PreveCeutical Medical, Inc. | Crystal Equity Research Report

Please read the important disclosures on page 10 of this report. PREV: CN PRVCF: OTC 18H: SG May 22, 2018 Update Report PreveCeutical Medical, Inc. PreveCeutical Medical is an early stage biotechnology company with one marketed product and an attractive early stage research pipeline focused on preventative medicine. The Company has several major achieve- ments in recent months, moving the research and development pipeline closer to goals and objectives. Drug Delivery System - In March 2018, the Company’s research and development partner UniQuest Pty. Ltd. began testing dried cannabis flower shipped from the Company’s U.S. supplier under strict restricted substance laws in effect in the U.S. and Australia. Scientists at UniQuest will be using extraction techniques and performing ‘fingerprinting’ using high-performance liquid chromatography. Once the cannabis material is fully analyzed its cannabidiol features will be used as the first therapeutic compound developed for the Company’s Sol-Gel nose-to-brain drug de- livery system. Formulation of an effective compound will follow initial testing and is expected to require additional eighteen months. The Company has also begun a search for a compatible delivery device that patients will use to apply Sol-Gel . At least one manufacturer has signed a letter of non-disclosure to enable detailed discussions about its own device development capabilities and compatibility with Sol-Gel . Gene Therapy - The Company also moved forward with its Smart siRNA program to develop an effective treatment for obesity and diabe- tes. Staffing and organizational efforts begin in the first quarter 2018. Laboratory equipment appropriate for the first steps in identifying target diseased genes is already in place. The Company and its partner UniQuest aspire to find a single gene responsible for both obesity and diabetes. This is the first of three phases in the project that together are expected to require at least three years. Peptides - In January 2018, PreveCeutical extended the pact with UniQuest to access it’s disulfide linker technology. It will be used to identify blue scorpion venom peptides for non-addictive analgesics. RECENT PROGRESS MARKET DATA Price: $0.25 (5/21/18) 52 Wk Hi-Lo: $0.80 - $0.01 Ave. Volume: 21K Short Interest: <1% Beta: NA All Market Data in US$ VALUATION Price/Sales: nm Price/CFO: nm Price/EPS: nm Price/Book Value: nm Based on TTM ending 12/31/17 Consensus EPS FY2018: NA Forward PE: NA EQUITY SECURITIES Common Shares Out: 49.2 M Insiders: 35.2% Float: 25.12 M Institutional: -0- 5% Holders: -0- Warrants and Options Outstanding: 15.9 M Convertible Debt Equivalent Shares: 10.0 M As of 4/24/18 Excludes pending private place- ment of 16.0 million units as amended in Jan. 2018 & Apr. 2018. Source: Company Reports and Crystal Equity Research estimates Commercial Stage  CELLB9 - oral solution of blue scorpion venom Development Stage  Concussion Therapy - based on peptides in blue scorpion venom Research Projects  Sol-Gel Delivery System - cannabinoid compound  Smart RNA Gene Therapy - obesity and diabetes therapy  Venom Peptide Identification - non-addictive analgesics PIPELINE