Canadian Securities Exchange Magazine • December 2023

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IN THIS ISSUE

The Inspiration Issue CONTENTS

Letter from the Editor | 4 Market Leaders | 6 Discover CSE-listed market leaders across a range of sectors, from life sciences to mining

Tune In | 8

Check out the CSE’s latest content for capital markets news, trends and insights AN EXCLUSIVE INTERVIEW WITH

Rebecca Kacaba | 10

Rebecca Kacaba, Co-Founder and CEO of DealMaker, gives her take on leadership, trends and raising capital in 2023 and beyond

Web3 Ventures | 20

Creating a single point of access to a broad range of crypto stories

Safe Supply Streaming | 24 Experienced team ready to ride the safe supply drug trend with patience and prudent investments

1CM | 28

Democratizing cannabis markets while aiming to become Canada’s leading vice retailer

Gemina Laboratories | 32 Raising the bar for accuracy and cost-efficiency in testing for respiratory illnesses

SPOTLIGHT ON

Jones Soda | 12

Innovation drives success at a beverage legend where customers shape branding and unique flavour is the norm

MTL Cannabis | 16

Pioneering an innovative “flower-first” approach in the cannabis world

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THE INSPIRATION ISSUE

Tracey Stern | 38

Get to know Tracey Stern, the CSE’s Chief Legal Officer and General Counsel & Corporate Secretary, and her thoughts on what sets the CSE apart

PUBLISHER Sparx Publishing Group Inc. sparxpg.com

12

Jones Soda

16

MTL Cannabis

For advertising rates and placements, please contact advertising@sparxpg.com

GROUP PUBLISHER Hamish Khamisa EDITOR-IN-CHIEF James Black EDITORS Peter Murray Libby Shabada Michelle Baleka ART DIRECTOR Nicole Yeh

20

Web3 Ventures

24

Safe Supply Streaming

WRITERS Stephen Gunnion Angela Harmantas Emily Jarvie Andrew Kessel Sean Mason Peter Murray Libby Shabada All photo credits to the organizations and Shutterstock.

FREE DIGITAL SUBSCRIPTION Published by Sparx Publishing Group on behalf of the Canadian Securities Exchange. To receive your complimentary subscription, please visit go.thecse.com/Magazine and complete the contact form.

To read more about the companies mentioned in this issue, visit blog.thecse.com or proactiveinvestors.com

28 1CM

32

Gemina Laboratories

TERRITORY ACKNOWLEDGEMENT The Canadian Securities Exchange acknowledges that our work takes place on traditional Indigenous territories.

Letter from the Editor

Whether it is an incremental step forward or a giant leap, inspiration is often the catalyst for entrepreneurs and investors to breathe life into a vision of the future.

As this issue of Canadian Securities Exchange Magazine goes to press, the Exchange is on the cusp of celebrating its 20th anniversary as a recognized stock exchange. None of us could have imagined when the CSE launched in the early 2000s the kind of world we would be living in today. And yet, despite all of the changes we’ve witnessed, I am still awestruck by the timeless ability of public entrepreneurs and investors alike to constantly recalibrate and adapt.

This inspiration-themed edition of our magazine takes a cross-sectoral view of stories, highlighting the diversity

of listings on the CSE and demonstrating the fact that as Canada’s leading entrepreneurial exchange, we have front row seats to some of the most innovative pursuits of our time.

with investors on the recognized importance of robust testing infrastructure and the role of private entities in addressing threats to population health.

With hundreds of cannabis companies having listed with our exchange since 2014, the CSE is uniquely positioned to play an important role in the cannabis industry’s next chapter.

Finally, I would be remiss not to mention the incredibly fluid world of blockchain and the role Web3 Ventures is seeking to play in it. It is truly fascinating to reflect upon the notion that we live in a world where mining is now synonymous with both the traditional understanding of resource extraction as well as a whole new category of financial instrument.

As blockchain continues to evolve, we foresee more intriguing twists and turns ahead.

Powering their way into the next phase of cannabis are many CSElisted firms, including 1CM, MTL Cannabis and Jones Soda, which are featured in this issue. The leaders at the helm of these companies have shared fascinating perspectives on their approaches to navigating the current market conditions and finding new ways to engage the next wave of cannabis producers, consumers and investors.

Beyond cannabis, this issue of the magazine highlights how entrepreneurs and investors are responding to the ripple effects that multiple public health crises have had in our daily lives, our communities and the broader economy.

The lessons learned from societal responses to cannabis legalization and public health crises have been instrumental in shaping how companies like Safe Supply Streaming and Gemina Laboratories engage

For an exchange, two decades paradoxically seems both like an eternity and the blink of an eye. If history is any guide, however, we’re truly looking forward to capturing the stories that will inspire us over the next 20 years and to having you, our valued Canadian Securities Exchange Magazine readers, share the journey with us.

Thank you for your continued support.

James Black Editor-in-Chief

james.black@thecse.com

FOLLOW US ON

CSE TV

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THE INSPIRATION ISSUE

Listen to a variety of in-depth conversations with thought leaders and innovators on Season 3 of The Exchange for Entrepreneurs Podcast. You can find it on Apple Podcasts, Google Play, Spotify, Stitcher, YouTube, and iHeartRadio.

Tune in: blog.thecse.com/cse-podcasts

On the Web

Stay up to date on what's happening in the capital markets. Join our community of subscribers who tune in to CSE TV for insightful content about developments in mining and beyond.

Subscribe now: go.thecse.com/CSETV

THE EXCHANGE FOR ENTREPRENEURS PODCAST

Market Leaders Discover CSE-listed market leaders across a range of sectors, from life sciences to mining

CLEANTECH

Aduro Clean Technologies CSE:ACT

Listed on April 29, 2021

Aduro is a developer of patented water-based technologies to chemically recycle waste plastics; convert heavy crude and bitumen into lighter, more valuable oil; and transform renewable oils into higher-value fuels or renewable chemicals.

Learn more: thecse.com/listings/ cleantech/aduro-clean-technologies-inc

Sharc International Systems CSE:SHRC

Listed on September 11, 2017

Sharc is a world leader in energy transfer with wastewater. Its systems recycle and reject thermal energy from wastewater, generating one of the most energy-efficient and economical systems for heating, cooling and hot water production for buildings.

Learn more: thecse. com/listings/cleantech/ sharc-international-systems-inc 6

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THE INSPIRATION ISSUE

EnviroGold Global CSE:NVRO

Listed on July 16, 2021

EnviroGold is a clean technology company that is capitalizing environmental stewardship and sustainably supplying the world’s increasing demand for precious, critical and strategic metals by reclaiming unrecovered value from mine tailings and resource development waste streams.

Learn more: thecse. com/listings/cleantech/ envirogold-global-limited

DIVERSIFIED INDUSTRIES

Urbana Corporation

distributed and community solar projects in Canada and the US. The company develops solar projects that sell electricity to various offtakers.

Learn more: thecse.com/ listings/diversified-industries/ solarbank-corporation

Alpha Cognition CSE:ACOG

Listed on May 1, 2023

Alpha Cognition is a clinical stage, biopharmaceutical company dedicated to developing novel treatments for neurodegenerative diseases such as Alzheimer's and ALS. Its patented chemical entity has demonstrated safety and improved tolerability in human clinical trials.

Learn more: thecse.com/ listings/diversified-industries/ alpha-cognition-inc

CSE:URB

Listed on January 9, 2014

Urbana is an investment company with current interests across the financial services sector, including exchanges, banks, broker dealers and investment managers. Its goal is to generate long-term asset growth through a combination of public and private investments.

Learn more: thecse.com/ listings/diversified-industries/ urbana-corporation

SolarBank Corporation CSE:SUNN

Listed on February 28, 2023

SolarBank is an independent renewable and clean energy project developer focused on

LIFE SCIENCES

Cresco Labs CSE:CL

Listed on December 2, 2018

Cresco Labs is one of the largest vertically integrated, multi-state operators in the US, with a mission to normalize and professionalize the cannabis industry.

A wholesaler of branded cannabis products, the company employs a CPG approach to scaling its business.

Learn more: thecse.com/ listings/cresco-labs-inc/

Green Thumb Industries

International Battery Metals

CSE:GTII

CSE:IBAT

Green Thumb, a Chicago-based national cannabis consumer packaged goods company and retailer, is dedicated to providing dignified access to cannabis while giving back to the communities in which they serve.

International Battery Metals is an advanced direct lithium extraction technology company focused on ethical and ecological extraction of lithium from brines. The company is applying its patented IP into building mobile lithium extraction units that can be utilized worldwide.

Listed on June 13, 2018

Learn more: thecse.com/listings/ life-sciences/green-thumbindustries-inc-subordinatevoting-shares

Trulieve Cannabis CSE:TRUL

Listed on September 25, 2018

Trulieve is an industry leading, vertically integrated cannabis company and multi-state operator in the US operating in 11 states, with leading market positions in Arizona, Florida and Pennsylvania.

Learn more: thecse.com/listings/ life-sciences/trulieve-cannabis-corpsubordinate-voting-shares

MINING

Asante Gold CSE:ASE

Listed on February 26, 2015

Learn more: thecse. com/listings/mining/ international-battery-metals-ltd

ATHA Energy CSE:SASK

Listed on April 11, 2023

ATHA is a mineral exploration company focused on the acquisition, exploration and development of mineral resource properties. It holds the largest cumulative exploration package in the Athabasca Basin, the world’s most prominent basin for uranium discoveries.

Learn more: thecse.com/ listings/mining/atha-energy-corp

TECHNOLOGY

Listed on May 28, 2015

Asante is a gold exploration, development and operating company with a portfolio of projects and mines in Ghana. The company is currently operating the Bibiani and Chirano Gold Mines with detailed technical studies at its Kubi Gold Project.

Learn more: thecse.com/listings/ mining/asante-gold-corporation

Scope Carbon

identification and estimation of carbon-based lifeforms and carbon emissions, both key in the identification of carbon credits.

Learn more: thecse.com/ listings/technology/ scope-carbon-corp

BIGG Digital Assets CSE:BIGG

Listed on December 6, 2017

BIGG Digital owns, operates and invests in crypto businesses that support and enhance a compliant and regulated ecosystem. The company owns three operating divisions: Netcoins, Blockchain Intelligence Group and TerraZero.

Learn more: thecse.com/listings/ technology/bigg-digital-assets-inc

PlasCred Circular Innovations CSE:PLAS

Listed on August 8, 2023

PlasCred Circular Innovations is a green technology company based in Alberta whose patent-pending and proprietary process enables true plastic waste removal in a scalable, systematic way.

Learn more: thecse.com/ listings/technology/ plascred-circular-innovations-inc

CSE:SCPE

Listed on September 1, 2022

Scope Carbon is a carbon mapping technology company focused on the commercial development of its AI-driven image software intended for the

MORE CONTENT Meet the executives of CSElisted companies on CSE TV: youtube.com/CSETV

CANADIAN SECURITIES EXCHANGE MAGAZINE DECEMBER 2023

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Tune In Check out the CSE’s latest content for capital markets news, trends and insights

Innovating CPG in Cannabis

Going “Long” With Family Offices

We were joined by Emma Andrews, newlyappointed CEO of Nextleaf Solutions (CSE:OILS), to discuss the current state of the cannabis industry and get an update on Nextleaf, including the current focus on CPG, upcoming SKU launches and the vision for the company. Watch Nextleaf’s Issuer Update clip, among others, on our YouTube channel, CSE TV.

Liz Priestman, Director and CEO of International Deal Gateway (IDG), was on The Exchange for Entrepreneurs Podcast, where she discussed IDG’s role, family offices benefits and differentiators as investors, the focus on the UK, insights for CEOs and more. Check out the episode on CSE TV.

Interview With Alex Tapscott

Web3 Ventures’ Market Open David Nikzad, Co-Founder and CEO of Web3 Ventures (CSE:WEBV), was joined by his team as they opened the day’s trading session on September 13, 2023 from CSE HQ in Toronto.

Listen to the episode on Apple Podcasts, Google Play, Spotify, Stitcher, YouTube and iHeartRadio.

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THE INSPIRATION ISSUE

On The Exchange for Entrepreneurs Podcast, Alex Tapscott, Co-Founder of the Blockchain Research Institute, discussed the blockchain landscape following the FTX collapse and shared his thoughts on regulatory vacuums, operational frameworks and Web3. Listen to the episode on Apple Podcasts, Google Play, Spotify, Stitcher, YouTube and iHeartRadio.

MORE CONTENT ON CSE TV Subscribe to our YouTube channel to watch new episodes and replays: youtube.com/CSETV

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AN EXCLUSIVE INTERVIEW WITH

Talk to us a bit about DealMaker, its vision and its place in the world of raising capital, as well as your role in the organization.

Rebecca Kacaba

DealMaker is on a mission to make online capital raising mainstream.

Every company today has a mailing list, and most companies know how to communicate about their mission and products digitally. This is the essence of accessing the online primary markets.

We spoke with Rebecca Kacaba, Co-Founder and CEO of DealMaker, to get her take on leadership, trends and capital raising in 2023 and beyond

By Libby Shabada

As Co-Founder and CEO of DealMaker, my job is to help people understand this opportunity is available to them. So many CEOs and CFOs are dealing with a lack of financing in today’s environment.

Our goal at DealMaker is to make sure that company founders, who have the hardest job in the world, know that the opportunity to raise digitally exists and is a gamechanger in building their business.

You have been recognized as a dynamic leader on a number of fronts. Who has been your biggest leadership influence, and how has this shaped your approach at DealMaker?

I take a philosophy of trying to learn something from every interaction and person that I work with. Everyone has their strengths.

Each person, no matter their role, brings a different perspective and expertise.

At DealMaker, we say everyone is the boss of their own job — everyone has a duty to be a leader in their field, whether they are in engineering or digital marketing — and it’s inspiring to see how each team member seizes that opportunity.

How have you adapted your leadership style in response to the evolving business landscape, and what impact has this had on DealMaker's growth and culture?

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THE INSPIRATION ISSUE

The recent business landscape has required a lot of agility from business leaders. Never when I started a business six years ago did I think that I would have put out statements on a global pandemic, international warfare twice and one of the largest bank failures in history. It’s been proven that great tech companies are forged in recessionary times, and I think these events will ultimately prove this for the CEOs of our era. These events are forging strong, resilient, agile-minded companies. Add generative AI to the mix, and we are likely living in one of the most innovative times in history.

As CEO, I view it as my job to encourage my team of innovators to think outside the box and come up with new solutions that will change the world. This has led to our greatest innovations, such as our Investor Ranking Machine Learning Algorithm, coming from the team at DealMaker.

Being ranked No. 2 on Fast Company's Best Workplaces for Innovators in 2023, what leadership qualities do you believe contributed to this achievement?

Our company values are at the core of our innovative culture and are an integral part of our onboarding.

As a company born from the drive to disrupt the capital markets, we fully embrace our value of “Our Business is Change.” It reinforces the belief that we’re comfortable where others are not; we need to constantly live in the mindset of adaptation. To foster this internally, we introduced the concept of Adaptability Quotient or AQ. AQ is defined as the ability to determine what's relevant, to forget obsolete knowledge, to overcome challenges and to adjust to change in real time. Given the fast pace of change in our company/industry, adaptability is

“

As CEO, I view it as my job to encourage my team of innovators to think outside the box and come up with new solutions that will change the world.

— Kacaba

crucial to driving innovation, and we aim to foster that culture across the organization.

From day one, all team members are empowered to move fast and own their impact without the fear of making mistakes. A steadfast value of DealMaker developed early on is to “move fast and break things”: if you fall, you get up and try again. Open and transparent channel communication is ingrained in our DNA and way of working — this helps to not only make our team feel more comfortable in the work environment but often drives innovative thinking by capturing different viewpoints and approaches.

The belief in transparency is rooted in the idea that “all ships rise with the tide.” We can build better and support cross-departmental endeavours the more open and transparent we are with one another. Our job as leaders is to encourage out-of-the-box thinking and help guide each employee to be agile and adaptive.

What are the key trends you see shaping the capital raising activities in 2023/2024?

The data from Q3 of 2023 indicates that venture capital deals continue to lag near historic lows: last quarter, deal

counts dropped for the sixth straight quarter. And while funding ticked up 11% in Q3, we're still at less than half of last year's totals for VC funding.

For startups that are nearing the end of their runway, this is a classic case of "wrong place at the wrong time."

Even great deals are struggling to find the funding they need in these market conditions.

For companies with healthy communities, alternative financing is critical and investor crowdfunding (or a “community raise”) will be a strategic power play. It provides founders with much-needed growth capital at friendly terms, avoids a hit on valuation and helps build customer loyalty and engagement.

What technological advancements do you foresee having the biggest impact on the market in 2024?

Definitely generative AI. We are leveraging generative AI across our platform to not only build tools that will make founders’ lives easier during the filing and raise process but also to leverage big data to surface up key learnings and real-time recommendations on live deals that could mean the difference between raising $10 thousand or $10 million.

What role do you see technology playing in transforming the capital raising processes in the near future?

The impacts are already being felt; in public markets, trading online has become mainstream with companies like Robinhood and Weathsimple. This is starting to trickle down into the private markets as well — the online private markets are what we are helping companies access.

Founders not only see the efficiency and reach running their raise online provides — for example, the ease of collecting and signing offers from across the world — but the bigger backend data it gives to help them optimize their raises, especially in a crowdfund offering.

Smart founders leverage this data to grow their investor pool. This will be a

huge differentiator in years to come on what makes a successful capital raise.

What are the biggest challenges companies face in raising capital in the current economic climate, and how can they navigate them?

I feel like this has been a common thread for the last five years now, and every year, companies persevere.

Agility and runway are key to company survival in more trying times. Never more so during a downmarket. Great innovation should not be “dying on the vine” because institutional capital is playing a wait-and-see game with macroeconomic conditions.

Alternative financing for founders is a critical tool in the founder’s toolkit to navigate through VC capital not getting deployed. And this year, the amount of capital that the “crowd” is investing annually is nearly 50% of what angels deploy. A “community raise” or “investor crowdfunding” is quickly becoming the primary means of financing a pre-seed or an “Alpha” round for early-stage.

Founding, running and scaling a business are notoriously stressful. How do you maintain a balance between your professional life and personal interests?

In all honesty, learning to say no and really determining what I am willing to spend time on. I used to feel like I would have to agree to every call, every meeting, every initiative — it was exhausting and draining, and at the end of the day, actually counterproductive.

I found that when I became more purposeful with what I was willing to spend my time on, the results yielded were much better not only for myself but for the company.

Outside of your professional life, what are your hobbies or interests that you are passionate about?

My family! As a mother of two young girls, there's never a dull moment!

I also like to spend time helping important causes such as Boost Child & Youth Advocacy Centre or war relief efforts.

CANADIAN SECURITIES EXCHANGE MAGAZINE DECEMBER 2023

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COMPANY INTERVIEW

Jones Soda Innovation drives success at a beverage legend where customers shape branding and unique flavour is the norm

By Peter Murray

G

ive the people what they want” is a tried-and-true business philosophy, but rarely does one come across a company as open to customer wants and ideas as Jones Soda (CSE:JSDA). From putting photos submitted by consumers on the bottles of its craft sodas to encouraging product customization for events big and small, listening to its base has made Jones a success story for over a quarter of a century.

Canadian Securities Exchange Magazine caught up with David Knight, the company’s new President and Chief Executive Officer, in early November to learn about the history of the brand and what comes next. Expanding a winning formula into multiple new markets lies at the core of its tasty plan.

Jones has one of the most eye-catching and constantly evolving brands in any market. Consumers can even submit their own photos and potentially see them on a bottle. This is obviously a reflection of corporate culture and a philosophy of success. Tell us more about the thinking behind the brand.

The company was founded in 1995, so it’s been around for 28 years now. The founders chose the name Jones because they wanted one of the most frequently used last names in the country. They started with Smith and ended up going with Jones, which is in the top five in the

US and the top 15 in Canada. It was really started as the beverage of the people.

The platform is all about natural cane sugar with unique flavours and bright colours. It’s about fun and great taste and lots of options.

From a community standpoint, this month we have our one millionth community photo on the bottles, so we’ve got a deep level of interaction with our core consumers who, as you said, send in their photos, and if they make it, their photo goes on the bottles. It is a lot of fun, and we get real engagement and great stories on our products.

Last year, we added augmented reality, which means you can use an app on your phone and bring a photo to life as a video.

We started on the street, so we are very deep into action sports like BMX and skate and surf. We were the cool brand to be found in skate shops and delis, and since then have moved into larger formats such as Safeway, Albertsons, Walmart and Target. It’s really grown from the original days and has been a fun ride for the team.

As the newly appointed President and CEO, what is your plan for the company?

What is the focus, what are you looking to preserve and is there anything you believe needs to change?

As we’ve just talked about, we’ve got a very powerful brand. We think there is a huge opportunity with consumers who

CANADIAN SECURITIES EXCHANGE MAGAZINE DECEMBER 2023

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have experienced Jones at various times throughout their lives. We have that core group of consumers, and we also need to invest in the next generation and bring those folks into Jones as well.

We are doing that, in part, through more distribution and getting into convenience stores.

As a beverage guy, I’m a big believer in cold availability, which means making sure that Jones is available cold at arm’s length for consumers. Anywhere there is a fridge with beverages in it, Jones needs to be there. In other words, distribution growth.

The team has done a wonderful job of getting us into the cannabis market as well. We launched Mary Jones in California and have good penetration among dispensaries in the state.

We quickly became the number one cannabis soda and were just voted the best-tasting cannabis soda at a recent cannabis cup.

The transition of great taste from soda into cannabis beverages has been a big one. We’re in Washington now too and are launching into Michigan. We’ll

David Knight

President and Chief Executive Officer

Company

Jones Soda

CSE Symbol JSDA

Listing date

February 18, 2022

Website

jonessoda.com

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then be looking at expanding the brand into other states, with a strong look at Canada in 2024.

Beyond that, we just launched Jones Plus, which is an energy play. It’s a high-boost caffeinated beverage.

So, the theme is innovation that makes sense for us in categories and beverages where the brand will work.

We define that as craft sodas, craft caffeinated beverages and the cannabis play with Mary Jones in both the regulated and the Delta 9 hempderived space.

Let’s look at results. Sales dropped a little over 10% from the first half of 2022 on a challenging year-on-year comparison, though margins improved quite noticeably. Is that improvement reflective of operations or are there external factors at play?

Management set a focus on margin improvement about three years ago with a five-year objective of getting to a 35% margin. So far, I think we’ve achieved an improvement of nine percentage points, so that’s a huge accomplishment by the operations team.

As we’re mostly in large format retail stores, grocery, etc., we did see some headwinds. Some of our accounts during COVID-19 switched from single bottles to four-packs and then switched back, and this is what caused most of our volume decline.

Thanks to innovation, including a mini can which I think will do well, we are expecting a rebound next year, as we have a new format, new space and new distribution in the retail market.

The beverage business is pretty cyclical. You present, you get listings, you drive volume for that year and you kind of rinse and repeat for the next year.

We’ve just gone through that cycle and expect some big wins for 2024.

Let’s look at the creative side of the company. Internally, where do ideas for flavours such as Zombie Juice and Pucker Punch come from?

We believe that good ideas can come from anywhere. And again, our

community is pretty forthcoming with ideas. We get a lot of flavour ideas from customers, and underneath every cap we have a little phrase from the community. We take ideas beyond just the photos we get.

Jones also has a pretty tight creative team. Some of our team have been on the brand for over 20 years, so we have a good history and legacy of what Jones is and how we can keep that authentic.

That’s one of our secret sauces. It’s the creativity of the brand. We are edgy and we like to have fun, and as a team, we select the ones that we think are going to work. We try not to take ourselves too seriously, though we do drive hard at it.

You mentioned you get a lot of feedback from the community. Can you share a story with us that stands out in your mind?

In my first week at Jones, I was going through an airport with a Jones t-shirt on, and someone pulled me aside and said, “Oh, Jones is super cool. I love the turkey gravy.” We came out with a turkey gravy flavour for Thanksgiving several years ago, and it comes back every year.

Similarly, we are now launching a dog soda based on bone broth and some functional ingredients that help dogs with joint health. It goes to show that these fanciful flavours really do resonate, and we get community feedback, press pickup — I don’t know of another beverage business that does this.

Humans drink throughout the day, but there is competition for their dollar.

What are the top reasons you believe the company can increase its value consistently going forward?

I’m a brand guy and have worked on some pretty big brands, but Jones is a particularly good one. It has a deep history and is known for its fun irreverence. We are a very welcoming brand across all genres, colours, sizes and shapes. I feel blessed that I’m working on a brand that has such a legacy in

“

We are pushing the edge of what else Jones can do beyond craft soda, caffeinated beverages and cannabis beverages.

We are pushing the innovation pipeline for next year.

— Knight

this country. You talk to people who have had Jones, and they can tell you a story about their first experience with a cream soda or a root beer.

We have a team that is passionate about the business and a culture that thrives in terms of ideas and appetite for growth and going the extra mile.

It’s a great brand with great people.

The one area I really want to drive is innovation and continuing to do things that bigger companies do not.

We have a brand called MyJones where consumers send us a photo for an

engagement party or a graduation, and they can customize the bottles for their event. We take customization seriously, all the way to our retailers. As an example, we’ll do special events for our retailers where we put their brand on bottles. Customization is a competitive advantage, and we’ll do a lot more of it in 2024.

And we are pushing the edge of what else Jones can do beyond craft soda, caffeinated beverages and cannabis beverages. We are pushing the innovation pipeline for next year.

Partners are important, too. I can talk about STK Steakhouse and Kona Grill. Jones is now on their menu for soda, a float and a spiked Jones. They are responding well to the velocity and margin that they are getting and the glass bottle that works with fine dining.

We’re really making sure we get Jones into more key distribution points and have people celebrate the legacy of the brand. We are doing a lot of great things for next year, and we’re all really excited.

About the Author

Peter Murray oversees a national editorial and broadcasting team as President of Proactive Canada. He spent several years managing the English news desk at Nikkei’s head office in Tokyo and has worked with research teams at Asian and European investment banks. Peter is based in Vancouver.

CANADIAN SECURITIES EXCHANGE MAGAZINE DECEMBER 2023

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MTL Cannabis Pioneering an innovative “flower-first” approach in the cannabis world

By Angela Harmantas

I

nnovation in cannabis involves improving upon or introducing new ideas, be it in the form of genetics, product formulation or packaging. But for brands to really thrive, they must do what successful companies in any industry do: address consumer needs.

MTL Cannabis (CSE:MTLC) is a case in point. The family-founded company prides itself on being a "flower-first" group, emphasizing the importance of the cannabis plant itself.

Having recently completed a successful reverse takeover of Canada House Cannabis Group (CHV), MTL is positioning itself to harness a variety of revenue streams, including Canadian recreational and medical cannabis markets, as well as international export opportunities.

Notably, the company has self-financed its organic growth, integrated the various CHV business units and expanded operations while responsibly servicing its creditors, with plans calling for continued expansion, bolstering working capital and reducing capital costs.

Mike Perron, Chief Executive Officer, is a seasoned industry professional who helped shape Canada’s regulated cannabis landscape, first as an advisor with MNP LLP and then taking on various leadership roles within the industry.

Perron then teamed up with MTL’s founders, brothers Rich and Mitch Clement, to bring the cannabis world a flower-focused brand with quality and innovation at its core. He spoke with Canadian Securities Exchange Magazine recently about corporate culture and what comes next.

MTL Cannabis has positioned itself as a brand that defines modern street cannabis culture. Can you elaborate on how you are achieving this and what it means to be a "flower-first" company?

This focus on flower is at the heart of our company. Our founders originate from this world, and our expertise lies in doing what we do best. We're not attempting to reinvent

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Michael Perron

Chief Executive Officer

Company

MTL Cannabis

CSE Symbol MTLC

Listing date

August 15, 2023

Website

mtlcannabis.ca

COMPANY INTERVIEW

CANADIAN SECURITIES EXCHANGE MAGAZINE DECEMBER 2023

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the wheel or add unnecessary bells and whistles. Our primary concentration is on flower-based products, encompassing dry flower and pre-rolls, with some additional forays into producing hash, as we have the knowledge and resources in-house to expand into this category.

service to veterans, whether through us or other LPs.

MTL Cannabis has gained considerable success in dried flower sales since its recreational market launch in 2020.

What are the key factors that have contributed to your brand's rapid growth and success in this segment?

Canada House represented significant expansion possibility, particularly with the IsoCanMed facility in Louiseville, Québec. While the facility had strong foundational elements, it required substantial improvements.

Our team, with its focus on operational excellence, recognized the facility's potential, from efficient HVAC systems to room sizes, and invested over $2 million to enhance its capabilities.

Currently, we are expanding it further, as we're reaching our capacity limits as sales continue to increase.

From a sales perspective, our growth has been largely organic. Until last January, we didn't even have a dedicated sales team — just one exceptional sales representative working closely with the provincial boards and hitting the streets by himself on the weekends to introduce the brand to dispensaries and budtenders.

Our story, brand and products have spread primarily through word of mouth. Budtenders and consumers trying our products and recommending them to others have been pivotal.

Quality is our top priority, ensuring that everything leaving our facility is of the highest standard. When you uphold that promise to consumers and medical patients, everything else falls into place.

The share exchange agreement with Canada House Wellness Group represents a significant development.

How do you envision this partnership impacting MTL Cannabis?

Canada House has its roots in clinics and medical cannabis, going back to the original Canada House asset, which was a clinic in Oromocto, New Brunswick, called “Marijuana for Trauma,” and was founded by veterans for veterans. The veteran population is a significant part of our business, representing approximately 96% of our medical sales. We have 12 clinics across Canada, in addition to virtual clinics, with most strategically located near military bases.

Our approach differs from the classic licensed producer (LP) model, where clinics direct patients to their LPs; instead, we prioritize offering the best

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The transaction is set to provide MTL Cannabis with additional licensed cultivation space. How will this expansion benefit your company and its consumers?

MTL Cannabis aims to blend "old school knowledge with new school techniques." Could you describe how you balance traditional cannabis cultivation practices with modern innovations, and how this approach sets you apart in the market?

When it comes to innovation, the most groundbreaking aspects have been on the supply chain and processing side, primarily driven by one of the founding brothers, Mitch.

Our innovation journey encompasses everything from post-harvest processes to packaging, making us one of a kind.

It's like a DIY project — we've built everything from scratch.

I often joke with Mitch, calling him a “MacGyver in manufacturing.” If you handed him a toothpick and a stick of chewing gum, he'd create a packaging line out of it. He’s found ingenious ways to scale our business, sometimes repurposing main manufacturing equipment but mostly rethinking how we do things.

Coming from the culinary world, he's like the Gordon Ramsay of our packaging operations. His relentless focus on improving efficiency is remarkable, such as optimizing the time it takes to fill three pre-rolls in a tube, trimming

fractions of a second to improve speed.

This stems from his passion for serving customers flawlessly, repeatedly and quickly, ensuring they have a fantastic experience every time.

The company's portfolio includes products like dried flower, pre-rolls and hash under different brands.

What's the strategy behind the brands, and how do they cater to various consumer preferences?

In all honesty, our approach is about simplicity and authenticity. We take immense pride in our products, and we stand by them.

I’ll share a story that highlights our commitment to quality. We introduced our second SKU, starting with the Sage n’ Sour strain, and later the Cookies n’ Cream strain. It was well-received by customers and sold exceptionally well.

However, when we realized that it fell short of our standards, we made the decision to discontinue it and replace it with superior genetics.

The original move might have been fine at most LPs, but it didn't align with our stringent criteria and commitment to quality. We hold ourselves to a higher standard than anyone else ever could.

“

Our focus is on running a business rooted in quality, customer care and keeping our promises of quality to our consumers and patients. By fulfilling these promises, it inevitably benefits our shareholders in the long run.

— Perron

Our core principle is simple: if it comes from our facility, it must be best-in-class.

If it's not, we will do everything in our power to rectify it immediately.

we want to consistently reward their commitment to our brand.

That's interesting. You don't often hear about companies pulling a top-selling product from the shelves voluntarily.

What experiences and lessons have shaped MTL Cannabis from operating hydroponic supply stores to becoming a Health Canada–licensed cannabis cultivator?

Well, our consumers are of utmost importance to us. Personally, I enjoy sitting down with our sales representatives, whether they’re on Vancouver Island or in Southwestern Ontario. I often ask them, “What’s the word on the street?

What are consumers saying about our products? Is there consistent feedback or reviews that call for an upgrade, update or enhancement?” If there’s any room for improvement, we’re quick to respond.

Our goal is to ensure that consumers have the best possible experience, and

Quality, both in terms of product and service, is our guiding principle. We acknowledge the industry's shortcomings, often characterized by flashy promotions and over-hyped marketing with a lack of real execution. In contrast, we're not here to put on a show. Our focus is on running a business rooted in quality, customer care and keeping our promises of quality to our consumers and patients. By fulfilling these promises, it inevitably benefits our shareholders in the long run.

Let's finish by discussing how you plan to meet the evolving needs of medical and recreational consumers in the cannabis industry.

I want to see continued expansion and a relentless dedication to meeting consumer needs. My hope is that, in a few years, I can look back and say that we played a role in building the best-managed and top-performing company in this industry, a company deeply rooted in quality.

I've been part of the cannabis industry since 2014, and our results speak volumes. There's much work ahead for the entire industry, considering that it has, to some extent, lost the trust of investors. We aim to be a part of an industry-wide effort to regain that trust.

Rebuilding trust takes time, and we want to be one of the companies leading the way in restoring investor confidence.

CANADIAN SECURITIES EXCHANGE MAGAZINE DECEMBER 2023

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About the Author

Angela Harmantas is a senior financial journalist with Proactive. She has 10 years’ experience covering the Emilymarkets Jarvie began her America, career aswith a political journalist Australia.

After she relocated to Canada, she worked equity in North a particular focusinon junior resource stocks.

Angela has reported from as a psychedelics journalist, reporting on business, legal and scientific developments before joining Proactive in 2022. multiple countries, including Canada, the US, Australia, Brazil, Ghana and South Africa. Prior to joining Proactive, Emily has worked as a reporter in Australia, Europe and Canada. she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government. Angela currently resides in Toronto.

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COMPANY PROFILE

Web3 Ventures Creating a single point of access to a broad range of crypto stories

By Andrew Kessel

P

icking winners in the fast-evolving cryptocurrency, blockchain and artificial intelligence sectors isn’t easy for investors. A long list of major success stories fuels excitement about opportunities to deploy capital in both new and established companies, but as in any industry, there are also teams that were unable to reach their goals.

And yet, there is no doubt that the companies that do succeed will change the world. That’s certainly the belief at Web3 Ventures (CSE:WEBV), which offers investors exposure to entities that are pushing the boundaries for these innovative sectors.

“Look to the future and understand that things will be very different a decade from now,” says David Nikzad, the company’s Chief Executive Officer and Co-Founder. “I call it deep technology, and I think Web3 Ventures is all about community. It's a community of people that want to bring parity to the financial system and make sure that what they get has trust and transparency.”

Nikzad got his start in digital marketing and has worked in investing for the last two and a half decades. Now, with his own fund, he’s become something of a shepherd for investors who may have misgivings about blockchain and Web 3.0.

CANADIAN SECURITIES EXCHANGE MAGAZINE DECEMBER 2023

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Take the collapse of FTX, which saw US$8.9 billion in customer assets go missing under the leadership of Sam Bankman-Fried. That hurt a lot of investors, but Nikzad believes there are positives moving forward.

“It definitely shook a lot of people’s trust in crypto, but I think it was sort of a silver lining for the bigger banks to get into the industry. That drove BlackRock and others to get into the game. I think that in a weird way, it's all going to work out perfectly, and I think that was the catalyst.”

The CEO has an optimism that borders on inevitability. He was an early disciple of the Satoshi Nakamoto white paper and bought Bitcoin before it took off.

Web3 Ventures, he says, is his endeavour to give investors the same opportunity but through an audited, publicly traded company.

In terms of exposure, Web3 Ventures has a mandate to focus on decentralized finance, healthcare, telcommunications, tokenization, ven-

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ture capital, blockchain games and social media. All told, the company has deployed $2 million since its inception.

Notably, Web3 Ventures’ crypto assets are staked by a third-party custodian for greater security and fairer pricing, according to its website.

“Look at us as a liquid fund that gives somebody a community of diversified assets that they can invest in the space,” Nikzad explains.

“This is a marathon for us,” he adds.

“Digital assets will become the norm.

Things will be tokenized. Big board exchanges will tokenize stocks. Usually, it takes a decade for new technologies to be implemented, so the time is now.”

The Web3 Ventures team is made up of lawyers, accountants, investor relations talent and broker-dealer experts, nearly all of whom have a capital markets background.

“My co-founder, Jason Hobson, is a securities lawyer,” Nikzad says. “I think that's really useful in terms of reaching critical mass — getting people like that involved.”

David Nikzad Chief Executive Officer

Company

Web3 Ventures

CSE Symbol WEBV

Listing date

September 11, 2023

Website

w3ven.com

“

I think Web3 Ventures is all about community.

It's a community of people that want to bring parity to the financial system and make sure that what they get has trust and transparency.

— Nikzad

“We're not some kid that, you know, left Harvard and decided to use customer funds to pay for some condo,” he quips.

For the skeptics, Nikzad points to his track record.

“In one year, we built a company that, fully diluted, has a $100 million market cap. We look at all the investments we've made today, and our failure rate is very low,” he says.

“We put our own money on this; we didn’t go and beg for funding.

Obviously, it's always nice to get funding but almost a little antithetical to the whole Bitcoin decentralized finance kind of ethos. We practice what we preach.”

Nikzad in many ways embodies the DeFi ethos.

Take generative AI, which Nikzad believes has the potential to change the way consumers interact with nearly every industry on the planet, particularly in an age of declining social trust.

“People don’t trust anybody. They don’t want to go to the doctor. Instead, they want to go to a website,” he notes.

“I call it WebMD 3.0” Nikzad, for his part, says he hasn’t been to a doctor in three decades. Why

would he, he says, if there are large language models and data sets that can deliver information that’s just as good. “[The skeptics represent] the old guard,” he exclaims.

Looking ahead, Nikzad believes tokenization, crypto and blockchain will follow the same path that social media companies took over the past decade and a half to become mainstream.

“My grandmother uses Facebook.

That didn’t happen in the first year of Facebook, it took multiple years,” says Nikzad. “Today, my father, my grandmother, people in my family that come from previous generations, they own crypto.”

It’s a changing world, and Web3 Ventures wants to offer investors a chance to participate in the space while it's still in its early days.

“Do you hear any hesitation in my voice?” Nikzad asks. “No. That's what it takes. I don't hope and pray. We just execute and we know.”

CANADIAN SECURITIES EXCHANGE MAGAZINE DECEMBER 2023

About the Author

Andrew Kessel covers technology, cannabis and other market sectors for Proactive out of its office in New York. He previously worked as a fact-checker for both PolitiFact and Guideposts, covered higher education for the Columbia Missourian and interned at Rolling Stone magazine. Andrew earned his Bachelor of Journalism from the University of Missouri in 2017.

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COMPANY PROFILE

Safe Supply Streaming Experienced team ready to ride the safe supply drug trend with patience and prudent investments

By Emily Jarvie

G

overnments around the world are pivoting away from a prohibition approach to the street-level drug trade in order to mitigate the harm related to its often toxic supply.

Safe Supply Streaming (CSE:SPLY) was founded two and a half years ago in response to the opportunity presented by the burgeoning safe supply ecosystem. Its goal is to help end the opioid crisis, which claims the lives of 21 people in Canada every day.

Bill Panagiotakopoulos, Chief Executive Officer, told Canadian Securities Exchange Magazine that the company sees tremendous promise in what he calls the “third wave of drug reform,” projected to be a US$360 billion–plus total addressable market.

This “third wave” follows cannabis, which was legalized for recreational use in Canada in October 2018, and then psychedelics, which have shown promise in clinical trials as potential treatments for a range of physical and mental health conditions.

“People, politicians and regulators are waking up to the fact that ‘The War on

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Drugs’ is a failed policy,” Panagiotakopoulos explains. “It’s cost us as a society over $1 trillion, millions of lives and left us with a highly toxic drug supply.”

Safe Supply Streaming believes that as more jurisdictions decriminalize and legalize psychoactive compounds and other drugs, new opportunities will emerge. As such, it acts like a venture studio and invests in and incubates companies positioned to play a pivotal role in the safe supply space.

The company’s streaming model allows institutional and retail investors alike unique access to up-and-coming companies in the safe supply environment.

“We’re going out and identifying companies, in most cases startups, and looking to see which ones are going to win. Being really early investors, we are giving our shareholders the first mover advantage,” Panagiotakopoulos says.

In some cases, Safe Supply Streaming can offer investors the ability to own a stake in these companies before they reach the

COMPANY PROFILE

capital markets. “That’s something not traditionally available to your average investor,” he notes.

Panagiotakopoulos says the company is looking at the entire safe supply space and placing bets on a diverse range of entities.

The company’s initial investment is in a business at the forefront of ensuring the safety of drugs: London, Ontario–based CannaLabs. The laboratory services company is researching a range of psychoactive compounds, including MDMA and DMT, and is Health Canada–licensed to conduct analytics and testing for compounds both imported and made in Canada to support safe supply programs.

Safe Supply Streaming also has a pipeline of other candidates that it expects will lead to the expansion of its portfolio in the next six to 12 months.

“There’s so much going on in the third wave of drug reform,” says Panagiotakopoulos, pointing to fentanyl test strips as an example of the type of safe supply product or service the company would look to invest in.

Fentanyl test strips are small strips of paper that can detect the presence of fentanyl, a synthetic opioid 50

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times stronger than heroin and 100 times stronger than morphine. It is also a major cause of overdoses and often shows up in MDMA, cocaine and other street drugs.

Until recently, fentanyl test strips were considered to be drug paraphernalia in the United States. But they can serve as an important tool in preventing opioid-related deaths. In Canada, 81% of apparent opioid toxicity deaths between January and March of 2023 involved fentanyl, up 42% since 2016, according to the Public Health Agency of Canada.

The market for fentanyl test strips is expected to reach US$12.64 billion by 2030 and $6.77 billion in the United States alone by 2027.

Safe Supply Streaming is also exploring opportunities around new uses of the coca plant — known for its psychoactive alkaloid cocaine — such as in energy drinks, functional foods and pharmaceuticals.

Safe Supply Streaming’s leadership team features former executives from across the cannabis and psychedelics industries, as well as finance professionals who have the experience and knowledge required to make informed investments in the safe supply ecosystem.

“

We’re at the right time, which is early on, and the right sector, which we believe is going to be big.

— Panagiotakopoulos

Collectively, the members of Safe Supply Streaming’s team have raised and deployed more than C$3.5 billion in capital during their careers and created more than $10 billion in shareholder value.

Panagiotakopoulos believes it is important that the company be led by professionals who have worked in the drug ecosystem and have a deep understanding of its rules and regulations. Still, he says it isn’t easy to pick winners when it comes to cannabis and psychedelics investments.

“The best people to deal with these types of investments are those who have spent significant time in the cannabis world through its scheduling and ultimate legislation here in Canada or who have navigated the complex legal framework of having a ketamine clinic or conducting clinical trials of psilocybin to treat various ailments,” Panagiotakopoulos explains.

Safe Supply Streaming’s President is Ronan Levy, who has 15 years of capital markets experience building cannabis and psychedelics companies.

Levy co-founded and was Executive Chairman of Reunion Neurosciences, served as Chairman and Chief Executive Officer of Field Trip Health & Wellness and founded Canadian Cannabis Clinics and

CanvasRx, which were both acquired by Aurora Cannabis in 2016.

Setti Coscarella, Vice President of Corporate Development, worked as lead strategist of reduced-risk products at tobacco giant Philip Morris. Panagiotakopoulos notes that Coscarella’s experience in the highly regulated tobacco industry is important, in addition to his consumer packaged goods expertise.

The CEO himself brings around a decade of experience working in Canada’s cannabis sector, including participating in roundtables with Health Canada to shape the country’s licensing regime.

Among Safe Supply Streaming’s advisors are Aaron Sonshine, a partner at leading law firm Bennett Jones, and Michael Astone, a former managing director at Cantor Fitzgerald and current Chief Executive Officer of ArcStone Securities and Investments.

“You can have the right thesis but the wrong timing or the right timing but the wrong company — we’ve mitigated those risks,” Panagiotakopoulos says.

“We’re at the right time, which is early on, and the right sector, which we believe is going to be big.”

Safe Supply Streaming listed on the Canadian Securities Exchange in October, as well as on the Frankfurt Stock Exchange under the ticker QM4, and is working toward an OTC listing in the United States.

“We didn’t wait another two years until we were at a different valuation, and this allows everybody to make that investment with us,” Panagiotakopoulos says.

“We are hyper-focused on where the market is going to be in the next three to five years, and we’re making our bets. The fact that we’re publicly traded allows everybody to make those bets along with us.”

Bill Panagiotakopoulos

Chief Executive Officer

Company

Safe Supply Streaming

CSE Symbol SPLY

Listing date June 6, 2022

Website

safesupply.com

CANADIAN SECURITIES EXCHANGE MAGAZINE DECEMBER 2023

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About the Author

Emily EmilyJarvie Jarviebegan beganher hercareer careeras asaapolitical politicaljournalist journalistininAustralia.

Australia. After After she she relocated relocated to Canada, she worked as a aspsychedelics a psychedelics journalist, reporting on business, scientific developments before joining Proactive journalist, reporting on business, legallegal and and scientific developments before joining Proactive in 2022. inEmily 2022.has Emily has worked as a reporter in Australia, and Canada. worked as a reporter in Australia, Europe Europe and Canada.

Image credit: Shutterstock

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COMPANY INTERVIEW

1CM Democratizing cannabis markets while aiming to become Canada’s leading vice retailer

By Stephen Gunnion

Y

ou don’t have to look far on the Canadian Securities Exchange to find a cannabis issuer, as some of the world’s most progressive laws governing the plant’s sales and usage have led to rapid growth in cannabis companies turning to Canadian capital markets to grow their businesses.

Among those, 1CM (CSE:EPIC) stands out for the returns it has delivered for shareholders this year, with its market capitalization recently at an all-time high of $263 million.

The multidimensional cannabis company says it is dedicated to democratizing cannabis markets. It is doing this, partly, through its One Cannabis Market technology platform, which provides business-to-business (B2B) and business-to-consumer (B2C) solutions, including last-mile delivery, digital signage, big data analytics and wholesale clearing services.

Its retail operations are centred on T Cannabis, targeting the rural cannabis retail market, and Cost Cannabis, which is focused on urban consumers.

Following the 2021 acquisition of Tirthankar, a cannabis retailer founded by industry veteran Tanvi Bhandari, the company appointed Bhandari as its Chief Executive Officer six months later.

In a recent discussion with Canadian Securities Exchange Magazine, Bhandari shared her vision for 1CM. 1CM is succeeding in an industry that many companies have found more challenging than they had first anticipated. What gives you an edge?

I think the lowest prices, accompanied by dedication to customer service. When I started my company in 2020, my main goal was to position it to have the lowest operating overheads possible, and then

CANADIAN SECURITIES EXCHANGE MAGAZINE DECEMBER 2023

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determine the minimum margin required for a successful and scalable business. I think that's what gives us an edge in the market compared to other retailers.

You say you are using technology to democratize cannabis markets. How are you doing that?

Tanvi Bhandari

Chief Executive Officer

Company 1CM

CSE Symbol EPIC

Listing date

January 23, 2018

Website

1cminc.com

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With technology, we do everything inhouse with the sole purpose of, again, improving the customer service experience.

For example, we have the 1CM loyalty app that's currently live on the Apple App Store and the Google Play Store.

This app leverages decentralized loyalty points that can be redeemed on the app for NFT coupons, in-store or taken off the app into the customer's other non-custodial wallets. The ability for the customer to own their loyalty points and their NFT coupons and take them offline into their non-custodial wallets is a great example of democratizing the cannabis loyalty platform. So that's something exciting. And then we also have our first wholesale e-commerce portal for retailers in Saskatchewan.

In Saskatchewan, other wholesalers operate in a more archaic fashion: they send out weekly Excel inventory lists and expect customers to send them back a purchase order.

We developed an intuitive e-commerce portal with a focus on user interface/user experience. This site allows our wholesale customers to browse, add to their cart, manage their available credit, make payments and check out.

As soon as the order is placed, we send them an advanced shipping notice (ASN) which includes the description and the images of the product that they've bought. The ASN can be automatically uploaded to their point of sale system, all of which significantly reduces the effort spent ordering and improves the service experience.

We also have a real-time delivery tracking app and a cannabis search engine that shows the customer the retailers around them selling the product and the price.

They just need to type the product name,

and it will show where the product has been sold and which location has the lowest price. This also helps us on the back end, as we use this data to ensure that our location has the lowest price.

I think there is a significant opportunity to utilize, develop and improve technology at scale in cannabis markets, and these improvements in technology will continue to democratize them.

You entered the liquor, tobacco and consumer packaged goods (CPG) retail industry this year. Why the move into liquor?

We are expanding beyond cannabis into other vice industries. We aim to become Canada’s leading vice retailer. We see the cross-segment complementarity and will leverage our strengths and experience in low-margin retail to drive revenues from these other vice segments.

This is how it happened. Earlier this year, the Saskatchewan Liquor and Gaming Authority (SLGA) decided that they no longer wanted to operate any government-owned liquor stores and that they would all be auctioned out.

Cost Cannabis won six auctioned liquor licences and then we went on to purchase some of the underlying real estate from the Saskatchewan government. The good thing about these licences is that they let us sell tobacco products along with all other CPG products depending on the municipality of the location. This is very exciting for us as we look forward to growing revenue in other vice segments, which include liquor, nicotine and CPG. Will you look for other acquisition opportunities like this?

We're currently looking for acquisition opportunities, both in cannabis and the liquor market. We're trying to acquire stores at attractive valuations as the industry continues to consolidate.

Is it important to have an online presence as well as a physical presence?

Yes, 100%. I think it is important to have an online presence connected to the physical

presence in this industry. That's why we want to have the technology side of the business grow in the same way we want to grow our footprint across Canada.

growth from increases in same-store sales, new locations, B2B wholesale in Saskatchewan and liquor and tobacco sales.

Where do you see future growth coming from? Will it be organic growth or M&A?

What's your ultimate vision for 1CM?

I think both at this point. There are a lot of retailers who want to sell stores that are not performing well, so we're looking for attractive valuations in the industry while also driving significant

My vision for 1CM is to become the leading retailer of vice in Canada, building a brick-and-mortar standout the old-fashioned way. That's what I would want eventually for this company, and I think we're going in the right direction.

“

We are expanding beyond cannabis into other vice industries. We aim to become Canada’s leading vice retailer.

— Bhandari

CANADIAN SECURITIES EXCHANGE MAGAZINE DECEMBER 2023

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About the Author

Stephen Gunnion is a financial journalist and news anchor, with more than 25 years' experience in television, Emily Jarvie began herHe career as a political journalist Australia.

After she relocated to Canada, she worked as a radio and print media. has anchored on a number of in television channels, including South Africa's Business psychedelics onAfrican business, legal and Corporation, scientific developments before joining Proactive Day TV, CNBCjournalist, Africa andreporting the South Broadcasting where he was the economics editor.in 2022.

Emily has worked a reporter in Australia, Europe andDay Canada.

He has worked foras Daily Maverick, Bloomberg, Business newspaper and Investors' Chronicle.

Gemina Laboratories Raising the bar for accuracy and cost-efficiency in testing for respiratory illnesses

By Sean Mason

C

OVID-19's devastating impact on the world has shone a spotlight on the importance of effective diagnostic testing for respiratory illnesses.

Canada and UK–based company Gemina Laboratories (CSE:GLAB) is progressing multiple Point-of-Care (PoC) diagnostic products for respiratory diseases, utilizing proprietary chemistry that the company calls "one of the most significant developments in rapid in vitro diagnostics since its invention."

"Our technologies enable tests to be less expensive, more sensitive and more environmentally friendly," Brian Firth, Gemina Laboratories Chief Executive Officer, tells Canadian Securities Exchange Magazine.

Firth, a 35-year veteran of the PoC diagnostics industry, spent nearly eight years at Swiss Precision Diagnostics, producer of the Clearblue-branded pregnancy test, first as managing director of its UK subsidiary and later as chief operating officer of the parent company.

He has also owned a health tech advisory practice, with clients that included Agfa, Johnson & Johnson and AkzoNobel.

Gemina’s CEO explains that the company’s technologies fit into two groups: one that improves lateral flow tests and another that improves molecular testing.

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Brian Firth

Chief Executive Officer

Company

Gemina Laboratories

CSE Symbol GLAB

Listing date

August 10, 2021

Website

geminalabs.com

COMPANY PROFILE

Image credit: Shutterstock

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Image credit: Shutterstock

Lateral flow technology, which is commonly used in home pregnancy tests, has traditionally been subject to poor accuracy compared to laboratory equipment due to inefficient deposition of the antibody, or “catcher”, in which as little as 30% of the antibody is effective.

Gemina’s proprietary chemistry is a surface chemistry binder that acts like a stand for the catcher, ensuring that all catchers are oriented in the optimum position, which increases both stickiness and efficiency so that 100% of the catcher is effective.

The company’s lateral flow improvements enable the same sensitivity as traditional tests but with 75% less antibody usage, which is one of the major cost advantages.

Its technologies also enable tests to be built on paper, derived from plant cells contained in

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products such as cotton, wood and hemp, rather than using expensive and difficult-to-source nitrocellulose, which has been used for the nearly 40-year history of the lateral flow assay.

Developed in the 1800s, nitrocellulose is formed by treating cellulose with a mixture of nitric and sulfuric acids to produce a flammable compound that only degrades slowly in the environment, releasing nitric acid in the process.

The compound is well suited to lateral flow assay development due, in part, to the uniformity of the nitrocellulose pore structure and to the binding affinity between nitrocellulose and the antibodies used in the lateral flow immunoassay format.

Gemina’s technologies allow tests to be made efficiently on local manufacturing cells that can be built in any country, bringing true diagnostics access to even low-income countries.

“

Our technologies enable tests to be less expensive, more sensitive and more environmentally friendly.

— Firth

The company’s molecular technologies, meanwhile, have enabled assays to be run on fully portable molecular diagnostic machines, which can detect tuberculosis (TB) in saliva, improving the screening for TB globally.

Its molecular technologies product will enter clinical trials in 2024 with the global launch expected in 2025.

Gemina’s testing breakthrough has the goal of creating affordable, rapid, lab-accurate PoC diagnostics in any environment, worldwide.

PoC is a market that has estimated compound annual growth of 7% and is expected to reach US$55.3 billion by 2030, according to Allied Market Research.

"Gemina will begin to generate regular revenues early in 2024 with breakeven coming in early 2025," Firth says.

He noted the company has devised a multifaceted revenue strategy that encompasses traditional product distribution, technology licensing, franchised

manufacturing and a promising new venture in the pharmacy channel.

Traditional product distribution will be used for tests Gemina develops and brings to market. The company will also license its technologies to large diagnostics companies to significantly improve their processes.

As well, Gemina will engage in franchised/distributed manufacturing where manufacturing cells are licensed to individual countries, enabling these nations to manufacture their own critical diagnostics. The company will further supply the key reagents (a substance or mixture for use in chemical analysis or other reactions) and components for the individual tests the countries create.

Finally, Gemina is currently developing a pharmacy revenue channel supporting the move internationally toward test-to-treat programs.

Firth says the company’s earliest revenues will come from licence deals that are currently in negotiations, with the first of these expected to be signed soon.

To help accelerate its licence deals and partnership opportunities, Gemina recently engaged global investment bank Stifel, which has extensive licensing experience across the life sciences sector, as its exclusive financial advisor.

The initial licence deals will be followed by product distribution agreements for Asia as well as franchise manufacturing deals that are anticipated to be signed by the end of 2024.

Gemina is targeting a 20% share of the respiratory test market within 10 years, with its first product expected

to be launched in the European and African markets.

To finance its growth, Firth said the company is planning a private placement in the closing months of 2023 into early 2024 that should support its strategy through 2024.

Firth adds that the company is also seeing interest from several grant funds that will work with Gemina to secure appropriate non-dilutive funding.

And there are expectations that at some point during 2024, Gemina will use the upfront payment components of licence deals as another form of non-dilutive financing.

Looking ahead, Gemina’s CEO sees several upcoming catalysts that could help to boost corporate value.

Gemina anticipates signing its first significant licensing partnership by year’s end.

Within the next six months, the company expects to report positive pre-clinical results for its TB test, with full clinical results and the launch of the TB test targeted to occur sometime over the next year and a half.

As well, Gemina should announce the signing of distribution agreements for its molecular tests within the next year.

The company also anticipates launching its protein production facility toward the end of 2024, which will supply the increasing number of licensees expected to be signed.

Finally, along with Gemina’s first significant revenue in 2024, the company is gearing up for franchise bookings for local manufacturing facilities from multiple countries.

About the Author

Sean Mason has been covering North American equity markets for more than 20 years, including for publications such as Investors Digest of Canada. He is a graduate of the University of Toronto and has successfully completed the Canadian Securities Course.

CANADIAN SECURITIES EXCHANGE MAGAZINE DECEMBER 2023

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SPOTLIGHT ON

Tracey Stern Get to know Tracey Stern, the CSE’s Chief Legal Officer and General Counsel & Corporate Secretary, and her thoughts on what sets the CSE apart

By Libby Shabada

Your career in the capital markets is impressive, to say the least. How did your journey in securities law lead you to the CSE?

Thank you. My passion for capital markets and market structure has existed since the Market Regulation branch at the Ontario Securities Commission (OSC) was created by Randee Pavalow, former OSC Director of Capital Markets, many years ago, and I’ve been working with all marketplaces, including the CSE, since then. The CSE has always struck me as an entity that wants to move the dial — to consider new things and take a bit of a risk without being offside its regulatory obligations. It also has a unique history: wanting to provide those companies that could not historically obtain capital with the ability to list on a public market. The need for access to low-cost capital continues to drive the growth at CSE. So, when the opportunity came to join the Exchange, I jumped at it.

For companies looking to list on the CSE, what are some important perspectives to consider, especially in light of recent changes at the Exchange?

I think it is important for companies to know that they can stay with the CSE as they mature; they can build a relationship with us and maintain it as their financing needs change. Our requirements are comparable to those of other exchanges, but it is our unrivalled issuer support that sets us apart.

The changes implemented in the spring of 2023 should redirect issuers and their advisors to us first as a pre-production, preexploration listing destination with a view that they can stay put and grow here, having the support they need without starting fresh.

When it comes to compliance, how does the CSE set itself apart?

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THE INSPIRATION ISSUE

The CSE works together with its existing and incoming issuers on their listings obligations, which means working to identify issues and resolving them, where possible, through communication and collaboration. The expertise of CSE staff is unmatched, and their deep understanding of the market and public interest makes supporting companies looking for capital and complying with regulatory requirements a positive experience.

We often hear the term “inside baseball” from Richard, but we also learned you are quite the baseball fan. Who is your favourite baseball team, and can you share a favourite/iconic moment?

I’m a huge Blue Jays fan, whether they are winning or losing.

My mother used to take us to Exhibition Stadium to sit in the bleachers, which were general admission at the time. We would wait after games for the players to come through the chain-link fence and sign stuff on the way to their little Honda Civics. A favourite moment: the bat flip, of course.

My son and I were at the game; it got a bit rowdy, with fans throwing cans onto the field. I told him that if the Jays lost, we would wait a bit for the fans to disperse before leaving. But then José Bautista hit that homerun, and they won the game, so no riot ensued!

In your role as Chief Legal Officer, what do you envision for the CSE's next chapter?

The CSE’s story is one that should resonate with entrepreneurs. The little, almost 20-year-old exchange is now a major competitor in the space. I envision the CSE to continue to grow and draw in the listings of issuers that are run by the thinkers, the doers and those who are at the forefront of their industries.

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