This week we signed a deal with Paradigm Capital to underwrite our Going Public raise. We chose Paradigm after meeting with many, many banks because while they are new to the cannabis space, they are one of the top banks in Canada when it comes to raising capital for the beer industry. We felt that Paradigm’s investors would not be overloaded with cannabis deals and ours was likely to stand out. More importantly, we felt that their expertise in and coverage of Canada’s craft beer industry would help them explain our offering in terms their investors and others would understand. Paradigm will not be the only bank in our go public raise. Working with Paradigm, we will create a syndicate of banks who will help with this raise. Since Paradigm is stronger with institutional investors, we will focus on finding banks with a strong retail book to help round out the round.
This week we also signed a strategic alliance with Element GP and publicly announced our plans to not just launch the world’s first beers brewed from the cannabis plant but also to launch a line of infused beers – basically nonalcoholic barley beers which are infused with a marijuana oil. Most of you have read our business plan and recall that our “Yandi Gold” is one such product, so this is not a surprise to you, but we had never announced this publicly. Element is a cannabis oil extraction company which makes premium cannabis oils. Their founder, Christopher Lecky had previously launched Canada’s first and best selling super-premium Vodka, Pur Vodka. He also created a super-premium gin called Romeo’s Gin which has done phenomenally well. We know that with Chris’s attention to detail and focus on quality we will be in good hands using some of their oils to make our beverages. Of course we will also extract our own cannabis oil – and the deal is non-exclusive, so we can work with others.
Additionally, this week we have come a lot closer to signing a final lease on the building in Nova Scotia. We’re just waiting for a final visit with the engineers which is taking place next week. To be clear, if their findings are negative we will not proceed with the building, but we’re very hopeful everything will work out okay. Also on the fundraising front, we have made a lot of progress an we have some very substantial commitments from some really legitimate players – a few since we presented at the DC Finance events in London and Israel in the past few weeks. We are moving forward quickly on some new hires, and I will be attending the International Cannabinoid Research Society Conference in Leiden, Netherlands with Dr. Erin Johnson and our recruiter Raymond Navis. A primary goal of this trip is to recruit top scientific talent.