Midas Letter

Supreme Cannabis Company Inc (TSE:FIRE) (OTCMKTS:SPRWF) (FRA:53S1) CEO Navdeep Dhaliwal updates viewers on the company’s international operations and its performance in the Canadian recreational market. Supreme Cannabis is pleased with its investment in a Lesotho-based producer of medical cannabis oils and is looking to open export channels for that product. Dhaliwal emphasizes that the company has established itself as a premium cultivator and is pleased with the performance of its premium brand, 7Acres. The company’s Q2 2019 financials were impressive and included a 359 percent increase in revenue YOY and a 50 percent increase in revenue QOQ. Dhaliwal notes that in terms of run rate, Supreme Cannabis is 8th in the country, despite the company’s relative youth when compared to its competitors.

James West:   Nav Dhaliwal joins me now. He’s the CEO of Supreme Cannabis Company, my apologies, trading on the TSX under the symbol FIRE. Nav, welcome back.

Navdeep Dhaliwal:  Thanks, James, good to be here.

James West:   Actually, this is the first time I’ve talked to you as the CEO.

Navdeep Dhaliwal:  Yeah, I believe

Noram Ventures Inc (CVE:NRM) (OTCMKTS:NRVTF) (FRA:N7R1) is a Canadian junior exploration company focused on the development of lithium deposits globally. Director Daniel Hackey provides an update on the company’s operations and progress at its flagship Nevada site, the Zeus Property. The project is situated near the Albemarle Corporation’s (NYSE:ALB) (FRA:AMC) lithium brine-producing project at Silver Peak. Noram’s resource has been increased by 8 times, and Hackey believes the project can be in production within approximately 2 years. Hackey explains the potential value of lithium as a source of green energy and notes 10 gigafactories will be coming online shortly. In addition, auto giant Volkswagen, which represents 8 percent of the global vehicle industry, is planning its fleet of lithium-battery cars. As a result, Hackey sees $10,500 as a realistic price for lithium going forward.

Narrator: Noram Ventures Inc. is a Canadian-based junior exploration company engaged in the acquisition and exploration of mining properties.

The company’s main emphasis is on the exploration for copper molybdenum in the Revelstoke mining division, British Columbia.

Noram’s long-term strategy is to build a multinational lithium minerals company to produce and sell lithium into the markets of Europe, North America and Asia.

Noram Ventures, Inc. is listed on the TSX Venture and trades under the ticker symbol NRM.

Redfund Capital Corp (CNSX:LOAN) (OTCMKTS:PNNRF) (FRA:O3X4) incubates and accelerates growth and primarily serves companies operating in the cannabis space. CEO Meris Kott explains that Redfund Capital is a bridge financing model to help second stage companies reach the next phase of development. Redfund provides clients with a promissory note in exchange for an equity kicker and warrant coverage. Kott explains that the company takes a stake in its clients and has begun to convert its stakes into equity, growing its net assets. Redfund also provides business development services and helps take private companies public. Redfund Capital has 8 companies in its portfolio currently with an additional 11 in its pipeline.

James West:   Meris Kott joins me now. She’s the CEO of Redfund Capital Corp., trading on the CSE under the symbol LOAN – which leads me to suspect that you’re in the lending business.

Meris Kott:   Absolutely. How’d you guess?

James West:   It’s pretty easy with that symbol! Meris, why don’t we start with an overview – what exactly is the business model of Redfund Capital Corp.?

Meris Kott:   We are a merchant bank, but we’re mainly a debt facility. What we did is, we’ve created a fac

Materia Ventures Co-Founder and CEO Deepak Anand updates viewers about regulatory changes in the global cannabis industry. He discusses the likelihood of the WHO rescheduling cannabis and analyzes how international trade would be impacted. Anand reveals Europe already has a sophisticated CBD market and examines the impact of harmonized laws among European Union countries in the space. Anand talks about recent warnings sent by the FDA to companies manufacturing CBD products in the United States. However, he believes there will be a change in attitudes as cannabis legalization becomes an election issue in 2020. Anand was recently appointed to the board of Chemesis International Inc (CNSX:CSI) (OTCMKTS:CADMF) (FRA:CWAA). He discusses the company’s operations in Latin America and its plan to take advantage of the growing CBD market.

James West:   Hey. Joining me now via Skype from Vancouver is Deepak Anand, who is now the CEO and co-founder of Materia Ventures. Deepak, how are you?

Deepak Anand: Good, thank you. How are you?

James West:   I am great. So you’ve got a new corporate gig?

Deepak Anand: I do, yes.

James West:   Tell us about that.

Deepak Anand: So Materia Ventures is a company set up to supply the distribution market in Europe. We’ve got a number of supply and distribution agreements in place in Germany, in the UK and Italy, and a variety of other countries.

James West:   Really? So you’ve been traveling the world; you’re probably one of the most knowledgeable people when it comes to new rules in new places. Where do you see the most interesting stuff happening in terms of what new rules are coming out now? Like, where are there new rules happening?

Deepak Anand: A variety of different countries coming up, James, with, you know, a variety of countries coming online. Thailand, as you know, recently sort of said they’re going to allow for this to happen and be cultivated in Thailand. In addition to that, we’re paying very close attention to Luxembourg, that said they’re going to be legalizing not just medical but also recreational cannabis. Gibraltar, the island of Gibraltar, is looking at cannabis legalization quite seriously, and Laos is another country that seems to be moving forward. So, many new jurisdictions coming online soon, here.

James West:   Very cool. Have you done anything in Peru? I hear Peru is coming online now.

Deepak Anand: Yes, Peru seems to be, you know,

LeafLink Inc Co-Founder and CEO Ryan Smith provides an introduction to the company and details of its recent deal with Canopy Rivers Inc (CVE:RIV) (OTCMKTS:CNPOF). LeafLink is a cannabis wholesale marketplace featuring 950 brands and 2800 retailers. The B2B platform is available in 16 territories and generates profits through monthly hosting fees charged to companies using the platform. LeafLink and Canopy Rivers announced a joint venture to bring LeafLink’s cannabis supply chain e-commerce platform to additional legal cannabis jurisdictions internationally. LeafLink completed a Series A financing 18 months ago and the private company currently has no plans to go public.

James West:   Ryan Smith, co-founder and CEO of LeafLink Inc. joins me now. Ryan, how are you?

Ryan Smith:   Doing well, thanks for having us.

James West:   Good. Ryan, LeafLink has come out of nowhere, and suddenly, like, that’s quite a press release! It says in your, that you’re serving more than 950 brands to 2,800 retailers in 16 territories in the US. Tell me about your business.

Ryan Smith:   Yeah. So we’ve been hard at work here for just about the last three years, building a B2B wholesale marketplace, and our entire goal is to really streamline how the transactions happen between, as you said, retailers, dispensaries, and leading brands in the cannabis space.

James West:   Right. Okay, so you actually have – you supply 2,900 dispensaries currently?

Ryan Smith:   So the way our platform works is, we are a technology platform. So imagine there are brands and retailers like, for example, Kiva, Venice Cookie Company, Iguana, that sell their products using our platform. And then they handle, you know, the logistics and the delivery of that product. So we’re not warehousing or physically selling it ourselves, but we’re providing the connections online for people who are.

James West:   Ah, I see. So, do you – how does the economics work? Do you get a cut of every transaction?

Ryan Smith:   Yeah, so there’s a few revenue lines that we have on the platform. To date, we’ve been really a stats-enabled marketplace, so we charge a monthly fee to brands to be on the platform. We recently have now had opportunities, as well as a few other revenue lines coming around about moving capital. So there’s some limitations around taking a straight transaction piece, so we haven’t historically done that.

James West:   Sure. And how does your collaboration with Canopy Rivers work?

Ryan Smith:   Yeah, so it’s a really exciting joint venture that we’re excited to be a part of with Canopy Rivers, in that they have this incredible strategic network that they can tap into on, I think over a dozen countries that they are launching an op

Analyst Dmitry Zaytsev shares his impressions of the Colombian cannabis space. Zaytsev recently toured Avicanna Inc’s facilities in Colombia and was impressed with the private company’s operations. While Zatysev isn’t bullish on the Latin American market overall, he does think the regulatory strides Colombia has made and its position as a growing hub, are positive. Zaytsev continues to see opportunity in the US space and indicates that passage of the STATES Act would change US investment in Canadian cannabis companies. In the Canadian space, Zaytsev is watching Ontario’s recreational cannabis rollout with interest because he believes supply issues on the retail side have impacted Canadian demand. He highlights undervalued names like National Access Cannabis Corp (CVE:META) (OTCMKTS:NACNF) (FRA:1HV) and Choom Holdings Inc (CNSX:CHOO) (OTCMKTS:CHOOF) (FRA:ORO) as players to watch in the Canadian space.

James West:   So how have you been, Dmitry?

Dmitry Zaytsev:    I’ve been good. I know I haven’t graced the show recently in the last month now, I guess, but I was doing a little bit of traveling, you know. Trading markets as always, but…

James West:   So what have you been seeing in the markets? What have you been buying, what have you been making money on?

Dmitry Zaytsev:    Well, I think last time we chatted, I was buying those Cronos puts, and so I think we kind of chatted a little bit about that trade. So I closed out half of the position at a profit, like 2.-something X profits, which covered my initial cost, and then I kind of let the rest ride, and Cronos hung in there. And so that kind of remainder, I sold off for couple of pennies. So on the net it was, you know, a positive trade, but if we had a little bit less market support from the S&P 500 and all that, it could have been a great trade.

But generally now, I’m just sort of looking in terms of

MasterControl Inc is a software company providing industry-specific automated quality and compliance solutions on its MasterControl Platform. MasterControl’s Bryant Headley believes the company’s automated compliance tracking services are suitable for public and private companies alike. The MasterControl Platform is currently used by pharma, life sciences, and medical companies in addition to government agencies and departments such as the FDA, USDA, and United States Army. Headley sees the MasterControl Platform as the ideal system for automated compliance solutions in the cannabis space, where real-time tracking of seed-to-sale operations is essential. The MasterControl Platform is also adaptable and can be integrated with other systems to meet the needs of clients.

James West:   Bryant, how are you doing?

Bryant Headley:    Good, how are you doing?

James West:   I’m well, thank you. Tell me about the business of compliance that MasterControl is in?

Bryant Headley:    I’ll tell you, you know, I was using MasterControl since my government days, but it’s a good quality system that brings analytics, control, it brings a whole gamut of good data collection into any kind of system. So it’s really a life-changing, you know, product that actually helps the market with their document control, their training, their audits, whatever it may be – it’s just a great tool to be used out there for the market. Especially growing markets.

James West:   I see. Yeah, and so is it exclusive to – do you, is this used primarily in the cannabis space, or is it used in other industries as well?

Bryant Headley:    It’s used in a lot of different industries. It’s used in the government, it’s used in pharmaceutical, medical devices, it’s a slew of different areas that we go into. Like I said, it’s just a fantastic tool that’ll help you, you know, with compliance and control and the analytics part of it.

James West:   I see. So is it something that public companies can use to remain in compliance with the various regulatory rules that they have to follow?

Bryant Headley:    It sure does. You know, and it helps through the audit process as well, by having all your documentation in one controlled area. So it’s actually a great tool, especially for those folks, and I think most folks fall into the realm of having to be audited.

James West:   Yeah, so this is why I wanted to talk to you, and why I was interested in MasterControl, is because as soon as I read about your company, I thought, boy, I know of at least three dozen companies that really could use something like this. So how does a public company go about examining whether this is an appropriate tool for their compliance, and more importantly, their audit compliance processes, and how much does it cost?

Bryant Headley:    So I can’t really go into the cost of it all, but I’ll tell you from my days of being in the other side of the realm, if you will, that we are probably the best-p

Time Machine Capital is an investment company focused on accelerating and commercializing early-stage AI opportunities. Time Machine Capital Founders Philip Walsh and Dr. Joe Lyske provide an update on the company and discuss the importance of AI. Time Machine Capital prioritizes products designed to enhance music editing, sports training, and a variety of financial services. Walsh and Lyske demonstrate the value of a program that allows creators to quickly add appropriate music to their videos using AI. They discuss the benefits of AI and highlight that artificial intelligence has broad applicability in industries as varied as music, media, sports, health, and finance. Time Machine Capital has 24 opportunities in its pipeline, in addition to its existing portfolio. The company cultivates relationships with mid-tier universities and sources developers by sponsoring PhD students, gaining access to valuable research. The pair note that Time Machine Capital is in the process of going public in Canada.

Narrator: Time Machine Capital is a privately held investment company focused on accelerating and capturing IP around applied artificial intelligence technologies. The company sources AI developers from mid-tier universities, provides seed capital for tech startups, and commercializes AI products.

Time Machine Capital currently builds cognitive products for music editing, sports training, social commerce, and financial services.

James West:   And, as promised, half of the founders of Time Machine Capital are sitting with me right now. Philip Walsh joins me.

Philip Walsh: Hello.

James West:   And Philip, quickly, what is Time Machine Capital?

Philip Walsh: Time Machine Capital is an investment company that is in the process of going public in Canada, that focuses on investing in artificial intelligence opportunities.

James West:   Fantastic. And, tell me about where’s your, like, what’s, how did you come up with this company?

Philip Walsh: So I sold my last company, which was in fintech, and I wanted to – at the time, AI was starting to enter that market in a big way. I wanted to invest in artificial intelligence opportunities, and it just so happened that the first opportunity that came on was through Dr. Joe Lyske – we’ll meet in a minute – which was an artificial intelligence in music opportunity which found, for me, it found resonance in not only my love for music, but the fact that fintech is a little bit less interesting than the music industry.

James West:   Right. And so you’re the brains behind the operation?

Philip Walsh: No, no, I can’t claim that. I can’t claim to be the brains behind the operation; the brains are actually Dr. Joe Lyske. Although, Dr. Joe Lyske –

James West:   Dr. Joe Lyske? Where is he?

Charting Man Dan McDermitt, founding partner and analyst with the Chart Guys, discusses how the 2020 election will impact the economy. McDermitt indicates that the stock market would respond positively to a Trump re-election. In contrast, he believes a win by the Democrats would reign in sectors like biotech and banking. However, the Democrats will likely have a pro-marijuana platform that includes accelerated legalization, which would allow cannabis stocks to act as a hedge play. Charting Man Dan examines the recent acquisition of Newstrike Brands Ltd (CVE:HIP) (OTCMKTS:NWKRF) (FRA:0N8) by HEXO Corp (TSE:HEXO) (NYSE-A:HEXO) (FRA:74H) and notes that the deal was done without a premium. He indicates this is negative news for smaller companies looking for buyout deals. McDermitt offers technical analysis on large cap names in the space and highlights narrowing patterns, which suggest possible breakouts.

James West:   Charting Man Dan McDermott joins me now via Skype from Asheville, North Carolina, right, Dan?

Dan McDermott: That’s right, glad to be back!

James West:   Yeah, it’s great to have you back. Dan, so today our theme is, you know, the outlook for cannabis stocks and the economy generally in the context of the 2020 elections, and you had some interesting hypotheses – theses, we’ll call them. Why don’t we start with that?

Dan McDermott: Sure. So it’s bigger-picture, you know, we’re looking 20 months out, and I’m told that in the US it’s a much bigger deal. We look a lot further ahead in the election than you do in Canada, and that’s probably because there’s billions of dollars doing their best to purchase the outcomes. But what we’re going to be looking for is, we clearly see that the stock market is a fan of Trump and Republicans. It’s been going up since he was elected, in a very big way.

So

High Hampton Holdings Corp (CNSX:HC) (OTCMKTS:HHPHF) (FRA:0HCN) CEO Gary Latham discusses the company’s shift to developing products and brands. Latham notes that with the price for dried flower dropping, High Hampton is pivoting away from developing cultivation space and prioritizing products and brands with higher margins. High Hampton is already shipping products from wholly owned subsidiaries CaliGold and Mojave Jane, with additional products in the pipeline. Latham explains how the company’s distribution license in Cudahy, California gives High Hampton the opportunity to deliver medical and recreational products anywhere in the state. Realizing the significance of distribution in California, High Hampton recently announced a binding LOI for a strategic minority investment in the 2083 Group, Inc. 2083 Group is the developer of SpeedWeed, California’s original cannabis delivery service.

Narrator: High Hampton Holdings Corp. is a Canadian-based cannabis brand and distribution company serving California’s legal recreational and wellness markets.

High Hampton has established a foothold in the distribution market through the acquisition of 420 Realty, a company developing a vertically integrated model in the outskirts of Los Angeles. The company has also acquired Coachellagro Corp., a full-service production facility for licensed medicinal cannabis cultivators, and entered the edibles space through the acquisition of the CaliGold brand.

High Hampton recently completed the acquisition of a licensed cannabis manufacturing company, Mojave Jane, LLC.

High Hampton Holdings Corp. is listed on the CSE under the ticker symbol HC.