Midas Letter

MPX Bioceutical Corp (CNSX:MPX) (OTCMKTS:MPXEF) (FRA:5CB) CEO Scott Boyes shares details of the company’s merger with iAnthus Capital Holdings Inc (CNSX:IAN) (OTCMKTS:ITHUF) (FRA:2IA). Boyes states that iAnthus will focus on the US market while spinning out Canadian and European assets to a new entity controlled by MPX. Boyes believes the growing interest in cannabis among Europe’s 600 million people represents a tremendous opportunity for the company. The leadership group intends to take the new entity public as soon as the iAnthus deal is complete in January. Boyes reveals that the company has already created MPX International, which starts with $4 million in seed money as a result of the merger, and the company plans to do a financing round in the near future.

Original article: VIDEO: MPX Bioceutical Corp (CNSX:MPX) CEO on iAnthus Capital Holdings Inc (CNSX:IAN) Merger

©2018 Midas Letter. All Rights Reserved.

iAnthus Capital Holdings Inc (CNSX:IAN) (OTCMKTS:ITHUF) (FRA:2IA) CEO Hadley Ford predicts the collective US cannabis market cap will be $1 trillion in 10 years. Ford explains that the current $50 billion industry market cap represents just 11 percent market penetration; however, an anticipated increase in usage should see cannabis reach the regular use levels that alcohol currently enjoys and push the cannabis market cap to the trillion dollar range. Ford anticipates 9 or 10 companies will dominate 80 percent of the US market and believes scale is integral to players in that space. The MPX Bioceutical Corp (CNSX:MPX) (OTCMKTS:MPXEF) (FRA:5CB) deal gives iAnthus that scale because the MPX portfolio adds strategic states to iAnthus’ holdings and access to cannabis retail locations targeting the “soccer mom” demographic. With this deal, iAnthus should have some of the most liquid stocks in the space, which should appeal to institutional investors that want to enter the cannabis sector.

Original article: VIDEO: iAnthus Capital Holdings Inc (CNSX:IAN) CEO on MPX Bioceutical Corp (CNSX:MPX) Deal

©2018 Midas Letter. All Rights Reserved.

Australis Capital Inc (CNSX:AUSA) is a US-based cannabis investment platform and spinoff of Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) (FRA:21P). CFO Mike Carlotti explains that Australis is able to fill a funding gap for American cannabis companies limited by federal prohibition. Australis has signed a definitive agreement to own 22 percent of Wagner Dimas, a California-based pre-roll company, which Australis hopes to grow into other states. Carlotti believes federal de-prohibition is coming and that the upcoming midterms in November will decide how quickly de-prohibition proceeds. If federal law changes, Aurora has the right to acquire a 20 percent share of Australis at a reasonable valuation.

Original article: VIDEO: Australis Capital Inc (CNSX:AUSA) Buys CannaRoyalty Corp (CNSX:CRZ) Share in Wagner Dimas Inc

©2018 Midas Letter. All Rights Reserved.

Canopy Rivers Inc (CVE:RIV) Co-Founder and XIB Financial Principal Sean McNulty has nothing but excitement for the cannabis sector: “My personal perspective is that commercialization of cannabis on a worldwide scale…is one of the most compelling opportunities in the history of capitalism.” McNulty acknowledges cannabis companies are truly global entities and believes Canopy Growth Corp (TSE:WEED) (NYSE:CGC) (FRA:11L1) is best suited for worldwide success. As McNulty sees it, the Rivers team leverages the insight and institutional knowledge of Canopy, but provides a new and separate platform for minority investment. The Canopy Rivers joint venture between TerrAscend Corp (CNSX:TER) (OTCMKTS:TRSSF) (FRA:TED) and PharmHouse Inc illustrates the Rivers practice of identifying companies with a record of success and specialization outside the cannabis industry, which it subsequently brings into the space. McNulty brushes aside concerns of an industry-wide dot.com-style crash and believes there is still tremendous economic upside in the cannabis space.

Original article: VIDEO: Canopy Rivers Inc (CVE:RIV) Co-Founder on Cannabis Industry Potential: “We’re an Inch into a Marathon”

©2018 Midas Letter. All Rights Reserved.

CB1 Capital is a hedge fund that invests in efficacy-driven cannabinoid wellness strategies. CIO Todd Harrison explains that CB1 Capital is interested in companies that present investment opportunities featuring a variety of minor cannabinoids, such as CBM for sleep, and not just CBD. CB1 Capital has one third of its capital invested in Canada right now and Harrison suggests biotech is about to take the leading role in efficacy-driven wellness solutions. Cannabis is currently a $300 billion cash crop and Harrison believes, with the development of new products and greater adoption, the industry could soar to be a $2-3 trillion market.

Original article: VIDEO: CB1 Capital Cannabis Could be $3 Trillion Market

©2018 Midas Letter. All Rights Reserved.

Hill + Knowlton Srategies Vice President of Public Affairs Ivan Ross Vrana visits the Midas Letter studio to compare and contrast how cannabis is being legalized across the country. In terms of sales at the provincial level, Vrana highlights New Brunswick’s approach and preparation as the province has a dozen public retail stores ready for October 17. With the exception of Manitoba and Quebec, the provinces will allow each household to grow 4 plants. In addition to home grow caps, each province has capped cannabis possession at 30 grams and retailers have capped amounts at the same level; however, there is no set monitoring procedures at retail locations to address possession overages. Across the country, the legal cannabis age is 19, except in Quebec where it is 18. Generally, the provinces have decided to follow cigarette consumption regulations; nevertheless, specific municipalities and institutions are creating stiffer anti-smoking regulations in anticipation of greater cannabis use.

Original article: VIDEO: Hill + Knowlton Strategies VP Breaks Down Legal Cannabis Across Canada

©2018 Midas Letter. All Rights Reserved.

Liberty Health Sciences Inc (CNSX:LHS) (OTCMKTS:LHSIF) (FRA:S6UQ) CEO George Scorsis shares details of the company’s new partnership with AdaVIv Inc, a technology company, to develop new cultivation techniques. Liberty Health recently obtained extraction and processing licenses in Ohio and Scorsis believes the Ohio operations will be a revenue source within six months. Scorsis is confident Florida will legalize recreational cannabis by 2020. Liberty Health is overbuilding in the state, in anticipation of recreational cannabis legalization, and currently serves 130,000 patients in Florida. Scorsis does not see US federal de-prohibition as a threat, rather as an opportunity for Canadian LPs to access more capital.

Original article: VIDEO: Liberty Health Sciences Inc (CNSX:LHS) New Ohio Licenses

©2018 Midas Letter. All Rights Reserved.

Canaccord Genuity Group Inc Equity Analyst Matt Bottomley discusses how supply agreements for government-sponsored sales sites and locations, such as the OCS, are integral for cannabis companies to build brand equity. Bottomley identifies Canopy Growth Corp’s (TSE:WEED) (NYSE:CGC) (FRA:11L1) brand, Tweed, as a leader in brand awareness and believes this gives the company an advantage over its competitors. Bottomley highlights Aphria Inc (TSE:APH) (OTCMKTS:APHQF) (FRA:10E) as a potential top four company in terms of market share because of how many provinces the company is supplying, its capacity, and its ability to get products to market despite having a much lower valuation than its immediate peers. Bottomley predicts the shift towards actual financial performance in terms of valuation of cannabis companies will occur as more bricks and mortar retail stores open and derivative products are legalized. In the meantime, Bottomley suggests that Canadian LPs listing on the NASDAQ and NYSE and strategic investments, like the Constellation deal, will have more impact on valuations in the sector.

Original article: VIDEO: Canaccord Genuity Analyst on Valuation Catalysts Post-Legalization

©2018 Midas Letter. All Rights Reserved.

WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF) (FRA:4WE) CEO Keith Merker anticipates several bumps in the road as the legalization process unfolds and sees the black market, not other LPs, as WeedMD’s true competition. WeedMD has a prolific production platform and will be one of the few LPs with product for sale going into a possible legal cannabis shortage in 2019. The company has supply agreements with the governments of Alberta, British Columbia, Nova Scotia, and Ontario and is bullish on its medical channels, including its supply agreement with Shoppers Drug Mart. WeedMD is expanding internationally by exporting genetics to cannabis LPs in other countries beginning with Australia’s Medifarm. Merker shares his thoughts on the impact of recreational legalization on Canada’s medical industry.

Original article: VIDEO: WeedMD Inc (CVE:WMD) Exporting Cannabis Genetics Internationally

©2018 Midas Letter. All Rights Reserved.

Galane Gold Inc (CVE:GG) (OTCMKTS:GGGOF) (FRA:25G) CEO Nick Brodie shares that production at the company’s Galaxy project in South Africa will ramp up to 26,000 ounces of gold each year. Brodie provides an update on the company’s Mupane project in Botswana, which produces 30,000 ounces of gold annually. Galane has a new $4 million exploration agreement with B2Gold Corp (TSE:BTO) (NYSE:BTG) (FRA:58G), allowing B2Gold to investigate a 1000 square kilometre Galene land holding. Earlier this month, Galane announced the potential acquisition of the Andy Well gold project in Australia, which has been closed to production since November 2017. The Andy Well project has the potential to be both profitable and presents considerable potential, with 350, 000 ounces available.

Original article: VIDEO: Galane Gold (CVE:GG) Potential Acquisition of Andy Well Gold Project

©2018 Midas Letter. All Rights Reserved.