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New Article out today !! Tomorrow should be an epic day !! CALIFORNIA !!
KushtownUSA (FIN.C): Building a real cannabis brand at just the right time
NEW KUSHTOWN VIDEO
Recreational weed could be a $22.6B industry: study
Sales of legalized recreational marijuana would surpass combined sales of beer, wine, and spirits, it says.
NEW article from Chris Parry !!
Kushtown USA (FIN.C): Playing the California vote like a boss
First There was Dixie, Now There is KushTown For Edibles
In less than two weeks, the cannabis industry will take a significant step forward as nine states vote on legal cannabis ballot initiatives. Of those nine states, none are more significant than California which is poised to expand the legal recreational marijuana market to almost a quarter of the American population.
We expect to see Proposition 64 which would legalize recreational cannabis in California pass as polls continue to show strong support. The passage of this ballot initiative would not only have a significant impact on the landscape of the legal cannabis industry but would also serve as a major catalyst to California-based cannabis businesses.
The Fastest Growing Industry in the World
In 2015, California accounted for $2.7 billion in sales of medical cannabis product. If Proposition 64 passes, the medical and recreational cannabis market should be a $6.5 billion industry by 2020. The Guardian expects to see $1.6 billion in sales of recreational cannabis products in the first year of legalization.
From an investor standpoint, there are several ways to capitalize on this opportunity but the best and easiest avenue is through investing in publicly traded companies. Although the cannabis sector continues to fly high, we believe that several high-quality publicly traded cannabis companies are still flying under the radar.
One such company is Finore Mining Inc. (FIN: CSE) (FNREF: OTC), which is levered to the California cannabis industry following its acquisition of KushTown USA LLC, a California based cannabis infused products company that is a leader in the cannabis beverage industry.
Levered to the California Cannabis Industry
Finore entered into an agreement for the acquisition of KushTown on late Thursday and the market responded very favorably, sending FIN and FNREF 23% and 103% higher.
KushTown specializes in medicated water, soda, hot sauce, and barbecue sauce products infused with cannabis. The company offers 20 different varieties of medicated sodas on its website and its mission is to become an integrated cannabis brand across all of North America as deregulation measures continue to open new markets.
KushTown has a proven track record of success and has been selling cannabis infused products since 2008. The company’s products are sold in more than 500 dispensaries across California. The company is focused on penetrating new markets within California as demand for cannabis infused products continues to grow.
KushTown was founded by Peter Moret in 1999 after his mother was diagnosed with breast cancer. Peter successfully created a medical cannabis tincture that he gave to his mother in tea and it improved her appetite, made her more active, and made it easier for her to deal with cancer related pain. In the following year Peter’s mother won her battle against cancer. The decision was then made to manufacture and distribute the tincture called KushTown.
Product Expansion Should Significantly Increase Market Penetration
Over the next two years, KushTown plans to expand its product line to include mints, sublingual strips, fudge bars, capsules, chocolate truffles, and oil cartridges for vaporizer pens.
KushTown plans to become a vertically integrated cannabis company across the United States and it is focused on controlling the entire cultivation process, from seed-to-sale, which will provide increased transparency and visibility into the product quality and integrity.
Not only does vertical integration improve transparency but it will also have a significant impact on margins and will improve the company’s bottom line through economies of scale.
Focused on Growth
KushTown plans to expand through strategic partnerships and is actively seeking partners to license its brand in states where medical and recreational cannabis is legal.
KushTown is also focused on expanding through acquisitions as well as license applications in states with a legal recreational market and states that are preparing to legalize recreational cannabis. The company plans to roll out a national branding and marketing strategy across all of its product lines while expanding into new state markets.
Aside from the 500+ dispensaries selling KushTown’s products, several California-based delivery services distribute its products to clients across the state. The company is currently building an e-commerce platform that will lead to increased revenue opportunities as it will allow for direct sales to distributors and consumers.
Attractive Opportunity Due to Upcoming Catalysts and Recent Acquisition
Although the shares are trading near its 52-week high, we are favorable on Finore due to the following reasons: 1) Through KushTown, the company is levered to the California cannabis industry which is poised to see massive growth on a year-over-year basis, 2) The company has a proven track record of sales and it has an extensive product line that is in high demand, 3) Cannabis infused products represent a huge part of the legal cannabis industry and it continues to see strong growth, 4) The company is led by a management team with a proven track record of success, and 5) It is levered to the results of the election and market sentiment which should cause its shares to move significantly higher if recreational cannabis is legalized in California.
MUST READ ARTICLE ON FNREF!!! JUST OUT
Election Trade: A Play on the California Edible Industry
.@BigRig_Trader $fin.c is a nice 🇨🇦 edible play that's already in 500+ California dispensaries with a full product line + revs $FNREF on OTC
— Jason Spatafora (@WolfOfWeedST) October 30, 2016
How Will Election Night Affect Marijuana Stocks?
Election Night 2016 is obviously going to have a major impact on the world of marijuana law reform. With so many issues and measures and propositions and questions on ballots nationwide, it will be the biggest night in the history of the movement. Politically and culturally, things will never be the same. But the night will have reverberations throughout many aspects of people’s lives that may get overlooked. One of those areas is financial markets.
For cannabis businesses, legality is the difference between growth and death. Their market, for the most part, already exists; it just needs to be brought out into the open. And when more states legalize, more legal customers are created. On Election Night 2016 there is the possibility for tens of millions of new customers to be created in states across the U.S.
This means it could be a very good night for cannabis stocks. “With this election cycle and states such as California, Nevada & Florida (to name a few) voting on either recreational or medical marijuana laws the cannabis industry is in the midst of a paradigm shift,” Jason Spatafora, the fabled “Wolf of Weed St.,” told The Marijuana Times. “If the votes go as they should the industry will be flooded with capital raised in both the public & private markets. Many investors in the public markets will be looking to companies that are ancillary in nature which are either providing the ‘picks & shovels’ for industry expansion or technology utilities to service the consumers of cannabis or the companies actually touching the plant via cultivation and dispensaries. For more astute investors there are companies in the biotech industry that are trading on the Nasdaq right now and developing drug therapies based off of the end cannabinoids found within the plant.”
While investing in the stock market carries a lot of risk and you should do extensive research before putting up your own money, the Wolf did have a couple of picks he thinks will benefit from favorable votes on Election Night: “Two companies that stand to benefit greatly are MCIG Inc (MCIG), a company that specializes in not just CBD related lifestyle products, but also has a division called Scalable Solutions which builds large scale cultivation facilities in Nevada,” he told us. “Nevada is important because as it stands it is the fastest growing market in the United States. Whether the vote passes in November MCIG is insulated by any changes since Nevada already has medical marijuana laws. Due to its current revenues, growth and the fact they are relatively debt free I see them out performing many companies that are saddled with toxic debt. The grow operation will be a continued source of revenue for the company on top of the revenue they currently have coming in from their CBD based products.
“For a tech company with a user base set to explode and many companies and products that need advertising portals outside of Google & Facebook, MassRoots (MSRT) is worth a look. While there have been growing pains with any start-up the current trajectory is less expenditures and growing revenues which is exactly what investors should be looking at. With a shift in the cultural consensus on marijuana happening now, I’m guessing their user base continues to expand.”
In seeming preparation for favorable votes, the North American Marijuana Index, a group of 23 stocks that includes some of the fastest-growing companies in the sector, has shown big gains over the last few months. This means many investors are looking for the legal cannabis market to open up extensively in the near future.
So where is the Wolf putting his money? “With the buzz after the vote surrounding marijuana stocks my opinion is that biotech is the safest bet for long term investors. The companies that have made up my personal portfolio in the last 12 months have been GWPH, ZYNE and INSY.”
If you ever wanted to get into marijuana stocks, now may be the best time ever.
Great mention regarding FNREH HERE
Legalization of Cannabis Pending in Nine States
Legalization of Cannabis Pending in Nine States
NEW YORK, October 28, 2016 /PRNewswire/ --
Americans are more open minded about legalizations of Cannabis than ever before. A recent Gallup poll shows that about 60% of Americans support legal cannabis use. The surprising parts about this poll is the rising support for cannabis reform across all age groups. Take this into perspective and now you have nine states voting this November 8 on legalization of medical use, recreational use, or both depending on the state. Finore Mining Inc. (OTC: FNREF), Cannabics Pharmaceuticals Inc. (OTC: CNBX), Terra Tech Corp. (OTCQX: TRTC), Medical Marijuana Inc. (OTC: MJNA), United Cannabis Corp. (OTCQB: CNAB)
The states where recreational cannabis will be on the ballot are California, Arizona, Nevada, Maine and Massachusetts, while North Dakota, Arkansas, Montana and Florida are considering medical marijuana legalization. California in particular is an interest to investors. According to Arcview Group, a company that links investors with cannabis companies, has shown the market for both recreational and medicinal marijuana is expected to reach a value of $22 billion by 2020 from the $7 billion it is today, if California says yes.
California already has the most comprehensive medical marijuana law in the country, which includes edibles, and therefore it is not surprising some of the most creative cannabis infused edibles were originated in the western state. Finore Mining Inc. (OTC: FNREF) just announced late yesterday an agreement for the acquisition of KushTown USA LLC, a leading California Marijuana Beverage Company. Kushtown USA for example is specializing in medicated water, soda, hot sauce and barbecue sauce products infused with cannabis. The company offers 20 different varieties of medicated sodas on its website. The sodas and drinks come in varieties of carbonated and non-carbonated beverages, with flavors like Cherry Cola, lemonade, fruit punch, and lemon lime, all infused with a medical marijuana THC oil tincture. For more information about the California based company, please visit and check out http://www.kushtownusa.com
The creator of Kushtown USA, Peter Moret, has an interesting story behind the company. In early 1999, Moret's mother became ill from breast cancer. In addition to the chemotherapy treatments, Moret research additional possible treatments for dealing with the aches and pains from the cancer. After researching cannabis's medical effects, he created a Medical Marijuana tincture, called it Kushtown tincture, and gave his mother a single serving of the tincture in tea, which she then started drinking regularly. The cannabis infused teas not only helped in dealing with the aches and pains from cancer, but also increased her appetite and activity. The company's goal today is to create and innovate delicious, effective, and cutting edge products that establish the company as a leader amongst edible companies.
Cannabics Pharmaceuticals Inc. (OTC: CNBX) recently announced the start of a clinical study in Israel for cancer patients utilizing Cannabics' SR Capsules. This is one of the world's first clinical studies specifically examining the effect of cannabis utilizing a medically standardized edible delivery system. The company describes itself as a licensed R&D based in Israel dedicated to the development of palliative and personalized Anti-Cancer treatments harnessing the versatile therapeutic values of cannabinoids to create tailored therapies for cancer patients. Their integrated technology has created a successful medically standardized delivery system offering patients natural, reliable and safe therapy.
Terra Tech Corp (OTCQX: TRTC) is a cannabis-focused agriculture company which operates through two segments: Hydroponic Produce and Cannabis Products. Terra Tech integrates the natural world with technology to create sustainable solutions for medical cannabis production, extraction and distribution, plant science research and development, food production and Closed Environment Agriculture. The company has recently announced that its subsidiary, Edible Garden, a retail seller of fresh hydroponic produce, herbs, and floral products, has started shipping its line of 4-inch potted living herbs to private American reginal supermarket chain, Wegmans Food Markets Inc.
Medical Marijuana Inc. (OTC: MJNA) through its subsidiaries and investment holdings, offers a portfolio of products, services, technology and businesses for the medical marijuana and industrial hemp markets. The company has announced that its portfolio company AXIM Biotechnologies, Inc. has secured private funding to continue its pharmaceutical clinical trials program in cannabinoid research and development for multiple indications. This is a perfect example of how varied the use for medical cannabis may be, AXIM's future plans for future cannabinoid-based clinical development include: Parkinson's disease, Alzheimer's disease/dementia, ADHD, PTSD, autism, restless leg syndrome, glaucoma and more.
United Cannabis Corp. (OTCQB: CNAB) has announced that its joint venture with Jamaica-based Cannabis Research & Development, will commence a trial program in partnership with the Rastafari Studies Centre for Cannabis Research, University of West Indies, Mona, to create protocols for the growth of Ital Standards that in turn be used as a monitor for the processing, cultivation and consumption of marijuana. The Joint Venture's original task will be to take note and confirm the genetics of the Centre's preliminary plantings, and to provide an outlook in the development of suitable standards and training approaches for the future.
Yes Outstanding shares 25.6 million but 2/3 are in voluntary Escrow
true float is about 14 million right now
Click Link for Kushtown Presentation:
CORPORATE PRESENTATION
IMO buy all you can before California recreational MJ anticipation vote Nov 8th and after.
Yesterday after-market, Finore Mining announced an Agreement Letter to acquire Kushtown USA (www.kushtownusa.com), a leading California Marijuana Beverage Company.
News highlights:
1) Kushtown USA LLC is a California based leading liquid edibles company that specializes in cannabis infused medicated water, sodas, hot sauces and barbecue sauces;
2) Kushtown has been one of the leaders in marijuana beverages and edible products in California, with sales to over 200 medical marijuana dispensaries;
3) Kushtown currently markets and distributes:
a. Kushtown Sodas;
b. Kushtown Water;
c. Kushtown Hot Sauce; and
d. Kushtown BBQ sauce
4) Kushtown holds trademark rights to the Kushtown line of products, and management plans to leverage the established Kushtown brand name in California and aims to expand the Kushtown brand into the recreational cannabis market across North America, pending the November 8, 2016 vote in California and other States to legalize recreational marijuana
5) Legal cannabis sales in the United States jumped 17 percent, to $5.4 billion, in 2015 and are expected to grow by 25 percent this year, to $6.7 billion
LINK TO NEWS HERE
InMed Comparables
From the InMed April presentation, slide 20
http://www.inmedpharma.com/i/pdf/presentations/InMed-April-Investor.pdf
INMED
Drug Discovery Platform: YES
Proprietary Delivery System: YES
Completed Pre-clinical Therapies: 2
Pre Clinical Therapies: 5
Total Therapy Pipeline: 12
Federally Legalized Status: YES
Market Cap: 15M
http://www.inmedpharma.com/s/pipeline.asp
NEMUS BIOSCIENCE (OTC NMUS)
Drug Discovery Platform: NO
Proprietary Delivery System: NO
Completed Pre-clinical Therapies: 0
Pre Clinical Therapies: 2
Total Therapy Pipeline: 5
Federally Legalized Status: NO
Market Cap: 62.6M
See bottom page drug pipeline
http://nemusbioscience.com/services.html
ZYNERBA (Private Co)
Drug Discovery Platform: NO
Proprietary Delivery System: YES
Completed Pre-clinical Therapies: 0
Pre Clinical Therapies: 2
Total Therapy Pipeline: 2
Federally Legalized Status: n/a
Market Cap: 70M
Our development pipeline currently includes two preclinical programs studying synthetic cannabinoid therapeutics.
http://zynerba.com/in-development/
CANNABIS SCIENCE (OTC CBIS)
Drug Discovery Platform: NO
Proprietary Delivery System: NO
Completed Pre-clinical Therapies: 0
Pre Clinical Therapies: 3
Total Therapy Pipeline: 3
Federally Legalized Status: NO
Market Cap: 40.9M
http://www.cannabisscience.com/index.php/research-development/programs/cs-tati-1
Read more at http://www.stockhouse.com/companies/bullboard/c.in/inmed-pharmaceuticals-inc#57g6TO2dDXo7cIhI.99
InMed Comparables
From the InMed April presentation, slide 20
http://www.inmedpharma.com/i/pdf/presentations/InMed-April-Investor.pdf
INMED ticker : IMLFF
Drug Discovery Platform: YES
Proprietary Delivery System: YES
Completed Pre-clinical Therapies: 2
Pre Clinical Therapies: 5
Total Therapy Pipeline: 12
Federally Legalized Status: YES
Market Cap: 15M
http://www.inmedpharma.com/s/pipeline.asp
NEMUS BIOSCIENCE (OTC NMUS)
Drug Discovery Platform: NO
Proprietary Delivery System: NO
Completed Pre-clinical Therapies: 0
Pre Clinical Therapies: 2
Total Therapy Pipeline: 5
Federally Legalized Status: NO
Market Cap: 62.6M
See bottom page drug pipeline
http://nemusbioscience.com/services.html
ZYNERBA (Private Co)
Drug Discovery Platform: NO
Proprietary Delivery System: YES
Completed Pre-clinical Therapies: 0
Pre Clinical Therapies: 2
Total Therapy Pipeline: 2
Federally Legalized Status: n/a
Market Cap: 70M
Our development pipeline currently includes two preclinical programs studying synthetic cannabinoid therapeutics.
http://zynerba.com/in-development/
CANNABIS SCIENCE (OTC CBIS)
Drug Discovery Platform: NO
Proprietary Delivery System: NO
Completed Pre-clinical Therapies: 0
Pre Clinical Therapies: 3
Total Therapy Pipeline: 3
Federally Legalized Status: NO
Market Cap: 40.9M
http://www.cannabisscience.com/index.php/research-development/programs/cs-tati-1
Read more at http://www.stockhouse.com/companies/bullboard/c.in/inmed-pharmaceuticals-inc#57g6TO2dDXo7cIhI.99
InMed Comparables
From the InMed April presentation, slide 20
http://www.inmedpharma.com/i/pdf/presentations/InMed-April-Investor.pdf
INMED (IMLFF)
Drug Discovery Platform: YES
Proprietary Delivery System: YES
Completed Pre-clinical Therapies: 2
Pre Clinical Therapies: 5
Total Therapy Pipeline: 12
Federally Legalized Status: YES
Market Cap: 15M
http://www.inmedpharma.com/s/pipeline.asp
NEMUS BIOSCIENCE (OTC NMUS)
Drug Discovery Platform: NO
Proprietary Delivery System: NO
Completed Pre-clinical Therapies: 0
Pre Clinical Therapies: 2
Total Therapy Pipeline: 5
Federally Legalized Status: NO
Market Cap: 62.6M
See bottom page drug pipeline
http://nemusbioscience.com/services.html
ZYNERBA (Private Co)
Drug Discovery Platform: NO
Proprietary Delivery System: YES
Completed Pre-clinical Therapies: 0
Pre Clinical Therapies: 2
Total Therapy Pipeline: 2
Federally Legalized Status: n/a
Market Cap: 70M
Our development pipeline currently includes two preclinical programs studying synthetic cannabinoid therapeutics.
http://zynerba.com/in-development/
CANNABIS SCIENCE (OTC CBIS)
Drug Discovery Platform: NO
Proprietary Delivery System: NO
Completed Pre-clinical Therapies: 0
Pre Clinical Therapies: 3
Total Therapy Pipeline: 3
Federally Legalized Status: NO
Market Cap: 40.9M
http://www.cannabisscience.com/index.php/research-development/programs/cs-tati-1
Read more at http://www.stockhouse.com/companies/bullboard/c.in/inmed-pharmaceuticals-inc#57g6TO2dDXo7cIhI.99
InMed Engages former GW Pharmaceuticals financier
InMed Engages Peter Mountford as Strategic Advisor
Vancouver, BC – May 05, 2015 - InMed Pharmaceuticals Inc. ("InMed") (CSE: IN; OTCQB: IMLFF), a clinical stage biopharmaceutical company that specializes in developing safer, more effective cannabis-based therapies, announced today that former GW Pharmaceuticals financier, investor, and Non-Executive Director, Peter Mountford, has agreed to support InMed as Strategic Advisor with primary responsibility for the European markets.
In this role, Mr. Mountford will leverage his previous success in the emerging field of cannabinoid biotech, providing capital markets counsel and advisory for InMed, as well as enhancing shareholder value by advising the Company on European financing opportunities. As a financier, early stage investor, and Non-Executive Director for GW Pharmaceuticals, Mr. Mountford was successful in assisting the company with raising a substantial level of funds for the successful development of its business and was instrumental in its 2001 initial public offering (IPO).
Peter Mountford commented, "I am attracted to InMed's growing therapeutic pipeline and accelerated development strategy, as well as the impressive team of executives and advisors that the company has assembled. Their cutting-edge approach of therapy identification and development based on their proprietary platform technology is particularly compelling. As the market for cannabinoid-based therapeutics continues to expand globally, I look forward to supporting InMed with the expectation that my significant experience investing directly and securing investments in this sector will result in enhanced visibility for the company among European investors."
Craig Schneider, President and CEO of InMed, remarked "Aligning InMed with Peter Mountford brings another highly influential leader in cannabinoid based therapy development to our company. Specifically, we look forward to benefitting from Peter's proven financing capabilities and deep knowledge of European investors as we seek to expand InMed's shareholder base and attract new capital."
Mr. Mountford is currently a Non-Executive Director of RWS Holdings plc, one of the world's leading patent translation and search companies, and one of the top 50 companies on AIM, the London Stock Exchange's highly successful market for smaller growing companies. Mr. Mountford was instrumental in the IPO of RWS in 2003, and since then its share price has grown more than six times. More recently, Mr. Mountford was one of the founders of Learning Technologies Group plc, Europe's leading e-learning company, whose share price has risen almost four times since its successful IPO in 2013. Mr. Mountford has invested in and helped many companies raise large amounts of capital from Private Equity funds, pre-IPO investors, and Institutional Investors (through IPOs and reversals into cash shells). He is highly experienced in all areas of corporate finance including fund-raising, acquisitions, disposals, MBOs, MBIs and flotations.
2 days ago CXR bought Covis for $1.2 Billion. Covis had 18 generic branded products
''The Covis drug portfolio being acquired consists of 18 branded and authorized generic products with stable revenue, strong margins and free cash flow. The distinctive product portfolio includes branded pharmaceuticals, injectables and authorized generics that address life threatening and other serious medical conditions in various therapeutic areas including cardiovascular, central nervous system, oncology and acute care markets.''
Source
NPH has 49 products..(with 45 million shares out you do the math...)
CURRENT SATUS
Cross-referencing agreement – 30 products from globally reputed generic companies
Drug establishment license • Received in December 2014
Regulatory approval from Health Canada
• Submitted ANDS application for 33 products and in process of submission for remaining products
• Received 67 DINs
• Remaining 16 Products to be filed in Q1-2015 with Health Canada
SOURCE
Vanc Pharmaceuticals Inc. has signed a letter of intent with a multichain pharmacy based in Western Canada to become a preferred supplier of generic drugs and over-the-counter products.
SOURCE
Vanc Pharmaceuticals Inc. has received confirmation from the B.C. Ministry of Health approving 14 of the company's generic molecules under the Low Cost Alternative program.
The approval of these molecules makes them eligible for listing on British Columbia's provincial formulary and for reimbursement through Pharmacare. Pharmacare is the province's coverage plan that assists residents with the cost of eligible prescription drugs and certain medical supplies.
"We are excited to have received LOA approval from the B.C. Ministry of Health as it signifies an important milestone in our evolution as a company -- we can now provide residents of B.C. with safety, quality and affordability when it comes to these 14 molecules," said Arun Nayyar, chief executive officer of Vanc. "We will continue to work with the Ministry of Health to gain approval of additional molecules during Q1 2015."
source
Next Steps
Ordering – Purchase orders placed for 30 products
Packaging and Artwork – Ready for 30 products and in process of gaining approvals from manufacturers Manufacturing
– Q1-2015 Provincial Listing
– Applied for all products Sales and Marketing
– Expand sales and marketing team Q2-2015
QC – testing method transfers are in progress and agreement in place with an Ontario based testing lab
''we are sitting in discussions with some of the largest feed companies, edfood companies and human consumption companies globaly in multiple areas baking , dairy, petfood,cosmeceutical, , the opportunities are endless....''
[urlhttp://www.pinnacledigest.com/blog/alexander-smith/naturally-splendid-enterprises-touches-new-all-time-high[/url][tag]Pinnacle Digest Link[/tag]
Naturally Splendid has stepped onto the TSX Venture in an advanced stage compared to the majority of its peers. With license agreements and sales channels in place, retail investors will be awaiting revenue numbers to better understand the company's margins and profitability.
The cannabinoid extraction aspect to the deal, via the Novation Agreement, has no doubt drawn additional marijuana-related interest from retail investors.
There were 313 individual trades in Naturally Splendid's market Wednesay.
Excluding any potential products that may or may not emerge from its licensed CBD Technology, the company has an exclusive sales agreement to market and distribute, in North America, the full complement of patent pending, plant-based omega products created by Boreal Technologies.
In addition, Naturally Splendid's 100% owned NATERA(TM) line of hemp-based superfood products is quickly becoming a household name in leading health food distributors and throughout a network of retail stores across Canada including major retailers and specialty stores.
It will be interesting to see how Naturally Splendid balances its recently licensed cannaboid extraction and formulation agreement, along with its many plant-based super food products that are already selling, in the quarters ahead.
I get it, but why do you think a big price increase is just weeks away? Do they have product announcements coming or something else that is an expected catalyst?
Read 3 articles on Naturally Splendid
CLICK HERE
InMed appoints former GW Pharma Associate Medical Director as CMO – effective immediately
InMed Pharmaceuticals Appoints Dr. Abo Mohammed as Chief Medical Officer
Vancouver, BC – March 4, 2015 -InMed Pharmaceuticals, Inc. ("InMed") (CSE: IN; OTCQB: IMLFF), a clinical stage biopharmaceutical company specializing in the development of cannabinoid based therapies, today announced that it has appointed former Associate Medical Director of GW Pharmaceuticals, Abo Mohammed, MD, DPM, MFPM, as Chief Medical Officer, effective immediately. Dr. Mohammed is a proven leader in the development of cannabinoid therapies, having played a strategic role in the clinical development, R&D, and commercialization of these specialty drugs.
As Chief Medical Officer, Dr. Mohammed will join InMed's executive management team and will be directly involved in developing the clinical trial strategy for InMed's lead candidates and product development strategy for the Company's pipeline of cannabinoid based therapies, including its two clinical stage programs,CTI-085 and CTI-091, and the recently initiated program for Epidermolysis bullosa simplex (EBS), INM-750.
"Our recent progress and anticipated advancement of our lead drug candidates have made the creation of the Chief Medical Officer position a corporate priority," commented Craig Schneider, Chief Executive Officer of InMed Pharmaceuticals. "There are very few individuals world-wide who have Dr. Mohammed's level of expertise and direct experience in cannabinoid drug development. We are very fortunate to have been able to attract such a qualified executive to the InMed team."
Dr. Sazzad Hossain, Chief Scientific Officer, added, "Dr. Mohammed's expertise in regulatory affairs, clinical development and marketing in the cannabinoid based therapies is expected to add immediate value to InMed as we seek to successfully advance our cannabinoid based therapies along the clinical and regulatory pathway."
Dr. Mohammed commented, "Joining InMed at this transformative stage, as the company prepares for clinical development of its lead programs, is the opportunity I'd been seeking to continue my passion for bringing cannabinoid therapies to the market. I look forward to leveraging my expertise in support of InMed's exciting drug candidates."
Prior to joining InMed Pharmaceuticals, Dr. Mohammed served as Associate Medical Director at GW Pharmaceuticals; a UK-based Pharmaceutical Company specializing in the development of cannabinoid based prescription medicines.
In this role, and others at GW Pharmaceuticals, Dr. Mohammed was involved in the advanced delivery of core clinical research and was involved in key decision-making regarding R&D and product commercialization. He played a leading role in GW Pharmaceuticals' pharmacovigilance team where his responsibilities included handling of the company's drug safety data from both clinical trials and post-marketing sources, and general management of safety signals including investigations, reviews and reporting. He is also a consultant to the Nigerian regulatory authority (NAFDAC) in the areas of pharmacovigilance, post-marketing surveillance and clinical trials.
Prior to joining GW Pharmaceuticals Dr. Mohammed was with PPD, a leading global contract research organization providing drug discovery, development, lifecycle management and laboratory services. Dr. Mohammed also served as Chief Medical Officer/Clinical Director in various public healthcare establishments in Africa from 1996 to November 2010.
Dr. Mohammed's received his MD at Ahmadu Bello University, Zaria Nigeria followed by an MSc in Orthopaedics at University College London. Dr. Mohammed achieved a DipPharMed in Pharmaceutical Medicine at University of Wales in Cardiff. He is Member, Faculty of Pharmaceutical Medicine (Royal College of Physicians of England), the British Association of Pharmaceutical Physicians and the International Society for Pharmacovigilance.
[url]http://www.inmedpharma.com/s/news-releases.asp?ReportID=699023&_Type=Press-Releases&_Title=InMed-Pharmaceuticals-Appoints-SOURCE[/tag]
Great news !
www.vette350.com/
Gainey now followed by BMR:
http://bullmarketrun.com/?p=26179" rel="nofollow" target="_blank" >http://bullmarketrun.com/?p=26179[Gainey Capital Corp. (GNC, TSX-V)[/tag]
Mexico is 1 of our favorite jurisdictions, and there’s another company with good things happening there that we suggest our readers check out and perform their due diligence on – Gainey Capital Corp. (GNC, TSX-V)
GNC is an intriguing and emerging force among juniors in the prolific Sierra Madre region where the company is generating cash flow from its 300-tpd mill and processing center in Huajicori, Nayarit State…Gainey operates the only gravimetric/flotation processing center in the area…
What also has us particularly excited about Gainey is the company’s El Colomo Gold-Silver Project that covers 19,000 hectares with multiple high-grade targets…a drill program is being lined up for El Colomo which should definitely generate some excitement in the market…
Financially, Gainey is in solid shape (cash flow positive) and reported approximately $2.5 million in working capital as per its latest financials (Sept. 30)…
Gold Makes Reverse H&S Breakout, Junior Gold Miners (GDXJ) Bouncing Off Support at 20 DMA
The big banks are finally realizing that the US Fed may not be so quick to raise rates in 2015. Investors may wake up when the Fed institutes more QE to keep up in this global currency war. Eventually, investors should want precious metals.
Gold Stock Trades readers are already positioned for the scenario which is currently being played out. By now my readers should own a considerable amount of physical gold and silver bullion as well as high quality junior miners on the verge of major growth. If gold steadies around $1300 a lot of junior miners are going to breakout.
For instance two weeks ago, I highlighted Gainey Capital (GNC.V or GNYPF) as an interesting cash flow opportunity in the junior mining sector as it owns an interesting property and a mill in the heart of the Sierra Madre Gold/Silver Trend. Unlike many juniors it has cash and near term cash flow.
Recently, Gainey announced a 10k ton per day processing agreement with Belmex Resources. I hope to hear more deals announced in the coming weeks as Gainey owns the only gravimetric/flotation processing plant in the area which is designed to increase recovery rates. Its also operated by an experienced milling supervisor George Cantua who supervised Barrick’s 24k ton per day mill in the Dominican Republic.
Investors should look where Gainey’s mill is located in relation to some of the other gold-silver deposits nearby. As gold and silver comes back into favor, miners may look to process increasing amounts of their ore with Gainey. I hope to hear positive developments with more processing agreements and the beginning of exploration on El Colomo.
See the latest news release on the processing agreement by clicking on the following link:
http://gaineycapital.com/component/content/article/8-news/56-gainey-signs-10-000-ton-ore-processing-agreement.html
News ! Gainey Signs 10,000 Ton Ore Processing Agreement
Link
01/22/2015 [ACCESSWIRE]
Gainey now taking delivery of high-grade ore at its advanced mill and processing centre
VANCOUVER, BC / ACCESSWIRE / January 22, 2015 / Gainey Capital Corp. (TSXV:GNC) (OTC:GNYPF) ("Gainey" or the "Company") is pleased to announce that Belmex Resources has engaged Gainey to process a minimum of 10,000 tons of high-grade gold ore at its 300 TPD (tons per day) mill and processing centre in Mexico's prolific gold and silver region of Sierra Madre. Gainey has begun taking delivery of the ore (assay grades from 5.8 to 12.2 GPT), delivered by truck from Belmex's facility just 22km from the mill.
Gainey's facility is the only one in the region that includes a gravimetric/flotation processing center to optimize gold and silver recovery rates. Its operational team is run by Gainey Operations Manager, George Cantua, who previously supervised Barrick Gold's 24,000-
tpd mill in the Dominican Republic.
David Coburn, CEO of Gainey Capital, commented, "We located our facility close to a large number of ore bodies specifically because there was no other mill in the region. We began sampling ore from multiple sources just days after completing our upgrade program and today's announcement shows we have started the next phase of the toll processing part of our business."
About Gainey Capital Corp.
Gainey Capital is a gold and silver exploration, development and ore processing company exploring an aggregate of 18,766 hectares strategically located in the gold/silver-rich Sierra Madre Occidental Trend in western Mexico. The company's Mill, located on its El Colomo property property, is capable of processing up to 300 tons of ore per day and the company has the capability, including permitting, to upgrade to 600 tons per day with low capital expenditure. Additional information on Gainey Capital, its current operations and its vision is available on the Company's website at www.gaineycapital.com or from info@gaineycapital.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"David Coburn"
David Coburn, Chief Executive Officer
For information, please contact the Company:
Phone: 480-347-8904
E-mail:info@gaineycapital.com
Website: www.gaineycapital.com
Gainey Capital Generates Cash Flow With Gold Mill in Mexico
Gainey Capital Generates Cash Flow with Gold Mill in Mexico
Financial Press / Jan 21, 2015 / So far, gold is having a good year. In 2015, the spot price of gold is up 6%, ishares Silver Trust (SLV-NYSE) is up 12% and the gold junior ETF (GDXJ-NYSE) has surged 20%. The combined assets of SLV and GDXJ are now $6.7 billion.
The U.S. Mint has also set a new sales record for its American Eagle silver bullion coins, with sales of 43 million coins. Physical bar & coin consumption is now 46% of industrial demand – a 500% increase in the last six years.
The most successful junior metal companies are generating cash by processing gold from 3rd party miners. The share price of Inca One (IO-TSX.V) - operating a gold milling facility in Peru - is pushing a 52-week high. Dynacor Mines (DNG-TSX.V) also operates a gold ore-processing business. Its share price has risen from .20 to $1.65 in the last 5 years – an increase of 1,300%.
Gainey Capital (GNC-TSX.V) is a junior gold/silver company following the same business model as Inca One and Dynacor. The cash positive company is a toll-processor and exploration company operating in Mexico.
“Last year we spent about $500,000 upgrading our systems to optimal efficiency,” stated Gainey CEO & Director David Coburn in an exclusive interview with Financial Press, “Negotiations for long-term milling contracts are ongoing and include mom-and-pop mining operations in Mexico and publically traded miners.”
Gainey plans on Bulk Sampling 30,000-60,000 Metric Tons of Material through its 300 TPD Mill/Processing Center in 2015. Revenues are projected around $5.8 million USD with EBITDA in the 35% level. GNC employs a conservative $940 an ounce gold benchmark in analyzing the economics of processing/bulk sampling from its fully owned Mineralized zones. The 300 tpd facility is planned to be increased to 600 tpd by the end of Q4 2015.
Gainey’s mill/processing center is the only one in the region to include a gravimetric/flotation processing center, which optimizes gold and silver recovery rates.
“Gravitational separation is a cost effective system that uses an inclined table with a shaker to move the material along a table,” explained Coburn, “The combination of gravitational separation and floatation achieves extremely high recovery rates.”
Gainey’s best-in-class mining team includes former Barrick Gold management Jorge Valenzeula Cantua a Mexican silver veteran who has strong ties to the local community, exploration leaders Minera Cascabel and MAG Silver’s Dr. Peter Megaw and technical board member Larry Segerstrom who was the Geological Manager for Freeport McMoRan at Grassberg, one of the largest gold mines in the world.
“Our proximity to power, transportation, water and skilled labor has kept operating costs well below industry standards,” stated Coburn, “We are connected directly to the federally operated power grid.”
The water systems have also been upgraded with new pumps and motors. With power and water issues solved, Gainey is projected to maintain below-industry operating costs in the future.
The mill/processing center is located 15 kilometers on a paved road from Highway 15 South, which is a main Federal highway connecting the many ports and airports to the USA. It is only 5 km from a large military base, ensuring high security and a strong supply of skilled labor.
“We’ve formed a strong relationship with the local Huajicori community, which has been supplying skilled and unskilled labor,” stated Coburn, “We are also renting equipment from them, which has saved money and strengthened our working relationship.”
Gainey’s flagship El Colomo property is about 19,000 hectares. A detailed prospecting program around the main vein systems will be announced by the middle of February, 2015 and will commence in Q1 2015. With dozens of visible outcrops of substantial size, prior exploration delivered grades as high as 13.75 grams per tonne gold equivalent.
Gainey’s strategy of combining toll processing and exploration activities mitigates risk by generating revenues from the mill to fund exploration and development in this mineral rich area of Sierra Madre in western Mexico.
Gainey’s largest single investor is Mexican billionaire Ernesto Echavarria who operates a conglomerate of companies close to El Colomo.
Gainey’s mill/processing center is paid in full and is currently processing ore. By the end of 2015, the company intends to process its own ore and become a fully sustainable mining/processing company with positive revenues from its own gold/silver production.
“We have about $2.5 million in cash and no underlying debt,” stated Coburn, “Optimizing relationships with metal producers in the area and ramping up tonnage at our modern processing facility, we are positioned to become a profitable gold and silver producer in 2015.”
To date, GNC has delivered on its publically stated financial and operational milestones.
Gainey Capital is currently trading at .20 with a market cap of $8.7 million.
CEO BLOG CLICK HERE
MOST RECENT NR:
Gainey (GNC:TSXV, GNYPF:OTC) Provides Update On Toll Processing Negotiations And Exploration Strategy
12/10/2014 [ACCESSWIRE]
Vancouver, BC / ACCESSWIRE / December 10, 2014 Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) ("Gainey" or the "Company") is pleased to provide an update on ore processing negotiations and exploration plans. In addition, the company has finalized an agreement with the Municipality of Huajicori, which will enable Gainey to use the Municipality's heavy equipment, such as backhoes and front end loaders, at attractive rates.
Cash Position: As at September 30, 2014, the Company had a total of approximately CDN$2.8 million in cash reserves. This, along with the positive operating margin and cash flow from ore processing, will be used to fund the Company's exploration strategy.
Ore Processing: Gainey has now completed the ore sampling process with multiple local mining companies and is in negotiations regarding long-term processing contracts. The Company has received cash deposits from processing customers and has ore stockpiled at the mill. The Company's mill and processing centre, which benefits from competitive operating costs, has consistently delivered recovery rates in excess of 90%.
The Company expects to generate a positive operating margin and cash flow from its processing operations, which will be used to further fund exploration initiatives. Gainey plans to begin sampling its own ore in early 2015.
Exploration: Gainey is finalizing its exploration strategy and plans to announce details, in January 2015, of the upcoming program. The Company's advanced gold/silver project at El Colomo is located in the gold/silver-rich Sierra Madre Occidental Trend in western Mexico. The project has a number of high-priority drill targets already established and exploration will be headed up by renowned geologist, Peter Megaw.
David Coburn, CEO of Gainey, commented, "It has been a busy period for Gainey since the acquisition of our assets in Mexico closed in Oct 2013. Our ore sampling program has enabled us to build relationships with the many independent mining operations in the region and we can now move towards arranging long term tolling contracts. The mill's high efficiency and low operating costs are a particular advantage for the toll processing part of our business model. We are well-funded and are looking forward to the upcoming exploration and toll processing opportunities as 2015 approaches."
About Gainey
Gainey is a gold and silver exploration, development and ore processing company exploring an aggregate of 18,766 hectares strategically located in the gold/silver-rich Sierra Madre Occidental Trend in western Mexico. The company's Mill, located on its El Colomo property property, is capable of processing up to 300 tons of ore per day and the company has the capability, including permitting, to upgrade to 600 tons per day with low capital expenditure. Additional information on Gainey, its current operations and its vision is available on the Company's website at www.gaineycapital.com or from info@gaineycapital.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"David Coburn"
David Coburn, Chief Executive Officer
For information, please contact the Company:
Phone: +1 602-315-1231
E-mail: info@gaineycapital.com
Website: www.gaineycapital.com
I'll be calling WLC shortly. Just came back from a long needed vacation with the family.
Also just started a new board for GNYPF and posted some DD. Mark my words, grab some GNYPF today (not much available). Next 90 days will be great.
http://investorshub.advfn.com/Gainey-Capital-Corp-GNYPF-29441/
Northern Miner: Gainey Capital aims to fast-track production at El Colomo
VANCOUVER — Over two years ago Gainey Capital (TSXV: GNC) CEO David Coburn saw promise in a private Mexican precious metal operation 135 km southeast of Mazatlan — along the border of the States of Nayarit and Durango — called El Colomo. It may have taken some time, but Coburn managed to put together a deal for the project, and the company now hopes its newly-acquired processing facility will allow it to leverage quick cash flow into exploration success on a 190 sq. km property package.
El Colomo includes five known mineral occurences, namely: the La Nueva Victora, Las Minitas, Higuera, El Arrayan, La Bufa, El Guayabo, and El Penon deposits. According to technical reports gold and silver mineralization appears to be restricted to low-sulphidation, epithermal quartz veins within fault zones, which constitute the most common form of deposit in the Sierra Madre Occidental volcanic province. All showings found to date consist of steeply-dipping auriferous and argentiferous epithermal quartz veins.
Gainey picked up the project from a private mining outfit called Golden Anvil, which invested roughly US$5 million in constructing a 300-tonnes-per-day gravity-flotation plant around 63 km by road from the mine in the town of Huajicori. According to documentation submitted to Gainey the pilot plant processed roughly 4,276 tonnes of material in mid-2011, which resulted in 61.3 dry tonnes of concentrate averaging 61 grams per tonne gold and 2,874 grams per tonne silver.
For Coburn the operation demonstrated a lot of promise, but needed the right amount of investment capital and an experienced team to head up exploration and fine tune the mill. Enter geologist Dr. Peter Megaw, whose Mexican discoveries include MAG Silver's (TSX: MAG; NYSE-MKT: MVG) Juanicipio deposit. Megaw was familiar with the asset and took a meeting with Coburn in Tucson, Arizona.
“When we started looking at the project I went down to meet with Dr. Megaw who knew [El Colomo] very, very well. His team had actually been trying to purchase the property since 1993, and he really just wanted to know how we were going to secure the entire land package because it's a large area that's going to be a district play,” Coburn recounts during an interview. “We worked with the previous Mexican owners to patch the whole thing together, which was somewhat complicated since the company we purchased it from had between 35 and 40 investors in a private corporation.”
In the end the terms of sale included 12 million shares of Gainey, plus the issue of special warrants that award Golden Anvil one additional share per ounce of gold (or gold equivalent) categorized as mineral reserves by October 2015. The warrants are capped at 3 million additional shares. To solidify his management team Coburn added George Cantua — who spent two years as operation supervisor at Barrick Gold's (TSX: ABX; NYSE: ABX) Pueblo Viejo gold facility — as operations manager.
“George is doing a great job,” Coburn continues. “He's training our people down there, and we're only really running one shift right now. We're sampling a lot of different ore, which basically makes this a pilot or pre-production operation for us. Between sampling and running some production we've actually been cash flow positive this past month. We've been quite happy with the results as they pertain to our operating costs versus sales output. My goal after we closed our qualifying transaction was to get the mill operational and profitable as quickly as possible.”
Megaw would come aboard to manage Gainey's exploration strategy through his Minera Cascabel technical company. Gainey closed a US$2.7 million non-brokered private placement in mid-May wherein it issued 13.6 million units at a price of 20¢ per unit. Coburn explains the funds are earmarked for an initial exploration program that will include stream-and-sediment geochemical work aimed at identifying the most promising targets on the property package.
There has been a variety of drilling across a few of El Colomo prospects. La Nueva Victoria is the site of the majority of exploration and development; as such it hosts a historic resource of 401,000 tonnes at an average grade of 13.75 grams gold equivalent. There is also a potential bulk-tonnage target at the La Higuerita open pit, which holds a historic resource of 18 million tonnes averaging 1.37 grams gold equivalent. Coburn points out that only around 3% of the total property package has been explored using modern geological concepts and technology.
“There are a number of historic resources on the property, and we could have come up with a compliant resource for our initial technical report, but we opted to let our own geologists take a look prior to doing that,” Coburn explains. “We plan on doing some of our own drilling, which will include verifying a number of the historic holes. We'd like to get a diamond drill in there. One of the comments Peter made was that his team couldn't believe how much gold was left on the table. There's plenty of opportunity with stock piles, and we're working on that as well.” As Megaw and his team work towards defining an exploration program at El Colomo, Coburn has his eyes set on making Gainey cash flow positive through toll milling third-party deposits. He says the facility is one of the only gravity-flotation plants in the region, and that a number of companies with available ore bodies have contacted him about trucking in ore to the pilot operation. Gainey is also exploring an upgrade that would bring El Colomo's throughput to 750 tonnes per day through the purchase of an additional ball mill.
“Everybody has been looking at the Dynacor Gold Mines (TSX: DNG; US-OTC: DNGDF) model in Peru, and though it took a while to get it tweaked we think it's a great idea,” Coburn adds. “We're searching for that leverage in the early days, though eventually we would like to process our own ore. I could actually see us having two facilities: one that will process ore from site; and one that will process trucked-in ore. We've already trucked in material, and we're processing it as we speak. We're one of the few facilities in a large area that has the processing availability.” Gainey has traded within a window of 10¢ and 54¢ since its qualifying transaction in September 2013. The company is up around 100%, or 24¢, since mid-May en route to a 47¢ close at the time of writing. Gainey maintains 43 million shares outstanding for a $20.4 million press time market capitalization.
GAINEY CAPITAL CORP. (GNC:TSX-V) (GNWPF:OTC) A GOLD MINING COMPANY WITH MONEY TO BURN
One of the reasons that gold companies don’t make it is “burn rate.”
They are undercapitalized, and so they burn through their cash, using up their funding during the expensive exploration stage. As a result, they run out of money and close their doors before they can even begin to produce.
A Junior Gold Company with Deep Pockets
One under-publicizing junior mining company in Mexico, Gainey Capital Corp. (GNC:SX-V) , won’t have this problem.
That’s because they have $3 million in cash and zero debt. More important, the company owns its own mill. And they can earn great revenues processing gold for other mines near El Camino in the prolific Sierra Madre Occidental Trend, located extremely close to a number of high grade ore bodies for toll processing. Nearby mines include Primero, First Majestic, Great Panther, and Goldcorp.
$2 million a year potential cash flow – before even one ounce of gold is pulled out of the ground.
The mill uses a modern gravity and floatation plant, equipped with a fully permitted tailing reservoir, powered by the national utility grid in Mexico. Recovery rate for gold and silver is over 90%.
The mill can process 300 tons of gold ore a day for its customers.. When it runs 5 days a week, 52 weeks a year, the mill will bring in $2.1 million in annual cash flow. If demand increases, management can double the mill production to 600 tons per day without further permitting.
As. J. Taylor, editor of Gold, Energy & Tech Stocks, notes: “Companies that can generate cash flows from which to fund exploration offer a huge advantage. These shares offer a bargain.”
Spending money to make more money
Cash and mill revenues will be used to explore the company’s 46,950 acres including the El Colomo Dome, which is in the center of the property -- without depleting cash, diluting the stock, or seeking additional funding.
The mine’s high-grade targets are exemplified by La Nueva Victoria vein. This rich vein has a historical drilled resource of 442,000 tons at an average grade of 13.73 grams per ton Au-Eq, non-NI 43-101 compliant. The mineralized body is open along strike and death.
Put your trust in Mexico’s top exploration geologist
The company’s chief of exploration, Dr. Peter Megaw , has a 30-year track record of successfully discovering profitable new gold and silver deposits throughout Mexico. A PhD in geology, he is a Certified Professional Geologist by the American Institute of Professional Geologists.
Dr. Megaw’s major discoveries include Excellon Resources’ Platosa Mine, the highest grade operating mine in Mexico, as well as MAG Silver’s, Batoplas, Santa Eulalia, and Juanicipio properties – the latter being one of the world’s largest silver discoveries.
Dr. Megaw has advised over 25 companies including Kennecott, Teck, and BHP on precious metals exploration in Mexico. Peter’s clients and their shareholders have profited handsomely from his discoveries. In just 2 ½ years, Excellon Resources gained 1,029% and MAG Silver was up 282%. Another firm Dr. Megaw worked for, Garibaldi Resources, gained 358% in 6 months.
The bottom line is: there is no geologist on the planet with a track record of finding and developing profitable gold and silver mines in Mexico equal to that of Dr. Megaw.
"Mexican billionaire loves the stock!"
Mexican billionaire Ernesto Echavarria is so bullish on Gainey Capital Corp. that he bought 15% of the company for $1.3 million. Says Echavarria: “I am excited to participate as a major investor, because it is in an area that contains very high gold and silver mineralization and has an operational mill.”
Management has kept the wraps on this gem of a gold mine as they quietly put the mill and other infrastructure in place. They’ve built a cash reserve and an income stream to comfortably fund exploration without fear of running out of funds. The first gold production should begin in 5 to 6 months, and once that happens, the announcement could send the stock price higher.
For a free copy of J. Taylor’s research report on the stock, normally available only to his paid subscribers, CLICK HERE NOW
INVESTOR INTEL: Epstein’s gold junior pick with tremendous upside — Gainey Capital
Gainey Capital Corp. (TSXV: GNC) is a gold and silver exploration and development company exploring an aggregate of 18,766 hectares strategically located in the gold/silver-rich Sierra Madre Occidental Trend in western Mexico. Surrounded by major and mid-tier TSX and NYSE precious metals producers First Majestic Silver, Primero Corp, Chesapeake Gold, Goldcorp, Endeavor Silver and Great Panther Silver, the Company’s flagship El Colomo property is largely underexploited and is the focus of the Company’s near-and long-term development plans.
However, what makes Gainey Capital unique is its 100% ownership of a completely refurbished gold processing facility operating at 300 tonnes per day, “tpd,” capable of being upgraded to 600 tpd with minimal additional capital. This is the ONLY facility in the area to include a gravimetric/flotation processing center, which optimizes recovery rates. Gainey is in active negotiations with multiple parties about toll milling their ores. Toll milling will generate meaningful cash flow to fund exploration and development of Gainey’s own properties. The company could be mining its own ore and processing it at its own mill within 6-9 months. [Please See Video Clip of Mill at the bottom of the company’s homepage]
Under-Promise & Over-Deliver, Everyone Says it, CEO David Coburn Does it
I have been speaking with Founder & CEO of Gainey Capital Corp., David Coburn about his plans for the company. I had been hearing that Gainey was a company to watch. Then on June 13th, Jay Taylor put out an excellent report on Gainey. I called Coburn. Over the years, I’ve spoken with hundreds of management teams. One of the more frequent things I hear from them is that, “I want to under-promise and over-deliver!” While that’s a great corporate philosophy, rarely does it seem to happen….
That’s why it was so refreshing to speak with someone with vast experience running successful companies efficiently and delivering on promises. As CEO, he has very little support staff and ends up doing a wide range of work himself, which he’s happy to do–it’s in his DNA. Proof of his prudent corporate governance came just recently when Gainey was offered C$10 million in equity capital. Coburn conservatively took only C$2.7 million to avoid excessive dilution.
Exceptionally Strong Team for a Junior Company
Like any successful manager, David surrounds himself with top-tier talent. For example, in charge of Gainey’s 300 tpd gold processing facility is George Cantua, Mexican Operations Manager. He was hired from Barrick Gold where he supervised a 24,000 tpd milling facility. George was responsible for Gainey’s mill upgrades coming in on time and under budget. Board member Larry Segerstrom was Geology Manager at the largest gold mine in the world for 7 years, Freeport McMoRan’s Grassberg project as well as COO of Paramount Gold/Silver. Gainey also has Peter Megaw on the team. His company Cascabel is heading up the explorations strategy. He is the most successful exploration geologist in Mexico. Peter is the technical brains behind Mag Silver.
Strong Financial Team
David Coburn has also assembled some of the smartest, “precious metal” investment bankers and investors in the USA/Canada/Mexico whose investment in Gainey Capital have been lead by Mexico Billionaire Ernesto Echavarria. Coburn explained that this investment by Echavarria of $1.3 Million is a key strategic play for both Gainey and Echavarria given Gainey’s operations are literally in Mr Echavarria’s back yard and that Mr Echavarria is an extremely intelligent & successful precious metal investor among his other business holdings. Mr Echavarria was quoted as saying,
“I am excited to participate as a major investor in Gainey Capital given it is in an area that contains very high gold and silver mineralization ” Echavarria went on to say “this is a unique opportunity given that Gainey has a operational Mill that is in one of the best areas in Mexico”.
Comparison Made to Peru’s Dynacor, Gainey Capital Even Better
Jay Taylor made a compelling comparison between Gainey Capital and Dynacor, based in Peru. Dynacor has proven the business model of toll milling for strong cash flow and deploying that cash into exploration & development. However, Gainey has a market cap that’s one third that of Dynacor and Mexico is a safer location to do business than Peru. Make no mistake, I like Dynacor a lot and think that stock could double in the 12 months. Gainey Capital hopes to expand Mill capacity to 600 tpd. Coburn believes an expansion to 600 tpd could be accomplished within 6 months at an all-in cost of just C$100k-C$200k.
In a prime example of under-promise and over-deliver, Coburn’s team got its 100% owned processing facility up and running in June without fanfare. Instead of a grand press release, Coburn has been methodically operating the plant and, importantly, testing local ores, to work out the kinks. While Coburn is not prepared to discuss the profitability of the 300 tpd facility, he has every indication that profitability should be robust. As a proxy, investors have publicly available data on Dynacor’s gold processing facility. That plant is fed with higher grade material than Gainey’s facility has access to, but Dynacor’s facility reported net income in 2013 of C$9 million. That C$9 million was ENTIRELY from toll milling third party ores.
If Gainey could reach a run-rate of just half of that amount, C$4.5 million of profit on a C$19 million market cap, that alone would be a solid outcome. However, with margins possibly rising next year if the company starts processing its own ore AND with throughput possibly doubling to 600 tpd, Gainey could be looking at annual run-rate profits of greater than C$4.5 million next year, without selling a single share of stock or borrowing any money. Did I mention that I like this story very much?
Tight Capital Structure, Zero Debt, C$ 3 Million of Cash, Surrounded by Majors….
What’s not to like? Gainey is sitting on C$ 3 million in cash, it should be cash flow positive in August, it has no debt and a tight capital structure with 42.4 million shares outstanding. Of that amount, 19.2 million shares are in escrow from 1-3 years. The basic market cap at C$ 0.45 per share is C$ 19 million, again with zero debt and C$ 3 million of cash on hand. That’s an Enterprise Value, “EV” (market cap minus cash + debt) of C$ 16 million.
Mexico is a top mining jurisdiction and there are several well known players nearby including Primero, First Majestic, Great Panther and Goldcorp. Unlike many juniors who are out of cash and increasingly desperate to sell out to a major, Gainey is in the opposite position. Not only does Gainey not need to turn to larger neighbors for help, those neighbors may turn to Gainey as some have highly prospective, non-core properties to sell…. Properties that are worth a lot more to Gainey because it owns the only gold processing facility in the region to include a gravimetric/flotation processing center, which optimizes gold and silver recovery rates. Yes, I know, I already said that, but it’s worth repeating.
Opportunity For Near-Term Production
How many times have I heard this, “near-term production.” Near-term appears to range from next month to next decade! How close is Gainey to first production of its own ore? The company could begin mining ore from an owned, fully permitted property within about 6-9 months. This could be a potential game-changer, especially if the company expands to 600 tpd of processing capacity before that time. Again, all of this could be achieved with no additional shares or debt.
Dynacor is printing money in Peru and deserves the praise it receives for operating a highly successful toll milling business model. To reiterate, Dynacor is ONLY toll milling third party ore, exactly like Gainey is. If Gainey can double capacity to 600 tpd AND start to process its own mined ore, upside on the stock could be significant. NOTE: This is my opinion only. Coburn will continue to take things one step at a time, under-promising and over-delivering.
That means making sure the existing 300 tpd facility is running at high efficiencies. It means doing some further work on its owned, permitted property that might have three mineralized veins, not just one. It means signing toll milling customers to fill the 300 tpd mill and possibly installing a new ball mill to expand to 600 tpd. This is not pie-in-the-sky long-term dreams… this is highly actionable neat-term activities that should cause the stock price to rise.
Conclusion
Investors in natural resources stocks have had a rough 2-3 years. Hundreds of junior miners are out of cash and out of time. They are desperate to be acquired or are looking at continued equity dilution for years to come. Gainey Capital breaks the mold, it’s entirely different. Gainey has all the blue-sky upside of a junior miner, but is poised to be cash flow positive, has no debt, no need to raise additional equity and is sitting on C$ 3 million of cash. Run-rate annual profits could exceed C$4.5 million next year for a company with an EV of C$ 16 million as CEO David Coburn executes on specific, relatively low-risk operating plans in a proven, low-risk jurisdiction.
To access the Gainey Capital Corp. corporate presentation, CLICK HERE