Cell MedX Corp (OTCMKTS:CMXC) is an interesting company. First off, this is a Nevada-based developer of therapeutic strategies for dealing with a wide range of healthcare issues. The company’s primary asset is Its proprietary “e-balance technology”, which is in the research and development stage to manage diabetes mellitus and its complications.

There are a few reasons to look at this name right now. The least exciting, but perhaps ultimately one of the most important is the balance sheet. The company has some solid cash reserves, and recently cut over $800k off its current liabilities between its last two reporting periods. The company also recently began to move forward with renewed focus after divesting its Avyonce Cosmedics segment in late January. Finally, the company is moving full-steam ahead with its primary segment, the eBalance technology, a proprietary method for the application of bioelectric signaling to treat diabetes and related ailments.

Cell MedX Corp (OTCMKTS:CMXC) frames itself, in broad terms, as an early development-stage biotech company focused on the discovery, development and commercialization of therapeutic and non-therapeutic products that promote general wellness and alleviate complications associated with medical conditions including, but not limited to, diabetes, Parkinson’s disease, high blood pressure.

The company has an extremely strong team, including Dr. John Sanderson in the Chief Medical Officer role. Dr. Sanderson is a stem cell researcher who began his career in clinical medicine specializing in diabetes and intravenous nutrition of critically ill patients. He has received NIH funding, has multiple issued patents and published numerous academic papers as principal investigator.

While a medical director and consultant at Johnson & Johnson, Dr. Sanderson was tasked with due diligence oversight for mergers and acquisition, formulating strategic initiatives, and evaluating new technologies.  As a consultant to Fortune 100 health care companies and the U.S. government, Dr. Sanderson worked with some of the greatest minds of the day devising technological solutions to important public health challenges such as obesity, diabetes, and asthma.  In recent years, Dr. Sanderson has focused exclusively on the application of adult stem cells to dermatologic problems and effects of ageing.

Ramping Up eBalance

As noted above, the company’s main catalyst right now is its Observational Study in the main research facility in Hamilton, Ontario. The company just announced that Dr. Richard Tytus, the Lead Investigator, and his team have commenced screening for qualified subjects.

The Observational Clinical Trial has been designed to assess the impact of three months of eBalance therapy as an adjunct treatment, on HbA1c in Type 1 and Type 2 diabetics. The secondary endpoints of the Trial will observe changes from baseline and medical history in many different areas, including insulin sensitivity, diabetic neuropathy, diabetic foot pain and numbness, wound healing, blood pressure, kidney function, as well as to take into account any other changes reported by patients. If things go as planned, CMXC will be an emerging player in a landscape that includes competitors such as Novo Nordisk (NYSE:NVO), Insulet (NASDAQ:PODD), and DexCom (NASDAQ:DXCM).

At this stage, the Trial is being conducted over a four to six month period enrolling a minimum of 30 individuals who will receive three months of eBalance therapy. All study participants will be screened to confirm a diagnosis of either Type 1 or Type 2 diabetes. As with all biotechs, the most exciting and explosive period is during key trials. The market is coming to terms with this technology and its market implications.

So far, the signs seem potentially very promising. And the wide range of possible end markets to monetize here  The Company received Health Canada’s approval to commence the Study on January 12, 2017. The detailed information of the Study will be posted on upon approval of government regulatory agencies.

For chart watchers, technically, the stock is forming a bullish ascending triangle pattern, with a key breakout trigger price of $0.40/share. Average volume has been rising, and the stock has been holding above the all-important 200-day simple moving average. With a float of just 21.1M shares, CMXC could pile on huge gains on any type of breakout move. And the company certainly has the catalysts lined up to do it.