PreveCeutical Medical, Inc. | Crystal Equity Research Report

Page 2 INDUSTRY PEERS INVESTMENT HIGHLIGHTS Positives  Building market for preventative healthcare, potentially valued at $432 billion by 2024, according to industry analysts at Grand View Research, implying 15% compound annual growth  Opportunity to compete effectively as relatively small biotechnology developer in preventative healthcare market by virtue of highly dif- ferentiated portfolio of novel therapeutic compounds and products  Research and development relationship with established and reputa- ble university sponsored scientific team, which can cost-effectively to advance development pipeline  Sufficiently capitalized for near-term development agenda following completion of private placement of common stock and warrants val- ued at CA$3.2 million (US$2.6 million)  Revenue and earnings from first commercially available product CELLB9 helping to offset research and development spending Negatives  Well populated and highly competitive preventative health care mar- ket with few barriers to entry for competing health science develop- ers and marketers  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  Lack of liquidity and potential 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 Our bullish view on Preve- Ceuticals Medical is influ- enced by the Company’s plans to bring novel thera- peutic compounds to the market at a time when the preventative health care mar- ket is entering a period of rapid growth. Management has demon- strated the ability to garner investor support and raise capital at a critical time in its development agenda, a rec- ognized key to success for any health sciences company. Management has also been successful in securing re- search and development tal- ent through a strategic rela- tionship with a respected and successful academic institu- tion. Shares of PreveCeutical Medi- cal should be regarded as speculative and appropriate only for those investors with a high tolerance for risk and price volatility. STOCK CHART  AcelRX Pharmaceuticals (ACRX: Nasdaq)  BioDelivery Sciences (BDSI: Nasdaq)  Corium International (CORI: Nasdaq)  Cumberland Pharmaceu- ticals (CPIX: Nasdaq)  Egalet (EGLT: Nasdaq)  GW Pharmaceuticals (GWPH: OTC/QB)  Immune Pharmaceuti- cals (IMNP: Nasdaq)  Pivot Pharmaceuticals (PVOTF: OTC/PK) PreveCeutical Medical, Inc. January 9, 2018 Source: Yahoo! Finance

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