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