PreveCeutical Medical, Inc. | Crystal Equity Research Report

Page 2 INVESTMENT HIGHLIGHTS Positives  Lucrative market for preventative healthcare, valued at $196.9 bil- lion by 2024, and growing by 15% annually according to industry analysts at Grand View Research  Highly differentiated portfolio of novel therapeutic compounds and products; opportunity to compete effectively as relatively small bio- technology developer in preventative healthcare market  Research and development relationship with established and reputa- ble university sponsored scientific team at University of Queensland in Australia  Revenue and profits from first commercially available product CELLB9 helping to offset research and development spending  Capital infusion from pending private placement of common stock and warrants valued at CA$4.0 million (US$3.1 million)  Potential for improved liquidity following five-for-one stock split and expansion of constructive float in common stock Negatives  Few barriers to entry for competing health science developers and marketers in already well populated preventative health care market  Significant business execution risks inherent in ambitious research and development program of several mutually exclusive projects  Need to raise additional, potentially dilutive capital to achieve com- mercial stage with each project in current development pipeline  Possible price volatility in unseasoned common stock and derivative securities with limited trading history  Potential for immediate loss of capital due to wide bid-ask spread and relatively low daily trading volume OUTLOOK We expect 2018 will be a sig- nificant year for PreveCeutical Medical with numerous value- driving catalysts unfolding. The Company’s research and development partner, UniQuest, has commenced work on three of the Com- pany’s R&D projects. Granted in each case the work at the current stage is painstaking and detailed. This is not always conducive to flashy press releases. However, the Company’s chief research scientist and newly appointed regional leadership have both proven to be strong communicators, providing visibility into the development pipeline. The Company appears closer to securing capital through a private placement of common stocks and warrants. Gross proceeds of CA$4.0 million (US$3.1 million) is expected to support development work at least through the end of 2018. While dilutive, this in- fusion of capital is critical to moving the Company forward and could be considered a value-creating step. Trading volume has increased in recent months and liquidity could improve even more with an increase in the con- structive float following a stock split. We continue to view PRVCF shares as specu- lative and suitable for inves- tors with a high tolerance for risk. There is a potential for immediate loss of capital due to wide bid-ask spread. STOCK CHART PreveCeutical Medical, Inc. May 22, 2018 Source: Yahoo! Finance