Episode Summary:

On the Benzinga Power Hour, Spencer Israel and Aaron Bry are breaking down stocks making big up moves and down moves.

Stocks Talked About In The Show:

VMEO, PLUG, BB, SNBR, JAGX, HSDT

Guests:

Dane C. Andreef, President & CEO Helius Medical (NASDAQ: HSDT) 14:00

Lisa Conte, Jaguar Health (NASDAQ: JAGX) 28:00

Trung Pham, CEO, RYSE 45:00

https://www.helloryse.com/

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Hosts:

Spencer Israel

Twitter: https://twitter.com/sjisrael

Aaarn Bry

Twitter: https://twitter.com/aaronbry5

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Disclaimer: All of the information, material, and/or content contained in this program is for informational purposes only. Investing in stocks, options, and futures is risky and not suitable for all investors. Please consult your own independent financial adviser before making any investment decisions.

Unedited Transcript

Hey everybody. How are we doing? Welcome to whatever this is. Let me Spencer that there's Aaron. And, uh, maybe you should we get the power hour started. It's hump day. Happy Wednesday, everybody.

CEO. Jason Razak here with us. The man, the myth, the legend Skeeter shifts on the power hour with us live today. Interesting different innovative companies. You are alive. Power hour, Jessica.

Oh, yeah. How are we doing everybody? Welcome to the power hour. We got a lot going on today. We got three guests on the dock. First up. We'll have Dan Andrey from Helios medical on and around 15 minutes or so Lisa county from January Hoff at 1230 trunk fan, the CEO of arise. This is an interesting company.

They're not public, uh, but you can still invest in them. I'll tell you all about that at 1245, but I, I heard a, B made some trades. We can talk about those trades in a second. Uh, before we do that though, let's do a quick crypto update. If we can, we'll bring the heat map up on the screen. AB uh, I like white, whiter shades, right of red.

I don't like darker. Of of, uh, of right. I like the wider shades of red. It's better than, uh, better than being full red. So Bitcoin's slightly in the red today down half a percent or so if you're in kind of the same story, um, Binance coin, it seems like I don't have to claim climate is having a good week here.

Let's let's let's let's give it, let's see if I can bring up, um, here on coin market cap, Binance coin in the last week is, uh, well last week, cause I'm only Bitcoin more than eith um, mark up a lot more than most of the largest crypto. So I'm go Binance coin. Hey, abs and trivia for you. Alright. Ready? Some from crypto trivia for you, what percentage do you think of all the Bitcoin mined in the world?

Uh, it was mine in the U S in July, um, 18%, 18, no higher 29. 54. No, not quite that high 35.4%. And this is according to the university of Cambridge. They have a crypt, uh, a Bitcoin electricity consumption index. As you can see there on the map, China, big fat block, a gray because it's zero because it's illegal.

Get it. Got it. Good. Good. But anyway, uh, as a result of that, a U S uh, share of Bitcoin mining has increased dramatically. So we've got that going for us, which is nice. As a reminder, you don't have to mine Bitcoin to get Bitcoin. In fact, you can get Bitcoin for free $50 worth. All you got to do is download the Voyager app funded with a hundred dollars.

Uh, use the offer code zing, make your first trade and upon doing all of that, you will get $50 in Bitcoin for. On the Voyager app. It'd be when's the last time you made any, uh, crypto related trades? For me, it's been when I bought salon like a month or two ago. Um, I actually sold some of my crypto, uh, probably about two, three weeks ago.

Maybe it wasn't really out of any, um, you know, I, I want to sell this or anything. It was more like I have this money in this account and I kind of need some cash right now. So yeah, I sold some, uh, sold some card dominoes, sold some Ethereum, but right now a theory I'm is actually my only crypto, uh, holding.

I see tokes and trades in the chat talking about sheep Sheba and every day was she, I don't know she was up again today. It's all I know. Yeah. Spencer, let me go ahead and pull up my screen. I'll talk about a couple of the trades that I made today. Um, you know, so I know we talked about that. I should, I shouldn't be buying options.

I should be selling them, but I did buy some more options, but luckily, today they are working out. This is kind of my Yolo Yolo trade account. Not that big as you can see only about two grand in this Robin hood account, but, um, the portfolio is up 17% today. Spencer actually 1738, shout out Fetty WAP. Um, and now it's 1767.

So this morning I put these, uh, I bought these $170 calls on Baba that expire next Friday, October 22nd, man. Um, and Baba. So I bought them like probably right around here, nine, 9:40 AM. And now, uh, Baba has been ripping all day. So the, the concept, what was the thought process behind the. Well, so, um, Baba, Alibaba has been, the stock has been showing, you know, relative strength against the market over the past.

Um, you know, weaker, if you look at the past week, it's up 10%. Right? I know that. And I'm asking them why today. Uh, that's a good question, Spencer. So why today we saw yesterday kind of actually, uh, it wasn't a great day for, for Baba stock. So w when I S when I look at a long-term chart for this, which on, on Robin hood here, you can't really, you know, not, not the best for looking at charts.

I see this continue to go higher to, you know, there's like $190 level, but Spencer, as we know everything, can't go straight up. So basically on any kind of like dips or, or days where the stock underperforms, I'm going to be looking to making trades like this, because my, my thesis is that it will, um, you know, then subsequently outperform the market, the following.

So I'm probably going to bomb out of this one here this afternoon. I mean, the contracts are already up about 33%. I'm out this afternoon. Yeah. I mean, there's no reason to hold on to it this afternoon.

Well, that's, I'm up 33% on this trade. Um, the, uh, the other contract I, I bought yesterday afternoon was a roadblocks call, um, and kind of something, you know, similar yesterday was a pretty strong day for roadblocks. Um, and it was showing some relative strength against the market. Um, from a technical standpoint, it looked like we definitely were going to go into, come up at least to this $75 level.

Um, but as you know, Spencer, I'm not a pure technical or a pure fundamental trader. I kinda, um, you know, just do a hybrid of everything. And so if something aligns, if the technicals look good to me and I liked the company, like I do roadblocks, um, and it shows showing me a good entry point that I don't mind getting in on some of those option contracts.

So, um, these ones are actually up. Uh, more than a hundred percent from when I bought them yesterday. So nice little return on those roadblocks calls. Well, I did. I'm glad you said that because I did sell, so you can see yesterday I bought five contracts for $245 today. I sold three of them for 2 34. So I basically got my money back minus, you know, $11 and I'm letting these other two contracts kind of run for, you know, maybe a day or two longer just to see what they do.

Nice. Nice job, man. I mean, you, you made two profitable trades in the last couple of days. Take the money run. Good job. Good on you. Yeah. Thank you. I mean, you know, we've talked, I've a question. How long was it between when the idea first occurred to you and when you actually made, made the trade? Not very long at all.

I know, but are we talking like 10 minutes or are we talking like. I mean, I have all these stocks that are like constantly on my watch list. Alibaba and roadblocks are definitely on there. And if I, if I, you know, see one that's like underperforming or outperforming the market and the technicals look like, oh, this is a good entry point.

I could make that trade in less than, than two minutes. You know, it's as simple as, as picking an expiration date and a strike price. Got it. I got it. I see. I always like chastise you for buying options, but the truth is I really need it, like need to do. I could probably do well. If I traded around some of my longer term positions with via options, it, they just require you to babysit them a little bit.

And I don't have the attention span during the day to do that. Um, so I don't know, but man, good for you to, for, to take the money run there. There was also this Q at, well, I dunno if I so. These were up. I saw his soul. I only bought three contracts, so it's a little harder to like sell some and keep some, um, but let's see, I bought them for $73 and they're $71 right now.

So, uh, but I did sell one for 95, so I made profit on that one, but I should've sold all of them, I guess. But yeah, Spencer, I mean, you know, if you have a long-term position that, um, is up 20% in a month or something, maybe you want to buy a couple of puts on that just to, just in case it goes down and you're already holding it.

I mean, I'd probably rather sell some calls to, to, to get paid for something, but, um, uh, yeah. Yeah, you're right. You're right. I totally should totally should hae a nice job with you. There's a couple of stocks I want to touch on real fast before we get on in a few minutes here. Oh, let's pull up the chart.

This has been thinker pro. Whereas my chart was my chart. There it is. Uh, I guess Vimeo here. I just had it in the newsfeed. They posted their September, some, some monthly metrics from September, uh, this morning. Uh, and I guess they're a revenue growth, uh, of 33% subscriber growth, 14% average revenue per user ARPU eight, uh, 16%.

These are all year over year numbers. Um, that's interesting cause this subscriber growth number actually slowed and it looks like so anyway, w th the, the, the stock, which I always forget, Vimeo is public. I always forget Vimeo is public. Anyway. It's had his best day in, in a while. This has been pretty much straight down since it wasn't IPO or direct listing.

I want to say it was an IPO, um, and pretty much straight down. And since that happened in June, so, Hey, I would probably sell this. I wouldn't buy it up here. I would sell this rip, but I thought this is notable because it's the best day. I think that the stock maybe has ever had on a, on a percentage basis.

So, um, all time low yesterday, and today you're up 13%. Th this is a company that I've used before. I, I don't know, like the long-term thesis for it as a, as a stock. So I, I'm not invested in it or anything like that. Um, but yeah, it's one of those companies. What, like you spend through that? I always forget is public.

Yeah. What about sleep number SMER? Do you see this one today? Uh, down 5% and this looks, this chart looks down right. Scary to me. Cause you just fell below whatever floor that was in the $90 area or whatever. And I love the low nineties. You are firmly below that now. Um, and we're going to, it looks like we're going to go green for the year.

Uh, ready for the. And this thing. Yeah, we opened, we closed at 2020 and at $80 or a, uh, 80. What does that? 83. Well, we'll call it 80, right? Eighty, eighty one. That's what we were closed last year at we're 86. Right now. This is looking downward. It's scary. This is not an inflation hedge beds. Yeah. Spencer, I don't know if you remember a couple of weeks ago, I was actually getting, uh, I had trouble getting a bed delivered and it was from sleep number.

No, I don't remember this. So I had an order out with sleep number to get a bed delivered and, uh, you know, first day comes around. It doesn't end up coming. They, you know, I called them that this was the most annoying part is I didn't know. They didn't call me saying like, oh, we're gonna have to cancel this delivery.

It's not going to come today. I had to call them and like inquire, inquiring choir. Then finally they're like, all right. Yeah. It's, uh, we're not gonna be able to deliver the bed today, whatever do they say why they said they were missing apart and then the next part? Yeah, I don't know. And then the next day it wasn't like, it wasn't like just the mattress like they were doing.

I guess there's some parts to that. And then, so, so I, you know, express my frustration naturally we schedule a subsequent appointment maybe for the next week, the next week comes and same thing happened is happening again. Well, actually this time I called like kind of preemptively, cause I'm like, Hey, just making sure the bed is going to come today between nine 30 and 1230, like we said, and they were like, oh, actually, like we had a computer error.

The bed is not going to come today. So two times in a row, the bed isn't coming to me, mind you, I'm sleeping on an air mattress. Um, the company did offer me. They're like, yeah, if you want to go buy a temporary mattress, we'll, you know, rebate you anything up to $400. So I was going to go out and buy like a $400 mattress from Walmart or something, get them to pay me for it and then return the mattress.

But I never got around to doing so. And finally, on the third time they did deliver the bed. But at that time I was like pissed off and I was looking at, puts on sleep number, trying to short it, but the stock is just not very, uh, volatile or liquid. So there weren't a lot of good contract options, but now I'm wishing I did.

Cause it sounds like if this was like a month ago and I would've made that trade, I might be looking pretty nice. And how long ago was that? So it was like a month ago. Oh man. All right. So it sounds like they're having some, just like everyone else. Supply chain concerns for beds apparently. Right? Gavin pillow sources and components or, or maybe even just getting, getting deliveries done.

Um, Well, all right. I didn't know. I didn't know any of that. I know, I know we've cause cause there were mornings where like I wasn't in the office cause I was my bed's supposed to get delivered and that was one of the many running problems with my apartment. But that was one that isn't really on the apartment more on or on sleep number.

All right. Um, Hey, our next guest is here and I want to bring him on, uh, cause he's got a couple of thoughts. He's got a couple of things he likes interesting. Um, I think our next guest also has inflated in addition to his own company. I think he's also got inflation on his mind here based on some of the things he just dropped in our, in our, in our private chats.

So let's get Dane age refunds from Helio's medical, bring them on. And right now, Dane, good afternoon. How are we doing today? I'm good. Spencer, how are you? I'm good. You must be thinking about inflation. Cause you said you like gold. You like natural gas. You're like uranium. Well, you know, pretty much everything's going up in price, uh, food energy.

But if, if, if you'd like the old school, you know, gold Nat gas, uranium, uh, I'm an old 20 year, 25 year veteran of, of hedge funds. I used to run money, uh, for Julian Robertson and, uh, you know, th these names are just starting to explore. Um, on the Nat gas and uranium side, but the goal, uh, golden silver really have been left back, um, along with helium medical technologies, which I'd love to discuss.

Um, since that, of course I want it real fast. It's one to Paul, but I just a random uranium chart. Right. I mean, uranium has been one of the high, uh, uh, highest flyers, uh, this year you can go there and go to the you U U or whatever, but, um, yeah, I mean, just uranium, so, okay. actually the CEO of, uh, UVC, uh, uranium energy.

Um, his one child Ashley was on our device. Um, he's got a cerebral palsy child and, uh, uh, he was treated with our, uh, devices. So, uh, okay, so interesting. So tell us about what Helios is working on. Helias. Uh, the technology came out of the university of Wisconsin in the late nineties and into 2000. Um, it is, uh, it treats, uh, basically a very common symptom across CNS central nervous system, uh, diseases like Ms, like stroke, like traumatic brain injury, uh, cerebral palsy.

Parkinson's you name it? So basically what we're treating right across that spectrum of indications is balancing gait. So most of, most of these patients, uh, can't look left, can't look right without losing their balance or walking forward or going up and down stairs. They just, th they just have a very low quality of life because of the balance and gait deficit, uh, due to these weather, chronic, uh, diseases like Ms, and, uh, and potentially stroke, uh, but also trauma with a traumatic brain injury.

And we are the only company in north America right now with a cleared, uh, therapy or ponds device therapy, which I'll talk to, uh, in traumatic brain injury. There is, uh, by health Canada. So we're treating, uh, we've treated well over 300 patients in traumatic brain injury. Uh, it clinically and commercially in Canada, right.

Sure. What exactly is the device? Like what is the device? So this is something, you know, in a, a great case. Uh, it's the ponds, uh, neuromodulation stimulator. So I think Tim cook and Steve jobs, uh, would love this device. Uh, let me open it up real quick. Uh, nice handle. But if you open it up and you have a smart device controller, if you could see that and the mouthpiece, so basically I'm going to take the device, the smart device there, uh, which is our controller and then plug in the mode piece.

Um, so basically it plugs in right here and the mode piece goes on top of your tongue. Whoa. So 20 minutes a day, twice a day in combination with physical therapy to, uh, improve your balancing gait. Now, w we're we are cleared by the FDA since March of this year for gait deficit in Ms. Patients. Okay. So there's a million Ms.

Patients and growing and, and 41% of them have gait deficit. So it's a massive problem in a very chronic well advertise well-lit disease. So that's going to be our first commercial launch in the us, but in Canada, since, uh, late 2018, we are cleared for, for balance deficit due to mild, to moderate traumatic brain injury.

And then last year we got our second, uh, clearance approval by health Canada in Ms. In detail. So, and the big news that came, uh, in August of this year, we got our second breakthrough designation device by the FDA. It was granted imbalanced and gait dysfunction due to stroke. Now, stroke is massive. It's seven times greater than Ms.

As is TBI. There's 7 million people living with chronic stroke. Uh, 80% of them have gait deficit of balance and gait deficit, and that's chronic stroke. There's also subacute and acute stroke where there's 800,000 new strokes a year 80% of them go right into rehab. So this is not enhanced rehab. It's a ponds therapy with our device.

You said the stroke that was in Canada, that wasn't hen. Uh, no, we just, uh, garnered our second FDA breakthrough designation in all. In stroke. So that was the us. So right now what we need, uh, is a pivotal trial for stroke, which we are starting to develop as we speak so very exciting times for such a small company.

Okay. So, uh, you're approved, uh, in the us, uh, for only, I guess, a couple of use cases do just Ms. Right. Um, but you're working on getting approval for CP or yes, we have data in CP. Uh, we're going to have data on Parkinson's, uh, in the near future. We also believe, um, we're going to have, uh, a pivotal trial for our second traumatic brain injury trial for balancing gait deficit as well.

So we could be the only. Uh, a company that could be, uh, approved in the, in the U S by the FDA and TBI. Uh, and that would be probably 20, 24. Uh, and, and what situation on just like production, like you have the MTA clearance for one, for one thing and the us, but what, what about we haven't commercialized any candidate in two years, we're in 33 neuro PT clinics.

Uh, we use key tronics up in Minnesota, publicly traded company as our OEM to manufacturer our controller and our mouthpiece. So, so basically w what transpires here, when we stimulate the tongue, uh, Spencer, uh, in combination physical therapy, we have 143 gold-plated electrodes on this mouthpiece, and it's twice a day for 20 minutes in combination with physical therapy.

So basically we are gently stimulating the tongue. It feels like Champaign pop. Or do you remember pop rocks? I don't know if you're that young, the candy. So that's how, that's what it feels like on your tongue. So even when you take your index finger and just touch it, you are stimulating your brain that goes right through your, your, your, your there's 10.

And so what's the, the idea is that what it just like improves balance. So basically, uh, you know, if you, if you just sit on the couch with our device, yeah. I have this in your mouse. You're not going to improve your balance and gait. It doesn't work that way. It's in combination. It's like learning to ride a bike again.

So you have, you don't have a hundred percent of your balance and gait deficit like you and I have right now, when you have one of these chronic diseases, you have this common symptom in Ms. Or bounce stuffs and then TBI balance deficit in stroke. Same thing, you know, you can't get up without falling. You can't go up and down stairs.

You can't look left or turn right without losing your balance. So this is a big deal and it really affects the quality of life for most of these patients. Of course, a lot of them can't go back to work if they've had a TBI. So you, um, it's always interesting. Whenever I talk to someone who like had a career in, in, in one field and left it for another, cause you, like you said, you may have money, you're a professional money manager and then you left to become the present CEO.

Yeah. So, so, so Y so, so yeah, basically I, when I, uh, uh, the, uh, maybe partners wound down became a family office, we started doing more private and public. Really in healthcare. Um, and I, uh, I started investing in Helios a few years ago, joined the board. Hopefully I can help management, uh, steer their way through some of the financial issues, compensation issues, and so forth.

And just using my background, uh, of, of really being with management teams for the last 30 plus years. So when this opportunity existed, when Helias basically needed a new direction, uh, from, from, from the senior level, um, I volunteer and in August of last year, I started as the interim CEO, I did something special.

Um, I took no compensation whatsoever for about 11 months, no salary, no stock option, no cash. And then basically, you know, from then on, I start building up the new team, I helped bridge the company financially in two deals. I've been investing in every deal, uh, you know, myself and my family owned well over 9% of this company right now.

Um, we just brought in a new CFO, Jeff Matthiessen from the board, um, as well as our new chief medical officer, um, who who's a KOL Ms. Expert neurologist as well. And then the head of sales and marketing came from leaving Nova, which is the biggest neuromodulation company, uh, in north America right now. So of course from our chat, uh, before we wrap up here is the treatment.

I presume it's a temporary improvement. You have to keep using it. Right. So right now it's a 14 week treatment, uh, twice a day for 20 minutes. Uh, in combination with physical therapy, your first two weeks are in the neuro PT setting. The last 12 weeks. Um, you do your exercises at home and you come in once a week and you, we download your, uh, data with your PT and we look at your progress and improvement.

So, so right now our data, you know, is, is, is really for short term only, but we're looking to get a longer-term data as well. We have it. In traumatic brain injury, we did a wash out. Uh, it, it was excellent data and that garnered our, our first clearance by health, Canada and TBI. And then I guess, like what, what are the, um, uh, the best you can provide, like a timeline on, on, on when you'll get the FDA clearance for anything, everything you want to get clearance for.

Yeah. So it's all about expanding the label of this platform technology. So first and foremost is Ms. In the U S we're looking to do a pivotal trial and stroke. Uh, we're looking at probably, you know, first half, first quarter, 2024 for FDA clearance in stroke. So, you know, and we're hopefully also get a parallel pathway TBI as well.

So to do all this for the next two years, Is is a massive lift, but it's a, it's a fantastic lift. The testimonies that we have coming from our clinicians, from our patients in Canada, the, the, the technology, the therapy, the ponds therapy works. It truly works. And it changes people's lives. Their quality of life improve.

Uh, their there's so many positive side effects to this therapy. Um, I just can't make claims, uh, you know, but we just hear a great story. I, I wouldn't want you to make claims anyway, they couldn't be backed up. And Andrew, if he's the CEO of Helios medical, ticker chart up on the screen game. Thanks a lot for coming on today.

Thanks, Spencer. Alright. Bye-bye Hey, AB where'd you go? My man, come back to me. I'm right here, Spencer. You were just killing it on the interview. So I did not want to, I know, I know what happened. You stepped away to go to the bathroom. Yeah. Yeah. That's. I got you. Anyway. Um, well, yeah, Spencer. So as you mentioned, we got a pack show today for three guests.

That was our first one, Dane and drift and drift. Um, we've got another exciting biotech company coming up as well. Spencer, Lisa county, and I see her here backstage from Jaguar health Jaguar. She bring Lisa on. Let's do it. Spencer. I've always wanted, I love seeing Jaguar Jaguar with a British accent. I bet you that's how it's pronounced.

We can ask, we can ask her. Maybe we should, let's get these on. You want me to do it? Oh, there she is. Okay. Well you say good afternoon. Good afternoon. I just heard the end of that conversation and it sounded very similar to ours label expansion for an initial indication, not making claims outside your initial indication.

Right? Right. So tell us about what you're working on and what your initial indications are. And then we'll, we'll go from. So while we're working and we do all plant based drug discovery, some plants that are used traditionally from the brain forest. And we did take our first product from a tree growing in the rain forest to a first-in-class FDA approved drug called my Tessie.

And it's a drug for gastrointestinal symptoms. It normalizes gut function. And it's initially approved in people living with HIV aids and has multiple follow on indications. One of which is in phase three clinical trials right now for cancer therapy related diarrhea, which is the biggest side effect associated with cancer therapy and affects everything from dignity and quality of life.

All the way to outcome of the patient's cancer therapy, because the interruption with the gastrointestinal distress causes patients to take drug holidays or reduce their dose, or even change their life saving therapy. And then there's multiple other follow on indications, IDs, IDD. We have a rare disease and short bowel syndrome.

So it's a real pipeline within a product. Where w what is the market size here? We're talking to anybody with any sort of gastrointestinal problem. Eventually as we get to all the different indications. So right now our label, for example, is only in people living with HIV aids, it's a chronic label, chronic administration.

Um, and then we're going for cancer. We'll need to do an additional clinical trial for Uribel bowel syndrome and additional clinical trial for Crohn's disease, inflammatory bowel disease. So one by one, we'll be able to get to all the patients in need around the world. How long do those trials take? Well, it depends.

Um, so the cancer trial is where about, um, nine months into it and it will be completed about one year from now. It's about 250 patients. It's very interesting. Literally my Tessy. So it's the product in the same dose, the same formulation that we have in commercial use right now for HIV. So when we think about risk management, most new drug applications fail because of a safety issue or a manufacturing issue.

We obviously already have the supply chain worked out and we have a chronic indication. So for example, we have two year carcinogenicity. So it's a matter of conducting that pivotal trial and risk reduction for us. It's spending a lot of time with the FDA to make sure we have discussion and agreement on that pivotal trial design on enrollment criteria, endpoint definition, which will define where you're going to be able to make your claims and promote.

So you don't finish the trial, have a successful trial. And the FDA says great. You know, if only you looked at one additional thing. So anyway, the bottom line is each additional indication is probably about a two year. So, well, in this case, we're looking at like the next catalyst for Jaguar health being like a year out from now.

Well, not the next catalyst. That's the, that is a very big, important catalyst because you asked about the size. So there's diarrhea is the number one side effect. We cancer therapy and there's nothing that's been tested and approved specifically in that indication. So what do we know about, of supportive care in Canada?

Um, chemotherapy induced, nausea and vomiting. And that is a market that is expected to be the third party analysts about a $3 billion next year. And you typically take those agents for like the first three days of the chemo cycle, whereas diarrhea with targeted therapies, these therapies that patients stay on chronically to stay in remission for years at a time is occurring, you know, every single day.

So that's a huge indication in terms of the number of patients, the impact we can have on their life. And of course the revenue that results from that, but near term catalysts. Yeah, we have the brand name is my Tessie. The generic name is and is getting ready to be launched in December of this year. As under the trade name can Aaliyah for chemotherapy induced diarrhea in dogs under a conditional approval from the FDA, because it's, it's called mums, which is like an orphan designation to get products available to animals in need.

And in this case, dogs in need and dogs are remarkably predictive of the human situation. The way our product works in the gut is highly conserved in the physiology of the dog. Gut and dogs typically get many, um, human designated cancer agents. So we're very excited and, and that's, you know, a relatively small market compared to the human market, but a very important market.

And it's a very near term, um, event for the. And so Lisa, you mentioned that, um, you know, diarrhea and kind of, you know, some stomach problems are one of the main, um, side effects of cancer treatment. Um, so, so with this medication also help with weight loss. I mean, I assume the two are associated, uh, wait, not with a receipt, what it does, this is not a claim.

Uh, but when patients are. You know, getting dehydrated because that's the thing of diarrhea, like cholera, for example, what kills you, not the Colorado infection. It's the dehydration that occurs from that. Ultimately organ shutdown, et cetera. So when you're not dehydrating, you're maintaining your weight.

And we have had patients just say to us, you know, this is lovely. I don't, you know, I don't have a sunken face anymore. I'm able to maintain a healthy body presence. That's not a claim that we have, but you know, you could just imagine from preventing the dehydration, right? So, so by preventing the, uh, you know, diarrhea and those effects, you'd be, um, you know, retaining more of that hydration that.

And, you know, another, another indication that we're pursuing, which is going to get to what you're thinking about short bowel syndrome and the intestinal failure associated with that. So this is another near term, uh, um, event in the company. So short bowel syndrome, we have about an intestine that's maybe 20, 25 feet.

So short bowel you'll have less than five feet, maybe as little as 30 centimeters, it could be congenital. It could be due to cancer necrosis. It could be due to an accident, but normally what's going on in your gut. You have the secretions coming in and then you have the absorption of the nutrients. Your proteins, your carbs, your fats, your vitamins, your minerals.

And if you have a short vowel, you don't have enough time for those to be absorbed appropriately. So that's an indication that we're pursuing initially in Europe, because we have orphan drug designation here in the United States. We have filed for orphan drug designation in Europe, and that has been accepted the application with orphan drug designation.

In Europe. We have the possibility for an accelerated conditional approval. You can get it into those patients sooner. And the thought is that you're giving them more time by normalizing the secretions, which is the mechanism of action of or giving them more time to absorb the nutrients of life and reduce the morbidity.

And also, unfortunately, the mortality associated with that indication and that is being funded. With our European subsidiary Napoli, you merging with a spec in Italy called the dragon spec, and it's all filed right now with the Italian government and should be consummated in less than the next month. No, that's no, that's interesting.

All right. So we got SPACs we got Italy. Uh, why, why, why go that route? So again, we wanted to be in Europe, right? And, um, for what I told you about the conditional accelerated approval opportunity for an orphan designation. So we licensed the parent company, Jaguar or Jaguar. However you want to say it, uh, did an exclusive license for the European rights to all the indications of profile Ameren.

It's a typical license agreements. So there's benefit to the parent company of an upfront payment milestone payments, Royal. And that clinical data that will be generated in Europe is available for the parent organization to utilize in the United States. We try as best as possible to pair our clinical programs with, um, non-dilutive financing.

So one way to achieve non-dilutive financing in this situation was for the subsidiary Napa. We used to be funded by a third party, and there happened to be a dragon SPAC in Italy. Why Italy? Because Italy is the only country where a spec can name their target company. Well, they're raising their money as opposed to the way it's typically done.

Yeah. Italy is the place where that happens. Did you know that? I did not. I mean, we probably should know that Spencer considering, you know, we're in this field, but maybe, maybe Chris and Mitch are our resident spec. Experts knew that, but, um, I did know. Well, I think that would be a game changer. Imagine if that was the case in the U S if you can name while you're raising your money from your pipe investors, you can say, Hey guys, you should come to because a year from now we're going to go buy this company.

Or we think, oh yeah, happy, happy Muhammad in the chest saying investors to low. Never mentioned that maybe next time he comes on the show. He'll, he'll, he'll talk about that spec process. Um, but I mean, I feel like a lot of times here with the specs where they're not allowed to disclose it, like oftentimes it's rumor and I, I sometimes it's kind of like one of those, uh, you know, trial balloons situations where I think they like purposely let it leak and see how the responses, but who knows.

Wow. Yeah. At least you just taught us all. I saw new today, blue my house. Yay. Do it my best. Yes. Years ago, I don't know. Let's say 5, 6, 7 years ago. Italy was the second most active market in specs for that very reason. Um, it cooled off for a bit when maybe some of the spec sponsors were little too generous with their return to themselves.

Um, but far spec spots. You're kidding. Right. Oh man. Do you have an, another connection to Italy outside of that? Lisa, we do have another connection that we have very interesting looking at the plants behind you, Spencer, the largest plant like tree based GMP manufacturer in the world is in Milano, Italy called in Dana.

And they are, um, scaling up to be our second or our long-term large-scale, um, plant manufacturer. We've worked with them for over 25 years and in fact, they just did a nice investment in Jaguar, in the parent. Well, I, I will pass her compliments to the chef. I'm not responsible for these decorations here. I I'm stuck at home in, uh, uh, quarantine right now.

So I'm sorry, this is what I've got. I got, I got what I got, what I got. So I'll pass her compliments to the chef on that, uh, for the chef or the chief that to, uh, Lisa Conti is the CEO of Jaguar health. Um, joining us today on the, on the para or Elisa. Uh, thank you so much for stopping by. We would love to have you on again.

Uh, as we get closer to those, uh, the, those next catalyst. You got it. You got it. Thanks a lot, guys. Have a great rest of your morning, Lisa man, we're doing the specs wrong in the U S I think is I think we need to let these come. Can you even imagine. So essentially let's back this up for some maybe if any of our audience members don't understand the kind of difference.

So essentially, and correct me if I'm wrong here in the states, you have a special purpose acquisition company, a quote, unquote Blake blank check company. That's raising money from investors to then go buy to take another company public, right? So you actually, you have two years, so you raise your, you go out and you raise money from investors and then you IPO that company.

But your company is not, it's just a blank check. It's a shell company. It doesn't, it doesn't do anything. And you raise money with the idea that within two years from the second we IPO, we have a two year clock. We got to buy, we got to use the money that we raised to buy another company. Um, Otherwise, we have to return that money to all the people that invested in this back in the U S you're not these specs.

I'm not allowed to talk about their targets before they have a deal. I apparently, generally, that's not the case. You can raise money with the intention of saying, Hey, we are going to do that. You should buy, you should invest now because we're going to buy X company down the line, which so let's say I'm going to, I'm an Italian spec.

Oh, oh, we kind of lost you for a sec, but you're back. So say I'm going to Italian spec called I spec Italian spec, and I'm raising money. I can say we are raising this money in goals of taking Ferrari public or. Well, what'd you say? Or, or, or Benzinga, or Benzinga w we, you know, we can, we can say our target now here, where if you say you look at, um, I can't even think of like, uh, uh, one of the specs, like the, uh, actual spat, like Northern diamond peak holdings there there's diamond peak holds you don't know there are rumors, but you don't know for sure that diamond peak is, you know, targeted and Clover health or whoever it is.

Yeah. Um, coupon boy brings up a good point in the chat. Us can say, what sector are they targeting? That's a good point. And they can, so a lot of times people will, uh, you know, infer like, oh, this company's raising money in the healthcare space. They're going to target a Clover or whatever it is. But, um, I, yeah, I know Ferrari is already public.

I was just thinking of an Italian company off the top of my head. I w I don't know, maybe another Italian company, um, uh, Oh, wait, I think I was going to say natala, but I think they got bought by a guy who owned with Hela. I think, I think there's mandolins. I forget somebody big owns Metalla anyway, um, IPF discord.

See, I feel like there are some where it's like very like clear what the, what the company is. Um, what's the one, the one that's going to take apex public. It's like Northern, uh, something apex clearing bad close yet, or no, no, that didn't close yet. I guess that's let's search and that's the best part of the crows you can search for it.

I think it's like fitness V or N T S Northern store on investment. Yeah. Yeah. Apex FinTech. So the only reason that that's like out there in the public is because they, the deal's already been in now. Okay, here we go. Now we got, we got the real spec expert in the check. Chris , the filing was a mobile game deal that happened this way.

We w we got a lot of knowledge, a hundreds Kurt community. Uh, I needed to tell I was all my son born. They're owned by forever. Thank you. Which was like a family, family business. Thank you, Andre. Andre must know knows his confectioneries. Uh, thank you, Andre. Thank you, Chris. For dropping. Yeah. Okay. Thank you.

Gucci, another Italian company, their name, all the Italian companies. Uh, anyway, Chris catchy today, we learned that SPACs can name the targets ahead of time as the raising money in Italy. And, uh, we thought that was fun. So, um, yeah, I mean that, you know, we all learned something today, so I'm not very often.

We do back to that biotechs interviews on the show. Probably not something we'll do a lot of, um, Let me, let me let you in on a little secret though, these biotech companies, um, are very easy to book, right? They love talking about, about themselves. They're very, they're, they're very responsive. That's why you may see some, a lot of biotech companies get, uh, some press because they're very easy to book.

So, uh, some inside baseball there, but, but thank you to, uh, to, to Jaguar and, and Helias today. We were supposed to have a third guest. Oh, I see him here. So our third guests, this is interesting AB this, uh, we'll, we'll bring them on in a second. Um, his company is not public, but that does not mean that we invest in it.

So Spencer, if, if you know, for some of our audience out there, if you're a big fan of the show, you tune in with us, you know, day in and day out. Um, I had my good friend Julian on the show a week or two ago from, from core connects. And essentially what core connects does as Julian explained was they helped set up private companies that are raising money, either through reggae or reg CF, um, you know, which just allows retail investors to purchase shares of private companies before they go public.

Um, and core connect sets up the technology to allow these companies to do so, uh, you know, directly with that company. So instead of having to go to a website, like start engine or something like that, um, you can go straight to the company's website and invest in. And, uh, Trung fam who's coming on right now.

He heads up one of these companies. He started his own company called rise. We're going to get to talk to trunk about that. And core connects is, you know, has set up the technology to allow investors like us, like you and I Spencer, to go straight to RISE's website and purchase shares of the company before it goes public.

Uh, you know, for hundreds of years, however long people have been investing in retail investors have not had access, uh, to purchase shares of private companies like this. So this is something that's kind of new and exciting. All right, that's good. That's good. Strong on here. Truong. How are we doing this?

This beautiful Wednesday. Hey guys. How's it going? Was I, can you correct me? Was I incorrect in everything I said there? No, no. Everything you said was correct for sure. All right. The way there's a first time for everything. Goodness. All. Alright. Trunk, tell us about rise. This is interesting because there, uh, There are some big players that are.

Tangentially related to you. So, so tell us what you're working on. So we're in the smart home IOT space. We create a little device, as you can see on the screen there, and I'm holding one up in my hand, and it's essentially a smart home device that you Mount on the window frame, and you're able to motorize and automate your existing window shades.

So the problem that we're so solving today is that most window coverings in the market they're manually controlled. And once you install them, you can never automate them again. You'd actually have to replace them with brand new motorized shades. So we came up with a suite of devices that allow you to motorize your existing window shades and blinds.

And, um, no, we're a category within the booming smart home market. Um, you know, over the last few years you see a lot of exits by some of the large players like Google buying nest for 3.2 billion and Amazon buy and bring recently for 1.2 billion and so on and so on. So there's a lot of, um, activity in the smart home space.

And not only that. Even though we're a smart home device to motorized shades. We do target the much larger and lucrative commercial market. And, um, when we're talking about the commercial market, you know, there's a huge opportunity for energy savings and that's, what's really appealing, appealing to these partners that we're with working with, where they're able to save a substantial amount of energy just by passively opening and closing their shades to, you know, one reduce solar heat gain and reducing cooling, or to, uh, reduce indoor lighting use.

And, and that's really, um, that's really our focus as a company. So can, um, can you set this on like a timer automate it? Yes. So you could set a schedule. So if we're having open at 7:00 AM every morning and then close APM gives you that extra privacy, uh, if you're heading out of the house and your window shades, you're opening, you forgot to close them.

You can do that remotely through the app. You can connect it with Google home, Amazon Alexa, apple home kit. So the primary smart home players out there. Okay. Marshall side, we create customer API integrate. Okay. So, so trunk, I imagine, you know, there are a lot of commercial real estate companies out there that might have an ESG focus.

You know, as you mentioned that, you know, this device from rise can help with energy savings, uh, is that a potential customer, you know, like big commercial, real estate companies that are creating big office buildings that you can say, Hey, you can put one of these in every office in this building and it will help you with energy savings.

Yeah, definitely. So, um, we actually received a $4 million Canadian clean tech grant to develop our second gen. Built on the requirements of the commercial partners required. So we're working with a few large commercial players, hotels, office spaces, and whatnot. And, um, you know, they actually had very simple use cases.

They wanted, they wanted us to lower the shades during evenings or weekends. Why? Because especially during the weekends, they usually don't have tenants in the office. And what happens is that if the window shades are open, all that sunlight during the summer is coming in and the HVAC system is cooling an empty room.

So it's just wasted energy. So just by lowering the shades during these times, they block out that solar heat gain and reduce that inter cooling requirements. And, um, they could save a substantial amount of energy up to 24% in cooling and 74% enlightened use. So, so obviously, you know, Tron, you are targeted.

You, you know, this is a smart home, um, appliance, I guess that's the right word here. You have seen what happened. You mentioned already you saw what happened to Google nest or nest. You saw what happened to ring with Amazon. Is that like a logical end point here for you? Uh, definitely. So when we think about the type of company we want to become and where w we'll end up, I think, um, the most ideal exit would be an acquisition by a larger player.

Um, I'm not going to say it's going to happen. Um, obviously I can't predict the future there, but, you know, we are positioning ourselves to be an attractive, uh, exit attractive, acquire, an attractive target. Um, and you know, just like reading, they have the, the, um, potential of YPO and I believe we have that potential to, but I think at the end of the day, we are going to be one of those companies that another big player just comes up in a.

Well, what can you say about your, your, your sales and revenue right now? So today, uh, we've generated over 4.5 million in sales and that's all audited. Uh, today it's probably closer to 5.5, um, on audited. So how many devices, how many devices that like w w it retails for 1 49? So it's well over well, over 35,000 devices today sold, we just began shipping our second gen and we are launching.

Um, so this product works with anything with a B to chain or cord loop. So the traditional window shades and blinds, but we are creating a device for drapes and curtains. Um, a lot of the whole top artists that we're speaking with all have drapes and curtains for, you know, art purposes and whatnot. And, um, that's a retrofit, um, smart drape solution.

And, uh, we'll, we'll be doing a formal launch, um, hopefully before the. Okay. Does rice have any, uh, you know, patents on this technology that would kind of prevent, say, you know, a Google home or Amazon to go out and developing their own, the automated blind system? Um, so it's funny. Um, when you speak about Amazon, um, we invented this concept, so we have four fully issue patents and a number of more, uh, patents pending.

And, um, you know, when you create a physical product like this, a hardware product, you're going to get copycats coming out of China left right. And center. Um, but because of our patents, um, we actually have an Amazon court judgment victory. And what that allows us to do is that any time a copycat pops up on Amazon, we follow an Amazon.

If they kick the seller off. And, um, many times I get these long letters from the seller apologizing and whatnot for infringing on the patents, but our pans are that strong. So, you know, anytime you might see a copycat, they might be there for one or two days, and then they automatically get removed because of our patents per time merged with a solar panel.

That's all sorry, probably so proton from our chat says you should merge with a solar company to have your have shades that provide solar power. Um, I've seen other solutions like that. Um, we're not focused on that yet. We're focused more on the IOT connected devices space. Um, yeah, the, the whole idea of solar and generating energy that's that's beyond how long has it taken to bring this product to market?

How long has it been developing for? Well, um, our first gen, uh, we began R and D during 2015. It took us about two and a half years before we actually got to market. Uh, that's includes, you know, prototyping going through production for the first run testing, all that kind of stuff. The second gen took a maybe only a year to develop.

So we've, we've improved the whole product development life cycle for us. Um, so trunk backing up to what kind of, when you, when you first had this idea and started the company, I I'm sure you had, uh, you know, critics that were saying like, yeah, this is a good idea. You can't make a whole company out of, out of this.

What, what, what did they, you know, get wrong or see wrong that you kind of saw differently at the time? Um, well, I have a finance background, so I actually did a whole analysis on the industry. And you have large players like Sofie they're publicly traded $5 billion market cap. They focused on motorized shades.

Um, they, the leading player in the marketplace today and they only talk to the 10%, uh, because their solutions, uh, must be purchased with the actual window shade. We're talking to the other 90% of real estate asset classes that already have window shades installed and may not want to replace them, may want a retrofit solution.

So you can imagine how big the opportunity is on the retrofit side. Um, and not only that, uh, solutions by Sofie boots on the ground, some of these other larger players, they're $500, a thousand dollars per. Ours is $150 product. So it's a much more affordable price point. The real estate developers and landlords are attractive to it because they think about payback period.

They think about, well, I'm not going to install these neutrons because they're going to cost me, you know, a hundred thousand dollars for a hundred windows versus yours, but that might cost, you know, 15,000. So the payback period is much more attractive. Um, they could earn their money back from savings in under three years.

Um, so, you know, it's definitely a bigger market and to allude to ring, um, you know, Regan was a great success story. Um, they sold video doorbell systems they're and they were in a highly competitive market. They're in the security camera market, but they dominated the video doorbell. And, um, what was interesting was that ring only sold to single family homes.

There were a residential smart home player. They couldn't sell to multifamily. Um, they couldn't sell to commercial. They can't sell to hotels because their security system for residential. We don't distinguish and discriminate between the asset classes we could sell to any asset class, single family homes, multi-family hotels, commercial office in your housing.

Is this a, uh, like as far as the distribution is, it's like a direct to consumer thing. Are you in like home Depot or are you going direct to the manufacturers? I mean, so, um, historically to date, we've generated all our sales online, so direct to consumer online. However, next year we do have plans in place to be in retail.

So you mentioned home Depot, um, and then, uh, B2B sales is something we're highly pushing forward. So speaking to these large real estate developers and landlords and pushing high volume sales, Trunk. Do you have any idea down the road, kind of what that makeup will be like kind of percentage wise of what percent of the revenue is coming from direct to consumer sales or single a single home families versus, you know, the more commercial real estate like?

Yeah. So I'm speaking to our colleagues in the smart home space. Uh, like we talked to all the major players out there, all the big players that every one recognizes and we do know the makeup. Um, online is a very small portion. It's only about 7% of the market for us. So, uh, it leaves a big opportunity for us when we actually enter these other sales channels.

Retail is about a third of industry revenues. So the Costco's the best buys the home depots. Uh, but the largest and most lucrative channel is B2B sales. So B2B sales to large real estate developers, landlords commercial office, senior housing, um, you know, those type of players. And, uh, that's eventually where we went to.

Got it. Um, well, trunk fam CEO and founder of rise. That's R Y S E. I'm going to go ahead and drop that link in the chat. If anyone wants to go check out the website, see how you can become an early investor, um, trunk. Thank you for coming on the power hour today. Uh, thanks a lot. I appreciate it. And again, the, the offering page is invest dot hollow rise.com.

Got it. Yes, man. Dude, the future is now we're going to have smart everything like I'm, I'm AB I'm like you, or I'm not going to be ready to buy a home for awhile probably, but like the home, the home that you and I do buy that first home, whenever that happens 10 years or whatever, like it's going to be insane.

Like the amount of stuff. Shit. Well, think about it. I mean, look at one of those, you said it was like 150 bucks. We could go out and buy like a house that was built in the eighties or something, Spencer and configure it out to be a smart home for probably not that much money. And I think that would, that would, uh, you know, raise the value of the, of that home a lot.

Um, he mentioned, he mentioned ring quite a bit there. I'm pretty sure it correctly wrong in the chat or correct me if I'm wrong. I think ring was a shark was brought up on shark tank and none of the sharks wanted to invest. Yup. Yup. I want to plug into another show for AXA for a second. If, uh, if you ever, ever listened to NPR, there's a podcast called how I built this and th th they're pretty good.

Uh, some episodes better than others. Uh, they're pretty long. They're like over an hour. Um, but they talk to founders about how they built their companies. And the episode with ring with the founder of ring on the show was, and away the best episode of that show ever. It's a podcast. How I built this with the founder of ringers and his name is Jamie something.

I don't remember his last name. J J what'd you say? Diamond fast. Kidding. No, uh, here I'll look it up. Ringing founder. It's Jamie, Jamie Siminoff I think is his name. Anyway, that episode was like amazing. If you want to listen to like someone who really like struggled to build this company, we like, like you said, went on shark tank.

Didn't get a deal. Like really inspiring stuff. That's trying to be the biggest, uh, like maybe the biggest company period that's been brought on shark tank, but by far the biggest one that was on shark tank and then no one, I don't know, I haven't seen the episode, so I don't know if like they tried to get equity in it and the deal just, you know, it wasn't good enough.

Or if they just all said like, and for that reason I'm out and it just missed that it's come a long way. When I was growing up this, the, the smart home devices was clap on clap off that's. That's what I was when I was growing up. And even before that, we've come a long way. You can automate your blinds and, and then some, okay, Hey, it's one o'clock uh, no.

Get tactical today because Neil is in New York where you. Tomorrow on Friday for our Benzinga cannabis capital conference, our first in person events since before COVID started. So BZ cannabis.com to learn more about that, Neil will be back on next week, uh, for his show. Uh, we do miss him, uh, dearly, but so w w what we've got right now is a replay of the roadmap from okay.

From yesterday. And then at two o'clock, we've got Muhtar bust. I'll be back on at three 15 through 20 is for, at, to close with Joel Al cannon. And, uh, that's what we got hit that like button, please. And thank you. Thanks to everyone on the chat. Thanks everyone for watching. No, no power hour rest of the week, because.

As mentioned our cannabis conference that will be streaming as well for the next two days, starting, uh, tonight, actually. Uh, but AB good job. Thank you, Cameron. Thank you. Manny. Shelly, Chris proton. Happy everyone in the chat. Santo. Appreciate you. AB appreciate you go, go. Uh, do whatever it is you do over there and you keep tabs on the office for me while I'm not there over at out ski as David Greene would say, it's true to say that.

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