Midas Letter

Cannvas MedTech Inc (CNSX:MTEC) (FRA:3CM) CEO Shawn Moniz describes the company’s business plan and shareholder proposition after becoming a publicly traded company on the Canadian Securities Exchange this week. Cannvas MedTech are a business technology company primarily focused on the cannabis space. The company designs and builds customer curated platforms which uses data to understand their partners customers, the industry, and key business drivers. They are looking to place cannabis education at the forefront of their service offerings, where the global cannabis community can use interactive tools and physician-backed content to learn about cannabis related healthcare.

James West:    My guest this segment is Shawn Moniz. He’s the CEO of Cannvas MedTech Inc., which went public today on the CSE under the symbol MTEC. Shawn, thanks for joining me today.

Shawn Moniz:   Thank you very much for having me.

James West:    Shawn, haven’t had any exposure to your company, and so I don’t even know what it does. I’m assuming it’s got to be cannabis-related, because that’s what we do here, but tell me about Cannvas MedTech. What is it you do?

Shawn Moniz:   Sure. So Cannvas MedTech is a business technology company, and right now we’re focusing on the cannabis space. What we did is, we looked at what is happening in the space and where can you actually create a solution that doesn’t overlap a lot of the players that are in the segment. And what we found is, there’s a lot of growers, and there’s a lot of users;

Province Brands of Canada CEO Dooma Wendschuh discusses the company’s acquisition of a capital pool corporation in Colson Capital Corp and fund raising efforts with the goal of becoming a publicly traded entity in the near future. Province Brands also recently signed a strategic alliance with LP applicant Element GP to provide them with premium cannabis oils. This agreement allows Province Brands to not only produce alcoholic beers brewed from the cannabis plant but also non-alcoholic beers infused with marijuana oil. The company’s going public strategy is likely to unfold before the end of this calendar year with their marijuana beverages becoming available less than one year after the first sale of recreational marijuana.

James West:    My guest has been here many times before. Some of you might recognize Dooma Wendschuh. He’s the founder and CEO of Province Brands. Dooma, welcome back.

Dooma Wendschuh:    Thanks, it’s an honour to be back. Really excited to see the evolution of your studio with these fancy new microphones.

James West:    Thank you. Yes, they’re plugged in, but they work.

Dooma Wendschuh:    That’s great.

James West:    Dooma, you also have been experiencing great leaps forward in your evolution, and why don’t you fill me in since we last talked? What’s been happening?

Dooma Wendschuh:    Well, I wouldn’t know where to start, but I guess I could say that recently we announced that we have acquired a capital pool corporation called Colson Capital. For any of your listeners or watchers who may not know what a capital pool corporation is, it’s sort of like a bunch of guys get together and start a company that doesn’t do any business, it just sits on the stock exchange waiting for someone like us to come along and use it as a vehicle to take their company public. So in fact, we will be taking Province Brands of Canada public very soon, and we’ll be doing it through this vehicle, Colson Capital.

James West:    Great.

Dooma Wendschuh:    We can also announce now that we just signed this today, the funding for our going-public raise will be coordinated by Paradigm Capital, which we’re very excited by. So it will be a syndicate of several banks, but they’re going to help us put together the syndicate, and they’re underwriting the raise, which we will kick off in a few months, prior to our going-public activity.

We’re very excited to be working with Paradigm because they have a tremendous track record of being one of the leading banks in Canada working with the beer industry, specifically, the craft beer industry. And we’re not just a marijuana company, right, we’re also a beer company.

James West:    Right. Some might argue, more so a beer company.

Dooma Wendschuh:    More of a beer company than a marijuana company, exactly. So they were the perfect partner.

James West:    Great. And so where are you at with product evolution at this point?

Dooma Wendschuh:    Well, we can announce something there as well – we’ve got s

The founder of 420investor.com Alan Brochstein is back on Midas Letter LIVE to provide his commentary on the future direction of North American cannabis companies. He discusses the most visible U.S. cannabis companies such as Medmen Enterprises Inc (CNSX:MMEN) (OTCMKTS:MMNFF) and Tilray Inc (NASDAQ:TLRY) and whether there is an indication that investors would prefer to invest in U.S. operations over Canadian alternatives. He describes the current weakness in the cannabis market place but the underlying strength of top companies Aurora Cannabis Inc (TSE:ACB) (OTCMKTS:ACBFF) (FRA:21P) and Canopy Growth Corp (TSE:WEED) (NYSE:CGC) (FRA:11L1).

James West:    Hey, Alan, how’s it going?

Alan Brochstein:    There I am.

James West:    Let’s start with –

Ed Milewski:   How does – I was just going to throw out a question here, sorry to interrupt, but how does it look to you? Does it look like money’s exiting? It looks – look, it’s rolling over a bit, doesn’t it? Or are you looking at it from a fundamental?

Alan Brochstein:    Okay, so first of all, I’m glad you didn’t ask me what my head set. I need to invest in some sort of audio equipment. But no, I’m not a video game player. Yeah, the market, to me, in Canada, looks a little toppy; I’ve been saying that for a while. I think at the same time, you know, the United States is just starting to see a lot of interest out of Canada. So much money has been made over the last few years in Canada, and I don’t think that people are necessarily going to sell their Canadian holdings to buy US, but at the margin, I think there’s a lot of interest.

And I saw the day GMP Richardson put out a report talking about the opportunity in the United States

Leviathan Cannabis Group Inc (CNSX:EPIC) (OTCMKTS:LVCNF) CEO Martin Doane discusses how the company lives up to their EPIC ticker and name. He outlines Leviathan Cannabis’ three differentiators in the Canadian cannabis marketplace and future European plays. For starters, their RTO of Canada’s only cannabis-focused branding and marketing agency; Jekyll and Hyde. Second, their low-cost operations in Niagara with the ability to grow dried flower at approximately $0.70 a gram. Lastly, they are using their acquired pharmacy as their institutional dispensary channel.

James West:    My guest here, my guest’s name is Martin J. Doane, and he is the CEO and Director of Leviathan Cannabis Group, which trades on the CSE under the symbol EPIC. I love it! Leviathan, what a name!

Martin Doane:  It’s the best, what would you like to know?

James West:    I mean, when you say ‘Leviathan’, that, to me, implies like so much scale. Is that sort of part of the thinking behind your company?

Martin Doane:  That was definitely one of the inspirations. I mean, the Leviathan is a mythic sea creature, and very large in scale, and a dominator by nature. It’s also the title of a famous tract on political economy by Thomas Hobbes, but –

James West:    That’s right, that’s where I was thinking. Have you seen the Russian film called Leviathan?

Martin Doane:  I have not.

James West:    Oh, well, you’re going to have to see that now that you’re running the company.

Martin Doane:  Now I want to see it.

James West:    Yeah, okay, so tell me: where is Leviathan located, what’s the size of the grow, what’s the sort of the – what’s the main busin

MPX Bioceutical Corp (CNSX:MPX) (OTCMKTS:MPXEF) President & CEO Scott Boyes discusses the USA focused strategy of the company, but also how they are expanding to have a Canadian and International presence.  MPX closed a recent acquisition of a company called Canveda, who is a Canadian Licensed Producer opening the door for the company to participate in the Canadian market.  Scott argues that the product suite issued by companies should be vast and cater to the needs of consumers, especially to compete with and displace the black market.  MPX Bioceutical Corp has a wide variety of products they create and Scott relates how that strategy will be a recipe for success when there is an over-supply of bio-mass (dried flower).

TRANSCRIPT:

James West:  Right now, I’ve got Scott

James West: Let’s start off with a conversation about your

James West: Wow.

Scott Boyes: And we had a couple opportunities to participate

Scott Boyes: So this opportunity came along; it’s a small

Newstrike Brands Ltd (CVE:HIP) (OTCMKTS:NWKRF) (FRA:0N8) CEO Jay Wilgar discusses the company’s rebranding strategies after the CanniMed Therapeutics Inc collapsed transaction; where CanniMed were eventually acquired by Aurora Cannabis Inc (TSE:ACB) (OTCMKTS:ACBFF) (FRA:21P). The CEO highlights their wholly-owned subsidiary Up Cannabis and their two licensed facilities. Newstrike are well prepared for the upcoming recreational Canadian market and have stockpiled several thousand kilograms of products for the October 17th legalization date.

James West:    Hey, welcome back to Midas Letter Live. My guest this segment is Jay Wilgar. He’s the CEO of Newstrike, trading on the TSX Venture under the symbol HIP. Jay, thanks for joining me.

Jay Wilgar:    Thank you, James.

James West:    Jay, Newstri

Liberty Health Sciences Inc (CNSX:LHS) (OTCMKTS:LHSIF) (FRA:S6UQ) CEO George Scorsis breaks down the company’s latest press-release on Midas Letter LIVE. The CEO describes how the 18 month lock-up agreement on the divestiture of Liberty Health Sciences stock benefits both parties involved and provides confidence of Aphria Inc (TSE:APH) (OTCMKTS:APHQF) (FRA:10E) interest in Liberty’s future success in the U.S. markets. He also discusses the company’s Florida dispensaries growing at a rate of 3,000 patients a week and the current/future U.S. regulatory environment.

James West:           We have George Scorsis here who is the CEO of Liberty Health. George, thanks for joining us again

George Scorsis:    Thanks for having me.

James West:           George, you guys are putting out a press release this afternoon, which we’

MJardin Group is a specialized professional cannabis management company that provides cultivation solutions, retail advice and operational management on behalf of license-holders. Their Executive Chairman Rishi Gautam discusses their value proposition in the cannabis market and the capital-raising structure in place to become a publicly-listed entity later this calendar year.

Benjamin Smith:     Hello everyone, welcome back to Midas Letter Live. This is your host Benjamin A. Smith, filling in for the absent James West, who’s currently on the west coast. Today we have a special guest in studio; I’m here with MJardin Group’s Rishi Gautam.

Rishi Gautam:  Thanks for having me.

Benjamin Smith:     Great. Now MJardin is seeking to raise capital on a best efforts basis. Is that part of a capital raising structure, or is that part of something else, like a reverse takeover to list on exchanges?

Rishi Gautam:  So MJardin is on a path right now to do an RTO. We’ve announced a potential merger with a shell called Sumtra Diversified earlier this year. We’ve been planning our capital market strategy for quite some time now, since early last year, really to line the institutional shareholders and get a more sophisticated capital base prior to a public listing. So about 30 percent of our company right now is owned by Canadian institutions, large, long-only, investors in businesses as opposed to traders or short-term investors. So we have that set up already; we’re in the path to a listing, filing the application with the CSE, getting our audits done, just like many of the other companies out there now. And this is a pre-RTO financing where we’re raising a small bit of money prior to going public.

Benjamin Smith:     Okay. Are there any timelines or expectations of when your issue might come to market, or is that perhaps sometimes in the back half of 2019 or before?

Rishi Gautam:  It’ll be this year. Barring unforeseen, it should be in the fall.

Benjamin Smith:     Okay, great. Great. Now, reading over the company description, a lot of investors may not be fully aware of what your company does. You describe yourself as a turnkey cannabis cultivation processing and retail solutions provider, and also you help run facilities management. Now perhaps you can narrow down the scope of what, exactly, your company does and how it makes money?

Rishi Gautam:  Sure. So our business, MJardin, was founded in 2014. The founders of our business have been in the legal cannabis space for about 10 years now; one of the founders went into the retail side and acquired a lot of retail licenses when it first went live in the state of Colorado, the other founder was a designer and manager of cannabis facilities. So we have one founder who, James Lowe, who started the business as a management company, managing facilities on behalf of license-holders; sort of a small, niche management setup where he would get the design, do the planning, and ultimately manage the operations on behalf of a license holder.

I came in as an investor in 2014 and we structured MJardin really as an institutional management company. We managed the assets: the cultivat

Aurora Cannabis Inc (TSE:ACB) (OTCMKTS:ACBFF) (FRA:21P) CCO Cam Battley discusses Aurora Sky, Aurora Sun, Aurora Frost, and the rapid pace of acquisitions and the overarching logic behind the Aurora’s global penetration scheme.

James West: Hey! Welcome back to Midas Letter Live. You might recognize my next guest, most everybody does in the cannabis industry these days. Cam Battley is the Chief Corporate Officer of Aurora Ctannabis. Cam welcome back.

Cam Battley: It’s nice to see you James. I love the brand new decor of “old-timey” microphones.

James West: Yes, these are actually stashes and vaporizers because we’re getting ready now that cannabis is legal, you’re going to be able to tune this up, put in your vape cartilage and [inhales deeply].

Cam Battley: I hope you have some Aurora stuff in there.

James West: I hope we do too because now that it’s legal you guys can bring free samples and we can try it live on the air which I don’t know if you’ve met my sidekick Ed Milewski, who’s currently golfing in Scotland right now on one of the world’s oldest golf courses, we are planning to sample product live on the air.

Cam Battley: Live on the air? Really?

James West: Live on the air!

Cam Battley: I will tune in for that I’ll tell you.

James West: Cam, I can

James E Wagner Cultivation Corporation (CVE:JWCA) is the only Canadian LP to grow Cannabis using aeroponic technology. What is aeroponics and how does it benefit cannabis THC, CBD and terpene content? Join us for a tour of the company’s Kitchener, Ontario.

TRANSCRIPT:

Nathan Woodward CEO: JWC was founded over 10 years ago. Previous to that I was actually on disability.  I had severe chronic contractible migraines. So I turned to cannabis, and within a couple of years it turned my life around. My family joined me under the MMAR, many of them suffered from conditions which I knew could be helped. We turned to my grandfather, James Wagner, all his life he grew a variety of things, and he grew cannabis too. He showed me my first cannabis plant back in the day.

So we’re a family business.  A family of patients and growers who have founded a company to bring our unique medicine to the larger group of patients here in Canada.

James West: You grow here Aeroponically as opposed to Hydroponically or conventionally; what is the difference between growing aeroponics, hydroponics and growing in dirt.

Nathan Woodward: We eliminate any potential intermediary and provide our nutrition in the form of liquid nutrients directly to the root mass of the plant, using a special type of misting spray that allows the plant to optimally absorb the nutrients that we provide.  There is no chemistry involved in soil composition or in substrate monitoring so we can optimize directly to the conditions that the plant requires.

Because of the high efficiency of our system, we use less nutrients, we use, you know, no pesticides.  All of these other elements of cost which also create work and therefore increase the number of employees required to service the plants are simply no present when you consider aeroponics and the JWC approach.

This is our vegetative room, we’ve got a large group of Rockstar Kush plants, this is a terrific producer comes out at about 24.5 percent THC usually.

As we come down here, we have a group of Chemdawg plants, now these plants are just getting ready to move under the screen training into their next phase.  Chemdawg a beautiful plant, comes out only at a bout 17 or 18 percent THC, but it has a wonderful earthy flavour.  This is one of my own personal favourite strains.

Nathan Woodward: We run a perpetual harvest cycle, so one of our flowering rooms every week will produce a harvest.  We have 5 flowering rooms just like this one, each one of those harvesting rooms can produce about 4kg of product every week which gives us an estimated production capacity of around 1,500 kg every year from this pilot location.

Laura Foster CCO: This is one of our C-Vaults that we use to store the product.  It’s completely air-tight and they’re stainless steel which makes for easy sanitization. And inside we have some of our Rockstar Kush, there is actually about 1KG of product in here which translates into roughly $10,000 dollars worth of value. So this product looks a little bit different – this is our Cannitonic, it’s extremely low in THC and it’s between 11 and 12 percent CBD.

The goal of this is to preserve the trichomes on the