Midas Letter

Skyharbour Resources Ltd (CVE:SYH) (OTCMKTS:SYHBF) (FRA:SC1P) President and CEO Jordan Trimble has nothing but enthusiasm for the company’s uranium drill program. Skyharbour’s Northern Saskatchewan project site is in the Athabasca Basin and boasts the best uranium grades in the world, 20 times greater than is typical. Skyharbour’s flagship project is at Moore Lake, where the company has drilled for several years. Trimble reveals that uranium powers 11 percent of the world’s energy, but few companies are left operating in the space. He explains the value proposition Skyharbour offers investors, noting that major uranium mines are shutting down and uranium prices have rebounded from the Fukushima Daiichi disaster. He also indicates that uranium demand continues to grow, especially from China and India.

James West:   Hey, welcome back. I’m here with Jordan Trimble; he’s the President and CEO of Skyharbour Resources, trading on the TSX Venture under the symbol SYH. Jordan, welcome back.

Jordan Trimble:    Thanks for having me.

James West:   Jordan, we seem to be having you back, you and your group back, regularly, because y

CordovaCann Corp (CNSX:CDVA) (OTCMKTS:LVRLF) is a cannabis-focused, consumer products company. CEO Taz Turner discusses the “holy grail of cannabis”: creating cannabis products with reliable, predictable results. CordovaCann is prioritizing growth and is currently expanding its USA footprint to include key states California and Washington. The company also has an option on a pending LP in Ontario and plans to use the facility to serve international operations. In 2019, the company intends to finish its Oregon expansion, which will make the company fully vertically integrated in that jurisdiction, driving significant revenue. In the past, CordovaCann has raised capital internally, but Turner anticipates greater public financing in the future. Turner estimates that the company’s shareholders are split evenly between Canada and the United States and that management holds at 25-35 percent of shares.

James West:   Next we’ve got on our show, joining us live via Skype, Taz Turner, the CEO of CordovaCann Corp is joining me. Taz, how are you today?

Taz Turner:   Great, how are you doing?

James West:   I am well, thank you. Taz, can we start with an overview of what CordovaCann does?

Taz Turner:   Sure. So at Cordova, we’re really driving at what we think is the Holy Grail of cannabis, and that’s delivering products with predictable effects. And what we do is we overlay our technology platform, and that technology allows us to deconstruct the cannabis plant into the individual isolated cannabinoids; we can isolate over 130 cannabinoids today. And then we take those cannabinoids and put them into recipes or specific formulations to create in products.

Good Life Networks Inc (CVE:GOOD) (OTCMKTS:GOOLF) (FRA:4G5) CEO Jesse Dylan describes the company’s crucial decision to pivot to advertising technology in 2016. The company generated $2.5 million in revenue in 2016, and as a result of the pivot, saw its earnings grow to $40 million in 2018. Good Life Networks specializes in programmatic advertising, which rapidly connects publishers and advertisers through the Good Life Networks platform. The company counts Roku, Google, and Verizon as clients and is projecting revenue surpassing $60 million in 2019. Good Life Networks is expanding its focus to include connected TV and it recently concluded the acquisition of Impression X as part of this mandate. Dylan believes Good Life Networks is significantly undervalued, as it is trading at 2 times EBITDA while many of its competitors are trading at 10 times EBITDA.

James West:   Live from the capital of Canada – at least the economic capital, is Jesse Dylan, CEO of Good Life Networks.

Jesse Dylan:  I’m home, James!

James West:   It’s been a while, Jesse.

Jesse Dylan:  I have been on Bowen Island searching every night for you, and I can’t find you.

James West:   High and low?

Jesse Dylan

Koios Beverage Corp (CNSX:KBEV) (OTCMKTS:KBEVF) (FRA:7521) is a consumer packaged goods company that develops nutritional products with the goal of helping people lead healthier lives. CEO Chris Miller notes the company is excited to launch CBD-infused beverages and believes such beverages will have a larger market share than the THC variety. Koios just signed a national retail deal with GNC Holdings Inc (NYSE:GNC) (FRA:IGN), an internationally recognized health and wellness retail chain. In 2019, Koios is focused on its retail rollout and fulfilling the GNC deal. Miller suggests that Koios is a potential takeout target for a large beverage company and indicates large companies are enamoured with the value functional beverage producers add to traditional offerings.

James West:   Now, another guy who’s possibly going to make a lot of people a lot of money is here: Chris Miller, the CEO of Koios Beverage Corp. is joining me in studio. Chris, welcome.

Chris Miller: Thank you for the warm welcome in Toronto. It’s balmy here.

Indiva Inc (CVE:NDVA) (OTCMKTS:NDVAF) (FRA:T8RP) CEO Niel Marotta talks about preparing for the legalization of edibles and derivative products in 2019. Marotta shares some non-infused chocolate samples and notes Indiva’s partner, Bhang, has produced award-winning chocolate in jurisdictions where edibles have been legal for many years. Marotta anticipates some medical demand for edibles and estimates the edibles market to be a $1 to $2 billion industry in Canada annually. While the large LPs are also preparing for the legalization of additional products in October, company’s like Indiva, which specialize in edible products, are uniquely suited to succeed in the expanded market. Marotta discusses other edible products Indiva will offer, including Ruby, the company’s line of cannabis sweeteners. Marotta estimates the company will generate $20 million in revenue from dried flower by 2020 and believes Indiva can earn a multiple of that target producing edibles, extracts, and ancillary products, which have a higher margin and provide differentiating opportunities.

James West:   Niel Marotta joins me now from Indiva. Niel, welcome back.

Niel Marotta: Thank you. Thanks for having me.

James West:   Niel, you brought some treats.

Niel Marotta:

Tetra Bio-Pharma Inc (CVE:TBP) (OTCMKTS:TBPMF) (FRA:JAM1) is a cannabinoid-based drug research and development company. CEO Guy Chamberland provides viewers with an update on the company’s clinical trials. The company is examining the full combustion of cannabis and focusing on the medicinal difference between vaping and smoking. Recently, Tetra-Bio Pharma received a patent for its PPP001 drug pellet. Tetra Bio-Pharma’s discovered unique medicinal properties when PPP001 was smoked versus used in a vaporizer. Tetra Bio-Pharma’s research has revealed that vaping creates different cannabinoids profiles. The company is also developing patents for ocular drugs, oral absorption, and a topical program.

Fraser Toms:  We are being joined via Skype by the CEO of Tetra -, Guy Chamberland. Or Guy, sorry I didn’t get a chance to ask you beforehand, is it Guy or Guy?

Guy Chamberland:   It’s Guy. No problem.

Fraser Toms:  Yeah, you’re a Montrealer, is that it?

Guy Chamberland:   Yes I am.

Fraser Toms:  Cool. I’m quite fond of Montreal myself. So let’s dive into your company, Tetra Bio-Pharma, and for those that don’t know, trades on the TSXV under the ticker

FSD Pharma Inc (CNSX:HUGE) (OTCMKTS:FSDDF) (FRA:OK9) Executive Co-Chair Anthony Durkacz shares his thoughts on the impact of short sellers in the cannabis space and the company’s 2019 plans. Durkacz cautions interested parties to find the middle ground of any report and suggests Canada needs tougher laws to combat reports that mislead investors to the downside. Durkacz reveals FSD Pharma plans to pivot 75 to 80 percent of its business into biotechnology as the company believes medicinal biotech is the most lucrative aspect of the cannabis space. FSD Pharma is also considering value added edibles, which fits perfectly with its HQ location at a former Kraft plant. FSD Pharma is taking the necessary steps to uplist on the NYSE and Durkacz anticipates that occurring in the next two quarters.

James West:   Joining me right now is Anthony Durkacz, Co-Chairman of FSD Pharma. Anthony, welcome back.

Anthony Durkacz:   Thank you so much, James.

James West:   Anthony, I was very interested to have you on because we have this new culture has come up around the cannabis industry, and it’s the culture of, I’m going to categorize it as ‘idiot analysts who don’t know anything, taking pot shots at

Equity.Guru consulting journalist Chris Parry shares his impressions of the Cantech Investment Conference and the viability of esports as an investment opportunity. Parry notes that esports garnered considerable attention at the conference but warns investors to avoid making the same mistakes many experienced during the cryptocurrency boom. Parry believes there is money to be made in the esports world but doesn’t think esports teams or competitions will generate much profit for investors. He sees owning games as profitable but highlights the significance of esports infrastructure as an investment opportunity. Parry anticipates companies that host esports games will prove lucrative as will companies that build the data storage infrastructure for gaming as it grows in size.

James West:   Is the Chief Editor, Proprietor and…

Chris Parry:  Publisher…

James West:   Publisher, chief cook and bottle-washer of all things Equity.Guru, Chris, welcome back.

Chris Parry:       How’s it going?

James West:   [laughter] It’s going fantastically. We have been observing from across the country, like from our various positions across the country, the unfolding of the cannabis market. You and I have both been in some deals together, we have been on opposite sites of the opinion ladder on a couple of things.

Chris Parry:  Oh boy, have we!

James West:   Couple of things…yet we remain friends. Why is that?

Chris Parry:  Because you went the pack of Lewis kind of loose hit, and I appreciate that about you.

James West:   [laughter] I see. Well, I’m going to have to send you my tailor, then, aren’t I? No, so you were down at the Cantech conference –

Chris Parry:  It’s okay to disagree with each other, because opinions are based on due diligence, and that doesn’t have to black or white.

James West:   Well yours aren’t; mine are just based on who’s paying me. No just kidding me (laughter) That’s a joke I’ve been wanting to make for years. Um, you just came from the Cantech conference; what did you see down there that you liked?

Chris Parry:  I mean…the buzzword is esports. Everyone is looking for where they can put their money in esports, and I guess the title of my keener was don’t make the same mistake you made in Blockchain in export, you rubes.

James West:   You rubes. In case anyone was wondering who that refers to, that’s you!

Chris Parry:  Well, let’s just not be effing idiots about things, right, like we were last year? Look at the cannabis industry had this moment in 2014 where everyone was high on cannabis, no pun intended, but didn’t really know what they were going to do with it all, and eventually there was an industry. Blockchain, same thing, eventually ther

WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF) (FRA:4WE) CEO Keith Merker shows viewers the company’s Strathroy operation. The facility sits on 98 acres of land with 14 acres of greenhouse space. WeedMD has retrofit the facility adding the latest technology to create a fully automated growing experience. In total, there will be 18 hybrid indoor/greenhouse grow rooms measuring 10,000 square feet at the site. Each room will be strain independent, which ensures consistency and quality of product. The operation has another seven acres of traditional greenhouse under construction, which will be used to grow large scale crops for the production of edibles, topicals, and extracts. WeedMD’s licenses allow the company to grow high-yielding strains of CBD as well as THC, generating significantly higher volumes of pharmaceutical ingredients.  In additional to its hybrid greenhouse capacity, WeedMD is planning a 10 acre outdoor grow at the site this year which will produce 8 tons of product. Between its hybrid greenhouse, its traditional greenhouse, and its outdoor grow, WeedMD expects to produce more than 100 tons of product at its Strathroy site. WeedMD has one of the largest production platforms online for 2019 and is looking to become one of the largest cannabis producers in Canada.

Keith Merker, CEO: We’re all about precision. We try to marry the historical growing techniques with science and technology in order to provide a tried and true, consistent quality product time and time again.

Khiron Life Sciences Corp (CVE:KHRN) (OTCMKTS:KHRNF) (FRA:4KH) President Chris Naprawa explains the significance of the company’s LOI to acquire 100 percent of NettaGrowth International Inc (NettaGro). The deal allows Khiron to cultivate up to 170,000 plants in Uruguay. While Uruguay is a relatively small market, it is part of a free trade zone with Brazil, which offers Khiron access to a massive market should Brazil legalizes cannabis. Upon completion of the deal, Joe Mimran, a successful retailer known for Club Monaco and Joe Fresh, will join Khiron’s Colombian board and will provide strategic advice on retail development.

Fraser Toms:  Okay, so…

Ed Milewski:  Okay. You said OH, you want me to get OH up there?

Fraser Toms:  No, I want to talk to Khiron right now.

Ed Milewski:  Oh, here we are.

Fraser Toms:  Look at that. Are you in beautiful Bogota Colombia right now?

Chris Naprawa: I absolutely am. Greetings from Bogota, it’s a beautiful day here, the weather I just absolutely perfect, and I’m glad to be on. I can’t thank you enough for the coveted 4:00 p.m. on a Friday time slot.

Fraser Toms:</