Red Light Holland’s Todd Shapiro on investing in a medical and scientific division for the understanding of medical psychedelics

“We have named a Science and Innovation division called Scarlette Lillie… We thought that this is a way to show investors how serious we are about our medical, our scientific and research division because not only is Red Light Holland a recreational opportunity, where we plan our products on shelves by Q4, but we also want to show the world that we are taking this side very seriously of trying to prove and being a part of the process of what psilocybin can potentially do for human beings…We want to create this division and grow this division to get involved with observational studies, clinical studies and show the scientific community and be a part of some intellectual property…” States Todd Shapiro, Co-Founder, CEO and Director of Red Light Holland Corp. (CSE: TRIP), in an interview with InvestorIntel’s Tracy Weslosky.

Todd went on to comment on the appointment of Canada’s former Health Minister, the Honourable, Tony P. Clement, as a Senior Advisor to Red Light Holland’s Advisory Board. Mr. Clement has served in senior roles in Prime Minister Stephen Harper’s Cabinet (2006-2015), as Health Minister, Industry Minister and President of the Treasury Board. Todd also said that Red Light Holland has a strong cash position and is building a very strong team which includes Dr. Joseph Geraci, a leading mind in the medicine and machine learning fields and global comedy superstar, Russell Peters.

To access the complete interview, click here

Disclaimer: Red Light Holland Corp. is an advertorial member of InvestorIntel Corp.




Drolet Stock Note: XPhyto Therapeutics — Medical Cannabis Meets Modern Sciences

Mario Drolet President of MI3 Communications Financières Inc. (MI3) released his Stock Notes on XPhyto Therapeutics Corp. (CSE: XPHY) for exclusive distribution on InvestorIntel. In this note, MI3 highlighted the following points on XPhyto Therapeutics Corp.:

  • XPhyto is a science-based cannabis company focused on formulation, clinical validation, and emerging European markets.
  • XPhyto and 3a are working to develop and commercialize a real-time, low-cost and easy-to-use oral screening test to concurrently detect COVID-19 and non-COVID-19 coronaviruses.
  • XPHY surge from $2.30 to 3.17 in the last month
  • XPHY traded over 5.5 Million shares between $2.10 & $3.50 over the last four months
  • Support: S2; $ 2.70   S1; $2.92   Resistance:   R1; $3.15   R2; $3.50

About XPhyto Therapeutics Corp.

XPhyto is a biopharma, diagnostics and cannabis science company focused on formulation, clinical validation, and European imports, distribution and sales. XPhyto’s 100% owned subsidiary, Vektor Pharma TF GmbH, a German narcotics manufacturer, importer and researcher has expertise in the design, testing and manufacture of thin film drug delivery systems, particularly transdermal patches and sub-lingual (oral) strips. Vektor also holds a number of narcotics licences issued by the German Federal Institute for Drugs and Medical Devices (BfArM), including import and manufacturing permits, as well as EU GMP lab certification. XPhyto’s 100% owned German subsidiary, Bunker Pflanzenextrakte GmbH, has been granted a unique German cannabis cultivation and extraction licence for scientific purposes by BfArM. Bunker has two exclusive R&D collaboration agreements with the Technical University of Munich, Chair of beverage and brewing technology and the Faculty of Chemistry. XPhyto is pursuing additional opportunities in Europe including commercial cannabis cultivation, processing, manufacturing, import, and distribution. In Canada, two exclusive 5-year engagements with the Faculty of Pharmacy at a major Canadian university provide certified extraction, isolation, and formulation facilities, drug research and development expertise, as well as commercial analytical testing capability. XPhyto signed a supply, import and distribution agreement for cannabis oils and isolates with one of the largest, highest quality, and lowest cost cannabis cultivators in the world.

PLEASE DO YOUR DUE DILIGENCE

Disclaimer: This MI3 Technical Note 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.




FinCanna Capital looks set to benefit from their cannabis royalty portfolio after a win-win deal with QVI Inc.

The latest good news announced this month is that  FinCanna Capital Corp. (CSE: CALI | OTCQB: FNNZF) (“FinCanna”) has restructured its royalty agreement with QVI Inc. The new deal sees FinCanna commit a further US$1.5 million in financial support and in return receive a boosted royalty of a flat 20% (it was a tiered 15% to 6%) of QVI’s revenues, an increased annual supplemental payment of a minimum of 70% of QVI’s after-tax income, and finally 70% of sales proceeds if QVI is sold.

The royalty business can be extremely profitable. Just look at Franco-Nevada the gold royalty company with a market cap of US$25.85 billion. The trick is for the royalty company to invest early and to select growing companies that end up producing lots of revenue. The same principles can be applied to the cannabis industry, especially given it is in the very early stages of growth as legalization spreads globally.

FinCanna is a royalty company for the licensed US cannabis industry, with a focus on the emerging California cannabis market. The Company earns its revenue from royalties paid by its investee companies that are calculated based on a percentage of their total revenues.

FinCanna Capital highlights for investors

Source: FinCanna company presentation

FinCanna currently has a portfolio of three active and operating royalty businesses in their portfolio advancing in California – QVI Inc., Cultivation Technologies Inc., and ezGreen Compliance. The good news is that the Californian cannabis market is growing rapidly and royalty revenues for FinCanna are just beginning now.

FinCanna’s three royalty companies all show great potential for near term revenues.

  • QVI Inc. has recently acquired its Californian licenses and begun production on a wide range of cannabis infused products such as chocolates, hard candies, gummies, beverages, vapes, pre-rolls and flower packaging. They also produce other edibles, topicals, and tinctures.
  • Cultivation Technologies Inc. (CTI) has a new cannabis extraction and manufacturing facility at New Palm Desert which has also recently commenced production. CTI provides high quality legal Butane Hash Oil (BHO) concentrates for white label manufacturing, toll processing and packaging to hand-selected brands and cultivators in California.
  • ezGreen Compliance has completed an installation of its Point-of-Sale (POS) software with a leading Los Angeles based cannabis dispensary. This is the flagship store of a multi site operator so there is potential for this deal to grow across to a broad network of recreational and medical dispensaries in California. The total addressable market for ezGreen in the U.S. is 13,800+ licensed dispensaries and retailers.

FinCanna royalty company QVI Inc. owns the Galley which is an automated contract manufacturing facility of cannabis infused products in Sonoma, California

Annie Holman CEO and Founder of QVI stated: “We are thrilled to be up and running. Although it has taken longer than anticipated, those hurdles are now behind us. The word is clearly out in the industry about our state-of-the-art facility and our outstanding production team. Our sales funnel is building rapidly from a growing influx of inquiries from interested brands as we continue to move quickly to onboard new customers. We also couldn’t be happier with the ongoing support and commitment from the FinCanna team who continue to be excellent partners.”

Closing remarks

FinCanna continues to go from strength to strength. They are set to benefit from a trifecta of tail winds including California’s rapid legal cannabis industry growth, near term revenue growth from their royalty portfolio, and in the case of QVI an even higher royalty for FinCanna.

It is little wonder FinCanna CEO Andriyko Herchak recently said: “We are very pleased QVI is fully operational, and we continue to see sizeable escalating demand for QVI’s manufacturing services….The additional funds we’re providing will enable QVI to meet its goal of becoming the premier contract manufacturer in California, the largest single market in North America, and the revised royalty agreement creates a strong win-win for QVI and FinCanna.”

I think FinCanna Capital can be a win-win for shareholders if they get in early. FinCanna Capital’s market cap is currently only C$7 million, so investors should not wait too long.




MI3 Tech Note on Red Light Holland Corp. (CSE: TRIP)

Mario Drolet President of MI3 Communications Financières Inc. (MI3) released a technical note at market open today on Red Light Holland Corp. (CSE: TRIP) for exclusive distribution on InvestorIntel. In this note, MI3 highlighted the following points on Red Light Holland Corp.:

  • The Company is an Ontario-based corporation positioning itself to engage in the production, growth and sale (through existing Smart Shops operators and an advanced e-commerce platform) of a premium brand of magic truffles to the legal, recreational market within the Netherlands, in accordance with the highest standards, in compliance with all applicable laws.
  • Strong Management team and Advisory members.
  • Bruce Linton is the Chairman of TRIP … ex-Canopy Growth CEO
  • TRIP traded over 140 Million shares since May between $0.095 & $0.25
  • Support: S2; $0.08    S1; $0.10   Resistance:   R1; $0.14    R2; $0.16

About Red Light Holland Corp.

The Company is an Ontario-based corporation positioning itself to engage in the production, growth and sale (through existing Smart Shops operators and an advanced e-commerce platform) of a premium brand of magic truffles to the legal, recreational market within the Netherlands, in accordance with the highest standards, in compliance with all applicable laws.

PLEASE DO YOUR DUE DILIGENCE

Disclaimer: This MI3 Technical Note 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 note.




Miss the Cannabis Boom? All Aboard Red Light Holland Corp. as the CSE officially offers TRIP for trading…

Investors made a lot of money by being in on the cannabis boom in the early stages. This time there may be a similar opportunity to get in early on the ‘magic truffles’ boom. Magic truffles are a type of mushroom or fungi, and hence are very similar to ‘magic mushrooms’. They are legal in the Netherlands and they are well known for their hallucinegic properties that result in psychedelic effects on people. Studies have found them effective for reducing depression and anxiety, and creating a state of wellbeing.

Red Light Holland Corp. (CSE: TRIP) (RLH) is in the ‘magic truffle’ business. Their business revolves around the production, growth and sale of a premium brand of ‘magic truffles’ to the legal, recreational market within the Netherlands. Sales are done through existing Smartshops operators and an advanced e-commerce platform. The Netherlands is a country with a long-standing, established, legal magic truffles market.

A Smartshop in the Netherlands selling legal magic truffles

Source

So what are magic truffles? Wikepidia describes them as:

“Magic truffles are the sclerotia of Psilocybin mushrooms that are not technically the same “mushrooms” as “mushrooms”. They are masses of mycelium that contain the hallucinogenic chemicals psilocybin and psilocin…..In October 2007, the prohibition of hallucinogenic or “magic mushrooms” was announced by the Dutch authorities. The ban on the mushrooms did not outlaw the hallucinogenic species in sclerotium form, due to authorities believing it to be weaker than the mushrooms. The psilocybin truffles which once made little sales became the only legal option to produce. Today smart shops in the Netherlands offer magic truffles as a legal alternative to the outlawed mushrooms.”

Psilocybin binds to a receptor in the brain for serotonin thereby resulting in enhanced mood and perception. Along with hallucinations and mood changes, people who take psilocybin experience a dreamlike sense of expanded consciousness.

Rather than extracting the active ingredients, Red Light Holland (“RLH”) believes in the entourage effect of ‘whole fungi’ medicine, meaning it is better for customers to consume the whole magic truffle.

Magic truffles sold in small containers ready for buyers to eat

Source

Some of the numerous benefits of magic truffles are said to be:

  • An expanded consciousness with increase creativity.
  • Increase of “openness” and other beneficial shifts in personality.
  • Mental relaxation with floods of laughter, intense joy and satisfaction.
  • Reduce depression.
  • Smoking cessation and other addictions.

A randomized, double-blind trial from Johns Hopkins in 2016 found that a single dose of psilocybin substantially improved quality of life and decreased depression and anxiety in people with life-threatening cancer.

Another research report discovered that psilocybin can also bind itself to receptors that stimulate healing. It is thought that psilocybin repairs and grows brain cells, which could prove beneficial to those who suffer from depression or other mental health problems.

Red Light Holland’s goal is to supply the recreational and medical market with naturally occurring, non-synthetic psilocybin, as current clinical trials are using a synthetic psychedelic pro-drug compound.

Magic truffles products

  • Microdosing Kits – RLH is currently developing a premium microdosing kit comprised of the ideal truffle quantity promoting responsible use. This non-synthetic RLH premium product will be available soon.
  • Merchandise – RLH will be launching a line of top tier merchandise very soon. All of the premium RLH clothing line and merchandise will be available for purchase at the RLH website and selected stores.

A Red Light Holland Microdosing Kit with magic truffles

Source

RLH also plan to seek a EU-GMP certification for their production facility in the Netherlands, in order to produce and supply medical grade, EUGMP certified premium magic truffles within the Netherlands.

RLH plan to raise funds that will be used to go public and build a 3000 sq feet magic truffles production facility and then start production to bring in revenue. Investors can view the company presentation here.

Closing remarks

Numerous studies and anecdotal stories confirm the amazing medical and recreational benefits of magic truffles. The people of the Netherlands certainly think so.

Red Light Holland and their magic truffles business are in the very early stages of development. Certainly this means higher risk and reward should it succeed. Those that got in early on the cannabis boom made multi-bagger returns. Will this happen with ‘magic mushrooms’ I do not know. History has shown there is a demand for the product, so only time will tell.

Red Light Holland begins trading today on the Canadian Securities Exchange under the ticker ‘TRIP’ at market open today.




Todd Shapiro of Red Light Holland on ‘magic truffles’ and the multi-billion dollar psychedelics market

“Psychedelics are a multibillion-dollar market….and that is what this industry is banking on. We are product based, we are a premium brand — the Red Light Truffle will be available in smart shops and we potentially could even have products within the smart shops and on an advanced e-commerce platform by the end of Q3. We plan on setting up a facility that we hope one day will qualify for EU-GMP certification. That means that we can grow a perfect clean room medical grade truffle that could potentially be tested…truffles are sold legally in Netherlands…we think we can capitalize with a premium brand feel and with a micro dose responsible use product.” States Todd Shapiro, Co-Founder, CEO and Director of Red Light Holland Corp. (CSE: TRIP), in an interview with InvestorIntel’s Tracy Weslosky.

Todd went on to say that Red Light Holland will have two divisions – Red Light Recreational and Red Light Health. The company is starting with recreational and will have a medical play in the future. Todd also said that Bruce Linton is the Chairman of Red Light Holland’s Advisory Board. Bruce is the founder and former CEO of Canopy Growth Corporation. Under his leadership, Canopy Growth was the first cannabis producing company in North America to be listed on a major stock exchange (TSX) and included on a major stock index (S&P/TSX Composite Index). Canopy Growth was also the first cannabis-producing company to list on the New York Stock Exchange.

To access the complete interview, click here

Disclaimer: Red Light Holland Corp. is an advertorial member of InvestorIntel Corp.




Royalty driven FinCanna on course to capitalize off of their investees in the rapidly growing Californian cannabis market

California is a global leader in the cannabis market. It is rapidly growing and in need of capital to meet surging demand from consumers. California is the largest cannabis market in North America, representing $3.1 billion in licensed cannabis sales in 2019, projected to reach US$7.2 billion by 2024. Cannabis in California has been legal for medical use since 1996 and for recreational use since late 2016.

California accounts for 21% of all global legal cannabis sales

Source

FinCanna Capital Corp. (CSE: CALI | OTCQB: FNNZF) is a royalty company for the licensed US cannabis industry, with a focus on the emerging California cannabis market. The Company earns its revenue from royalties paid by its investee companies that are calculated based on a percentage of their total revenues. FinCanna currently has three royalty companies advancing in California – QVI Inc., Cultivation Technologies Inc., and ezGreen Compliance.

QVI Inc. receives Californian manufacturing & distribution licences

QVI is a cannabis infused product manufacturer with a state of the art 8,300 square foot facility operating under the name “The Galley”, located in Sonoma, California. Cannabis infused products include edibles, topicals, tinctures, chocolates, hard candies, gummies, beverages, vapes, pre-rolls and flower packaging. Cannabis-infused products are a huge growth area. The U.S. market for cannabis-infused products in 2020 is projected to reach nearly $3 billion, up ~40% over 2019.

The Galley’s immediate goal is to be the premier contract manufacturer in California, the largest single market in North America. The facility is differentiated from other cannabis manufacturers by its automated capabilities to produce virtually all high-value cannabis products under one roof. Its growing customer base will include legacy companies already on dispensary shelves, new entrepreneurs with creative IP, and out-of-state brands looking to enter the California market.

FinCanna receives a tiered corporate royalty, adjusted based on revenues, ranging from 15% to 6% of QVI’s total revenues, with the top royalty rate of 15% on the first US$20 million of annual sales until cumulative royalties to FinCanna of US$10 million are achieved. Additionally, FinCanna will receive a Supplemental Payment, that when coupled with the royalty, will ensure FinCanna receives a minimum of 35% of the annual after-tax net income from QVI.

In April 2020 FinCanna made two significant QVI related announcements:

With these two licences in place QVI stated that “the Galley team expects to be shipping finished products to the market within the next four to six weeks.” This is excellent progress for QVI, and ultimately for FinCanna, as QVI revenues will be ramping up soon.

Cultivation Technologies Inc. (CTI) expands with a new facility

Cultivation Technologies, operating as Coachella Manufacturing is a multifaceted cannabis manufacturing and distribution company.  CTI provides high quality legal Butane Hash Oil (BHO) concentrates for white label manufacturing, toll processing and packaging to hand-selected brands and cultivators in California.

Butane Hash Oil is a cannabis concentrate

Medicinal cannabis use is popular due to its relief of pain and inflammation. Cannabis can also act to relax muscles and is helpful in various muscular disorders. It is often prescribed to cancer patients undergoing chemotherapy, as it can help not just with pain but the nausea that comes with treatment.

Under the fully funded royalty agreement, FinCanna earns a perpetual royalty of 10% of CTI’s consolidated revenues, of which 5% is paid in cash monthly and 5% deferred until certain triggering events, subject to certain buyback options. Additionally, FinCanna will be entitled to 25% to 50% of the sale proceeds of any change of control.

In a March 2020 announcement FinCanna reported:

“CTI commences cannabis extraction and manufacturing at New Palm Desert facility…..The new 5,200 sq. ft. state-of-the-art facility is purposefully designed to maximize workflow efficiencies, optimize productivity and reduce operating costs. Engineered for industrial scale, the facility has approximately over three-times the capacity of CTI’s previous interim facility in Coachella, California, with a new estimated annual capacity of approximately US$35 million.”

ezGreen Compliance

ezGreen offers a state-of-the-art enterprise compliance and point-of-sale software solution (ezGreen) for licensed medical cannabis dispensaries and cultivators. Their target market consists of the 11 states plus Washington DC where cannabis is fully legal, and the 23 additional states where medicinal cannabis is legalized. Upon completion of funding, FinCanna earns a perpetual royalty equal to 10% of consolidated gross revenues of ezGreen, subject to certain buy-back options.

Last year it was announced that ezGreen had completed an installation of its Point-of-Sale (POS) software with a leading Los Angeles based cannabis dispensary. It is a flagship store of a multi site operator that has a broad network of recreational and medical dispensaries located across California in its portfolio.

Note regarding the Refined Resin royalty: The Refined Resin business was not able to raise the additional capital it needed to become operational so FinCanna has written down its investment and is endeavoring to recover their investment from the sale of Refined Resin’s assets.

Closing remarks

FinCanna Capital is basically a royalty play on the rapidly growing Californian cannabis market, plus some broader US potential exposure via ezGreen. Specific areas include cannabis-infused products (via QVI Inc.), cannabis extraction/production facility (via CTI), and point-of-sale software solutions (ezGreen).

FinCanna’s strategy makes a lot of sense as they are targeting the established and high growth cannabis markets in California. FinCanna’s success will ultimately depend on their portfolio company’s performance. Judging by the excellent progress the past three months from QVI (licences achieved, production starting) and CTI (new facility and production commenced) it looks like royalty revenues for FinCanna are now just ramping up.

Given the surging demand within the cannabis sector especially in California, FinCanna stock looks very appealing on a market cap of just C$8.4 million. Marketscreener.com places a Buy Recommendation at C$0.29, representing a 241% upside.