There’s really no doubt about it right now in terms of cyclicality: pot stocks are back. The devastating collapse into the mid-March lows appears, in our analytic framework, to represent a major, long-term cycle low in the space that did the final work of capitulating weak-handed money out of the market after a steady stream of bankruptcies had already narrowed the supply of shares directly tied to cannabis production and distribution. That places the new focus for market participants on sifting through the sector and finding the new and interesting potential leaders of tomorrow, because tomorrow is now what’s next.

One stock in the space that has gotten very little attention despite making seemingly huge strides to advance toward its strategic vision is MCTC Holdings Inc (OTCMKTS:MCTC), now doing business as Cannabis Global, Inc. (OTCMKTS:MCTC). The first thing that stands out is probably the company’s emerging leading brand of hemp-infused products called Hemp You Can Feel, which is in stores and being sold over the platform.

But, underneath the surface, there’s a whole lot more going on here.

New and Big

MCTC is particularly interesting because it’s doing some truly new and unique things that should quickly differentiate the name from other players in the space.

For example, the company has developed patent-pending technology to allow for the cost-effective synthesis and infusion of the so-called exotic cannabinoids. You know about the booms in THC and CBD. But there are a number of other cannabinoids that may ultimately prove to become booms of the future. Other companies have tried to capitalize on this potential opportunity, but those attempts have always failed because the cost curve for developing products based on these less common and more difficult to source – and therefore more expensive to source – cannabinoids turns out to be prohibitive in practice.

Until recently, that is. Cannabis Global recently announced that its “Project Varin” – an R&D project devoted to finding solutions to enable a commercial market in Tetrahydrocannabivarin (THCV) – has been a striking success. According to its recent release, the program has produced meaningful technology breakthroughs, which have resulted in several patent filings.

“We think we have rewritten the exotic cannabinoid cost equation via our Project Varin. The minor exotics represent a new cost challenge for the industry, and we believe we have developed a strong and defensible solution,” commented Arman Tabatabaei, CEO of Cannabis Global. “Acquiring THC and CBD from plants within the Cannabaceae family is relatively easy as these cannabinoids are produced by nature in abundance. It is a very different issue relative to THC-V, CBN, and other exotics. With our patent pending technologies, we have been able to rewrite the cost equation for minor cannabinoids, while at the same time moving well beyond the purity possible from legacy technologies. While we are already at a 50% cost advantage to the competing technologies, most of which are still theoretical and not yet available on the market, we believe further travel down our cost curve is possible as we move into high volume manufacturing this month.”

Attention to IP

We would also note the statement mixed into the above passage: “which have resulted in several patent filings.”

This is also unusual for companies in the cannabis patch. The lack of IP development is remarkable. Most “pot stocks” seem to be completely uninterested in becoming anything other than just another commodity producer or distributor, rather than investing in R&D and developing strong intellectual property. This reflects a misdirected industry that seems to miss the big point of owning a distinct business enterprise. If you’re just another avenue for weed, then you aren’t building value over the long run. What argument do you have for your continued existence? If you stop existing, someone else will just come along and take your place.

The big winners in other industries are almost always built on a solid foundation of intellectual property. MCTC has integrated that lesson and wisdom into its model at a deep level.

The company already has at least a half dozen patents with the USPTO now under review, and several provisional patents marked to save the date and give the company priority on the definitions reserved.