Shares of Pressure BioSciences Inc (OTCQB:PBIO) shot up Thursday after it announced it had completed the first working prototype of the Ultra Sheer technology system and showed it had wide poetntial uses in the CBD oil and cosmetics markets.
During the company's quarterly investor conference call, the management announced that it had successfully achieved a "second milestone," by using the prototype to effectively dissolve an oil-based nutrient in water, using CBD oil as a part of the demo.
"In addition to the CBD market, we believe our proprietary Ultra Sheer technology platform offers unique opportunities in many other important markets," said Pressure BioSciences CEO Richard T Schumacher.
"We believe that high quality nanoemulsions will be invaluable in multi-billion dollar markets such as: cosmetics (for the controlled delivery and optimized dispersion of active ingredients), to pharmaceuticals (for improved drug solubility and more rapid and controlled absorption), to agriculture (for improved pesticide applications that are more efficiently absorbed by plants)," he added.
The South Easton, Massachusetts, company utilizes high pressure to create intense, momentary liquid shearing forces at controlled temperatures that result in affordable and scalable homogenization of liquids, creams and gels. The technology creates nano-scale emulsion mixtures of otherwise immiscible fluids like oils in water that results in stable homogenized products called nanoemulsions.
For many oil-based nutritional and medical products, nanoemulsions can offer superior water solubility and increased bio-availability for improved absorption via oral or topical administration. As a result, the technology has wide potential uses in the pharmaceutical, industrial ink, retail, cosmetics and now burgeoning CBD oil market.
READ: Pressure BioSciences accelerates development of its Ultra Shear Technology pressure-based platform to target new markets
Cannabidiol (CBD) is the part of the cannabis plant that doesn't get you “high” like the THC side of the plant. It is typically used for health reasons instead of for recreational purposes. CBD products are either derived from industrial hemp plants or marijuana plants.
"According to a recent report from the Brightfield Group, the overall hemp CBD market is estimated to grow to $22 billion by 2022,” said newly appointed Chief Commercial Officer Bradford Young.
“Expansion of this market depends on the ability to cost-effectively manufacture high quality CBD beverages and edibles, as the demand for these products is high. Such products require truly water soluble CBD oil. Pressure BioSciences is uniquely positioned to successfully develop reliable and scalable processing technology for long shelf-life, high quality, and water soluble nanoemulsions of CBD oil. Therefore, we have determined that the rapidly expanding CBD market is a high priority opportunity for us for early market development and accelerated commercialization," he added.
Young’s appointment was announced earlier this month and CEO Richard Schumacher said the timing couldn’t be better as the company looks to expand the reach of its technology into other markets, including cosmetics and nutraceuticals.
"Since nanoemulsions are known to be well absorbed by the body, any method that could transform CBD Oil into a stable, water-soluble nanoemulsion would help solve one of the most critical problems in the cannabis industry today — the CBD delivery system,” said Young.
Shares of the company shot up 6.7% to $3.20 in afternoon trade.
Contact Lenore Fedow at [email protected]
-- (Recasts with company's second milestone, CEO quotes, stock price)
Additional reporting by Uttara Choudhury