PreveCeutical Medical, Inc. | Crystal Equity Research Report

Please read the important disclosures on page 11 of this report. PREV: CN PRVCF: OTC 18H: SG January 9, 2018 Initial Report PreveCeutical Medical, Inc. PreveCeutical is an early stage life sciences company with a focus on compounds using natural substances for health and wellness products. The Company has already brought one product to market and has a five research projects in its development program. Sales of CELLB9 represent PreveCeutical’s current revenue stream. CELLB9 is an oral solution of essential materials extracted from a novel peptide in the venom of blue scorpions. It is has been found instrumen- tal as an immune system booster. The Company is pursing additional applications for the venom peptides such as low-impact brain trauma or concussion. A distribution agreement was recently signed with Sports1 Marketing to address the sports medicine market. A wide ranging development program is in place to expand the Preve- Ceutical product line. Scientific efforts for each program are being un- dertaken at the University of Queensland in Australia by teams led by Dr. Harry Parekh, the Company’s Chief Research Officer. PreveCeutical has a development and licensing agreement in place with UniQuest Pty. Ltd., the commercial arm of the University of Queensland. The agreement en- sures PreveCeutical licensure rights to all intellectual innovations created through joint research projects. A top priority in the development program is the Sol-Ge l drug delivery system originated by Dr. Parekh. It is a nose-to-brain process potentially effective in reducing side effects and increasing patient compliance for a range of therapies. Cannabinoids are the first compounds under testing. Additional projects in the pipeline show considerable promise as well.  Smart RNA Dual Gene Therapy for the treatment of obesity and early stage diabetes  Peptide and protein identification in the venom of Caribbean blue scorpion venom for the purposes of engineering ‘nature identical’ compounds  Non-addictive analgesics based a new peptide library using the Uni- versity of Queensland proprietary ‘disulfide linker’ technology PreveCeutical is re-capitalizing for its ambitious development program. Subsequent to a ‘going public’ action through a reverse merger with a public shell corporation, the Company raised CA$5.3 million (US$4.3 mil- lion) in new capital through two private placements in July 2017 and January 2018. We estimate cash balances will be near CA$3.2 million (US$2.6 million) upon closing the second transaction in February 2018. We believe current cash resources should provide sufficient support to reach the next milestone with its Sol-Gel drug delivery system as well as reach new commercial markets with its CELLB9 venom product. SUMMARY PROFILE MARKET DATA Price: $0.32 (1/8/18) 52 Wk Hi-Lo: $0.70 - $0.00 Ave. Volume: 1K Short Interest: <1% Beta: NA All Market Data in USD$ VALUATION Price/Sales: nm Price/CFO: nm Price/EPS: nm Price/Book Value: nm Based on TTM ending 9/30/17 Consensus EPS FY2018: NA Forward PE: NA EQUITY SECURITIES Common Shares Out: 49.9 M Insiders: 48.8% Float: 25.12 M Institutional: -0- 5% Holders: -0- Warrants and Options Outstanding: 15.9 M Convertible Debt Equivalent Shares: 5.0 M As of 9/30/17 Excludes pending private place- ment of 6.6 million units of one common share and one-half war- rant as amended January 2018 Source: Company Reports and Crystal Equity Research estimates

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