Ovation Science’s Proven Science, IP, and Royalty Model Protects Investors and the Company
June 9th, 2021
App, Exclusive, News, Top Story
If a company has developed very effective, transformative technology, it takes an investment into research and development and time. It also pays to protect it from copycats and pirates with patents. And if the company’s specialty is science and product development rather than in retail sales and marketing, a royalty- or license-based revenue model could make more sense than investing and building the infrastructure for a multi-market sales organization.
These three characteristics – completed research and development, intellectual property, and recurring royalty revenue – are the hallmarks of the business model for Ovation Science Inc. (CSE:OVAT) (OTCQB:OVATF). Investors may be attracted to the company for the protection provided by the patents, the multiple market opportunities, and the simplicity of the revenue model. Ovation’s central innovation is the Invisicare® skin delivery platform, a polymer technology that greatly enhances the durability, effectiveness, and deliverability of cannabinoids (like CBD and THC) on and through the skin.
Ovation’s products are all delivered by its Invisicare technology. This underlying technology is patented in eleven countries, including the US, Canada, four European countries, China, and India. Ovation’s products are protected by various patents or patents-pending; depending on the product The company has further patent protection on individual products like its CBD sunscreen As well Ovation has also applied for patents in the US and Canada to cover its transdermal applications of its CBD: THC combo products. Transdermal treatments are intended to deliver active ingredients like CBD and THC through the skin and work systemically throughout the body.
For both Ovation’s topical or transdermal creams, Invisicare® polymers greatly enhance the duration and amount of active ingredients delivered. For topicals, the company found its technology released 40% of active ingredients compared to 3% for market-leading formulations at 2 hours. For its transdermal creams, Invisicare® provided an 80% penetration rate after 4 hours compared to a range of 10% – 25% for market-leading products. This is exactly the type of technology that needs to be protected and can lead to attractive returns over the life of the patent (often 20 years).
Royalty Revenue Model
The investment of 20 years doing research and development of the novel Invisicare® polymers and over thirty CBD and/or THC formulations is already completed. With the technology in hand, the company is now in the phase of commercialization through royalty and licensing agreements. For most arrangements, an established and licensed operator in a given market will license the rights to Ovation’s formulations and purchase the Invisicare polymers from the company and manufacture the proven Ovation-formulated products with them. That licensee is the exclusive representative of Ovation’s products in that market, be it a state or province or country. Once sold, Ovation receives a percentage of the wholesale revenue generated, usually a double-digit royalty.
The model reduces the risk to Ovation and its investors. The R&D phase is complete, the product works, the patents are secured. At this point, the catalysts for the company are basically revenue growth with existing licensees and the addition of new partnerships to broaden the market.
In an international industry as explosive and young as the legal cannabis and hemp sectors, Ovation’s position is rare and filled with potential. The company’s main market right now is expansion across the USA, but there are obviously more fish to fry internationally as well. Keep an eye for further developments in the coming quarters as Ovation executes its expansion plans.
The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
Follow Us on Social Media
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.