Ehave, Inc. (OTCQB:EHVVF) has changed mental healthcare by creating a cloud-based, mental health data platform capable of integrating with its proprietary and third-party assessment and therapeutic digital applications. Ehave, Inc.could be a pure play on the merger between Aurora Cannabis (ACBFF) and MedReleaf.
Aurora Cannabis just finalized the purchase of MedReleaf for CDN$3.2 billion. The main reason all eyes are on Ehave is the strategic relationship Ehave, Inc. and MedReleaf entered into in February 2017. The strategic relationship called for the development of a branded MedReleaf app utilizing the Ehave Connect mental health informatics platform. The app would be used to advance the study, and therapeutic use, of medical cannabis. Many investors think there could be tremendous opportunities from this relationship with both Aurora and MedReleaf after the Aurora buyout.
MedReleaf invested $100,000 in Ehave, Inc. and also received an option to invest an additional $200,000 in the Company, should Ehave, Inc. go public on a Canadian Exchange. Ehave, Inc. management has been quiet during this period of time when the merger between Aurora and MedReleaf was being completed. A multi-billion dollar merger has many working parts and is not consummated overnight. The opportunities for Ehave, Inc. with the combined companies could be much larger than the original MedReleaf opportunity, however, in the midst of a CDN$3.2 billion merger, Ehave, Inc.'s management patiently waited for the deal to close. Now that the merger has been consummated, in my opinion, we could see tremendous opportunity for Ehave in the combined business of Aurora and MedReleaf.
Ehave Connect Software Platform
Ehave Connect is a cloud-based platform that allows for the input, tracking and extraction of clinical data. Its patient management and digital assessment tools make it easy for healthcare providers and physicians to diagnosis and treat their patients. End users, such as patients, clinicians, regulators, insurance companies, researchers, medical cannabis licensed producers and pharmaceutical companies will all be able to connect to third-party solutions providers for improved treatment and outcome. The basic premise behind Ehave Connect is to integrate it into the clinician’s workflow to capture, record and deliver objective patient data, with the ultimate goal of helping the clinician improve patient care.
Ehave management believes Ehave Connect can fill the information gap in mental healthcare and medical cannabis created by pen-and-paper assessments and difficulty of tracking patient compliance and outcomes on a large scale. Ehave Connect can be an invaluable tool for medical cannabis, mental health researchers and insurance companies by giving access to objective outcomes data to support and validate their efforts. The heavy lifting of developing the cloud-based platform has already been done. Investors in Ehave, Inc. should begin to focus on the commercialization and revenue stage of the Company.
Because of Ehave Connect’s comprehensive data capabilities, mental health professionals began using it for illnesses and diseases that can be treated by medical cannabis. According to Ehave, Inc. management, the mental health conditions Ehave Connect can be used for include PTSD, ADHD, anxiety, autism, depression, obsessive compulsive disorder, and concussion. Management also believes the Ehave Connect platform can be used for major illnesses that are subject to medical cannabis treatments. These illnesses include pain, arthritis, nausea/cancer treatments, seizures, migraines, MS, psychological conditions, spinal cord injury/diseases and auto-immune diseases. To the best of our knowledge, there is no other company, or software, capable of sorting through the massive amounts of data associated with treatments and outcomes in the medical cannabis market.
Ehave, Inc. has built machine learning algorithms that connect outcome data to diagnosis and treatment plans to build data insights that may provide useful guidance on the appropriate treatment plans. This is huge for both mental healthcare and treatments using medical cannabis. Licensed producers of medical cannabis in Canada and the U. S. are not required to conduct clinical trials. As a result, clinicians are often missing comprehensive information on how to prescribe medical cannabis in terms of strain, route (smoke/vape, eat, oil, gel cap), dose (quantity) and frequency. This information is readily available for traditional pharmaceuticals, but not for medical cannabis. Ehave, Inc. management believes this solution will provide clinicians the knowledge they need to confidently prescribe cannabis to their patients.
Ehave Connect for Medical Cannabis
In medical cannabis, Ehave Connect can be configured to capture and track the data required to evaluate cannabis therapies from intake to assessment, to treatment planning, to delivery and adherence and on to tracking of treatment outcomes. This will enable prescriber's of medical marijuana to design and monitor treatment plans, track patient compliance, and verify treatment outcomes in a reliable and objective manner. Similar to other areas of mental health, Ehave Connect captures clinical data digitally from “gold standard” assessments and surveys from third parties, as well as from novel treatment tools and devices, creating a data-rich network of patient information that has the potential to validate and legitimize this burgeoning healthcare segment. Licensed cannabis producers, like Aurora Cannabis and MedReleaf may use this data to validate and market the efficacy and safety of their products.
The benefits of Ehave Connect for the medical cannabis community is centered around a recognized need for evidence-based approach to formulation, titration, adherence, regulatory compliance and patient outcomes to reach full potential of medical cannabis as a validated clinical therapeutic. Ehave Connect provides patients and caregivers a digital portal available on desktop, tablet or mobile devices that enables self-monitoring and adherence to treatment. Clinicians are provided with reliable, data-driven guidelines for proper dosing and formulation, condition-specific strains and personalized treatment plans. Licensed producers are given access to information on validation of dose, strain, adherence and patient outcomes, and potential supporting information for regulatory approval and reimbursement. Ehave Connect provides developers and pharmaceutical companies clinical evidence to support novel formulations or delivery, and proprietary technologies correlated with patient outcomes. Regulators and payers may be able to make optimal decisions based on real patient outcomes and comprehensive data for dose, strain, potency and formulation.
Currently, Ehave, Inc.'s product focus is based on three tiers of activities. The first is MegaTeam and Ninja Reflex, Ehave, Inc.'s clinically validated digital assessment and rehabilitation software that is engaging for the patient. Second is Ehave Connect, which is an advanced mental health informatics and digital application delivery platform. The third tier is the adaptation of third-party clinically validated digital assessment and rehabilitation software for enhanced patient engagement and data modeling. Ehave, Inc. can provide technology solutions to clinicians, patients, researchers, pharmaceutical companies, insurance carriers, other third-party payers, and health plan sponsors, like employers or unions.
MegaTeam and Ninja Reflex Digital Assessment and Rehabilitation Applications
MegaTeam and Ninja Reflex are Ehave, Inc.'s hallmark assessment and rehabilitation products currently available to mental health professionals. Both MegaTeam and Ninja Reflex provide patients with attention deficit and hyperactivity disorder, or ADHD, an opportunity to have an individualized cognitive rehabilitation program to be administered remotely. The way ADHD methodologies have worked in the past, the patient and his, or her, family was required to stay in a clinical setting where assessments were administered. Methodologies commonly used today involve repetitive performance of tasks using digital interface. These tasks are repeatedly administered to the patient in order to obtain accurate measures. Many of the assessments used today had been developed using programming methodologies whereby the task is simply exhibited on screen and the patient is instructed to respond to stimuli. Our research has found that patients, in particular those with symptoms of ADHD, have difficulty completing the necessary regiment of tasks due to lack of engagement.
Attention deficit hyperactivity disorder is a neurodevelopmental disorder that most often occurs in children, but can also be diagnosed in adulthood. Symptoms of ADHD include having trouble concentrating or focusing, having difficulty staying organized, being forgetful about completing tasks and having difficulty sitting still. ADHD can be a difficult condition to diagnose, since many symptoms of ADHD can be typical childhood behaviors. Ehave, Inc. currently offers its products in the Canadian market. The percentage of ADHD cases in the U. S. and Canada is the same. According to statistics published by the U. S. Center for Disease Control and Prevention in 2013, ADHD is more common than doctors may have previously believed. The American Psychiatric Association says that 5 percent of American children have ADHD. But the Centers for Disease Control and Prevention put the number at more than double that. The CDC says that 11 percent of American children, ages 4 to 17, had the attention disorder as of 2011. That’s an increase of 42 percent between 2003 and 2011.
The MegaTeam and NinjaReflex applications imbed the cognitive assessment and rehabilitation tasks in a video game. Both MegaTeam and NinjaReflex work on PC, Mac, Android and iOS systems and can be used in a clinic, a patient’s home or remotely. The only thing needed is an adequate data connection. Feedback from users and clinical psychologists has been positive. On June 28, 2018, Ehave, Inc. announced they, along with CHILD-BRIGHT Network, had started enrollment for a cognitive rehabilitation trial for children with ADHD, Autism, and Congenital Heart Disease. 460 children involved in the study will play a series of games that target response inhibition time and working memory. Each child will be assessed at the start of the trial and 3 months later for improvements in executive functions, attention and self-regulation. There are as many as 850,000 children in Canada under the age of 14 who are living with a brain-based developmental disability.
Business Plan and Summary
Ehave, Inc. has gone from the concept to the revenue phase and management is executing the business plan with a strategy for long-term growth. Many larger companies, such as Box (BOX), Five9 (FIVN), HubSpot (HUBS), Q2 Holdings (QTWO), Shopify (SHOP) and Zendesk (ZEN), saw their share price more than double once they entered the revenue phase and became profitable. Many smaller companies have seen ten-fold returns in their stock price as the companies went from concept to revenue. In our opinion, we believe Ehave, Inc. offers shareholders a similar opportunity.
In a recent letter to shareholders, CEO Prateek Dwivedi said Ehave has "expanded the commitments we have made to our mental health (Multi Health Systems) and therapeutic partners MedReleaf, which is now part of Aurora Cannabis Inc., entered new partnerships to expand our market verticals to include the pharmaceutical industry with Aequus Pharmaceuticals Inc. (AQSVF)." Ehave, Inc.’s business strategy is to develop and market Ehave Connect by developing its capabilities in delivery of proprietary and third party content. The Company also plans to expand MegaTeam and Ninja Reflex with additional game titles, and participate in further clinical studies with Hospital for Sick Children on the CHILD-BRIGHT network. Ehave, Inc. also plans to form strategic alliances with selected licensed producers of medical cannabis and publishers of psychological assessments and develop relationships with pharmaceutical and insurance companies that could be instrumental in deploying their technology to drug development and treatment monitoring.
The principal markets in which Ehave, Inc.’s products will compete will initially include North America, then Europe and Asia. Currently Ehave, Inc.'s products are being deployed in Canada, but the Company has plans to launch Ehave Connect in the United States in 2018. Mental healthcare, including its assessment and treatment, is a significant market. Forty-four million adults in the United States are estimated to experience mental illness per year, which is 20% of the population. The size of the U.S. mental health treatment market is $113 billion, and the size of private insurance spending on mental health is $32 billion. The size of the cognitive assessment market world-wide is over $2.4 billion.
For medical cannabis, the demand is strong and growing, with a projected market of CDN$3 billion by 2024 (Source: Health Canada, 2016). Between 4,000 and 5,000 new patients are added every month, with a projection of 450,000 licensed users by 2019. According to Grand View Research, only 5% of physicians in Canada prescribe medical cannabis. Grandview expects the global medical marijuana cannabis market will be $55.8 billion by 2025.
We are not aware of direct competition to Ehave, Inc.’s mental health informatics platform, Ehave Connect, in the market. We note that electronic health record software vendors, such as Cerner (NASDAQ:CERN), Epic and Athena Health (NASDAQ:ATHN) offer broad clinical data solutions as a part of their solution, but are focused on acute care centers. Ehave Connect focuses more on community care, where the majority of mental health is practiced. There are many small electronic medical record software vendors focusing on mental health for community-based clinicians, but they have a small installation base and only track a portion of the data Ehave Connect tracks.
In the medical cannabis market, there are licensed producers and third-party software providers who have released patient tracking software applications. While these applications track consumption and how patients are feeling while taking specific strains, to the best of our knowledge, they typically do not have the clinical data to map to the consumption and the outcome.
Ehave is a great play on both the cannabis sector and the software sector. Investors following Arena Pharmaceuticals, Inc. (ARNA), Cannabix Technologies Inc. (OTCPK:BLOZF), Cara Therapeutics, Inc. (CARA), GB Sciences, Inc. (OTCQB:GBLX), Terra Tech Corp Common Stock (OTCQX:TRTC), Medical Marijuana Inc. (OTCPK:MJNA) might want to consider adding Ehave to their portfolio. Additional information on Ehave can be found on their website, www.ehave.com, or in their filings with the U. S. Securities and Exchange Commission on EDGAR.
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in EHVVF ACBFF ARNA BLOZF BOX CARA FIVN GBLX HUBS MJNA QTWO SHOP TRTC ZEN over the next 72 hours.
Additional disclosure: This is not a solicitation to buy, sell, or otherwise transact any stock or its derivatives. Nor should it be construed as an endorsement of any particular investment or opinion of the stock’s current or future price.
I am not a financial advisor, nor am I providing any recommendations, price targets, or opinions about valuation regarding the companies discussed herein. Any disclosures regarding my holdings are true as of the time this article is written, but subject change without notice. I believe that the sources of information I use are accurate but there can be no assurance that they are. All investments carry the risk of loss and the securities mentioned herein may entail a high level of risk. Investors considering an investment should perform their own research and consult with a qualified investment professional.
I wrote this article myself, and it expresses my own opinions. I have received compensation from a third party in the past to perform investor relations services for Ehave, Inc. The information in this article is for informational purposes only and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
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