Jay Currie’s Motherlode: Fission Uranium & Red Light Holland

Fission Uranium Corp.

I am convinced the nuclear industry will thrive in the next decade. All those electric vehicles are going to need a lot of electricity and, frankly, wind and solar are not going to cut it. Which leaves nuclear energy – big or small, nuclear reactors are the only “green” source of electrical generation which can possibly meet surging demand.

Reactors require fuel which, for the foreseeable future, means uranium. The good news is that the Athabasca Basin in Saskatchewan is full of the stuff. The investment challenge I set myself was to find a company with a real property, real prospects and a deposit which was near surface. There are several juniors which fit the bill but Fission Uranium Corp. (TSX: FCU | OTCQX: FCUUF) has completed a pre-feasibility study of its Triple R deposit.

This is a uranium deposit where the high grade material starts just 50 meters below surface. At present, Fission counts 102,360,000 pounds of uranium as indicated and another 32,810,000 pounds inferred. It will be doing more drilling to add pounds to that resource.

Fission is doing the heavy lifting of defining a resource and doing the pre-feasibility and feasibility studies required for that resource to be sold or joint ventured. The CAPEX is north of a billion dollars which makes it unlikely a $368 million market cap company will develop a mine on its own.

If my thesis that uranium is going to be in high demand in the next decade is correct, companies like Fission are going to be attractive to larger uranium companies and to general mining companies looking for a window into the uranium market. A company with a significant uranium resource, a completed pre-feasibility study working towards feasibility is going to be an increasingly attractive target.

Meanwhile, the entire sector on the junior side could become “hot” as investors position themselves for higher uranium demand. My own exit will not likely wait on a takeover or joint venture, but will likely be triggered by market driven share price appreciation.

Red Light Holland Corp.

While I wrote a book about cannabis, I missed out on the investment “Green Rush”. What would be the next “big thing” in the legal psychoactive substance world? The answer is psychedelics – chemical and organic but a year ago there was nowhere to invest in that space.

Enter Red Light Holland Corp. (CSE: TRIP). Under the leadership of CEO Todd Shapiro, Red Light Holland set about exploring the world of “magic truffles”, psychoactive fungi. These are psilocybin truffles which, taken in microdoses, appear to help people achieve clarity and what might be described as “mental well-being”. The problem was that when Todd began exploring magic truffles they were illegal.

Todd knew that to explore the magic truffle world he had to create a legal source of supply. There was one place in the world where magic truffles were legal: Holland. So, Todd set up Red Light Holland with the goal of growing truffles in Holland and making Red Light Holland’s custom microdoses available in the legal Dutch marketplace.

Over the last year that is exactly what Red Light Holland has done. It built a clean room growing facility in Holland and is producing magic truffles in increasing quantities. It has developed its consumer focused micro-dosing kits for sale in Holland.

Todd has learned a lot from the Canadian cannabis experience guided, in part, by Canopy Growth founder Bruce Linton who sits on Red Light Holland’s Advisory Board. By beginning in a jurisdiction where magic truffles were already legal, Red Light Holland avoided many of the regulatory tangles which plagued the cannabis business. Todd was also committed to growing magic truffles to meet market demand rather than anticipating that demand.

Red Light Holland has followed its business plan and is now poised for significant growth. In March 2021 the company announced it has acquired SR Wholesale B.V. one of the Netherlands’ premiere distributors for quality psychedelic truffles. Also in March the company also has made an arrangement with a Canadian company to import Red Light Holland micro doing kits to Canada under a Health Canada psilocybin import permit.

There are now several publicly traded psychedelics companies each with its own business strategy. What sets Red Light Holland apart is that it has a legal source of supply and a significant legal distribution network. Red Light Holland is poised to be a leading player in the psychedelics industry, the only question is how big that industry will become.

Timing the North

I have no idea how to time the general market. But I do pay attention to the ebbs and flows of the junior resource market. I follow a bunch of stocks who are exploring in Northern Canada. Kestrel, Etruscan, Aben, Golden Predator, White Gold, Triumph and Metallic Minerals to name a few.

There is a cycle and it is dictated by climate and darkness. When you go up to the north you realize that it is very cold, very snowy (tough to prospect or explore under ten feet of snow) and dark until March. If you have to use helicopters to reach your targets you cannot do much from November until late March.

All of which means that “news”, the life blood of junior explorers, is pretty much non-existant from March until, at best, July. Because an explorer cannot even see the ground until late March. It takes the season, March until October, to sample, fly, trench and drill a piece of ground. Even if you get the first cores out in early June, the COVID compliant labs will take a month or two to process assays.

April is the month where northern junior explorers announce their plans for the season. They pick their targets and deploy. Then we have the lull. The dead time when the work is being done. If you are a day trader you might as well go home. Nothing is going to happen and the shares will drift. If you are an investor the lull is the time you build a position.




Kris Krane on Biden’s impact on the nationwide decriminalization of cannabis

In the latest InvestorIntel interview, Tracy Weslosky speaks with Kris Krane, President of 4Front Ventures Corp. (CSE: FFNT | OTCQX: FFNTF) about the company’s success in getting to a $1B market value in the cannabis business.

This InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), has Kris describing how advocacy, professionalism and low-cost production at scale are the keys to make 4Front a success as they compete with other multi-state operators. With the announcement that New York is joining the ranks of legal, adult-use cannabis states and the anticipation that there could be 2-4 more states legalizing before year-end, it is imperative that a successful enterprise be ready for the evolution of the competition which leads to downward price compression. With a strong advocacy background, Kris is on the leading edge of Government policy and has some interesting, if not controversial, views on who’s leading the charge for safe banking legislation and nationwide decriminalization.

To watch the full video, click here

About 4Front Ventures

4Front is a national multi-state cannabis operator and retailer, with a market advantage in mass-produced, low-cost quality branded cannabis products. 4Front manufactures and distributes a portfolio of over 25 cannabis distributed through retail outlets and their chain of strategically positioned Mission branded dispensaries. 4Front has operations in Illinois, Massachusetts, California, Michigan, and Washington State. From plant genetics to the cannabis retail experience, 4Front’s team applies expertise across the entire cannabis value chain.

To learn more about 4Front Ventures, click here




Drolet Stock Notes on TAAT Lifestyle & Wellness: Tobacco-Free and Nicotine-Free Alternative to Traditional Cigarettes

Mario Drolet, President of MI3 Communications Financières Inc. (MI3), released his Drolet Stock Notes on TAAT Lifestyle & Wellness Ltd. (CSE: TAAT | OTCQB: TOBAF) on March 8, 2021, for exclusive distribution on InvestorIntel. Highlights include:

  • The company has developed TAAT, which is a tobacco-free and nicotine-free alternative to traditional cigarettes offered in original, smooth and menthol varieties.
  • Instead of tobacco, the base material of TAAT™ is a proprietary blend called Beyond Tobacco™, which is produced using a 14-step process to include a patent-pending refinement technique to create a taste and smell just like actual tobacco.
  • TAAT became publicly traded on the Canadian Securities Exchange (CSE: TAAT) on June 22, 2020.
  • Healthy pullback on TAAT …
  • Support: S2; $3.63   S1; $4.00   Resistance:   R1; $4.52    R2; $4.95

About TAAT ™ Lifestyle & Wellness Ltd.

The Company has developed TAAT™, which is a tobacco-free and nicotine-free alternative to traditional cigarettes offered in “Original”, “Smooth”, and “Menthol” varieties. TAAT™’s base material is Beyond Tobacco™, a proprietary blend which undergoes a patent-pending refinement technique causing its scent and taste to resemble tobacco. Under executive leadership with “Big Tobacco” pedigree, TAAT™ was launched first in the United States in Q4 2020 as the Company seeks to position itself in the $814 billion global tobacco industry.

PLEASE DO YOUR DUE DILIGENCE

Disclaimer: This Mario Drolet Stock Notes are produced by MI³ Communications Financières is neither an offer to sell, nor the solicitation of an offer to buy any of the securities discussed therein. The information contained is prepared by MI3, emanating from sources deemed to be reliable. MI3 Communications Financières makes no representations or warranties with respect to the accuracy, correctness or completeness of such information. MI³ Communications Financières accepts no liability whatsoever for any loss arising from the use of the information contained therein. Please take note that for compliance purposes, all directors, consultants or employees of MI3 Communications Financières are prohibited from trading the securities of the company and MI3 Communications Financières is a shareholder and do not intend to sell any shares during the distribution of this report.




Red Light Holland rides the wave of growth in the relatively new psychedelics industry

The psychedelics industry is just starting to grow now from a small base and looks quite likely to follow in the footsteps of the cannabis industry’s recent success story. Data Bridge Market Research forecasts that the global psychedelics market will grow from USD 2.077B in 2019 to USD 6.859B by 2027. Looking at these numbers that’s a 3.3 times increase in just 7 years. Growing acceptance of psychedelic drugs for treating depression and mental disorders are key factors for the forecast growth.

Psychedelics are the class of hallucinogenic drugs that may be used recreationally or for medical purposes. Their main benefits are in enhancing the sensory perception, elevating mood, and promoting spiritual experiences. Psychedelic drugs can be used in a medical setting to help depression, psychological treatments, palliative care and as an aid to help control the mind to be calm and peaceful.

Psychedelics are legal in the Netherlands, where there an estimated 100 Smart Shops operating, generating over US$100 million in sales annually. The price for 10 grams of truffles (the maximum amount for a beginner) is between 10 to 15 Euros in Amsterdam. Just recently Canada approved 17 healthcare professionals to possess and use the psychedelic active ingredient psilocybin to conduct professional training in psilocybin therapy. The focus is mainly for patients dealing with end-of-life distress, but marks the first step towards legal medicinal psychedelics use in Canada.

Red Light Holland Corp. (CSE: TRIP) is a leader in this market and is well advanced to benefit from the forecast very strong growth. They recently began selling their premium ‘magic truffles’ products (psychedelics) in the Netherlands. The Netherlands has a long-standing, established legal magic truffles market. Red Light Holland is currently setting up to further grow, distribute and market a premium brand of magic truffles to the legal recreational market within the Netherlands. They are also focusing on the medicinal side of the psychedelics industry as well as expanding their global sales to legal destinations.

Red Light Holland’s business plan is to produce and sell recreational and medical grade truffle products (psychedelics) in legal markets starting in the Netherlands

Source: Company website

Red Light Holland has recently raised over C$20M, providing the Company with over C$30M in the bank, this includes the latest C$11.6M bought deal financing. The funds intend to be used for working capital and general corporate purposes, essentially to grow the business. Red Light Holland has already grown and pre-sold their first batch of magic truffles from their production facility in Horst, Netherlands. They are now growing a further 1,000,000 grams of magic truffles. CEO Todd Shapiro stated: “Red Light Holland is ecstatic to announce that we have started to grow our second batch of magic truffles, expected to be 10X the original batch’s size.”

Global and product expansion potential for Red Light Holland

On February 25, 2021, Red Light Holland announced: “iMicrodose pack receives authorization for the first legal import and sale of psilocybin truffles to Brazil…..for prescribed medical patient use.” The iMicrodose pack contains 15g of psilocybin truffles made by Red Light Holland. This marks a significant milestone for Red Light Holland with their “first prescribed by a physician for medical use” of their truffles product, as well as an advancement in opening up the legal and medically approved market for psilocybin in Brazil.

On December 30, 2020, Red Light Holland announced they intend to make a groundbreaking investment in the St. Vincent and the Grenadines’ plant-based wellness and psychedelics industry, via a purchase of 100% of Mera Life Sciences LLC (‘Mera’). St. Vincent and the Grenadines are islands in the Caribbean Sea. Mera is developing a modern medicinal industry in St Vincent and the Grenadines with their issued psychedelic licenses. Todd Shapiro, CEO and Director of Red Light Holland, stated: “The acquisition of Mera and its coveted licenses would allow Red Light Holland to perform high quality psychedelic product research and development, cultivate, extract and process, and export, not just Psilocybin, but with compounds such as Ayahuasca, MDMA, DMT, Peyote, Ketamine and many other natural based plants as well…..”

On December 20, 2020, Red Light Holland announced it has entered into a non-binding letter of intent to acquire 51% of Psychedelic Insights in Amsterdam, the Netherlands. Psychedelic Insights currently provides psychedelic assistance to clients from all over the world, who are in need and want to try a safe and psychological guided experience. This includes psychedelic palliative care, re-connecting veterans and global mental health screening. A condition in the agreement includes an exclusive supply agreement with Red Light Holland’s truffles, grown from Red Light Holland’s facility in Horst, Netherlands.

Closing remarks

Red Light Holland continues to ride a wave of success with their magic truffles psychedelics. A 10x increase in their truffle production following the first batch being 100% pre-sold in advance, an overseas expansion potential via 100% acquisition with Mera, a potential 51% Psychedelic Insights acquisition (global client base), and finally, some initial success selling into Brazil. Added to all this it appears the medicinal use of psychedelics is making progress in Canada.

It certainly looks like Red Light Holland will continue to rapidly grow, especially after their successful capital raises and now C$30M in the bank. Red Light Holland’s market cap has dramatically increased as a result of all this good news and now sits at C$134M. Exciting times ahead, both for the Company and the industry.




WeedMD: A possible winner as the US moves towards cannabis legalization at the Federal level

Cannabis stocks have been surging higher this month as the Reddit crowd that spiked GameStop jumped in, based on realistic hopes the Biden led Democratic Party will legalize cannabis at the federal level.

Last week US Senators Booker, Wyden, and Schumer released a joint statement declaring their intention to push forward major cannabis policy reform. The statement reads:

“The War on Drugs has been a war on people—particularly people of color. Ending the federal marijuana prohibition is necessary to right the wrongs of this failed war and end decades of harm inflicted on communities of color across the country. But that alone is not enough. As states continue to legalize marijuana, we must also enact measures that will lift up people who were unfairly targeted in the War on Drugs. We are committed to working together to put forward and advance comprehensive cannabis reform legislation that will not only turn the page on this sad chapter in American history…..”

One cannabis stock that is well worth considering is WeedMD Inc. (TSXV: WMD | OTCQX: WDDMF). WeedMD Inc. subsidiary WeedMD Rx Inc. is a federally-licensed producer of cannabis products for both the medical and adult-use markets. The Company owns and operates a 158-acre state-of-the-art greenhouse outdoor and processing facility located in Strathroy, Ontario, Canada. Another wholly owned subsidiary is CX Industries, which specializes in cannabis extraction and processing.

Key advantages for WeedMD include:

  • Vertically integrated with indoor & outdoor cultivation combined with in-house extraction, product development & manufacturing.
  • Ability to expand ~2x with modest incremental CapEx.
  • Quality products with strong brand recognition. Products include dried cannabis, cannabis extracts and cannabis vaporizes.
  • Market leader in insured medical cannabis. Cannabis is often used as an effective pain reliever in the medical setting.
  • Targeting valuable & overlooked medical channel sales.
  • Closed-loop model providing exclusive access to ~350,000+ potential patients.
  • Strategic institutional investor in the LiUNA Pension Fund. Strong balance sheet for expansion. Pathway to profitable growth.

WeedMD is vertically integrated with the ability to scale rapidly if the cannabis market takes off with US Federal legalization under the Democrats

WeedMD’s Colour cannabis products

Source: WeedMD company presentation

The WeedMD stock price has more than tripled since Jan. 25, 2021, boosted by the Democrat Senators’ move to legalize cannabis. Any success in the US at Federal legalization of cannabis has the potential to boost WeedMD’s revenues.

WeedMD revenue is forecast to grow strongly in 2021

Closing remarks

Cannabis stocks are the current latest trend with speculating retail investors. Of course, this leads to crazy price bursts and can be hard to predict. Despite the recent price gains WeedMD looks to have a strong future due to being a well-established and vertically integrated cannabis producer, especially given their strong focus on medicinal cannabis uses.

WeedMD trades on a current market cap of C$197 million, which is about 2.76x 2021 forecast revenues. Their forward PE is 31.33. Certainly, if the US legalizes cannabis at the Federal level it should have a very strong impact on the quality cannabis producers such as WeedMD. Stay tuned.




FinCanna Capitalizes on California’s Surging Cannabis Market

Cannabis sentiment in the United States has surged since the November election.

Tailwinds pushing the legal cannabis industry include being deemed “essential” during the current COVID-19 health crisis, five U.S. states passing legalization ballot initiatives, and the Joseph Biden election win that could result in easing some of the cannabis restrictions at the federal level.

This year could be another inflection point in the U.S. cannabis industry and the beginning of a multi-year growth cycle as more states legalize medical and recreational cannabis use.

A top cannabis market research firm recently pegged the United States cannabis market at more than US$18 billion in 2020 and expects it to grow by a staggering 33% to US$24 billion in 2021.

FinCanna is a Royalty Company

FinCanna Capital Corp. (CSE: CALI | OTCQB: FNNZF) is a cannabis-focused royalty company and does not operate as a cultivator, manufacturer, or dispensary. Instead, it is a capital company, looking to invest in businesses in California’s cannabis industry and earns revenue from royalties paid by its investee companies.

FinCanna’s royalty structure focuses on top-line revenue, enabling the company to fully benefit as sales grow and not be impacted by cost inflation. Currently, the company owns a diversified portfolio of royalties, lowering the overall company risk, and continues to search for other investment opportunities.

As a royalty business, FinCanna operates with low corporate overhead, making the business easily scalable as it does not have to worry about operations and can focus on the next investment. Also, as the cannabis supply increases, retail prices have been under pressure which makes royalties a better business to be in.

FinCanna’s investment model is to seek “best in class” businesses, provide capital to reduce the need for debt or equity financing, and are structured to align with the business’ long-term goals.

To fund the coffers, in July 2020, FinCanna closed a $2.5 million convertible debenture financing with FinCanna’s management subscribing to $500,000 of the offering.

Portfolio Companies

FinCanna made its first investment in Cultivation Technologies Inc. (CTI) in 2017. CTI, operating as Coachella Manufacturing, runs a 5,200 square foot cannabis extraction facility in Palm Desert, California.

CTI produces butane hash oil (BHO), which is a type of cannabis concentrate that is produced using butane. CTI has been operating for three years and FinCanna started receiving royalties in the second half of 2020.

CTI provides licensed BHO concentrates for white label manufacturing, toll processing, and packaging to brands and cultivators in California. FinCanna recently commented that CTI’s management team is working on growing their core business and expanding into other large-scale activities. FinCanna expects these activities to result in an increase in royalty revenues in 2021.

FinCanna’s second portfolio company is QVI Inc (QVI), doing business as The Galley, and is FinCanna’s largest investment and potentially the largest source of royalty revenues.

The Galley is a modern, 8,300 square foot, cannabis facility located in Santa Rosa, California. It operates as a co-manufacturer to provide large scale production and packaging for all types of edibles, topicals, and tinctures in California.

The Galley began operations in July 2020 and has already on-boarded 25 established brands. FinCanna expects to start receiving recurring royalty payments from QVI starting in early 2021.

An important note to make is that edibles market growth outperformed the overall cannabis industry growth in 2020 as consumers chose edibles over inhalables. This surge prompted edible manufacturers to invest more in product development and manufacturing making QVI an important player in that market.

FinCanna’s third portfolio company is ezGreen Compliance, which offers Health Insurance Portability and Accountability Act (HIPAA) compliant point-of-sale (POS) software for cannabis dispensaries. Features include integrated management and multi-store functionality with taxation and reporting functionalities.

In August 2020, FinCanna announced the acquisition of ezGreen and in October completed the transition of ownership. Recently, ezGreen began a marketing initiative with a marketing partner to focus on sales efforts, targeting dispensaries in California.

California is King of the Cannabis Market

California ranks as one of the largest legal cannabis market in the world and over 30% of the U.S. legal cannabis market. The COVID-19 shut-in measures resulted in higher purchase volumes and a very substantial and positive shift for the cannabis industry.

In California, legal cannabis retail sales are expected to exceed US$5 billion in 2020, up almost 70% from US$3 billion in 2019.

2021 Outlook

FinCanna’s management recently reported that it expects to see a “sizeable increase” in royalty revenues in 2021 and the positive cannabis market outlook, especially in California, should help generate operating profits that will grow throughout the year.

FinCanna is currently trading at $0.11 with a market cap of $8.5 million.




Sixth Wave’s Dr. Jon Gluckman talks about the election and the 2nd wave of cannabis investment

In a recent InvestorIntel interview, Tracy Weslosky speaks with Dr. Jon Gluckman, President, CEO and Founder of Sixth Wave Innovations Inc. (CSE: SIXW | OTCQB: ATURF) about what a Biden presidential win means for an energized and revitalized cannabis sector.

“We’re pretty excited,” said Dr. Gluckman, “that in addition to the Biden win it was pretty clear that the referendums on the state ballots in the U.S. were extremely positive and forward-looking for the future of cannabis and the significant expansion in the United States which is obviously a huge market.”

Asked about what it means, Dr. Gluckman said that Sixth Wave sees it “as a tremendous opportunity for licensed producers to expand their footprints into different spaces and certainly for new equipment requirements which will include Affinity, so we’re stoked.” Affinity™ is Sixth Wave’s cannabinoid purification system.

Discussing the Affinity cannabinoid purification system revenue model, Dr. Gluckman explains that it work on a “total system performance license” basis, where Sixth Wave provides the technology to licensed cannabis producers on a “small profit margin basis”, but then partners to provide upgrades and maintenance in exchange for a portion of the producer’s revenue stream. As Sixth Wave’s Affinity optimization can save a projected 50% of a producer’s production costs, this mutually beneficial arrangement can create a substantial revenue stream for both the producer and Sixth Wave.

Dr. Gluckman explains to Tracy how the application of Sixth Wave’s patented Molecular Imprint Polymers (#MIPs) technology creates “consistent and high purity” cannabinoid from a producer’s raw material that is essential to creating a commercial product.

Regarding revenue expectations, Dr. Gluckman said that they expect to see revenue through a deal with Green Envy as early as December, and ramping up in the first quarter of 2021. Answering Tracy’s question about investors who missed the “first wave” of cannabis investment, he said that “the very interesting thing now is that what we have seen is that the growers are all growing,” and that “as new states come on board they are all going to need new licensed producers.” And since there are federal restrictions on interstate movement of cannabis, production will have to be local to each state, requiring multiple production facilities

“We’re really looking forward to it and scaling up significantly next year,” Dr. Gluckman said.

To watch the full interview on YouTube, click here.

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Disclaimer: Sixth Wave Innovations Inc. is an advertorial member of InvestorIntel Corp