Fundamental Research Corp Initiates Coverage on CanaQuest (CANQF) with Buy Rating and US$0.78 Fair Value Estimate

Rhea-AI Summary

CanaQuest Medical Corp (OTC PINK:CANQF) announced that Fundamental Research Corp (FRC) has initiated coverage with a BUY rating. FRC, a top independent research house, highlighted the potential of CanaQuest's cannabinoid formulations for mental health therapies. The report suggested a fair value estimate of US$0.78 per share. FRC noted that the company's success hinges on management's ability to secure financing and regulatory approvals. CanaQuest is focused on developing products targeting mental health conditions, with two Master Formulations identified for Drug Identification Numbers.

Positive

• Fundamental Research Corp initiated coverage with a BUY rating.
• FRC provided a fair value estimate of US$0.78 per share.
• The company's formulations are seen as having potential demand in the mental health market.

Negative

• Success heavily dependent on management's ability to raise capital and obtain approvals.
• FRC could not verify claims of higher efficacy levels regarding formulations.

CanaQuest Targeting Same Mental Health Space Where GW Pharma was Acquired for US$7.2B

TORONTO, ON / ACCESSWIRE / March 23, 2021 / CANAQUEST MEDICAL CORP (OTC PINK:CANQF) (the "Company" or "CanaQuest"), a Life Science/Pharmaceutical Company developing health products utilizing cannabinoid molecules and other botanical compounds (pharmaceutical grade), today announced that Fundamental Research Corp ("FRC"), one of the world's largest independent research houses, has launched coverage on CanaQuest with a BUY Rating. Its full report is available here: https://canaquest.com/wp-content/uploads/2021/03/CanaQuest-Research-Report-by-FRC-March-2021.pdf

FRC has a 17-year track record of covering 550+ companies since inception. An excerpt from FRC's report is included below…

"In conclusion, we believe the company's formulations have potential to generate demand based on their differentiating features. Even though we are not in position to verify the company's claims regarding higher efficacy levels, we believe recognition by academic journals is highly encouraging. The company's prospects are heavily dependent on management's ability to raise capital and obtain approvals. We believe the current financing (if completed), and near-term sales of non-Rx products will be the key catalysts this year. We are initiating coverage with a BUY rating, and a fair value estimate to US$0.78."

About Fundamental Research Corp:

Fundamental Research Corp is one of the largest independent research houses in the world, with a 17-year track record of covering 550+ companies. As of March 12, 2021, FRC's top picks were up 76.4% on average since initiation of coverage. The Company is a premier research firm that has ranked in the Top Ten in independent third-party evaluations of its research.

For more information on Fundamental Research Corp, visit https://www.researchfrc.com/

About CanaQuest Medical Corp:

CanaQuest Medical Corp is a Life Science/Pharmaceutical Company developing health products utilizing cannabinoid molecules and other botanical compounds (pharmaceutical grade). The Company is the industry partner for research and product development with Dr. Steven Laviolette, a professor and neuroscientist, who has 20 years of research experience in the field of mental health and cannabinoids and oversees a team of 13 scientists at Western University. The Company's research is focused on the use of cannabinoids for the development of novel pharmacotherapies for mental health, such as anxiety, depression, addiction, schizophrenia, and Post Traumatic Stress Disorder "PTSD". CanaQuest has identified the regulatory pathways to obtain Drug Identification Numbers (DINs) for its two Master Formations, Mentanine^®Rx and Mentabinol^®Rx in Canada and the USA.

As well, CanaQuest will be selling both products through its wholly owned subsidiary, ADC BioMedical Corp, which was awarded a Cannabis Medical Sales, Import/Export License, from Health Canada under the Cannabis Act. Licenced GMP Contract Manufacturers in Canada and the USA, capable of formulating, processing, and packaging, have been selected for production and distribution. The Company won the Go Global Awards, 2019, "Business of the Year - Category of Life Science," presented by the International Trade Council.

For a short video on the research, visit https://www.youtube.com/watch?v=O_D4wkHHbDg

For more information on CanaQuest, visit http://www.canaquest.com

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking statements" as that term is defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, use of proceeds and the development, costs, and results of current or future actions and opportunities in the sector. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies, our ability to raise the additional funding we will need to continue to pursue our exploration and development program, and our ability to retain important members of our management team and attract other qualified personnel. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consult all the information set forth herein and should also refer to the risk factors disclosure outlined in our annual Disclosure Statement filed with the OTC Markets for the most recent fiscal year.

CANAQUEST CONTACT:

Paul Ramsay, Co-Founder & President
CanaQuest Medical Corp
paul@canaquest.com:
Tel.: 416-704-3040

SOURCE: CanaQuest Medical Corp.

View source version on accesswire.com:
https://www.accesswire.com/636867/Fundamental-Research-Corp-Initiates-Coverage-on-CanaQuest-CANQF-with-Buy-Rating-and-US078-Fair-Value-Estimate

FAQ

What is the recent rating given to CanaQuest by Fundamental Research Corp?

Fundamental Research Corp has initiated coverage on CanaQuest Medical Corp with a BUY rating.

What is the estimated fair value of CanaQuest's stock according to FRC?

Fundamental Research Corp estimates the fair value of CanaQuest's stock at US$0.78.

What are the main focuses of CanaQuest Medical Corp's research?

CanaQuest Medical Corp focuses on developing cannabinoid-based products for mental health conditions such as anxiety, depression, and PTSD.

How does the report from FRC view the potential of CanaQuest's formulations?

The report suggests that CanaQuest's formulations have potential demand due to their differentiating features.