Midas Letter

Khiron Life Sciences Corp (CVE:KHRN) (OTCMKTS:KHRNF) (FRA:4KH) President Chris Naprawa shares details of Mexico’s legalization process. He is particularly encouraged by the addition of adult use legalization in proposed legislation, as well as the inclusion of all product forms. This is an advantage for Khiron, as the company has been developing a line of cosmeceuticals. It also has an existing Mexican retail distribution agreement for its Kuida products and a new partnership with Dixie Brands Inc (CNSX:DIXI.U) (FRA:0QV) (OTCMKTS:DXBRF). Naprawa believes that Khiron’s joint venture with Dixie is a game changer for both companies as it brings Dixie’s extensive portfolio of products and recognized American brands to the Mexican market and its considerable tourist population. Khiron has also made significant inroads in Mexico’s medical cannabis space. Naprawa discusses the company’s support from Mexico’s medical community and describes the success of Khiron’s recent medical symposium on the efficacy of cannabis for physicians in Mexico.

Narrator: Khiron Life Sciences, Corp. is listed on the TSX Venture under the ticker symbol KHRN.

James West:   Chris Naprawa joins me now, the President of Khiron Life Sciences, trading on the TSX Venture under the symbol KHRN. Chris, welcome back.

Chris Naprawa: Thank you, James.

Origin House (CNSX:OH) (OTCMKTS:ORHOF) (FRA:CY4) CEO Marc Lustig discusses the company’s acquisition by Cresco Labs Inc (CNSX:CL) (OTCMKTS:CRLBF). The deal marks the largest-ever purchase of a public company in the US cannabis space. Lustig notes that the all-stock transaction secures much-needed expansion for Origin House and access to the all-important California market for Cresco. He believes Cresco is the perfect partner for Origin House because both companies share the same philosophy on branding. Collectively, Origin House and Cresco have the largest distribution footprint in the United States. Lustig believes the combined entity has the potential to become the most valuable cannabis company in the industry. Together, Origin House and Cresco have a market cap of $5 billion and Lustig is thrilled with how he combined entity stacks up against leading Canadian LPs.

Narrator: Origin House is a California-based cannabis products and brands company operating across the US and Canada. Origin House’s brand development platform is operated out of five licensed facilities located across California, and provides distribution, manufacturing, cultivation and marketing services for its brand partners.

The company is developing infrastructure to support the proliferation of its brands internationally, including through its acquisition of Canadian retailer, 180 Smoke.

Origin House’s shares trade on the Canadian Securities Exchange under the symbol OH.

CB1 Capital Management Founding Partner and CIO Todd Harrison is not surprised by recent backfilling in the market given the tremendous first quarter many cannabis stocks experienced. He notes that many of CB1 Capital’s MSO holdings had great quarters and current market conditions are creating good entry points for many names. Harrison discusses the “non-euphoric” uses of cannabis and believes there is still considerable adoption and upward movement to come as industrial, medical, and consumer use cases are publicized. He explains the importance of institutional adoption, especially in the retail pharmacy sector, where giants CVS Health Corp (NYSE:CVS) (FRA: CVS) and Walgreens Boots Alliance Inc (NASDAQ:WBA) (FRA:W8A) have recently entered the CBD space. Harrison provides his take on Canaccord Genuity Group Inc (TSE:CF) (OTCMKTS:CCORF) (FRA:C6U) downgrading Cronos Group Inc (TSE:CRON) (NASDAQ:CRON) (

CEL-SCI Corp (NYSE:CVM) (FRA:LRSM) is a medical research company developing new immunotherapy treatments for cancer. CEO Geert Kersten provides an introduction to the company and an overview of CEL-SCI’s immunotherapy research and treatment developments. CEL-SCI has developed an immunotherapy treatment for cancer to be used during the period between diagnosis and surgery. Trials for the treatment show a 50 percent to 100 percent reduction in cancer cells. CEL-SCI is currently completing its Phase 3 trial, the largest ever for head and neck cancer, and had to extend the study due to increased patient health. Kersten emphasizes that the company’s treatment is the most cost-effective way of treating cancer and highlights CEL-SCI’s research into rheumatoid arthritis treatments.

Narrator: CEL-SCI Corporation is a biotechnology company involved in the research and development of immunotherapy products for the treatment of cancer, auto-immune and infectious diseases. The company’s core capabilities include drug discovery, research, development and manufacturing of complex biological substances.

CEL-SCI believes that boosting the patient’s immune system while it is still intact, could provide the greatest possible impact on survival.

The company has operations in Vienna, Virginia, and Baltimore, Maryland. CEL-SCI Corporation trades on the New York Stock Exchange under the symbol CVM.

Westleaf Inc (CVE:WL) CEO Scott Hurd provides an update on the company’s retail strategy and continued rollout in Alberta and Saskatchewan. Westleaf has closed its acquisition of Canndara Canada Inc, a pure play retailer. The deal complements Westleaf’s existing retail portfolio while helping the company scale quickly. The company has consolidated 100 percent interested in its R&D, extraction, processing, manufacturing, and fulfillment centre in Calgary. Westleaf recently announced a deal with Colorado-based extractor Xabis Inc. Xabis will provide extraction expertise to Westleaf’s Calgary facility, which will be rebranded as The Plant by Westleaf Labs. Hurd reveals the company will continue its retail rollout across Alberta and Saskatchewan through its Prairie Record stores.

James West:   Scott Hurd joins me now. He’s the CEO of Westleaf Cannabis, trading on the TSX Venture under the symbol WL. Scott, welcome back.

Scott Hurd:   Thanks, James.

James West:   Scott, sounds like you’ve had a lot going on. Why don’t you give us a rundown of all that has transpired for Westleaf since we last chatted?

Scott Hurd:   So, since going public in early January, we continue to execute and advance our vertically integrated strategy, with really a core focus on premium retail distribution. Notably during the quarter, we acquired a pure play cannabis retailer called Canndara, which provided us significant scale in high quality premium locations that are complementary to our existing portfolio. We secured options to purchase three additional cannabis retail locations in Saskatchewan; we announced one of our flagship locations in Banff, Alberta, which is a tourism mecca in Canada, sees over 4 million visitors a year. And we opened our first Prairie Records loc

Paradigm Capital Equities Analyst for Healthcare and Biotechnology Rahul Sarugaser discusses the company’s biosynthetics cannabis conference, which will be held on April 15 and is the first of its kind in the industry. Sarugaser notes that while no company is producing biosynthetic cannabinoids at scale yet, biosynthetics have the potential to bring down the costs of goods. Sarugaser provides an overview of the process and the benefits of using yeast, E. coli, or algae as a chassis. While the industry has not been able to identify the best chassis yet, he suggests the best biosynthetic cannabinoids are a result of the best combination of chassis, intellectual property, and scientific team. Sarugaser highlights Ginkgo Bioworks Inc as the segment leader and notes the company’s partnership with cannabis heavyweight Cronos Group Inc (TSE:CRON) (NASDAQ:CRON) (FRA:7CI) to develop cultured cannabinoids has the potential to produce biosynthetic cannabinoids at scale.

James West:   Rahul Sarugaser joins me now. He is the analyst with, sorry –

Rahul Sarugaser:   Paradigm.

James West:   Paradigm Capital. I had to give my head a shake there – we’ve had so many analysts in the few days. Rahul, welcome.

Rahul Sarugaser:   Thank you, thank you very much for having me.

James West:   Rahul, the thing that generated my first interest in reaching out to you was, I received an invitation to a biosynthetics conference as it pertains to cannabis, and I thought, wow, this is what I call first mover! That’s the first time I’ve seen that. So what – how did you become the first sort of institutional name that was actually promoting a group of biosynthetic producers?

Rahul Sarugaser:   Yeah, that’s a great question. So basically, myself and my associate, Michael Friedman, we’re both engineers, and we’re both biopharma guys. And we’ve been focusing on the development of clinical assets, both in cancer, but also in the cannabis space. And we wanted to understand what are the technologies that are going to be the future of this industry. And because we’re biopharma guys, pharma makes their drugs in e.coli and in yeast, and this is a clean, crisp way of making drugs.

And so we

Walker River Resources Corp (CVE:WRR) (OTCMKTS:WRRZF) (FRA:1WV) is a junior mining company bringing high-grade, low-cost mining opportunities into production. CEO Michel David describes Nevada’s potential as a leading gold territory and shares details of the company’s flagship site, the Lapon Canyon Project. The Lapon site features good infrastructure, as well as the potential for high-grade gold mineralization. David notes Walker has earned positive drill results each of the last three years that proved the company’s geological model and showed extensive mineralization. With a $15 million market cap, David feels the company is undervalued. Walker River Resources recently issued warrants, raising $1 million, to fund additional drilling operations.

Narrator: Walker River Resources Corp. is a mining company with operations in mineral country in Nevada. The company is engaged in the process of identification, evaluation, acquisition and exploration of mineral properties.

Its projects include the Watshishou property and the James Bay project. Walker River Resources Corp. trades on the TSX Venture under the ticker symbol WRR.

Ed Milewski:  I’m joined now by Michel David, who’s the CEO of Wa

420Investor and New Cannabis Ventures Founder Alan Brochstein discusses investment opportunities ahead of the bricks and mortar retail cannabis launch in Ontario. Brochstein emphasizes that retailers may be able to command more value in Canada as the illicit market in the country is displaced. Brochstein believes Alcanna Inc (TSE:CLIQ) (OTCMKTS:LQSIF) has been overlooked by retail investors. While the company’s stock price plummeted in December, the alcohol retailer’s market cap is $180 million and does not take into account its burgeoning cannabis retail operations, according to Brochstein. Alcanna already sells cannabis in Alberta and has partnered with a retail lottery winner in Ontario. He also shares his thoughts on Gotham Green’s investment of $250 million dollars in MedMen Enterprises Inc (CNSX:MMEN) (OTCMKTS:MMNFF) (FRA:0JS). Brochstein highlights that the investment signals a note of confidence in the company from one of the industry’s preeminent investors.

James West:   Alan Brochstein joins me now, CEO and publisher at 420 Investor at 420investor.com. Alan, welcome back.

Alan Brochstein:   Hey, thanks. Good to see you, James.

James West:   How are you?

Alan Brochstein:   I’m doing great.

James West:   Awesome. So Alan, give me an overview: what are you seeing in the market? I mean, obviously we could talk about the end of – I saw your comment on Twitter that cannabis investors should be glad that it’s over, which is, you know, fair enough. How has the end of the Mueller investigation overall affected the cannabis stock complex?

Alan Brochstein:   Yeah, I don’t think it’s a big issue, but I think it’s important to remember: a lot of people have strong political views about our President, and I won’t go into my own – it’s not important. But I think one of the big challenges for our industry is, if he were to be removed from office or anything like that, it would leave a President Pence. And I can assure you it’s hard to figure out where Donald Trump comes down on certain issues in terms of legality, and even for medical he seems to be staying out of the way, and it’s not an issue at this point. And he could embrace it, for all we know.

But I can assure you,

PI Financial Corp Cannabis/Special Situations Analyst Jason Zandberg discusses why he’s bullish on the US cannabis market. Zandberg notes that while Canadian recreational cannabis sales are falling behind original estimates, US numbers continue to exceed expectations. He’s excited about the potential of the Florida market and believes the introduction of smokable products, edibles, and rapid patient growth should accelerate sales numbers in that state. Zandberg notes that cannabis laws are increasingly passed through legislation on a state level and means consumers and investors do not have to wait for election periods for legalization to advance. Zandberg indicates that the international market for cannabis is significant but worries current exports are not enough to satiate global markets. Zandberg suggests the Canadian market is experiencing growing pains but the legalization of edibles should help with disappointing recreational sales numbers. Zandberg notes that if Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) (FRA:21P) finds are major partner, it will act as a sector catalyst.

James West:   Okay, joining me now via Skype is Jason Zandberg. He is the cannabis analyst at PI Financial Corp. Jason, welcome back. Jason, so I’ve been asking everybody on the analyst front the same question, so I’m going to ask it of you as well: what are you seeing in the cannabis space that most excites you right now?

Jason Zandberg:    You know, we’re still paying a lot of attention to the US space, and –

Ed Milewski:  I can’t hear him.

Jason Zandberg:    Can you not hear me?

James West:   Yeah, I can hear you now fine, sorry.

Jason Zandberg:    Yeah, no, we, you know, we continue to like the US space. You know, we saw some data out of the Canadian rec stats from January that, you know, that showed that cannabis is really falling behind in terms of where we expected the first year of cannabis sales to be, whereas it’s the opposite in a lot of the US states. We’re seeing numbers exceed where we are expecting. So we’re focusing very much on the US multi-state operators, you know, and zeroing in on states that we really like.

James West:   Sure. So what are your favourite states, besides California?

Jason Zandberg:    Florida is actually in a great position right now. Not only are we seeing sales doing really well in that state

Vireo Health International Inc (CNSX:VREO) (OTCMKTS:VREOF) CEO Dr. Kyle Kingsley provides an introduction to the company and an overview of its research. Vireo is the leading science-focus MSO in the United States. Founded by doctors, Vireo prioritizes IP development, which also drives opportunities in the health and wellness space. Dr. Kingsley believes the paucity of data regarding the efficacy of cannabinoids is a direct result of prohibition. He notes CBD can be a valuable tool to treat chronic pain without the negative side effects of current treatments, such as opioids. The company is involved in multiple clinical studies and is interested in developing a cannabinoid-based intravenous therapy for use in emergency health care. Vireo operates in 7 states and recently began trading on the CSE.

Narrator: Vireo Health, Inc. is a physician-led multi-state cannabis company committed to safely alleviating pain by providing patients with cannabis products and compassionate care. Vireo’s subsidiary companies cultivate cannabis in environmentally friendly greenhouses, manufacture pharmaceutical-grade cannabis extracts, and offer their products for sale to qualifying patients at retail dispensaries and online.

Vireo Health, Inc. is listed on the Canadian Securities Exchange under the ticker symbol VREO.

James West:   Why don’t we start with an overview: what does Vireo Health do?

Kyle Kingsley: Yeah, so Vireo Health is the scientific leader of the multi-state cannabis operators in the United States. I’m a physician; we’re heavily stacked with ph