Marijuana stock investors probably needed the scare they received yesterday when GrowLife Inc. (OTCBB:PHOT) was temporarily suspended. Nonetheless, that hasn't stopped companies from etching their part in the market.
According to reports PuraMed BioScience Inc. (OTCMKTS:PMBS) announced they're taking steps to proceed with the development of their first cannabinoid-based medicine. The medicine, according to a press release from the company April 9, states it "targets the mental health market by focusing on anxiety and depression."
Post Traumatic Stress Disorder (PTSD), according to CEO Russ Mitchell, are one of the many communities they're hoping to help. The company's stock is currently being traded around $0.005. This month has been PuraMed's best performance all year, trading as high as $0.006 earlier this month. PuraMed's best was June 3, 2011 when the stock was being traded at $0.80 a share.
This could be the company's most relevant move. Last month, The Huffington Post reported the federal government's approval to study the uses of marijuana to treat PTSD. According to the article, the U.S. Dept. of Health and Human Services "cleared the purchase of medical marijuana by the studies' chief financial backer, the Multidisciplinary Association for Psychedelic Studies, which supports medical research and legalization of marijuana and other drugs." The move could also open the door for other small-time dabblers in the industry.
Many investors have already deemed this stock as the "new marijuana stock in town". It's just a dabbler, and investors should treat it as such. What could happen is that PMBS, like its predecessors who dabble in the business of cannabis, will cash in on the popularity of this new marijuana movement sweeping the country.
But if it maintains its identity in the market, known for "...developing and marketing a range of non-prescription medicinal or healthcare products..", it should have no problems adding the cannabis element to their range of products.