Midas Letter

Heritage Cannabis Holdings Corp (CNSX:CANN) (OTCMKTS:HERTF) (FRA:2UE) CEO Clint Sharples expects the company to beginning oil production in March. While Heritage is still waiting on its Health Canada licenses, the company’s stock has doubled in the last three weeks. Heritage announced the creation of a new subsidiary, BrightLife Sciences Ltd, which will further Heritage’s medical cannabis goals. Sharples shares that the company’s first cannabis crop at its Fort Erie facility was successful and 24,000 square feet of the site have been built out. The Fort Erie facility also includes 30,000 square feet of dedicated extraction space and 60,000 square feet for addition production and manufacturing of products like edibles. Sharples indicates Heritage is open to partnerships and has received considerable interest for Phase 3 agreements.

Narrator: Heritage Cannabis Holdings Corp. operates a holding company which cultivates, sells and distributes medical cannabis in Canada.

The company currently has two Health Canada approved licensed producers through its subsidiaries, PhyeinMed Inc. and Cannacure Corp., both of which are regulated under the Cannabis Act regulations.

Heritage Cannabis is focused on advancing its scale and technology footprint to compete both domestically and internationally.

Heritage Cannabis Holdings Corp. trades on the CSE under the ticker symbol CANN.

Charting Man Dan McDermitt, founding partner and analyst with the Chart Guys, discusses seasonal trends in the US cannabis space. McDermitt points out that historically MJ stocks run up in the fall and early winter, before experiencing a sell-off in the spring and summer in the US space. He suggests the S&P’s nine-week bullish run has lulled investors into a false sense of security, but there is still reason for optimism in Tier 2 and Tier 3 names. Charting Man Dan addresses recent blue sky breakouts and highlights the impressive runs by Khiron Life Sciences Corp (CVE:KHRN) (OTCMKTS:KHRNF) (FRA:4KH) and Village Farms International Inc (TSE:VFF) (NASDAQ:VFF) (FRA:02V). He notes that Village Farms’ stock soared on news that it was uplisting to a major US exchange and expects to see a similar run for CannTrust Holdings Inc (TSE:TRST) (NYSE:CTST) (FRA:C9S) as it moves to the NYSE.

Fraser Toms:  Hey, we’re with Charting Man Dan once again – one of our very most popular guests, actually. Maybe not as popular as Cam Battley or something, but close. Everybody likes these chart breakdowns, so Dan, thanks for joining us again.

Dan McDermott: Glad to be here.

Fraser Toms:  Awesome, yeah. So we’re just chatting a bit off air, wouldn’t mind kicking this off with, you had

RavenQuest BioMed Inc (CNSX:RQB) (OTCMKTS:RVVQF) (FRA:1IT) CEO George Robinson discusses the company’s management and consulting services. RavenQuest offers a full suite of services to companies operating in the cannabis space. RavenQuest also has a consultation agreement with Alexander First Nation, to develop a Health Canada application as part of the company’s ongoing commitment to work with Indigenous communities. RavenQuest is still waiting for its full sales licenses for its Markham and Edmonton facilities. Robinson indicates the company has cornered the market on Dutch cannabis genetics through its deal with cannabis seed producer Dutch Passion.

Narrator: RavenQuest BioMed Inc. is a diversified, publicly traded cannabis company with divisions focused on cannabis production, management services and consulting, and specialized research and development.

RavenQuest is a licensed producer, with facilities located in Markham, Ontario and Edmonton, Alberta. The company maintains a research partnership with Montreal’s McGill University, focused upon cultivar recognition, plant stabilization and yield maximization of the cannabis plant.

RavenQuest BioMed, Inc. is listed on the CSE and trades under the ticker symbol RQB.

420Investor and New Cannabis Ventures Founder Alan Brochstein dissects the latest financial reports in the cannabis sector. He highlights that Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) (FRA:21P) and Canopy Growth Corp (TSE:WEED) (NYSE:CGC) (FRA:11L1) together secured 50 percent of recreational sales in Canada. Brochstein believes the era of hockey stick growth has begun and notes more growth can be expected. He’s surprised Canopy Growth’s medical side has slipped for the second straight quarter and questions the company’s recreational focus. Brochstein is impressed with NYSE-bound CannTrust Holdings Inc’s (TSE:TRST) (NYSE:CTST) performance in the medical space. Brochstein is enthusiastic about the crucial role biosynthetics will play in the extraction and derivative space but worries this will create stranded assets for cultivators.

James West:   I’m joined now by Alan Brochstein, uber-analyst of cannabis from America, and he’s in Houston, Texas today joining us via Skype. Alan, how are you today?

Alan Brochstein:   I’m going great. Good to see you, James.

James West:   It’s always great to see you too. Alan, I understand, let’s start it off with a little promo here: you mentioned that you’re going to be here in Canada in April for an event.

Alan Brochstein:   I am. It’s my 29th anniversary, and I’m going to be there with my wife, but I don’t think that’s what everybody cares about. Benzinga was such a great conference last time even though you weren’t able to make it, and they’ve decided to come back April 17th and 18th, after a very successful Miami event. And I think they’re going to have another one in October in the United State

Kintavar Exploration Inc (CVE:KTR) (FRA:58V) CEO Kiril Mugerman reviews the company’s 2018 drill results and explains Kintavar’s 2019 drill program. Mugerman highlights the advantages of the discovery’s huge stratiform sedimentary basin and illustrates how today’s advanced sorting technologies make mining this deposit a profitable endeavour.  Kintavar prioritizes projects with access to existing infrastructure, which helps make mining a medium-grade deposit profitable. Mugerman discusses the copper deficit and indicates the general consensus in the mining industry is that by 2021, existing reserves will be depleted.

Narrator: Kintavar Exploration Inc. is a natural resources corporation focused on the exploration and development of precious metals and base metal properties.

The company seeks to identify, investigate, evaluate and acquire under-explored properties located in both traditional and non-traditional geographically favourable environments.

Currently, the company’s focus is on two sectors: the Abitibi Gold District, and in the Grenville geological province of the Mitchi property.

Kintavar Exploration is listed on the TSX Venture and trades under the ticker symbol KTR-X.

James West:   I’m joined now by Kiril Mugerman; he is the CEO of Kintavar Exploration. Welcome back, Kiril.

Canaccord Genuity Group Inc (TSE:CF) (OTCMKTS:CCORF) (FRA:C6U) Analyst Matt Bottomley  breaks down recent financial reports released by Canopy Growth Corp (TSE:WEED) (NYSE:CGC) (FRA:11L1) and Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) (FRA:21P). Bottomley says the numbers should be a red flag to other industry players and potential investors, as Canopy and Aurora captured roughly 50 percent of the Canadian recreational space in an increasingly crowded market. Bottomley believes there’s room to grow in terms of sales volumes and thinks the ultimate demand of the Canadian market is 10 times what current sales suggest. He highlights lack of government resources and infrastructure as one reason for the bottleneck. Bottomley also notes that the Canadian recreational space is primarily an online model right now and lacks the product depth and classifications that will ultimately lift the market.

James West:   Matt, what are you looking at these days and what are you liking, what are you hating?

Matt Bottomley:    Well, it’s, there’s a lot going on, obviously, and you know, looking at the space, Q4, last time we talked, maybe a little after th

Fire & Flower Holdings Corp (CVE:FAF) CEO Trevor Fencott is excited about the company’s debut on the TSX Venture Exchange. Fencott is thrilled with the growing interest in the company, noting Fire & Flower’s trading volume was 3 million on its debut. The cannabis retail chain recently announced it reached licensing agreements with two cannabis retail lottery winners to create Fire & Flower branded stores in Kingston and Ottawa. Fire & Flower has 7 stores in Alberta and 2 in Saskatchewan with plans for more. So far, sales have exceeded expectation and the 9 stores have combined for $10 million in revenue over the first 90 days of recreational sales. Fencott is thrilled the company’s individual stores have surpassed estimates as well and, based on run rates, are on track for $4 to $5 million in revenue per store annually.

Narrator: Fire and Flower is a cannabis retail franchise, with provincial licenses to operate seven cannabis retail stores in Alberta, two cannabis retail stores in Saskatchewan, as well as a wholesale cannabis supply business.

The company is currently pursuing additional licenses to operate stores in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario.

Fire and Flower stores recently surpassed $10 million in sales since legalization. The company had five locations open on October 17th, and has since doubled its retail footprint.

Fire and Flower began trading on the TSX Venture today under the ticker symbol FAF.

James West:   Joining me now is the CEO of Fire and Flower Holdings Corp: Trevor Fencott joins me. How are you, Trevor?

Trevor Fencott:    I’m well, I’m well, thanks.

Drone Delivery Canada Corp (CVE:FLT) (OTCMKTS:TAKOF) (FRA:ABB) is a drone development and delivery company that is commercializing its technology to provide logistical solutions for remote communities and government agencies. CEO Tony Di Benedetto shares details of the company’s latest drone, the Condor, which has a 400-pound payload capacity. Di Benedetto emphasizes that this cargo model is a game changer for Drone Delivery Canada as the company can move from small parcel delivery to providing true cargo capacity solutions. Drone Delivery Canada is beginning its commercial operations this year and wants to capture 20 percent of Canada’s remote community market over the next five years. Drone Delivery Canada has a $2.5 million pilot project with the Moose Cree First Nation to provide drone delivery infrastructure for the communities of Moosonee and Moose Factory.

Narrator: Drone Delivery Canada is a drone technology company focused on the design, development and implementation of a drone delivery system. The company’s platform will be used by government and corporations.

Today, the company unveiled its largest cargo and farthest range delivery drone, the Condor.

With a payload capacity of 180 kilograms, and a potential travel distance of up to 200 kilometres, the Condor pushes the limits in both cargo capacity and distances. The cargo is powered by a next-generation gas propulsion engine.

Drone Delivery Canada is a publicly traded company listed on the TSX Venture Exchange under the symbol FLT.

High Tide Inc (CNSX:HITI) (OTCMKTS:HTDEF) (FRA:2LY) is a cannabis accessory manufacturer and retailer. CEO Raj Grover explains that the company manufactures 75 percent of the products sold in its stores. High Tide has cornered the market on licensed accessories, producing and selling officially licensed Snopp Dogg and the Trailer Park Boys products. High Tide’s accessories are sold in 3000 stores worldwide and are available in 20 countries. High Tide’s Canna Cabana retail outlets are a one-stop shopping solution, selling accessories, merchandise and, in Alberta, cannabis. The company has signed deals to provide logistical support to Ontario retail lottery winners. In December, High Tide received a stamp of approval from Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) (FRA:21P), when the industry giant invested $10 million in the retail play. High Tide went public in December and has since doubled its share price.

Narrator: High Tide is an Alberta-based cannabis corporation focused on the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products.

High Tide is a vertically integrated company with portfolio subsidiaries including RGR Canada Inc., Kush West Distribution Inc., Smokers Corner Limited, GrassCity.com, Canna Cabana Inc. and the majority of Kush Bar, Inc.

High Tide Incorporated trades on the CSE under the ticker symbol HITI.

Tree of Knowledge International Corp (CNSX:TOKI) (OTCMKTS:TRKWF) (FRA:0RV) is a research and development company focused on creating cannabinoid-based health solutions. Vice Chairman Michael Caridi shares details of the company’s relationship with Dr. Kevin Rod and his chronic pain research centre, the Toronto Poly Clinic. Caridi also discusses the company’s South American strategy including a push to dominate Brazil’s chronic pain market. Tree of Knowledge has one of the largest patient bases in Canada and has access to the largest patient population through its new alliance with Jack Nathan Health. Jack Nathan Health has 74 clinics operating in Walmart stores across the country, with more than 2 million patient visits annually.

Brandon Colwell:   Well, we’ve got our next guest in the line here, we’ve got Michael Caridi, CEO of Tree of Knowledge International Corp.

Ed Milewski:  Yeah, they had a big move recently.

Brandon Colwell:   They did. How are you today, my good sir.

Michael Caridi:    Very well. All the way in New York City, here.