Neurotech International Ltd (ASX: NTI) has an exclusive license on unique cannabis strains that have high CBD but low THC.

NTI is trying to prove its cannabis strains can be effective in the treatment of ADHD, epilepsy, and autism.

Cannabidiol - or CBD - is the part of the cannabis plant that is the most promising from a medical perspective and is not psychoactive. THC is the psychoactive component of a cannabis plant and anything over 0.3% is classified as a narcotic.

NTI’s strains contain unique cannabinoids, but less than 0.3% THC - which means it's easier to pass through regulatory pathways and bring products to market.

NTI has begun its first clinical trials on children aged between 5 and 17 years with Autism Spectrum Disorder (ASD).

It is early days for NTI, but if the company can clinically prove its genetic strains are effective in the treatment of neurological disorders, it would make NTI a very valuable company.

We invested for this upside.

We like NTI’s assets and now it has reached the Clinical Trial stage. We have seen outsized returns for successful cannabis stocks that can clinically prove effectiveness of cannabis strains.

GW Pharmaceuticals (NASDAQ: GWPH) and Tilray (NASDAQ: TLRY) are the best examples. GW Pharmaceuticals is capped at $6.9BN and Tilray is currently hovering around the $3BN market cap.

NTI is currently capped at $43M (with $3.5M cash at March 31st), and is an early stage, speculative investment - there is no guarantee of success, however the upside is large.

What’s next for NTI ?

There are likely to be several catalysts over the coming weeks and months:

• NTI will release Interim results and study updates throughout the trial.
• NTI is also in discussions with the TGA and relevant regulatory agencies for the therapeutic expansion and registration of its novel full spectrum plants.
• The company’s Mente device will also be assessed in combination with the novel NTI/Dolce medicinal cannabis strains.