Midas Letter

Aleafia Health Inc (CVE:ALEF) (OTCMKTS:ALEAF) (FRA:ARAH) CEO Geoff Benic shares details from the company’s latest financial statement. Aleafia’s patient base grew during the last quarter and the company experience 36 percent sequential growth. The company achieved another milestone last quarter when it received its sales license and made its first cannabis sales. Aleafia received approval to begin going outdoors in 2019 at its 30 acre facility in Port Perry, Ontario. Benic estimates the facility will produce 30,000 kilos of high-quality, low-cost cannabis. The company’s joint venture with the Serruya Family gives Aleafia access to 5 of the top 10 cannabis brands, which it will produce and distribute in Canada. Aleafia is planning to uplist on the NASDAQ; such a move will give the company the liquidity necessary for growth.

Brandon Colwell:   And we’re in the studio today with Geoffrey Benic, CEO of Aleafia. How are you doing?

Geoff Benic:  Great. Great, thanks for having me, and good job on the Croatian.

Brandon Colwell:   Yeah, we were testing it a few times, I knew that he’s going to see it a certain way. But we brought you down to the studio today, it so happens that you had your earnings out today, as well. How are things going over at Aleafia, and for those who m

Clear Blue Technologies International Inc (CVE:CBLU) manages off-grid power systems around the world. CEO Miriam Tuerk reveals that power systems are about to go through a revolution as cities and countries switch to reliable, wireless, off-grid systems. The company’s revenue model is derived from the initial sale and installation of its systems but it also has strong growing and recurring revenue in the form of managing those systems once installed. Tuerk believes off-grid power infrastructure represents a $38 billion marketplace that is only beginning to emerge. Clear Blue experienced 200 percent growth in Q2, which Tuerk believes is sustainable going forward.

James West:   My guest this segment is Miriam Tuerk. She’s the CEO of Clear Blue Technologies International, trading on the TSX Venture under the symbol CBLU. Miriam, welcome.

Miriam Tuerk: thanks so much for having me, James.

James West:   Miriam, can we start with an overview, please? What is it that Clear Blue Technologies International does?

Miriam Tuerk: So Clear Blue Technology plays in the smart, off-grid space. We make the brains of an off-grid system, and the reason why that is a huge potential is because the power grid, which today powers everything that matters in the world, is about to go through the same revolution that the telecom industry went through.

So 30 years ago, all telecom was connected to a cable; now it’s completely wireless, and that caused a revolution to happen in the world. The power infrastructure is about to go through that exact same change. It’s going to go to a situation where most of our devices are Internet Of Things: our oil and ga

Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) (FRA:21P) CCO Cam Battley provides viewers with a look inside the company’s cutting-edge facility: Aurora Sky. Aurora Sky illustrates the tremendous growth of Aurora as each of its 17 flower rooms are 34,000 square feet; all larger than the company’s first production facility, Aurora Mountain. Aurora is targeting 500,000 kilograms of cannabis production annually by 2020. Aurora Sky’s advanced technology includes sophisticated automation that utilizes cranes to eliminate walkways and a glass roof to ensure plants receive optimal light. These innovations will allow Aurora to meet its production targets and, as Battley observes, “There’s nothing like this technology anywhere in the world; we’ve invented 21st-century cannabis production.”

Cam Battley:  This is a very, very different kind of facility. It’s not a greenhouse; it’s an indoor facility with a glass roof that allows us to harness the power of the sun.

17 flower rooms in Aurora Sky, all equal size; 34,000 square feet, and interestingly enough, our first production facility north of Calgary, Aurora Mountain, had 32,000 square feet of flower space. So each of the 17 rooms we have here is larger than the first facility that we built when we began to sell medical cannabis in Canada.

So this is the Mother room. In the room right now, we’ve got anywhere from 6,000 to 10,000 mother plants. It’s from the mother plants that we take the cuttin

Supreme Cannabis Company Inc (CVE:FIRE) (OTCMKTS:SPRWF) (FRA:53S1) President John Fowler discusses the company’s recently completed $100 million bought deal with GMP Securities L.P. and BMO Capital Markets. Fowler also talks about the company’s partnership with Medigrow Lesotho, an operation with GMP certification and an annual production capacity of 40,000 litres of extracts. Medigrow Lesotho’s GMP certification provides Supreme with the opportunity to expand into additional international markets. Fowler emphasizes the company’s commitment to producing premium products and notes Supreme Cannabis’ Jean Guy strain, the most expensive SKU available on Alberta’s provincial online retailer, sold out. While in the near term Supreme’s medical channels are more lucrative, Fowler expects favourable margins in both spaces.

James West:   Welcome back. My guest this segment is John Fowler, President and Director of Supreme Cannabis Company, trading on the TSX Venture under the symbol FIRE! John, welcome back.

John Fowler:  James, always a pleasure to be here.

James West:   Yeah. So lots going on in the world of Supreme, and foremost amongst them is, you’re no longer the

ETFMG Alternative Harvest ETF (NYSE:MJ) is the largest marijuana ETF in the world and the only public marijuana ETF operating in the US. Partner Jason Wilson explains some of the advantages of the ETF for retail investors, including increased tax efficiency and easy exposure to the whole cannabis sector. Wilson reveals the Alternative Harvest ETF includes all the largest LPs in the sector but because cannabis is still illegal at the federal level in the United States, it doesn’t hold companies in violation of federal law. At minimum, companies must have a 9-digit market cap, share prices in the dollar ranges, and high liquidity to be included in the fund. Wilson is excited about the future of the cannabis space and sees consolidation, international expansion, investment from other industries, and US de-prohibition as potential value catalysts for the Alternative Harvest ETF.

James West:   My guest this segment is Jason Wilson, a partner with ETF MG Alternative Harvest ETF, trading on the NYSE under symbol MJ. Jason, welcome.

Jason Wilson: Thanks for having me.

James West:   Jason, what is ETF MG Alternative Harvest ETF all about?

Jason Wilson: It’s all about marijuana. We are the only publicly traded ETF in the US right now that focuses primarily on marijuana companies.

James West:   Okay. And so, do you concentrate on Canadian companies or US companies o

Bayhorse Silver Inc (CVE:BHS) (OTCMKTS:KXPLF) (FRA:7KXN) President and CEO Graeme O’Neill has nothing but excitement for the company’s new project in Oregon. The Bayhorse Silver Mine is a high-grade silver mine historically recognized as the state’s largest silver deposit. Previously mined in the 1920s and 1980s, the mine was shut both times due to low silver prices. O’Neill believes the silver market has reached already its lows and any rebound in prices dramatically increases Bayhorse’s margins on the project. Based on the historic drill programs, O’Neill suggests the site could contain 6 to 7 million ounces of high-grade silver with some gold and Bayhorse Silver has already brought the mine back into production, mining 100 tonnes per day.

James West:   Hey, welcome back. My guest in this segment is Graeme O’Neill, President and CEO of BayHorse Silver, trading on the TSX Venture under the symbol BHS. Graeme, welcome to our little show.

Graeme O’Neill:    Well, thank you, James. Good to chat with you again.

James West:   Now Graeme, I’ve been following this BayHorse Silver project that you’ve had for, I think, almost seven years now.

Canopy Rivers Inc (CVE:RIV) CFO Eddie Lucarelli is happy with the company’s performance last quarter – and he has reason to smile. Rivers reported a net income of $11 million and a comprehensive income of $38 million for the period ending September 30. Lucarelli’s enthusiasm for the company’s performance extends beyond revenue and he highlights several key milestones achieved in the quarter such as the completion of an RTO and a private placement co-led by CIBC (the Big Five bank’s first inroad into the cannabis sector). During the period the company also made its first international investment. Rivers reached a deal with Italy’s Canapar, an industrial hemp producer and organic CBD extractor that has a significant research partnership with the University of Catania. Canopy Rivers has $40 million earmarked for further investment and is increasingly looking to ancillary companies in the space because of the multiplier effect.

James West:   My guest this segment is Eddie Lucarelli. He’s the of Canopy Rivers, trading on the TSX Venture under the symbol RIV. Eddie, welcome.

Eddie Lucarelli:   Thanks for having me, James.

James West:   Eddie, let’s start off with the financial reporting from Canopy Rivers, which was, in a word, surprisingly great – at least in terms of the context of the biggest, all of the Canopy earnings reporting which are, as a category, horrible! So you reported $0.03 in earnings – tell me how that all played out.

Eddie Lucarelli:   Yeah, so that, you know, we were pretty proud of that headline number; that’s largely driven by the share price performance in the quarter and September 30th for a lot of our investments that do flow through our earning

Argo Gold Inc (CNSX:ARQ) (FRA:P3U) (OTCMKTS:ARBTF) is focused on acquiring high-grade, long-term producing gold projects in Northwestern Ontario. President and CEO Judy Baker provides an update on Argo Gold’s flagship asset, the Wilco Gold Project, which the company acquired the rights to in 2016. The 14 square kilometre project site has the same geology and is just 75 kilometres away from Great Bear Resource Ltd’s (CVE:GBR) recent Dixie Project discovery, which has sent that company’s stock soaring. Argo Gold has a 2500 metre drill exploration plan for Wilco beginning in February and is currently raising $1 million in flow-through shares.

James West:   Hey, welcome back. My guest this segment is Judy Baker. She’s the President and CEO of Argo Gold Inc., trading on the CSE under the symbol ARQ. Judy, welcome.

Judy Baker:   Thank you very much.

James West:   Judy, tell me about Argo Gold: what are your main projects, where are you located?

Judy Baker:   Okay. Argo Gold was founded in the first quarter of 2016; it was the business plan of Delio Tortosa, Bill Kerr and myself; we’re focused on acquiring high-grade gold projects in northwester

Kore Mining Ltd (CVE:KORE) CEO Adrian Rothwell shares details of the company’s new project sites, acquired through a recent reverse takeover. The two new projects acquired in California are ready for mining to commence, while the projects in British Columbia require further exploration. Kore Mining has completed a drilling program at its Gold Creek site that features an 8.5 km trend of low-levels of arsenic in the soil, which the company has found to be an indicator of gold mineralization. Rothwell suggests that the price of gold is inversely correlated with the US stock market and notes that gold prices will increase as the US economy slows. Rothwell believes that a sound mining investment relies on two things: discovery and asset acquisition at low valuation, cautioning retail investors who are new to the mining space to consider these facts when evaluating companies.

James West:   Welcome back. My guest this segment is Adrian Rothwell, CEO of Kore Mining Ltd., trading on the TSX Venture under the symbol KORE. Adrian, welcome.

Adrian Rothwell:   Thank you.

James West:   Adrian, to be a mining guy these days is truly a labour of love, but you have been at it for 24 years, you were saying?

Adrian Rothwell:   That’s right, so it is a labour of love, and the most recent five years have been testing, for sure, in the gold sector.

James West:   Uh-huh. But you’ve managed to put together quite an assembly of assets, and they look quite promising from a former mining enthusiast’s perspective. Tell me about the flagship projects and the rest of them, too.

Adrian Rothwell:   Sure. Well, Kore, we just listed in the last week – symbol KORE, through a reverse takeover, and through that we have four projects o

Cannex Capital Holdings Inc (CNSX:CNNX) (OTCMKTS:CNXXF) CEO Anthony Dutton has nothing but praise for Gotham Green Partners, LLC after Gotham’s $32 million USD investment in Cannex. Gotham is a leader in the cannabis investment space and previously financed industry successes like Cronos Group Inc (TSE:CRON) (NASDAQ:CRON) (FRA:7CI). Dutton explains that Cannex has always focused on being a multi-state operator and this strategic investment will allow the company to focus on production, expansion, and branding. Dutton was recently in Las Vegas for MJBizCon and reveals that approximately 80 percent of the companies in attendance were focused on derivatives and ancillary products. Cannex intends to play in the edible product space and is investigating a number of CBD opportunities.

James West:   Welcome back. My guest this segment is Anthony Dutton, CEO of Cannex Capital Holdings, trading on the CSE under the symbol CNNX. Anthony, welcome back.

Anthony Dutton:    Always a pleasure to be here, James. How are you?