Financial Press » FP Exclusives http://financialpress.com Breaking Business, Financial & Economic News Headlines Fri, 25 Jul 2014 13:00:37 +0000 en-US hourly 1 Seattle Grandmother Makes History With Legal Marijuana http://financialpress.com/2014/07/24/seattle-grandmother-makes-history-with-legal-marijuana/ http://financialpress.com/2014/07/24/seattle-grandmother-makes-history-with-legal-marijuana/#comments Thu, 24 Jul 2014 14:58:20 +0000 http://financialpress.com/?p=28810 Prescient Mining Purchases Advanced Stage Medical Marijuana Company

Marijuana At A Museum-1The first recreation marijuana sold in Seattle is being donated to the city’s Museum of History and Industry, by Deb Greene, a 65-year old grandmother who lined up all night outside Cannabis City to purchase it.

Recreation marijuana is currently legal in Washington State. Medical marijuana is now legal in 23 states and Washington D.C. According to ArcView Group, a San Francisco marijuana research company, the size of legal marijuana industry will grow from $1.5 billion in 2013 to $2.6 billion in 2014.

Recent marijuana successes include producers Tweed (TWD-TSX.V) which has a market cap of $111 million, Abattis Bioceuticals (ATT-CSE) whose stock has increased 4300% in the last 12 months and Affinor (AFI-CNX) which has experienced 800% share price increase in the last four months after diversifying from strawberries into medical marijuana.

Entrepreneurs in Canada and the USA are lining up to profit in this new frontier.

Prescient Mining (PMC-CSE) (21P –FSE) (PSNTF –OTC) has jumped the queueby announcing that it has signed an exclusive agreement to acquire an unnamed target company in the final stages of securing a license to produce marijuana for medical purposes under the new MMPR regulations.

“One of our key differentiators for PMC is that the target company has the largest, brand-new, state-of-the-art facility in Canada,” stated Prescient CEO Marc E. Levy in an exclusive interview with Financial Press, “the new high end agricultural production equipment is provided by companies such as Zwart Systems and Argus Controls.”

The ‘brand new purpose built’ factor is critical to PMC’s future efficiency and profitability. Retrofitted facilities have been experiencing bacteria and other negative issues. When you retrofit an existing facility typically there are organisms growing in the walls, floors, ceilings and ventilation systems. PMC’s 54,000 square foot facility is custom built from the ground up.

Prescient’s target company has pre-license approval granted by Health Canada and anticipates obtaining the Licensed Producer designation from Health Canada.

“There’s something called ‘ready to build’ which means you’ve put a plan forward to the government, then they approved it,” stated Mr. Levy, “Then you go and build, which takes a minimum of four months. Then Health Canada inspects the facility and says ‘Yes, you’ve executed the plan perfectly’ or ‘You need adjustments in these areas’ – which could be surveillance, ventilation, security, inventory software. We are beyond this stage and ready to execute, once we get Health Canada approval.”

“We should have a final inspection and review later this summer, which is the last step before licencing,” stated Mr. Levy, “We fully expect to be the next licenced medical marijuana producer. Because this is a new industry with an established user-base. Health Canada has been swamped with applications. If you’re applying now, it is most likely too late. We have an appointment with Health Canada shortly to inspect our facility for final approval. The facility is built and we are ready to begin high quality medicinal production.”

The target company made an application in July of 2013 with Health Canada to become a Licensed Producer (LP).

“The state of the art facility will be operating in a tax-efficient jurisdiction,” stated Mr. Levy, “We also have negotiated inexpensive power and unlimited access to pure natural potable ‘soft water’.”

Soft water means natural, non-industrial water. It cleans and aerates as it runs. There are no fluorides, additives and toxins to remove and it promotes faster growth and healthier plants. Mr. Levy recently visited the facility and inspected all 48 surveillance cameras around the perimeter of site, and a 20 x 28 foot storage vault with 8” thick reinforced walls and ceilings and every square inch of the facility to ensure that it is 100% ready to produce.

The target company had interest from multiple suitors, both private and public. Mr. Levy has personal relationships with some of the principals and confirms that “there are good synergies between both management teams.” A key factor driving the project is Mr. Levy’s successful track record in the public markets and the personal successes of the founders of the target company.

Mr. Levy is the founder and former CEO & Chairman of Norsemont Mining Inc.(NOM-TSX), which he grew from a market capitalization of $1 million and subsequently sold to Hudbay Minerals Inc. for $520 million in 6 Years. Mr. Levy has been instrumental in several successful profitable buy outs including Petaquilla Minerals (TSX: PTC) sold to Inmet Mining for $350 million and Coal Hunter Resources to Cardero Group for $52 million.

“Due to national advertising regulations public medical marijuana companies in Canada have a competitive advantage over private companies,” stated Mr. Levy, “ Simply speaking you cannot advertise marijuana directly, however you can disseminate information about the operations, products, revenue streams of a the publically traded company. So the ability to communicate in public markets is an important part of the over-all story.”

PMC is working on a distribution plan with new standards of delivery in all the major cities in Canada. This innovative distribution plan will be released to the market once products are ready. For competitive reasons the company currently does not wish to divulge their plan to capture marijuana market share in Canada.

“We’ve sponsored several key events so that we are connected to and supporting the culture understanding their needs first hand,” stated Mr. Levy, “We’ve talked to men and women from all walks of life at these events who consume up to 7 grams of marijuana a day. Those are big numbers when you look at the whole demand side of the industry. Looking to the future, we believe it is vital to connect with the both recreational as well as the medical users.”

The target company has the ability to grow 5,500 kilograms of pot a year, which translates to about $55 million worth per annum of marijuana from our first facility.

“PMC has an executive plan for multiple facilities,” stated Mr. Levy, “Which will give us the ability to rapidly increase revenues and distribution, lower costs and mitigate risks associated with only one facility.”

Canada’s conservative government has begun regulating and taxing medical marijuana production. The liberal leader of the Canadian opposition, Justin Trudeau is in favour of full legalisation. Sixty-one percent of Americans and 69% of Canadians support the legalisation of recreational marijuana. It is not hard to see which way the wind is blowing.

There are about 40,000 registered medical marijuana patients today. In ten years the number of qualified patients is expected to be over 450,000 according to Health Canada. However, it has been estimated there are over 1,100,000 pot smokers in BC alone.

Prescient (PMC-CSE) (21P –FSE) (PSNTF –OTC) is currently trading around 64 cents.

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to FinancialPress.com are provided. Thank you.

Prescient Mining
700 West Pender St., Suite 507
Vancouver British Columbia V6C 1G8
604-669-9788

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New Diamond Discovery Possible In Canada’s North http://financialpress.com/2014/07/23/new-diamond-discovery-possible-in-canadas-north/ http://financialpress.com/2014/07/23/new-diamond-discovery-possible-in-canadas-north/#comments Wed, 23 Jul 2014 14:54:28 +0000 http://financialpress.com/?p=28798 North Arrow Drills for New Diamond Discovery in Lac De Gras

nar_diamondsVancouver, B.C. – Diamond explorer North Arrow Minerals (TSX-V: NAR) is set to commence its first drill program with partner Arctic Star Exploration at Redemption, a project located in the famed Lac De Gras diamond district, currently home to three of the worlds largest diamond mines: Dominion’s Ekati, Rio Tinto’s Diavik, and De Beers’ Snap Lake.

North Arrow knows the Lac De Gras region perhaps better than any other currently assembled diamond exploration team. The company’s Chairman, Gren Thomas, made the world-class discovery of the Diavik Diamond Mine just 32 kilometers from where drilling at the Redemption will take place. Diavik is currently the 5th largest diamond mine in the world estimated to produce $787 million worth of diamonds in 2014.

Thomas, an inductee in the Canadian Mining Hall of Fame, discovered Diavik with the same pragmatic prospecting philosophy that the North Arrow team is utilizing at Redemption –explore the least trafficked land in the closest proximity to the largest and most economic diamond deposit in world.   In an exclusive interview with Financial Press, North Arrow’s Thomas explained, “The exciting thing about Redemption…in looking for a new diamond deposit near Diavik is yes, you already know you’re in the right area geologically; the rocks have been proven, but the other thing is you don’t have to find another Diavik. You have the existing mine infrastructure nearby already. You don’t necessarily have to find a standalone mine. This has a real impact on lowering your threshold for a new discovery.”

North Arrow President and CEO Ken Armstrong noted that he sees particular prospective appeal in Redemption as it hosts the Coppermine train, which is “one of the last well-defined and un-sourced kimberlite indicator mineral (KIM) trains in the Lac de Gras region”. KIM trains are common in terrains where a glacier advanced over a kimberlite pushing and dispersing the kimberlite material in the path that the glacier traveled. As the glacier melted, the train was left in place, in essence creating a trail to the kimberlite. The discoveries of Diavik and Ekati, as well as world-class diamond discoveries in Russia’s arctic have been identified using a similar technique.

Kimberlite pipes are geological formations that serve as the primary source of mined diamonds.

Prior to North Arrow’s involvement in the project, Redemption had over C$13 million invested in exploration with over 3,100 till samples taken and 10 airborne geological surveys conducted on the property. Given all of the exploration dollars spent on the project, there have only been approximately 20 holes drilled, and a lot of the past drilling encountered logistical complications failing to provide a true indication of the targets potential. The history of Redemption presents an optimal opportunity for recently financed North Arrow to step in as project operator.

In July of last year, North Arrow entered into an earn-in agreement with Arctic Star, where North Arrow has the option to spend C$5 million by July 2017 to earn a 55% interest in the rights to Redemption. By the completion of the current drill program, North Arrow will have already spent approximately C$2 million towards the earn-in.

With the help of new geophysical technology and advanced mineral chemistry that did not exist during the last diamond rush in Canada following the discovery of Ekati and Diavik over 15 years ago, North Arrow has singled out 6 to 8 “high-priority” targets to drill, totaling 1000 meters. Any kimberlite discovery in the Coppermine train could be a big boost for North Arrow shareholders. Armstrong notes hitting kimberlite for the first time in the Coppermine train would “provide validation of our business plan.” Given the indicator minerals found in the train, there is good reason to believe that if kimberlite is identified it will bear diamonds.

According to De Beers, only 6,400 kimberlite pipes have been discovered in the world, of those only approximately 900 have been classified as diamond bearing, and of those just about 100 have been economic enough to mine. This past November North Arrow stock surged 40% after the company announced that its exploration efforts led to a diamond bearing kimberlite discovery at its Pikoo property in Saskatchewan.

The North Arrow drill team arrived at the Redemption camp late last week and the drilling program is set to run through the middle of August. Results from the program can be expected shortly after drilling is complete, if not before –if kimberlite is hit, the results may be considered material and would merit an imminent press release.

In addition to Redemption, North Arrow shareholders also enthusiastically await results from one of the company’s Nunavut projects, Qilalugaq, where results from a bulk sample are expected in early 2015. The results from the bulk sample could be a game changer for the company, as Armstrong notes “strong results from the sample could take North Arrow from an exploration company to a developer.”

North Arrow is one of the few pure diamond exploration companies in the world today just as a boost in new demand for diamonds is forecast to outpace new supply. Russia’s Grib mine, which started production last month, will be the first new non-alluvial diamond mine to produce more than 1 million carats per year since Diavik came online in 2003.

New global demand for diamonds is primarily coming out of China, where the current generation is the first to adopt the Western tradition of giving diamond engagement rings. The number of urban Chinese brides being given a diamond engagement ring has increased from less than 1% to greater than 50% over the last 20 years; half of China’s population of 1.3 billion is considered urban.

North Arrow is just off of its 52-week high of C$0.84 closing at C$0.81 on July 18th. The stock trades close to 100k shares a day on the Toronto Venture exchange under the symbol NAR, and NAHWF in the U.S.

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to FinancialPress.com are provided. Thank you.

North Arrow Minerals

Suite 960 - 789  West Pender Street
Vancouver, BC - Canada – V6C 1H2
Tel:  +1.604.668.8355
Fax: +1.604.336.4813

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Gold Juniors Surge 28% in 60 Days http://financialpress.com/2014/07/14/gold-juniors-surge-28-in-60-days/ http://financialpress.com/2014/07/14/gold-juniors-surge-28-in-60-days/#comments Mon, 14 Jul 2014 16:38:09 +0000 http://financialpress.com/?p=28690 Phoenix Gold Starts Drilling Next to Newmont’s Phoenix Fortitude 300,000 oz. Per Year Mine

On July 11, 2014, Market Vectors Junior Gold Miners (GDXJ-NYSE) increased 4% to $45.53. The ETF, which is a proxy for the junior gold mining sector, has risen 28% in 60 days.

With the gold markets rebounding, risk-averse investors are gravitating to junior explorers with low political risk, near-surface assets and aggressive drill programs close to existing mines.

This is exactly where Phoenix Gold (PXA-TSX.V) a Canadian junior exploration company plans to start drilling its Plumas Property in Nevada’s Battle Mountain District, immediately adjacent to Newmont’s (NEM-NYSE), Phoenix–Fortitude 300,000 oz per year Gold/Copper Mine.

PXA President and CEO Glenn Laing is an investment banker who has raised $1 billion in capital markets. Together with Explorationsist Don McDowell – an established country and western singer and landman – Phoenix Gold acquired its Battle Mountain claim blocks from old ranching families who refused to do business with big mining corporations.

It is unusual for a junior explorer to gain control of mineralized claim blocks a stone’s throw from an existing mine. This is the Phoenix Gold opportunity – the Phoenix-Fortitude mine will benefit from high grade mineralization to add to its current low grade mining operations.

On July 7, 2014, PXA announced that it has completed the detailed mapping and prospecting program. Interpretation of the geology and structural controls has led to the identification of six drill sites on the Plumas Property.

“The Plumas target has been in the hands of cattle ranchers for generations,” confirms Laing in an exclusive interview with Financial Press, “so despite the fact that it is adjacent to a massive producing gold mine, it is has never been drilled.”

“We are rolling out that strategy now,” stated Laing, “The Plumas gold target is our first area of focus. We’ve done all the necessary mapping prospecting and chemical work. We will start drilling this week. ”

The only mining activity associated with the Plumas claim is a shallow shaft and some underground workings that was dug between 1938 and 1940. With picks, shovels and a donkey a small operation mined quarter ounce to half ounce of gold per ton until they were shut down due to WW11 restrictions.

pxa_1“Junior exploration stocks are driven by news,” stated Laing, “and we are just entering an extended period of news flow. We expect to be drilling the week of July 14th, 2014.  And thereafter that we will release the assay results from each hole, the whole process taking eight to ten weeks. We expect to have a resource estimate for Plumas in September, 2014.”

PXA has awarded the 8-hole 1,000 meter drill contract to Redcor Drilling Inc. of Winnemucca, Nevada for the Plumas Property.

The Plumas Property is an outcropping high grade gold mineralized zone located within two patented claims covering a total area of 40 acres with extralateral rights and one mill site claim.

“Plumas is a 2-claim block, about 1,000 meters long, by 200 meters wide,” stated Laing, “you can build a decent sized open pit mine on that footprint. Following the recent mapping and prospecting exercise , we increased the number of drill holes so that we get the coverage over the entire strike length of the potential mineralization.”

The science and the history of this area suggest the high grade material is close to surface. The Phoenix-Fortitude mine had economic grades of gold right from surface outcrops. PXA is drilling into surface outcrops on the Plumas claim.

Newmont’s Phoenix-Fortitude Mine and Phoenix Gold claims lie in the heart of the Battle Mountain–Eureka Trend which features High-Grade Structural Gold-Silver Deposits and Gold-Copper-Moly Porphyry Systems.

“We are confident that we will grow a 43-101 gold resource which could significantly raise the valuation of our company,” stated Laing.

Historic gold production from Nevada (1835 – 2013) totals about 153 million ounces. As well as Newmont, Goldcorp (GG-NYSE) and Barrick Gold (ABX-NYSE) operate profitable gold mines in the state.

Amid economic turmoil in Europe, the civil war in Iraq, unrest in Syria and Israel and the weakening of the US Dollar, The Arca Gold Bugs Index (HUI-NYSE) has climbed 21% year to date.

The price of bullion is diverging sharply from base commodities suggesting it is regaining its status as a safe haven investment. Typically, in this next phase, the well-run junior explorers experience the most dramatic share price appreciation.

Phoenix Gold is currently trading at approximately $0.05 with a market cap of $1.7 million and 31 million shares outstanding. Insiders and management control approximately 50% of the company.

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to FinancialPress.com are provided. Thank you.

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Investors Need to Get NAKED® http://financialpress.com/2014/07/10/investors-need-to-get-naked-2/ http://financialpress.com/2014/07/10/investors-need-to-get-naked-2/#comments Thu, 10 Jul 2014 15:03:23 +0000 http://financialpress.com/?p=28657 NAKED Restructures with $7m Cash, Best in Class Management and Global Growth Plans

A few years ago investors were reading articles about upstart, non-traditional apparel stocks such as True Religion or Lululemon (LULU: NASDAQ). At the time, they might only have considered that these now lifestyle fashion icons were merely unique. In reality, that uniqueness quickly translated into spectacular investments. True Religion, which traded at $2 a share in 2005, was taken private in 2013 for $32 a share or $830 million. In 2009, Lululemon could have been purchased at roughly the $3.50 level. Today it is more than $40 a share with a $6.2 billion market cap. Fashion is hot. To this day, the two companies pretty much dominate the jean and yogawear markets respectively. So what category—or company–is next?

Let’s talk innerwear and intimate apparel.

Men and women’s briefs make up 33% of the global $70 billion intimate apparel industry. As with other apparel, the key to success is lifestyle branding and quality. The key 25-45 year old professional/affluent, male/female demographic want to look and feel good and will pay a premium for high quality products that utilize ethical manufacturing. As well, once embraced loyalty to a brand is extremely high both to current products and as first adopters of new branded offerings. One word: Apple.

nakd_1

CEO Carole Hochman and President Joel Primus

NAKED Brand Group (NAKD: OTCQB) is rapidly emerging as the next major innerwear and intimate apparel brand. Conceived by Founder & President Joel Primus to revolutionize the inner and lounge wear market, NAKED has recently made transformational moves that will undoubtedly drive the Company to fulfill and exceed his vision.

“The brand’s goal is to create a new standard for how apparel products worn close to the skin fit, feel and function,” stated Primus in an exclusive interview with Financial Press. “Key product attributes include seamless construction, lightweight fabrics, memory-stretch, moisture-wicking characteristics, ‘wearing nothing at all’ comfort, and fashion-forward, luxurious design.”

In June, NAKED installed a powerhouse core management team around fashion visionary and intimate apparel icon Carole Hochman as CEO and Chief Creative Officer. Alongside Hochman are two proven men’s apparel executives: Mike Flanagan, CFO/COO and Carlos Serra, VP of Sales & Merchandising (full bios follow).  Having successfully completed an oversubscribed $7.3 million financing, a greatly enhanced NAKED is now on the runway to rapidly expand current and new product offerings both in North America and worldwide; never losing sight of the importance of quality and fit.

Primus notes: “The NAKED microfiber has bluesign® certification, which is one of the highest environmental standards in the textile industry. The quality of our NAKED fabrics won’t be like anything consumers have felt before.”

Carole Hochman is a key component to NAKED’s enormous growth potential. A renowned designer and sleepwear pioneer, she is considered one of the single most influential women in the intimate apparel and sleepwear business in the United States. Carole has been creating intimate apparel for over 30 years. She was the driving force behind the Carole Hochman Design Group, which, under her leadership, manufactured the Carole Hochman brand of sleepwear, loungewear and daywear. Hochman also developed numerous global sleepwear collections including Christian Dior, Oscar de la Renta, Ralph Lauren, Jockey, Donna Karan, Tommy Bahama and Betsey Johnson.

“When I first heard the brand NAKED and saw what Joel had done in a very short time, the value and potential was extremely clear to me,” stated Ms. Hochman who is widely considered an expert in translating brand identity into global intimate apparel businesses. She has an innate ability to identify opportunities, trends and forecast successful endeavors that the rest of the industry quickly follows. “The brand name lends itself to the creation of something dynamic and extraordinary, not only in the intimates industry, but beyond. NAKED can be translated into all products that touch your skin and interact with your body. The massive market of modern consumers looking for luxury brands that deliver exceptional comfort that speaks to their individuality is a perfect fit for NAKED. I look forward to being part of the burgeoning phenomenon that is NAKED.”

Along with Carole Hochman, NAKED recently secured:

NAKED Display in Nordstrom

NAKED Display in Nordstrom

Michael Flanagan, NAKED’s new Chief Operating Officer and Chief Financial Officer brings more than 30 years of successful apparel experience in both finance and operations. Michael spent 13 years at Brooks Brothers Inc. serving as CFO and as Senior Vice President of Finance and Logistics/ where he helped grow the Company from less than $200 million in sales to over $650 million.  In 2001, as CFO, Michael partnered with Morgan Stanley and helped lead the team, selling Brooks Brothers to Retail Brand Alliance in 2002. From 2003 to 2009, Michael served as the COO/CFO of luxury brand, Nat Nast Inc. after which he became COO/CFO of Summit Golf Brands until 2013.

Carlos Serra, NAKED’s incoming Vice President of Sales and Merchandising, is a senior sales, merchandising and marketing executive with over 18 years of experience in the intimate apparel industry. As Vice President, Sales & Marketing, Intimate Apparel & Sleepwear for Giorgio Armani from 2007 to 2013, Carlos was instrumental in the global launch of Emporio Armani men’s underwear featuring David Beckham. Carlos is excited to be joining the NAKED Brand Group and applying his knowledge and experience in building new businesses for both NAKED and its strategic partners.

NAKED plans to expand into new product divisions beginning with women’s intimate apparel, loungewear and sleepwear in Spring 2015 with men and women’s offerings in active and swim wear and possibly hosiery to follow later that year. The Company also intends to expand its growth in apparel as well as other categories such as Home and Fragrance.

While revenue growth includes securing more high-end and premium bricks and mortar sales, such as current customers Nordstrom’s, Holt Renfrew and Hudson Bay, NAKED is also focused on rapidly increasing direct online sales. An aggressive social media branding campaign will drive significant and growing traffic to www.theNAKEDshop.com.

The Company has already seen exceptional online activity and rapid growth with 20,000 plus unique visitors converting into a 175% increase in online sales since launch. Over 2013, Primus saw the company grow by 64% and booked revenues of more than $700k.

What should be compelling to investors is the unique mix of NAKED’s proprietary and high quality products, exceptional growth prospects and the peerless management team.

NAKED trades at $0.18 with a market cap of $6.5 million.

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to FinancialPress.com are provided. Thank you.

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Marijuana Advocates March on Washington DC http://financialpress.com/2014/07/10/marijuana-advocates-march-on-washington-dc/ http://financialpress.com/2014/07/10/marijuana-advocates-march-on-washington-dc/#comments Thu, 10 Jul 2014 14:47:11 +0000 http://financialpress.com/?p=28655 Supreme Pharmaceuticals Builds Marijuana Production Facility in Canada

Members of the Cannabis Campaign for Legalizing Marijuana in D.C. marched into the Board of Elections headquarters this Monday with 57,000 signatures demanding an initiative on the November ballot.

Initiative 71 will allow a D.C. resident to possess 2 ounces of marijuana for personal use, to grow up to six plants and to share marijuana with friends, though not to sell it.

Fighting the legalisation of marijuana is like fighting slavery, women’s-right-to-vote or gay marriage. You are going to end up on the wrong side of history.

Canada’s conservative government has woken up to this fact and has begun regulating and taxing medical marijuana production – which many industry observers believe is a precursor to full legalisation.

Supreme Pharmaceuticals (SPRWF-OTC) (SL-CSE) is a green rush leader, pursuing multiple medical marijuana facilities in Canada and applying for several Marihuana for Medical Purposes Regulation (MMPR) production licenses.

“Health Canada reviewed our 400 page application for the Southern Ontario facility and told us that everything checks out,” stated Supreme President and CEO, David Stadnyk in an exclusive interview with Financial Press, “we’ve been pre-approved for 24,000 kilograms of marijuana production per year, which is the largest license they’ve granted in Canada. The only contingent is to make sure our security is in place.”

Recent successes in the medical marijuana space include producers Tweed (TWD-TSX.V) which has a market cap of $117 million, Windfire Capital (WIF-TSX.V) whose stock has increased 300% in the last 12 months and Affinor (AFI-CSE) which has experienced 1000% share price increase in the last two months after declaring its intention to diversify into medical marijuana and industrial hemp.

The new Canadian system licenses commercial producers to grow and distribute medical marijuana to meet the expected demand growth. There are about 40,000 qualified patients today. In ten years the number of qualified patients is expected to be over 450,000 (source: Health Canada).

“Supreme Pharmaceutical’s facility is the size of six football fields,” stated Stadnyk, “The security systems will cost will be about $3 million. We need fences, cameras, alarms and a Level 9 vault that can hold $15 million worth of marijuana. It’s like Fort Knox. We have a staff of 15 engineers and construction workers there right now installing this state-of-the-art security system.”

Supreme is currently providing Health Canada additional documentation relating to security measures, site survey, aerial photographs, principal and technical employees and record keeping.

“There are a lot of companies currently applying for a government licence to produce medical marijuana,” stated Stadnyk, “but we are already approved which is the first major hurdle.”

Stadnyk expects to be in Phase One of production with the next six months, growing in about 60,000 square feet. On the revenue side the company anticipates $10 million revenue the first year, ramping up to about $120 million in year three. The profit margins are estimated at 35%.

“I’ve been making deals in the capital markets for 25 years,” stated Stadnyk, “but I’ve seldom had a situation like this one where everything lined up so smoothly. We needed $1.5 million in the bank to secure the production facility and we happened to have that money in the back. We’ve assembled the best team I’ve ever worked with, and the stars are lining up.”

Construction has begun on the core production and processing rooms and the high security areas of the facility, including a 1200 square foot custom-designed vault, with insulated walls and steel security doors. The vault will be designed and installed to meet Health Canada’s requirements to store dried marijuana.

“The path to production is clearer and less capital intensive than the mining industry,” stated Stadnyk, “You don’t need $300 million to remove a mountain top, or build a system of shafts into the ground. There are great opportunities in the medical marijuana industry, and should marijuana become legal, which many are predicting, that will put us in an even stronger position.”

Supreme has also secured an option to purchase a South Okanagan based Medical Marijuana company which is currently producing and selling Marijuana under the older MMAP licence. The Okanagan Company has applied for a commercial MMPR license to produce and sell commercially grown medical marijuana.

Medical Marijuana is currently being prescribed to treat pain, neurological disorders, mental health, back spasms, and gastrointestinal disorders. There are currently 12 companies in Canada that have a license to grow marijuana commercially.   Exploding demand and morphing regulatory environment are creating a once-in-a-lifetime investment opportunity for early movers into government-sanctioned production facilities.

Supreme is in the final stages of gaining a license to build out and operate a 342,000 square foot facility capable of producing up to 24,000 kilograms of medicinal marijuana per year. At $5 per gram, the facility would generate about $120 million a year in revenues running at full capacity.

Supreme is currently trading at .07 with a market cap of $10.1 million.

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

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How To Make Money Growing Strawberries http://financialpress.com/2014/07/02/how-to-make-money-growing-strawberries/ http://financialpress.com/2014/07/02/how-to-make-money-growing-strawberries/#comments Wed, 02 Jul 2014 15:07:36 +0000 http://financialpress.com/?p=28592 Affinor Growers Buys Vertical Farming License

Vancouver, B.C. – Strawberries are about as popular as oxygen.  It’s hard to locate anyone who doesn’t like them.

According to 2013 Monterey County Crop Report released last week, strawberries top the list of most valuable crops at $869 million. The global market is estimated to be several billion dollars.

On June 24, 2014 Affinor Growers (AFI-CSE) (RSSFF-OTCQB) (1AF- FRANKFURT) entered the multi-billion dollar strawberry market after closing an exclusive license to grow market-ready strawberries using automated, software-driven, vertical farming technology from Vertical Designs (VDL).

“Affinor grows plants,” stated AFI Chairman Nick Brusatore, in an exclusive interview with Financial Press, “That’s what we do, and we’re going to be the best in the world at growing plants and solving problematic crops with zero water waste, pesticide-free.”

Affinor’s intention is to acquire land, build green houses, and be in production by November, 2014.

“The economics of our product are extremely favorable,” stated Brusatore, “AFI differentiators are extreme water conservation, maximum production per square foot, mechanical pollination and wide facility automation.  It’s the right technology for our planet at the right time.”

Mr. Brusatore has a 15 year track record in commercial crop innovation.  Strawberries are in demand 12 months a year, but can only be grown a couple of months in northern climates.

“Vertical growing technology produces about 13 times more food per square foot, than a traditional greenhouse,” stated Brusatore, “We use solar power where possible and we create zero water waste.”

Affinor has a team of pharmacologists, scientists and plant geneticists working at an R&D facility in Port Coquitlam, BC.

“We have been Beta Testing mechanical pollination, production seed testing, fruit testing and shelf-life testing at the R&D facility,” states Brusatore, “The machines are designed, built and running. It’s all touch-screen software. The beautiful thing is that it is modular. When demand rises, we can scale up quickly, growing premium crops while recycling water and minimizing energy costs.”

Rick Easthom, recently retired Manager of Retail Development for Choices Market confirms that it is “unheard of to produce a vine ripened strawberry above the 49th Parallel in the dead of winter.”

“I sampled a 53 gram fully vine ripened strawberry produced by Affinor,” stated Easthom in a recent interview with Financial Press, “It was better than any other strawberry I have ever tasted, including our local summer berries.”

Affinor is in negotiations for bulk purchase orders for strawberries and the company is anxious to get the facility up and running.  The company is also currently producing medical marijuana under an old license.

“The medical marijuana business is a natural fit for us because we already grow premium plants for a living and we can do it cheaper than anybody else,” stated Brusatore, “but I can’t get a $50 million purchase order for marijuana – and I can get for strawberries.”

Current methods of strawberry production use large amounts of chemicals and pesticides and rely on fossil fuels for shipping and distribution. USDA data revealed 54 different pesticide residues among strawberry samples from traditional production methods.

Spoilage is also a major cost factor from strawberry growers, so Affinor Growers plans to build facilities near urban centers which can radically lower shipping costs and reduce spoilage, extending the shelf life of crops produced.

“I believe that at some point the world is going to look at us as a go-to company to solve challenging crop issues,” stated Brusatore, “We have a very strong team of plant scientists who think out of the box.”

Affinor will need $2-$3 million dollars to build the first facility. The company anticipates raising about $3 million from exercised warrants. Brusatore claims there is no need to fund production by doing a dilutive financing.

“In the next phase of our development we will accommodate institutional investors,” stated Brusatore, “But right now we are going to expand on our own dime and that way – when we’re producing, generating revenue and profits, Affinor will be worth much more.”

“This is a huge deal for Affinor,” states Sebastien Plouffe, President & CEO of Affinor, “as it will allow us to build our first strawberry facility immediately using VDL’s proven technology”.

Total Monterey 2013 strawberry revenues rose 11% from the previous year.

Affinor currently trades at .68 with a market cap of $41.45 million.

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

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Turning Skyscrapers Into Centers For Crop Production http://financialpress.com/2014/06/26/turning-skyscrapers-into-centers-for-crop-production/ http://financialpress.com/2014/06/26/turning-skyscrapers-into-centers-for-crop-production/#comments Thu, 26 Jun 2014 17:42:24 +0000 http://financialpress.com/?p=28545 TMT Resources Pursue Opportunities in the Indoor Grow Industry

With 7.2 billion people on the planet, and a decreasing amount of arable (farmable) land, traditional agriculture is straining to feed the world’s population. Indoor crops for avocados, carrots, strawberries, lettuce, marijuana etc. have grown into a multi-billion dollar industry that is now embracing new technologies to gain production efficiencies.

In Holland, 50% of the value of all fruit and vegetables is grown in hydroponic greenhouses, minimising soil depletion, disease and unpredictable weather patterns.

T.M.T. Resources (TMT.H:TSX.V) has just appointed California food innovator, George Gummow as a liaison between new technologies and the downstream Indoor Grow Industry.

A key creator of the modern ready-cut fruit and vegetable industry, Mr. Gummow is the former CEO and co-owner of Royal Foods, the largest fresh wholesale produce distributor/processor in California.

Royal Foods merged into Freshpoint which was then acquired by SYSCO, the global leader in the foodservice market.  Under Mr. Gummow’s leadership, innovations included seed development, advanced growing techniques and refrigerated distribution.

I’m committed to educating the indoor growing community about new technologies that TMT are involved with,” stated Gummow in an exclusive interview with Financial Press, “I’ve been in this game for a long time, and I have wide network of contacts in the growing community.”

Gummow claims that growers are looking to shrink the seed and growth cycle, and that doing so can mean the difference between profitability and suffering losses.

“My role with TMT (TMT.H:TSX.V) is to introduce new technologies to the indoor space. With the water supply problems that exist in the world, growers have extra incentives to employ new methods.”

Vertical Growing is one relatively new technology that can turn skyscrapers into centres for crop production. The concept is simple. Instead of having a single layer of crops over a large land mass, stacks of crops grow vertically. Sometimes called ‘urban farming’ – it enables food production to move closer to the cities where the bulk of the food is consumed. The best candidate crops for vertical farming are high-value plants like strawberries and tomatoes.

“I’ve dealt with indoor growers for many years,” stated Gummow, “and I can tell you they are very interested in new technologies that benefit themselves and the environment.”

There are also new technologies that remove nutrient pollution from wastewater and convert it to lawn fertilizer. Chelated fertilizers increase micronutrient utilization efficiency. A change in molecular surface properties protects the micronutrient from oxidization and moisture. There are also new technologies that automatically stabilize ph levels.

“Some of these new technologies parallel the innovations that my family business Royal Foods was involved in years ago,” stated Gummow, “when we introduced pre-cut products to the food industry it grew into something very big.”

“A lot of the products I purchased in the past came from indoor growers, growing lettuces, vegetables and flowers from Canada to Mexico.”

LED (Light Emitting Diode) is another indoor growing technology that is gaining traction. LED lights enable to plants to grow indoors without the need for sunlight. LEDs consume 70% less energy than traditional lights with close to zero heat signature. The individual diodes are focused to specific wavelengths of the light spectrum (reds, oranges, ultraviolets) that promote plant photosynthesis.

Another advantage of LED lights is that they last about 100 times longer than traditional bulbs.

LED lighting is one example of a new technology that has a chance of changing the way indoor growers operate,” confirmed Gummow, “and because ultraviolet wave lengths of light cause growing cycles to be significantly shorter, LED lighting can reduce water consumption.

“The Indoor Grow Industry encompasses traditional greenhouses (vegetables and floriculture), hydroponics, and the rapidly expanding medical marijuana growing operations,” stated TMT CEO Scott Ackerman, “Mr. Gummow’s deep relationships within the Indoor Grow Industry will be invaluable as we investigate opportunities to acquire technologies that can offer substantial energy savings while improving plant yields and seed-to-harvest cycles.”

TMT Resources is currently trading at .43 with a market cap of $23.3 million.

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to FinancialPress.com are provided. Thank you.

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Global Leader in Oral Cancer Detection Technologies Positioned for Major Gains http://financialpress.com/2014/06/26/global-leader-in-oral-cancer-detection-technologies-positioned-for-major-gains/ http://financialpress.com/2014/06/26/global-leader-in-oral-cancer-detection-technologies-positioned-for-major-gains/#comments Thu, 26 Jun 2014 15:19:01 +0000 http://financialpress.com/?p=28542 LED Medical Diagnostics: new management, new strategies make share price attractive

Vancouver, B.C. – If you’re looking for a play in the medical device sector, there’s a good case to make for LED Medical Diagnostics (“LEDMD”) (TSX.V: “LMD”, OTCQX: “LEDIF”, FSE: “LME”).

LEDMD operates in the dental imaging market, which consists of devices and software used in diagnosing and treating dental diseases and conditions. The offerings within this market include items such as digital radiology and optical imaging devices , Cone Beam CT scanners and CAD/CAM systems,. The global market for these goods was valued at $4.5 billion in 2011 and is expected to grow at a CAGR of 5.8% from 2011 to 2016.

LEDMD’s first product was the market-dominating VELscope® Vx Enhanced Oral Assessment System, an innovative application of tissue fluorescence technology to aid in the detection of oral mucosal disease, including cancer and pre-cancer. The VELscope, backed by an increasing number of clinical studies, is approved by the FDA, Health Canada and European regulators. According to the Company, more than 25-million VELscope Vx examinations have been performed by over 12,000 dental practitioners in 23 countries.

The current story for investors, however, is LEDMD’s new executive management, its experience and past success, as well as its aggressive strategy for the company’s growth.

New Management

Dr. David Gane is LEDMD’s recently appointed CEO. A dentist and imaging executive, Gane served as VP of U.S.-based Carestream Dental (a division of Carestream Health), an imaging and IT company with $500M in annual revenues, 1,200 employees, and products in 90% of the dental practices worldwide. Gane is also the founder of Orbit Imaging Inc., a company that owns and operates craniofacial imaging centers in Western Canada.

Dr. Gane came on board in October, 2013, when founder and VELscope Vx inventor Peter Whitehead decided to step back from his executive role to follow his passion as a medical device inventor. Whitehead continues to work for the company as the head of future product development.

Gane’s first appointment was Lamar Roberts, now President of the company’s wholly-owned operating company, LED Dental. Roberts was previously VP, Sales and Marketing at Carestream Dental and has held senior executive positions with other leaders in the dental industry, such as 360imaging and PracticeWorks.

Both Gane and Roberts are seasoned professionals, with high-level contacts and a deep knowledge of the industry. Their efforts have already increased the number of North American distribution companies handling VELscope from one to nine, creating a significant network of sales channels across the continent.

LEDMD has also opened a new specialized digital imaging division – LED Imaging – and hired Dr. Jeffrey Brooks, now VP of Imaging. Dr. Brooks is a board certified Oral and Maxillofacial Surgeon with 20 years of private practice experience. He maintains his position as Associate Professor and 3D Imaging Director in the Department of Oral and Maxillofacial Surgery at University of Tennessee at Memphis. Gane worked with Brooks at Carestream, where he was VP of Clinical Affairs.

New Products

In April, 2014, LEDMD announced a partnership with Ray Co., Ltd., a subsidiary of Samsung, to sell, install and provide support for the RAYSCAN α – Expert, an imaging system that uses 3D cone beam computed tomography (CBCT). CBCT is a compact, faster and safer version of regular CT technology, which can provide clear images and cross sections of high contrast structures of the teeth face and jaws.

Dentists like their toys, and believe us when we tell you that this toy is a big one. It allows for remote controlled interaction with patients while performing the imaging procedure, automatically sharpens the image, and has a system to reduce inaccuracies caused by patient movement or poor positioning. In addition, the RAYSCAN α – Expert features a highly refined, ergonomic design and has already won two international design awards. With a sticker price of $100K, it’s a potential generator of big revenues. The U.S. market alone for CBCT scanners exceeded $208M in 2012. Small to medium field-of-view scanners like the RAYSCAN α – Expert comprised ~83% of that.

In April, 2014, LEDMD also announced its exclusive imaging software, which enables practitioners to capture, manipulate, save, store and share clinical images quickly and easily. The software integrates seamlessly with RAYSCAN α – Expert systems.

In May, 2014, LEDMD introduced a new digital radiography intraoral sensor, the LED IS100. The LED IS100 is a replacement for traditional dental film. It captures intraoral images of the teeth and supporting bone structures, and boasts features such as high-definition image resolution, direct USB plug-in, and open-architecture workflow. The company also introduced two models of high resolution intraoral cameras, the LED IC100 and the LED IC200. These cameras are lightweight, ergonomic and feature LED-based illumination for clear, highly detailed images.

According to Dr.Gane, the company’s aggressive product expansion plans will also include an optical impression system for imaging implants and crowns. The global dental CAD/CAM market is estimated at $540M, while the low penetration of CAD/CAM technology into the dental office setting leaves significant room for growth, and the potential for substantial revenue gains.

Analysis

Where could this all go? The world’s largest manufacturer of dental technology, including oral imaging systems is Europe’s Sirona Dental Systems (SIRO: NASDAQ). Trading at US$80, the Company has a market cap of $4.65 billion, and its share price has quadrupled since January 2010.

In a June 2, 2014, Zack’s Small Cap Research Report, Brian Marckx, CFA, stated regarding LED:

“…2014 will not only provide improved financial performance but also further progress with executing on the turnaround strategy. This likely includes further broadening of their distribution and commercial footprint for VELscope. Over the mid-term we also expect LEDMD will be actively looking for additional complementary products to add to its portfolio to supplement revenue of their core VELscope product which will also provide the added benefit of a diversified revenue source.

We are maintaining our Outperform rating and DCF-generated price target of $2.00/share.

LEDMD currently has a share price of $0.37 and a market cap of $27.5M. Given the growth that has transpired over the last 9 months under Dr. Gane, investors would be wise to give the Company a good look. While obviously a competitive space, the metrics and demographics favor the current administration’s aggressive and experienced approach.

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to FinancialPress.com are provided. Thank you.

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Kenyan Oil Will Flow http://financialpress.com/2014/06/25/kenyan-oil-will-flow/ http://financialpress.com/2014/06/25/kenyan-oil-will-flow/#comments Wed, 25 Jun 2014 15:31:57 +0000 http://financialpress.com/?p=28525 CFO of Taipan Resources Reveals All

Joel Dumaresq, CFO and Director of Taipan Resources (TSX-V:TPN) is a veteran merchant banker with a specialty in Mergers and Acquisitions. Mr. Dumaresq recently sat down for an exclusive interview with Financial Press to discuss oil and gas opportunities in Africa.

FP: This morning Africa Oil announced a “basin opening” gas discovery at the Sala-1 well in Kenya, close to Taipan’s property. According to Taipan’s website, the Company’s risked assets may be worth six times its current market cap of $41 million.

Dumaresq: Africa Oil’s news confirms that there are hydrocarbons in the Anza Basin. We are confident that we can succeed and create wealth for investors in Kenya. These are sizable targets and any of the wells we plan to drill in 2014 or 2015 have the potential to transform the Company. When Africa Oil made its first discovery in the Lokichar Basin of Kenya, the stock jumped from a $200M market cap to well over $1B.

FP: Taipan’s CEO Max Birley has drilled many wells all over the world and we understand he has an excellent success ratio.

Dumaresq: Max is a significant de-risking factor, in my opinion. His success factor in finding hydrocarbons is over 50% – excellent by industry standards – and he knows what he is doing, and he believes in Taipan. He has used a large portion of his salary over the past two years to purchase shares in this company.

FP: The investment upside of TPN isn’t hard to grasp. But let’s not dance around. On June 15th, 2014 terror attacks by Somali extremists on Kenya’s coast left 65 people dead. Can you provide background and context for these attacks and how it affects Taipan operationally?

Dumaresq: Sure, background first. In 2011 there were some raids from the south of Somalia into Kenya. The perpetrators came down into Lamu, took some tourists hostage, transported them back into Somalia, and demanded a ransom.

FP: And what was the Kenyans’ response?

Dumaresq: The Kenyan military, in a joint operation with the Somali military, created a security zone inside Somalia so people couldn’t just wander down into Kenya randomly and take prisoners. Radical Islamic factions in Somalia decided that they were going to use that as a lightning rod in their opposition to their own government in Somalia.

FP: So this latest incursion is a rallying cry for their interests?

Dumaresq: Apparently, and let’s be honest. In Kenya you’ve got large borders that are difficult to guard – not because of anything the Kenyan government’s doing wrong, but just because of the lack of resources. Kenya and Somalia have migrant populations that roam around following wild stock, so it’s difficult to police and to know who belongs and who doesn’t.

FP: How does this affect Taipan on the ground?

Dumaresq: It doesn’t. The Kenyan government recognizes the importance to its future, and is not going to allow anyone to interfere with the development of the petroleum industry. When we work on our blocks in Kenya we have large security details. Typically two to three hundred people on the seismic crew, and more than 100 staff doing security. That’s factored into our cost of doing business. In Block 2B, we’re planning to drill a well late in 2014. In Texas that well might cost $2 million. In Pakistan, where they also have security issues, it might be $10 – $13 million. For us in Kenya, it may cost as much as $25 million and a significant portion of that is for security. So, bigger upfront costs for a much bigger reward.

tpn_image

FP: Are you using locals or bringing in an outside force?

Dumaresq: We work closely with the locals because they know who belongs there and who doesn’t. Block 1 is an open expanse of terrain with limited habitation. Block 2B is also sparsely settled. So this would not presumably be a high priority target for a terrorist. I want to stress, our security protocols are precautionary. We’ve had no problems and have enjoyed strong cooperation from local officials.

FP: So there is no change to Taipan operationally?

Dumaresq: No.

FP: Can you provide an update on Block1 and Block2B?

Dumaresq: When we acquired Lion, we inherited challenges on both blocks. For a number of reasons, we chose to temporarily suspend our joint venture payments to our partner Afren on Block 1 while we focused our attention and resources elsewhere.

FP: So you turned your attention to Block2B?

Dumaresq: Exactly, on Block 2B, we completed 440 kilometers of seismic survey, and an airborne gravity survey, and got back in full compliance with the terms of the production-sharing contract or PSC with the Kenyan government. Then we farmed out our acreage to Premier Oil and secured a commitment for the first well on Block 2B.

FP: And what happened with Block1?

Dumaresq: Recently, we reconciled with Afren, paid them close to $4 million as our portion of the work program for the past 18 months, and earned back our 20% interest. We currently anticipate Afren drilling one and possibly two wells in 2015. The cost of each well will be approximately $30 million, so our share is about $6 million for each well on Block 1.

FP: So you are currently funded for both wells?

Dumaresq:  Correct, Premier Oil is paying for this first well on Block 2B. We’ve farmed out an additional 15% to Tower Resources who just paid us $4.5 million, along with the $6 million financing that we completed a couple months back. That funds us for the first of two wells in Block 1 in 2015, and we’re financed for our well in Block 2B in November or December 2014.

FP:  Afren has recently handed over a significant amount of seismic data on Block 1.

Dumaresq: Yes, and we immediately began an NI 51-101 independent evaluation report via a specialist company out of the UK. Pending the results of this report, we anticipate new estimates of prospective resources on Block1 within the next month. Of course, we will be releasing that news to the market.

FP: Africa Oil is drilling the Sala well about 65km away from Block 2B; how does that affect you?

Dumaresq: Africa Oil has drilled into a similar structure to what we are planning to drill later this year with our Badada prospect in Block 2B. The AOI June 24 news states that Africa Oil encountered three zones of interest over 1,000 metres, with the upper interval testing at 6 million cubic feet per day of dry gas. They also indicated they had oil shows in the well. Although no guarantee of success for Badada, the presence of substantial hydrocarbons in Sala is a very good indicator for us.

FP: So you are still bullish on Kenya?

Dumaresq: Listen, the Kenyan government knows exactly what is at stake. You’ve got a young, burgeoning industry that has the potential to significantly upgrade the wealth of the nation and its civilians. Kenya is on the cusp of becoming a big new petroleum province, and they recognize what that means to them. As pipelines begin to get developed, over the next three, four, five years, security issues will be paramount to their bottom line.

FP: Thank you for your time.

Dumaresq: My pleasure.

Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the authors only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.

Also, please note that republishing of this article in its entirety is permitted as long as attribution and a back link to FinancialPress.com are provided. Thank you.

Head Office
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Baby Boomers Fuel $130 Billion ‘Superfood’ Industry http://financialpress.com/2014/06/25/baby-boomers-fuel-130-billion-superfood-industry/ http://financialpress.com/2014/06/25/baby-boomers-fuel-130-billion-superfood-industry/#comments Wed, 25 Jun 2014 15:13:07 +0000 http://financialpress.com/?p=28522 Naturally Splendid Initiates Pilot Production of Hemp Based Omegas

nsp_backgroundAccording to Global Industry Analysts, the global market for functional foods or “Superfoods” is expected to reach $130 billion next year, fuelled by the swelling number of health-conscious consumers with high disposable incomes (baby boomers).

The market segment is growing fast. 10,000 baby boomers reach retirement age every single day. They want to continue doing yoga, tennis, jogging, swimming, skiing etcetera. Boomers are deeply motivated to spend money to prolong their ability to do these activities. Hemp is a natural, affordable solution.

Naturally Splendid (TSX-V:NSP) (FRANKFURT:50N) (OTC:NSPDF) is in the right place at the right time,” states Russ Crawford, the President of the Canadian Hemp Trade Alliance in an exclusive interview with Financial Press, “I’ve been involved in Canadian agriculture for over 40 years, so I am well versed in the production, processing, handling and exporting of North American grains and oilseeds.”

“Naturally Splendid is much more than just a hemp company,” states Co-founder Bryan Carson, “It produces a whole variety of food products, attractive to a wide variety of end users. Whether it is an athlete, a mother feeding her child, or a senior looking for a nutritious meal. I anticipate Naturally Splendid products displacing traditional crops as it is a profitable alternative for Canadian farmers. Hemp contains high protein and omega benefits, and is much more digestible than soy.”

Superfoods, like omega-3 oils and dietary protein and fibre found in hemp, have demonstrable physiological or health benefits. The sector is growing globally at a rate of 6% per year. The trend looks set and long term. Shares of United Natural Foods and Whole Foods Market are up 300% and 350% respectively in the last 5 years.

Naturally Splendid (TSX-V:NSP), a Superfood innovator, has developed the NATERA™ line of hemp-based products carried by Canadian and U.S. specialty health food distributors.

The NATERA™ line of products includes natural and flavored shelled hemp seeds and flavored hemp protein powders.

“Naturally Splendid has been developing super food lines for six years,” states Craig Goodwin CEO and co-founder of (TSX-V:NSP) in an exclusive interview with Financial Press, “We are one of, if not the first publically traded industrial hemp superfood company in North America.”

Hemp was introduced to North America in 1606. Industrial hemp was the most important non-food crop in the early history of the United States, used for sails, riggings, canvas, ropes, clothing and paper.

NSP’s expertise is in the explosive demand area of ‘functional foods’ and ‘Super Foods’ – with a focus on Cannabis Sativa and plant based Omegas.

“We announced our major retail line, NATERA in October 2013,” stated Goodwin, “and the products have already been picked up by three of Canada’s largest distributors and an established U.S. distributor – so we have laid the foundation for rapid sales growth.”

Naturally Splendid also has an exclusive North American sales agreement to market and distribute a line of patent pending, plant-based omega products created by Boreal Technologies (formerly Canadian Medical Hemp), including HempOmega™ and H2Omega™, FlaxOmega™, CanolaOmega™, and ChiaOmega™.

The U.S. is the world’s biggest consumer of industrial hemp but it cannot legally be grown there. So you have an established rapidly growing market that is 100% dependent on imports. Industrial hemp in mostly grown in Western Canada. Saskatchewan accounts for over 50% of domestic production. Naturally Splendid is politically and geographically positioned to fill the U.S. demand.

Many North Americans are confused about the difference between industrial hemp (which doesn’t get you high), and marijuana (which does). Another point of confusion is the relative size of the two markets.

“There is buzz around the medical marijuana industry,” states Goodwin, “but there are currently only 39,000 legal prescriptions for marijuana in Canada. Industrial hemp food products are being consumed by health conscious consumers globally – so we are servicing a much bigger potential market, and have a correspondingly bigger opportunity.”

Industrial hemp contains trace levels of THC but it has been a heath-boosting source of food and fibre for the past 10,000 years.

“We plan to monetize all components of industrial hemp,” states Goodwin, “and that means using it as a food and developing it as plant based Omega-3 – which we are currently doing with a Boreal Technologies at the University of British Columbia.”

Crawford, who is also a Director of NSP, recalls that in his early years in the agriculture business it was illegal to grow hemp and nobody talked about it. In the last 15 years, the interest and popularity of the product has grown exponentially.

“Hemp offers a spectrum of benefits unequalled by any other plant,” states Crawford, “Some plants have proteins and some have energy. This one has both, as well as vitamins and minerals. So it is very attractive to the health-conscious consumer.

That market segment is growing fast. 10,000 baby boomers reach retirement age every single day. They want to continue doing yoga, tennis, jogging, swimming, skiing etcetera. Boomers are deeply motivated to spend money to prolong their ability to do these activities. Hemp is a natural, affordable solution.”

“Naturally Splendid is much more than just a hemp company,” states Crawford, “It produces a whole variety of food products, attractive to a wide variety of end users. Whether it is an athlete, a mother feeding her child, or a senior looking for a nutritious meal. I anticipate Naturally Splendid products displacing traditional crops as it is a profitable alternative for Canadian farmers. Hemp contains high protein and omega benefits, and is much more digestible than soy.”

With instances of heart disease and other chronic illnesses rising, Superfoods are an increasingly popular preventative measure. Eighty percent of North Americans are trying to eat healthfully. Young adults ages 18–24 are the top users of liquid based functional foods.

On May 6, 2014 Naturally Splendid announced that it had achieved full Non GMO Certification for the NATERA ™ hemp based Superfood Line. “Non-GMO Project Verified” is the fastest growing label in the natural products industry, representing $5 billion in annual sales.

Naturally Splendid is currently trading at .25 with a market cap of $9 million.

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Naturally Splendid(R) Enterprises Ltd. (NSP - TSX Venture)
Suite 605 - 1166 Alberni Street
Vancouver, BC V6E 3Z3
Phone: 604-559-8051
Fax: 604-570-0932
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