Midas Letter

Tinley Beverage Company Inc (CNSX:TNY) (OTCMKTS:TNYBF) (FRA:45T) produces liquor inspired, alcohol free, cannabis-infused beverages. CEO Jeff Maser discusses the evolution of the California beverage space and how new regulations in that state have impacted the company’s operations. While THC beverages are legal in California, the state also introduced new restrictions for beverage manufacturers that have impacted production. Maser explains that the company’s current product line features beverages with 10 mg of THC. Tinley is developing 5 mg versions with front-loaded highs as well. Maser notes that THC beverages currently represent 0.5 percent of the cannabis market in California but many expect that number to grow to 20 to 30 percent, creating a potentially lucrative opportunity for investors.

James West:   I’m joined now by Jeff Maser, CEO of the Tinley Beverage Company, trading on the CSE under the symbol TNY. Jeff, welcome back.

Jeff Maser:   Thank you. Good to be here.

James West:   This is not our first rodeo, is it?

Jeff Maser:   That’s true, it’s not.

James West:   You started this, what, three years ago?

Jeff Maser:   I

TILT Holdings Inc (CNSX:TILT) (OTCMKTS:SVVTF) CEO Alex Coleman is ecstatic about the company’s revenue numbers for January. TILT reported US $18.3 million in revenue for the month of January, a number that does not reflect sales of cannabis products and infused products, which Coleman states are just coming online. Coleman believes TILT is unrivaled as a B2B company and is aggregating significant pieces in the cannabis space. The company recently acquired Blackbird Holdings Corp, the largest distribution platform in Nevada. Coleman explains that TILT does not face the same restrictions as other MSOs because as an infrastructure and technology cannabis company, its products can cross state lines. TILT has expanded internationally and its Macedonian operates give the company access to the lucrative European market.

Narrator: TILT Holdings Inc. is a business to business cannabis company focused on the research, development, manufacture, distribution and sale of products and services.

The company maintains two primary divisions: technology for software and services, and infrastructure for cannabis products and devices.

Revenue is generated from cannabis cultivation, the sale of flower, concentrates, oils, consumables and topicals, vaporizer and inhalation devices, delivery and inventory management services, and licensed software.

The company has operations in 40 US states, and Canada, and Europe, and more than 1,000 dispensaries across the US, Canada, Puerto Rico and Jamaica. TILT Holdings Inc. trades on the CSE under the ticker symbol TILT.

Brandon Colwell:   And we’re joined with Alex Coleman. How are you doing, my good sir? Th

Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) (FRA:21P) CCO Cam Battley provides an overview of the company’s latest financials and recent achievements. Battley is thrilled to shift gears to an era of disciplined execution and highlights that Aurora’s revenue growth outpaces its losses. The company is still on target to achieve positive EBITDA in Q2 of the calendar year. Aurora is passionate about cannabis social justice issues and Battley discusses the company’s commitment to the elimination of tax from medical cannabis. Battley notes that Aurora has been fighting for this cause for several years and it now has tripartisan support at the federal level. While crop loss plagues industry competitors, Battley praises the Aurora team and the company’s high tech facilities like Aurora Sky, for its consistent, high-quality product. Aurora is beginning commercials sales of derivative products in Germany this quarter and Battley indicates the company expects higher margins on these premium products.

James West:   Joining me now is Cam Battley, Chief Corporate Officer of Aurora Cannabis Inc. Cam, welcome back.

Cam Battley:  Nice to see you, and that’s a very restrained shirt that you’re wearing today.

James West:   Thank you. I have adopted new standards of conse

FluroTech Ltd (CVE:TEST) (OTCMKTS:FLURF) COO Rex H. Kary is thrilled with the company’s CompleteTest cannabis testing device. Kary believes FluroTech’s testing device is a must-have for cannabis LPs because it allows companies to test product on-site for impurities and throughout the plant’s growth cycle. Kary suggests testing will make up 5 percent of the global cannabis market and FluroTech’s margin for each device is over 200 percent, presenting a lucrative opportunity for investors. FluroTech provides full training and customer support for companies that purchase testing devices. FluroTech is designing value added services, including a product that biomarks plants, creating a unique signature that lets growers to track their products from seed-to-sale.

James West:   I’m joined now by Rex Kary. He’s the Chief Operating Officer of FluroTech Limited, trading on the TSX Venture under the symbol TEST. Rex, welcome back.

Rex Kary: Thank you for having me back, James.

James West:   Rex, you’ve made some great advances with the complete test device that your company has been developing; in fact, I understand I’ve got the first one available in Canada.

Rex Kary: It is the first one, and happy to bring it out and deliver it to you. It was fun going through the test with you.

James West:   It sure was, it sure was! Now, this device is geared towards LPs who want to measure cannabinoids and test for heavy metals in their product, is that right?

Rex Kary: That’s right. It’s designed so it’s an in-process test. So they could be testing through the growth cycle, and find that sweet spot for harvesting. It’ll allow early detecti

Neptune Wellness Solutions Inc (NASDAQ:NEPT) (TSE:NEPT) (FRA:NTU) CEO Jim Hamilton shares his thoughts on the emerging CBD product space. Hamilton notes that CBD now has a greater market share than Vitamin E in the US and notes that CBD products are on track to surpass Omega 3 products in demand in the next year. Unlike many in the space, Neptune Wellness is not a brand company; instead, it is a B2B company focused on its core competency of extraction. Neptune Wellness has 200 metric tons of capacity coming online, in addition to 6000 tons of existing capacity. Hamilton thinks there will be an explosion of cannabinoid-based scientific research soon and believes Canada , with its unique regulations, has the opportunity to be a research hub.

Narrator: Neptune Wellness Solutions is a health and wellness products company founded in 1998 and is headquartered in Laval, Canada. The company is engaged in the extraction, purification and formulation of science-based products.

Neptune Wellness offers speciality ingredients such as MaxSimil, a patented ingredient that enhances the absorption of lipid-based nutraceuticals and various other marine and seed oils.

In January, Neptune Wellness its Health Canada received its license to process cannabis, which allows the company to manufacture and purify cannabis extracts and cannabis oil, and to sell its services to other license holders. Production activities are expected to start soon at Neptune’s 50,000 square foot, certified facility in Sherbrooke, Quebec.

Neptune Wellness Solutions is listed on the Toronto Stock Exchange and the NASDAQ, and trades under the ticker symbol NEPT.

Jane Technologies Inc is a private cannabis tech company with a rapidly growing cannabis online marketplace. CEO Socrates Rosenfeld explains that the company’s platform is designed to make online shopping for cannabis as simple as online shopping for any other product. Rosenfeld believes Jane Technologies competes well with the Yelp and Shopify online shopping models and provides full automation for its business partners. Jane Technologies is the fastest growing and largest B2C cannabis online marketplace in the US and its immediate focus is to grow its footprint in a sustainable way. Jane Technologies is not a publicly traded company but has drawn considerable interest from the private markets.

Benjamin A. Smith: Socrates, welcome to the program.

Socrates Rosenfeld: Thanks for having me, Ben. We really appreciate it, it’s great to be on.

Benjamin A. Smith: Yeah, you bet.

Ed Milewski:  I gotta ask you, how’s Aristotle doing? Just kidding.

Socrates Rosenfeld: You know what? When we find him, I’ll let you know.

Benjamin A. Smith: Now, my first question pertains to the platform. Now, can you tell us what is unique and different about it, and why cannabis consumers would want to go to the Jane Technologies platform as opposed to the OCS or whatever platform they reside in provincially?

Socrates Rosenfeld: Yeah, absolutely. So really what it boils down to is, we try to make shopping online for cannabis, at least here in the United States, as simple and straightforward as shopping online for just about everything else in this world.

So if you look at the other online marketplaces that exist in this world, call it Amazon or any other retail item, GrubHub for instance for ordering from restaurants, Air BNB is a great example for when you want to find a place to stay for the weekend – the consumer has purchasing power every step of the way. So do you use Amazon as a natural example, the last item you purchased on Amazon, you probably typed in a search term as broad or as specific as you would want; you were able to curate down that search, be recommended products based on how other people just like you are shopping, and then ultimately you have the purchasing power to compare by price, read reviews from actual validated, verified consumers, and then make a purchase from a local or a seller of your choice.

Ultimately, you become almost a pseudo-subject matter expert in a matter of minutes on the retail item or the restaurant or the, you know, apartment building that you’re looking to stay in, and that’s the shopping experience that we’re able to provide here in the US.

Benjamin A. Smith: Okay. Do you have a value-add service where you provide delivery to your consumer, where they can, you know, not only purchase the bud but get it delivered within the same day as opposed to getting it delivered through the post?

Socrates Rosenfeld: Oh, absolutely. So in the States as you kn

Canadian Orebodies Inc (CVE:CORE) (OTCMKTS:CNOBF) CEO Gordon McKinnon details the company’s current drill program at its North Limb site. Canadian Orebodies announced initial drill results for the site in December 2018. McKinnon notes the 2018 drill program confirmed bonanza gold grades and emphasizes that the results showed the previously discovered high-grade vein was actually multiple veins, with better widths and grades. The company is following up on its 2018 results with a new drill program, using ice pads to drill off Smoke Lake. McKinnon also provides a run down on the company’s other marquee project at Wire Lake. Canadian Orebodies will attempt to connect both systems through geochemistry, which would extend the system over 5 kilometres.

Narrator: Canadian Orebodies is a Canadian-based mineral exploration company with a portfolio of properties in Ontario and Nunavut. The company is focused on generating shareholder value through the advancement of its two Hemlo-area projects: Wire Lake and the North Limb. Canadian Orebodies Inc. trades on the TSX Venture under the ticker symbol CORE.

Ed Milewski:  Hello, everyone. Welcome to Midas Letter Live. Joining me today, Gord McKinnon. Gord McKinnon is the CEO of Canadian Orebodies, ticker CORE, aptly named.

Gordon McKinnon:   Appropriate.

Ed Milewski:  Very appropriate, and Gord, you, there’s a bit of history in the mining business in your family. I think I’d like to point out that your father founded the famous Hemlo gold mine, is that correct?

Gordon McKinnon:   That’s correct, yeah. My father was a very influential

C21 Investments Inc (CNSX:CXXI) CEO Robert Cheney updates viewers on the company’s recent activity. Cheney addresses C21 Investments’ US listing and confirms an active US trading symbol is coming soon, but was slowed by the government shutdown. Cheney indicates that revenue from recent C21 acquisitions like Silver State, Phantom Farms, and Pure Green will be counted on the company’s Q1 financials. The company is vertically integrated in Nevada and has the state’s top dispensary, which serves 50,000 customers monthly. The deep value play is starting to garner attention because it has closed key acquisitions, raised almost $15 million during a historically difficult period in the markets, and has the “tightest cap table in the industry.” Based on the trailing revenue of newly acquired assets, C21 Investments has the potential to generate top line revenue going forward.

Narrator:   C21 Investments Inc. is a vertically integrated cannabis company that cultivates, processes, and distributes cannabis and hemp-derived consumer products in the United States. With newly acquired operations in Oregon, C21’s strategy is to acquire existing cannabis operations with management teams in place.

The company’s focus is to expand where it can wholly own indoor or outdoor cultivation operations, processing and extraction facilities, bakeries, branded products, and retail dispensaries with a large distribution network.

C21 Investments Inc. is headquartered in Vancouver, and trades on the CSE under the ticker symbol CXXI.

Robert Cheney: Hey, Ben.

Benjamin Smith:    Now we join Mr. Robert Cheney, CEO of C21 Investments. Robert, welcome to the program.

Robert Cheney: Hey, thanks, Ben. Thanks for

Emerald Health Therapeutics Inc (CVE:EMH) (OTCMKTS:EMHTF) (FRA:TBD) CFO Rob Hill provides an update on the company’s greenhouse expansion and joint ventures. Emerald Health expects to have its entire 1.1 million square foot greenhouse in Delta, British Columbia ready for cultivation in the first half of 2019. The company raised $10.8 million in December and is using that capital to fund its Quebec facility expansion and its joint venture with Emerald Health Naturals. Emerald Health is looking to international markets and recently entered into a joint venture with Italy’s Indena for extraction technology and capabilities. Hill discusses Emerald Health’s push to develop CBD and THC products and reveals the company has 17 patents in process for such products.

Narrator: Emerald Health Therapeutics Inc. is a Canadian licensed producer of cannabis with indoor cultivation facilities in BC and Quebec.

The company is focused on developing proprietary cannabis products for medical and adult use customers.

Emerald is part of the Emerald Health Group, which represents a group of companies focused on developing pharmaceutical, botanical and nutraceutical products to provide wellness and medical benefits by interacting with the human body’s endocannabinoid system. Emerald Health Therapeutics trades on the TSX Venture under the ticker symbol EMH.

Cannabis business expert Deepak Anand provides an update on his work with cannabis social justice agencies as well as his take on stories shaping the global cannabis industry. Anand works with Norml Canada, an organization working on amnesty for Canadians who have been unfairly charged with cannabis-related offenses as well as CFAMM, a group looking to ensure medical cannabis patients have fair access and taxation. Anand observes that the excitement regarding the health benefits of CBD oil has led to regulatory problems, especially in Europe. However, the US is moving toward a regulated CBD industry and the US FDA is trying to regulate CBD products. In terms of European expansion, Anand believes Canadian LPs have a huge advantage when compared with MSOs. The European market requires EU GMP certification and US MSOs cannot earn this certification without federal legalization. However, Anand cautions that other countries such as Israel, which recently allowed cannabis exports,  are primed to dominant the European space.

Benjamin A. Smith: Welcome back, everybody. On the line joining us is the one and only Deepak Anand. Welcome, Deepak.

Deepak Anand: Thanks for having me.

Benjamin A. Smith: Great. This is the first time we’ve spoken, so the pleasure’s all mine. Now, I wanted to ask you, getting right into it, how are things at your new location at NORML? Do you like working on the policy side of the equation a little bit more than your last gig, or how is that working out for you?

Deepak Anand: Yeah, absolutely, and I’ve always been involved in the policy side, you know, for many, many years. You know, I’ve assisted both Federal as well as provincial governments on cannabis policy, and the role at NORML is just further expanding that anyways.

I mean, one of the biggest things that we’re, you know, sort of moving forward on NORML is the whole amnesty piece, because quite frankly, you know, we’ve gone forward with legalization and, you know, we’ve unrolled a number of things in various provinces. But one of the big issues that still is unresolved is Canadians still continue to be charged unfairly for cannabis-related offenses, and more importantly, there’s a number of Canadians that are sort of, you know, charged historically for minor possession. And you know, one of the things at NORML we’re trying to do is, sort of, you know, fight or lobby for that.

So one of the things that we’re looking to actively sort of lobby for is to ensure that Canadians that have been unfairly charged for cannabis-related offenses are granted amnesty in some end. And you know, there’s that issue that sort of is living, because a number of people, to this day, can’t apply for licenses, they can’t travel to the US – I mean, it’s a serious issue.

Benjamin A. Smith: Okay. Can you tell me what is the motivation or the backers behind the criminality of cannabis infractions, if you want to call it? Is it just sort of a public service that people are trying to get, you know, people not charged under cannabis laws or predatory cannabis laws? Or is there a real backer behind it? What is the motivati