Yesterday, our innovative cannabis Investment Bod Australia (ASX:BOD) announced positive results from a Phase 1 Clinical Trial of its novel cannabidiol (CBD i.e. a non-hallucinogenic component of marijuana) delivery format.

The trial evaluated Bod’s ECS BioAbsorb Softgel Capsule against other delivery formats currently available, namely Epidyolex (the only FDA-approved CBD drug currently) and CBD Oil across safety, tolerability and pharmacokinetic (PK) profile.

The results matter as this new delivery format is being utilised in Bod’s clinical trial for a Schedule 3 (i.e. available at your local pharmacy, no prescription required) CBD product to treat insomnia. The study supports the potential for Bod’s unique ECS BioAbsorb Soft Gel to be the benchmark delivery format for this over the counter CBD market, with the trial reporting:

• Bod ECS BioAbsorb Softgel offering over 20% greater bioavailability (ie the extent a drug becomes completely available to its intended biological destination) than Epidyolex and over 400% greater than the CBD Oil solution
• The maximum concentration of CBD after single oral administration of Bod ECS BioAbsorb Softgel was over 60% greater than Epidyolex and over 600% greater than CBD Oil solution.
• In addition, Bod ECS BioAbsorb Softgel was twice as fast to reach maximum concentration of CBD after single oral administration of Epidyolex, and five times faster than CBD Oil solution

What’s next?

With ethics approval already granted for the clinical trial for the CBD-based insomnia treatment, we’re keen to see progress with recruitment of patients (which has already begun). Subject to the outcomes of the trial, it’s feasible that Bod could have its CBD treatment for insomnia available in pharmacies by late 2023/ 1H24.

Aside from the insomnia trial, we’re also looking forward to updates on Bod’s long Covid treatment trial as well as progress with its recent Aqua Phase technology acquisition - covered in our latest commentary BOD’s big bet – will it pay off?.

Earlier today, our long term Wise-Owl cannabis Investment, Bod Australia (ASX:BOD) announced that it had lodged an international patent application for a novel delivery device to combat the skin ageing process.

This represents another innovative product BOD is developing that addresses a substantial market. According to Precedence Research, the global anti-aging market size is expected to grow at a compound annual growth rate of 7.9% from 2022 through to 2030, hitting ~US$119.6 billion in 2030.

The delivery device comprises a novel family of proteins discovered through a research collaboration with the University of Technology Sydney (UTS).

Recent testing results showed that treatment of human skin cells with Bod’s delivery device reduces cell death to UV light exposure by up to 30% when compared to untreated cells, as well as protection against harsh skin oxidants such as hydrogen peroxide.

BOD is now actively advancing licensing opportunities for this opportunity.

We’re thinking skin care products (many of which have dubious or no clinical evidence behind their claims) could benefit from BOD’s patented, clinically proven tech. Sunscreen comes to mind as well - basically any topical skin product.

Today’s news follows BOD’s announcement last month of the transformative acquisition of the Aqua Phase technology - a cannabis product and process technology that allows more rapid onset, better efficacy and lower dosage rates of cannabidiol (CBD) products, resulting in raw material cost savings and fewer patient side effects.

BOD is certainly doubling down on its R&D with a very active clinical trial pipeline - the novel delivery device to combat the skin ageing process being one of 11 projects progressing.

We like that BOD is progressing multiple innovations and products addressing sizable markets. We are keen to see how Aqua Phase can be incorporated into the current clinical trials into an over-the-counter insomnia treatment, as well as the trials addressing long Covid. Our latest commentary on the recent acquisition including our Big Bet for BOD can be found here - BOD's Big Bet, will it pay off?

A reminder to fellow shareholders of our Wise Owl cannabis Investment, Bod Australia (ASX:BOD), that today is the final day to take up its 4-for-17 pro rata, non-renounceable entitlement offer at 8c per share, in which we are participating.

BOD is acquiring a cannabis product and process technology that allows more rapid onset, better efficacy and lower dosage rates of cannabidiol (CBD) products – resulting in raw material cost savings and fewer patient side effects.

Following the capital raise, BOD is expected to have over $5M in cash, and a market cap of $12M.

Whilst its been a rough ride for BOD holders lately, we think this could be the bottom for the share price. We are hoping this acquisition gives the company fresh momentum, which is timed with a resurgence in the sentiment of cannabis stocks that we predict will occur in 2023.

For a full update on BOD, its new cannabis acquisition, and how BOD can build value from here, check out our latest commentary: BOD’s big bet – will it pay off?

At the start of September, our cannabis innovator Investment, Bod Australia (ASX:BOD) announced its “transformational acquisition” of the Aqua Phase technology, alongside a capital raise to fund the deal.

Under the capital raise, BOD can raise up to $3.5M at an offer price $0.08 per share via:

1. A placement (with firm commitments for entirety) raising $1.5m
2. A four for 17 pro rata non-renounceable entitlement offer to raise up to $2m

Earlier today, BOD announced that the entitlement offer has been extended one week to now close on Thursday 29 September, given the national holiday tomorrow and the Melbourne public holiday the next day.

Aqua Phase is a process technology that increases the bioavailability (i.e. the ability of a substance to be absorbed and used by the body) of cannabis compounds, meaning faster onset, better efficacy, lower dosing and fewer side effects - hence the term “transformational”.

We will provide an in-depth analysis and commentary of the acquisition shortly. We are keen to see how the acquisition can be incorporated within new products such as the insomnia treatment that BOD are working on currently.

Earlier today, our cannabis innovator investment, Bod Australia (ASX:BOD) came out of its trading halt announcing a “transformational acquisition” alongside a capital raise.

Looking first at the acquisition, Bod intends to acquire Aqua Phase, a process technology which increases the bioavailability (i.e. the ability of a substance to be absorbed and used by the body) of cannabis compounds.

The total size of the deal is £3m (~A$5.2m) is quite substantial when compared to Bod’s market cap of ~A$10M prior to announcing the proposed acquisition, which points to its significance (hence “transformational” in the title of today’s ASX announcement) and Bod’s strategy to focus heavily in innovation and R&D. This is further evident with Bod also currently progressing multiple clinical trials for new products and treatments.

Looking at the technology, we note its impact on bioavailability - which is the ability of a substance to be absorbed and used by the body. This matters as CBD/ cannabinoids typically have very poor biological absorption - for instance, oral CBD compounds in oil are estimated to only have 6-8% bioavailability. Improving bioavailability can deliver faster onset, better efficacy, lower dosing and fewer side effects, positive attributes for both consumer and medical cannabis products.

Furthermore, the Aqua Phase technology can potentially deliver a cannabis complex which is soluble, tasteless, colourless and odourless. This has the potential to open up opportunities and markets for new delivery formats for cannabis products superior to existing oral formats currently being utilised.

Turning to the capital raise, Bod can raise up to $3.5M at an offer price $0.08 per share via:

1. A placement (with firm commitments for entirety) raising $1.5m
2. A 4 for 17 pro rata, non-renounceable entitlement offer to raise up to $2m

We like that the Placement includes the conditional placement to the chairman ($100k) and managing director ($50k), with the chairman also underwriting a further $100k should there be a shortfall in the take-up of the entitlement offer - a sign of their confidence in the business.

Funds raised will be directed as follows:

Key dates for the raise are:

We are planning to provide an in-depth analysis of the acquisition and what the new Bod looks going forward. In the interim, here is our Bod Investment Memo and what we’re looking for the company to deliver for the rest of the year.

Earlier today, our cannabis investment, BOD Australia (ASX:BOD) entered a trading halt on the back of an acquisition and placement.

BOD has agreed to acquire ‘Aqua Phase’, a process technology to increase the bioavailability of cannabis compounds, along with all intellectual property, confidential information, records, goodwill and branding.

We will provide our commentary on the acquisition once further details are made available.

We’re also keen to see what progress has been made on two clinical trials that BOD is advancing, in which first patients were recruited last quarter:

1. Insomnia (Phase IIb)
2. Long-COVID (Open label, “Proof of Concept”)

For our reasons for investing in BOD as well as what we’d like to see the company deliver next can be found within our Investment Memo.

Our long-term Wise-Owl cannabis investment, BOD Australia (ASX:BOD) today announced it has been awarded US Hemp Authority Certification for its exclusive CBD extract and its CBD products sold in the US.

This certification provides a competitive advantage in the US as it essentially an endorsement that BOD’s products adhere to the highest US standards, enhancing consumer confidence in the brand.

BOD already sells a range of CBD wellness products in the USA through its exclusive global partner and Swisse Vitamins parent company Health and Happiness Group Limited (H&H, HKSE: 1112).

We’re keen to see how today’s news translates into revenue from the US markets going forward.

What’s Next?

We await progress updates on BOD’s clinical trials. During the last quarter, BOD dosed the first patients for the following two trials:

1. Insomnia (Phase IIb) - for an over-the-counter (OTC) treatment available at pharmacists
2. Long-COVID (Open label, “Proof of Concept”)

Since these potential products both address substantial markets, we’re keen to see the outcomes of both trials.

With a market cap of ~$10.5M, and $3.67M cash at bank as of 30 June 2022, this translates to an enterprise value (EV) for BOD of ~$7M. Given BOD's low EV, we suspect that success in either trial would lead to a significant market re-rate.

Our long-term Wise-Owl cannabis investment, BOD Australia (ASX:BOD) released its quarterly results earlier today.

While the company improved in several financial metrics that we track on a quarter-vs-quarter basis (total quarterly sales up 46% to $943,608), it declined on a previous-corresponding-period last year basis ($1,173,498).

This is partially explained by the company now focussing more on its R&D pipeline with the hopes of unlocking several growth opportunities (and future revenue sources) in the year ahead.

Bod holds $3.67M cash at bank as of 30 June 2022, which we think likely means the company doesn’t need to raise capital for the rest of the year, unless a significant new investment/ growth opportunity arises.

Capped at ~$10.5M, Bod’s enterprise value (EV) is now under $7M.

That said, as per our Investment Memo, we are more interested in how Bod’s numerous clinical trials are advancing.

On this front, we like the progress being made. During the quarter, BOD dosed the first patients for the following two trials:

1. Insomnia (Phase IIb) - for an over-the-counter (OTC) treatment available at pharmacists
2. Long-COVID (Open label, “Proof of Concept”)

These both address substantial markets, and hence successful outcomes on either trials could ultimately lead to new products and potentially prosperous revenue sources. Typically this is when significant market re-rates can occur.

Of interest, Bod is planning to launch a new low dose cannabidiol product through Australian SAS-B channels (i.e. via a prescription from a medical practitioner), providing the company with another sales channel and additional delivery format for consumers ahead of any OTC launch.

We will provide a more detailed analysis on the progress of the clinical trials in August.

Investment Memo: BOD 2022

Objective #2, Objective #3: Insomnia trial, Schedule 3 CBD product registration

Our cannabis Investment, BOD Australia (ASX:BOD) has just confirmed it intends to launch a new product in July for the Australian SAS-B channel (medicinal cannabis prescription).

Bio-Absorb 100 is a soft gel formula that delivers a low dose of CBD and is currently the product being used in BOD’s phase II insomnia trial.

Successful completion of that phase II trial is Objective #2 in our BOD Investment Memo, and subsequent registration of registration of Bio-Absorb 100 is Objective #3 in our BOD Investment Memo.

Here’s how we see today’s news helping BOD achieve these two Objectives:

• It provides important product awareness ahead of a potential Schedule 3 registration (no prescription needed)
• It will act as a good trial run for larger scale manufacturing by getting it in the market early

What’s next for BOD: We’re looking forward to recruitment updates from BOD about their insomnia trial which BOD says is progressing well. This is in addition to the Long-Covid trial. The Long-Covid trial is Objective #1 in our BOD Investment Memo and could unlock additional prescription sales while also giving

Investment Memo: BOD 2022

General: Additional clinical trial

Our medical cannabis Investment, BOD Australia (ASX:BOD), has announced that its “Proof of Concept” CBG trial was successful.

CBG, or cannabigerol, is a non-intoxicating cannabinoid which BOD has been exploring for a range of therapeutic uses, including fibromyalgia, inflammatory bowel disease and irritable bowel syndrome (IBS).

This is what the product looks like:

BOD found that, “74% of trial participants reported a noticeable improvement in

their conditions within two to four weeks of using MediCabilis™ CBG 50 twice a day.”

That’s a solid result for a novel therapy and should make doctor’s feel more comfortable prescribing BOD’s CBG product in the UK and Australia.

As BOD Investors, we’re glad that BOD’s R&D/clinical trial pipeline is starting to deliver results and we’re hoping these trials lead to more sales.

What’s next for BOD: We’re looking for an update on patient recruitment for their two main clinical trials - one for Long-Covid and another for insomnia. These trials form Objective #1 and Objective #2 in our BOD investment memo.