Midas Letter

North Bud Farms Inc (CNSX:NBUD) (OTCMKTS:NOBDF) CEO Ryan Brown shares details of the company’s binding LOI to acquire all shares of Eureka Vapor LLC. Eureka is a manufacturer and retailer of premium cartridge-style disposable vapor pens in California and Colorado. Eureka has significant market penetration in both states and North Bud Farms’ stock soared on news of the acquisition. Brown believes Eureka, a legacy brand in California, helps North Bud Farms build its portfolio of brands as the company looks to build its US footprint. Brown comments on the importance of the US space and highlights that listing in the US has raised the company’s profile. Construction continues on the company’s production facility in Quebec and Brown anticipates the plant will be operational in Q2.

Narrator: North Bud Farms, Inc. is a Canadian-based company that operates and manages cannabis production facilities. Through its wholly owned subsidiary, GrowPros MMP, Inc., North Bud Farms is pursuing a license under the Cannabis Act.

The company is constructing production facilities in Low, Quebec.

North Bud Farms, Inc. plans to focus on pharmaceutical and food-grade cannabinoid production in preparation for the legalization of edibles and ingestible products scheduled for October, 2019.

North Bud Farms, Inc. is listed on the CSE under the ticker symbol NBUD.

James West:   Hey, Ryan, how are you?

Ryan Brown:   Great, James, how are you?

James West:   I’m doing well, thanks. What’s new with North Bud Farms?

Ryan Brown:   Well, we put out a press release last week announcing a bindi

Newstrike Brands Ltd (CVE:HIP) (OTCMKTS:NWKRF) (FRA:0N8) CEO Jay Wilgar is thrilled with the company’s acquisition by Quebec-based HEXO Corp (TSE:HEXO) (NYSE-A:HEXO) (FRA:74H). Wilgar believes the all-share $263 million transaction provides considerable synergies between the two companies and allows the combined entity to create a truly national branding strategy. The deal combines HEXO’s strong brand presence in Quebec with Newstrike brand Up Cannabis’ national footprint. Wilgar discusses how the deal dramatically increases HEXO’s production capacity while allowing the combined companies to function more efficiently. The combined entity is anticipating $400 million in revenue from cannabis sales in 2020.

Narrator: Newstrike Brands, Limited is the parent company of UP Cannabis Inc., a licensed producer of cannabis. Newstrike currently has two cannabis facilities in Ontario: an indoor grow room in Brantford, and a greenhouse in Niagara. Both facilities are licensed to cultivate and sell cannabis for the recreational market under the UP Cannabis brand.

Newstrike has just been acquired by Quebec cannabis company HEXO Corp., in an all-share transaction valued at approximately $263 million, subject to shareholder approval.

Newstrike Brands, Limited is listed on the TSX Venture under the ticker symbol HIP.

Plus Products Inc (CNSX:PLUS) (OTCMKTS:PLPRF) (FRA:0T1) is one of the largest edibles manufacturers in California. CEO Jake Heimark shares details of the company’s story and its unique approach to the crowded California market. Plus Products is focused on producing low dose edibles, which allows consumers to make personalized choices. Unlike many in the space, Plus has a small portfolio of products. Heimark explains that by focusing on just 4 different products, the company can ensure consumers have the same product experience across numerous  jurisdictions. The company’s Uplift Sour Watermelon Sativa gummies are the number one product in California across all categories. The company also offers CBD Relief Pineapple & Coconut gummies and is working with regulators to achieve the correct dosages for CBD products.

Narrator: Plus Products, Inc. is based in California and manufactures cannabis-infused edibles which it sells to both the regulated medicinal and adult-use recreational markets.

All products under the Plus brand are made with high-quality ingredients in the company’s dedicated 12,000 square foot food-safe manufacturing facility in Adelanto, California, staffed with chemists and food scientists.

Plus Products, Inc. is listed on the CSE under the ticker symbol PLUS.

Planet 13 Holdings Inc (CNSX:PLTH) (OTCMKTS:PLNHF) CEO Robert Groesbeck is thrilled with the company’s partnership with Tyson Ranch, Mike Tyson’s cannabis product line. Groesbeck believes both Planet 13 and Tyson Ranch are trying to create similar experiences for cannabis consumers. The purchase agreement with Tyson Ranch ensures Planet 13 is both the launch partner for Tyson Ranch products in Nevada and includes promotional appearances by Tyson. Planet 13’s Las Vegas-based Superstore sees 2400 cannabis enthusiasts per day, including 1700 daily paid tickets. Groesbeck reveals that because demand has been so strong, Planet 13 has decided to expand its production facility. When finished, the company will be able to supply its Planet 13 Superstore with products such as its successful line of vapes, as well as sell products wholesale throughout the state.

Narrator: Planet 13 Holdings is a vertically integrated cannabis company based in Nevada. The company has production and dispensary operations in Las Vegas, selling both recreational and medical product lines.

Planet 13 Holdings opened its Planet 13 superstore in November 2018. Located in close proximity to the Las Vegas strip and housed in a 100,000 square foot commercial space, the superstore is the largest cannabis entertainment complex located in Las Vegas.

Planet 13 Holdings trades on the Canadian Stock Exchange under the symbol PLTH.

James West:   Robert Groesbeck joins me now via Skype from Las Vegas, Nevada. He’s the CEO of Planet 13 Holdings, trading on the CSE under the symbol PLTH. Robert, welcome back.

Robert Groesbeck:  Oh, thank you. Appreciate you having me back again.

James West:   Robert,

Canopy Rivers Inc (CVE:RIV) (OTCMKTS:CNPOF) President Narbe Alexandrian discusses the company’s recent agreement with LeafLink Inc. Alexandrian explains that the joint venture is designed to take LeafLink’s scalable platform to other jurisdictions where cannabis is legal, including Canada and international markets. Alexandrian stresses the need for a platform to help brands, dispensaries, and licensed producers create synchronized management systems. He believes LeafLink’s successful B2B e-commerce platform can provide this synchronicity. He notes that the investment in LeafLink complements Canopy Rivers’ earlier investment in Headset Inc and the combination provides insight into both retail and wholesale cannabis sales. Alexandrian suggests the cannabis industry is still significantly undervalued in the market and believes cosmetics and consumer packaged goods represent significant segments.

James West:   I’m back here with Narbe Alexander. He’s the President of Ca – Alexandrian. Sorry, I keep saying Alexander.

Narbe Alexandrian: No worries.

James West:   He’s the President of Canopy Rivers. Congratulations on your advancement to President!

Narbe Alexandrian: Thank you. It’s a pleasure being here.

James West:   Yeah. Narbe, we recently, or earlier today, we spoke to Mr. Smith from LeafLink, and he outlined an interesting business opportunity. It’s funny that, so they do basically behind the scenes logistics and fulfillment, IT kind of stuff, and I’ve never heard of them before – but obviously you guys have, and have been tracking them. So how long have you known about

AltaCorp Capital Inc Research Analyst David M. Kideckel, PhD, MBA shares his thoughts on the HEXO Corp (TSE:HEXO) (NYSE:HEXO) (FRA:74H) acquisition of Newstrike Brands Ltd (CVE:HIP) (OTCMKTS:NWKRF) (FRA:0N8). Kideckel likes the synergies between the two companies, particularly when it comes to the industry’s main value drivers of branding, beverages, and consumer packaged goods. Kideckel discusses AltaCorp’s top pick in the space, Valens GroWorks Corp (CNSX:VGW) (OTCMKTS:VGWCF) (FRA:7LV). He notes that the company’s recent deal with The Green Organic Dutchman Holdings Ltd (TSE:TGOD) (OTCMKTS:TGODF) (

Ventura Cannabis and Wellness Corp (CNSX:VCAN) (OTCMKTS:CVHID) (FRA:VML0) operates drug and alcohol rehabilitation programs, offering inpatient and outpatient treatments including a line of marijuana lifestyle supplements.  CEO Jacob Gamble shares details of the company’s recent changes and rebranding. Gamble notes that Ventura is divesting its outpatient assets over the next 12 to 36 months and is prioritizing inpatient care which complements the company’s cannabis focus. Gamble discusses the company’s pivot toward acquiring revenue-generating dispensaries and highlights that Ventura will also start building out its own dispensaries soon. In February, Ventura announced dispensary purchases in California and Oregon.

Narrator: Ventura Cannabis and Wellness Corp. operates a drug and alcohol addiction rehabilitation centre serving patients in the United States and Canada. The company offers in-patient and outpatient intensive treatments, including a line of marijuana lifestyle management supplements.

While Ventura continues to focus on its traditional services, it is exploring the possibility of expanding its addiction treatment service and product offering in the cannabis space.

Ventura Cannabis and Wellness Corp. is listed on the CSE under the ticker symbol VCAN.

Zenabis Global Inc (CVE:ZENA) (OTCMKTS:ZBISF) (FRA:2VV) CEO Andrew Grieve shares details of the company’s letter of engagement with Eight Capital. Under the terms of the deal, Eight Capital agrees to purchase 15,000 unsecured convertible debentures, guaranteeing Zenabis $15 million in capital. Eight Capital has also agreed to offer for sale an additional 60,000 convertible debentures, to bring the total financing to $75 million. Grieve indicates the proceeds from the convertible debentures will be used to continue the conversion of four production facilities across the country. Zenabis entered the Alberta recreational market in February when it signed a supply agreement with the AGLC. Zenabis products will be available in the Quebec market in Q2, as the company signed a supply agreement in February with the SQDC. Zenabis now has supply agreements with 9 provinces and territories and recently inked a supply agreement with retail behemoth Shoppers Drug Mart.

Narrator: Zenabis Global Inc. is a Canadian-based licensed cannabis cultivator of medical and recreational cannabis within New Brunswick, British Columbia and Nova Scotia.

Once their facility space is fully built, Zenabis will own and have access to 660,000 square feet of high-quality indoor cannabis production space, as well as 2.1 million square feet of greenhouse space at its Langley facility.

Zenabis has established distribution relationships with government and third party retailers and distributors in 9 Canadian jurisdictions. The company has also announced an agreement with Shoppers Drug Mart to serve medical patients across Canada.

Zenabis Global, Inc. is listed on the TSX Venture under the ticker symbol, ZENA.

Dixie Brands Inc (CNSX:DIXI.U) (FRA:0QV) CEO Chuck Smith is excited about the company’s recently announced joint venture with Khiron Life Sciences Corp (CVE:KHRN) (OTCMKTS:KHRNF) (FRA:4KH). The companies have formally launched Dixie Khiron JV Corp, a 50/50 joint venture which will bring Dixie’s portfolio of more than 100 market-proven products to Latin America. The deal also enables Dixie to manufacture and distribute Khiron’s Kuida-branded products in the US. Smith anticipates that Dixie products will be in Mexico and Colombia shortly. Smith notes that as regulations change and new products are legalized in different Latin American markets, Dixie’s extensive product catalogue allows the company to move swiftly to capitalize on those changes.

James West:   Chuck, welcome!

Chuck Smith:  Thank you very much, so happy to be here.

VIVO Cannabis Inc (CVE:VIVO) (OTCMKTS:VVCIF) (FRA:23Q) CEO Barry Fishman is thrilled with the launch of Canna Farms Limited’s integrated medical cannabis website. Canna Farms is a craft brand that was acquired 6 months ago by VIVO. The integrated medical cannabis website consolidates the company’s brands and products into one store that offers a variety of product presentations and brands, as well as over 40 strains of cannabis. Fishman notes it is integral to provide customers with choice and he believes the variety of offerings available on the website will help secure customer loyalty. In February, VIVO Cannabis subsidiary ABcann Medicinals Inc received its Health Canada sales license for cannabis oil. Fishman stresses participation in the concentrates space is crucial for success and this license helps VIVO enter an integral market.

Narrator: VIVO Cannabis Inc., a Canadian licensed producer of cannabis, is headquartered in Napanee, Ontario. VIVO has a collection of premium brands including Beacon Medical, Fireside, and Lumina.

In August 2018, VIVO acquired Canna Farms, a premium cannabis company based in Hope, British Columbia.

VIVO Cannabis is focused on expanding its production capacity and pursuing partnership and product development opportunities domestically as well as in international markets, including Germany and Australia.

VIVO Cannabis Inc. is listed on the TSX Venture under the ticker symbol VIVO.