million first tranche within ninety days.
KALY has a U.S. Patented Cannabis Extraction Process it uses to produce proprietary formulations for the treatment of various medical conditions. The company’s intellectual property portfolio contains a deep pipeline of cannabinoid product candidates including four distinct compounds that were listed in the statement:
- Chronic Obstructive Pulmonary Disease (COPD) – The market for COPD treatment is anticipated to reach $14 billion by 2025;
- Type 2 Diabetes – The market for Type 2 Diabetes is expected to be a $64 billion market by 2026;
- Cancer Pain Management – The overall pain management treatment market is anticipated to reach $83 billion by 2024, and
- Epilepsy – The market for epilepsy treatment is anticipated to reach $9 billion by 2022.
In conjunction with the research already conducted and the next phase of research now moving forward, KALY also said that it recently filed for a new patent application specifically on its formulation for symptoms associated with COPD and other similar respiratory conditions. KALY also filed for a trademark on the name RespRx as the brand name for its CBD formulation to treat the symptoms associated with COPD and other similar respiratory conditions. The market for COPD treatment is anticipated to reach $14 billion by 2025.