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This Month's Tiny Gems - December 2017DOJA Cannabis Company Ltd. (CSE: DOJA) (OTC: DJACF)
Emblem Corp. (TSX.V: EMC) (OTC: EMMBF)
India Globalization Capital, Inc. (NYSE: IGC)
Pressure BioSciences Inc. (PBIO)
Victory Square Technologies Inc. (CSE: VST) (OTC: VSQTF)
DOJA Cannabis Company Ltd. (CSE: DOJA) (OTC: DJACF)
DOJA Cannabis Company Ltd. (CSE: DOJA) (OTC: DJACF) is a premium cannabis lifestyle brand featuring the highest quality handcrafted strains in Canada. DOJA's wholly owned subsidiary, Northern Lights Marijuana Company, is a Health Canada licensed cannabis producer located in Kelowna within the heart of British Columbia's picturesque Okanagan Valley.
Famous as the "Napa of the North," Kelowna and its rapidly growing tourism industry accounted for 1.9 million visitors in 2106. DOJA co-founder and CEO Trent Kitsch said the company's phase 1 facility – a 7,100 square foot building in West Kelowna – houses three grow rooms, each capable of producing 660 kilograms of marijuana per year. The grow rooms are outfitted with state-of-the-art equipment engineered specifically for indoor cannabis cultivation.
DOJA's initial cannabis harvest, produced under the Access to Cannabis for Medical Purposes Regulations (ACMPR) license held by its subsidiary, Northern Lights Marijuana Company, will be inspected by Health Canada regulators as the last step before a Sales License can be awarded. Once DOJA passes this major milestone and receives its Sales License, the company can begin selling cannabis and position itself as a premium handcrafted producer in advance of the impending recreational market.
"I'm extremely proud of our cultivation team, they have delivered on all levels, the quality of our flower is impressive, and the yields exceeded our expectations. Our growers focus on bringing out the fullest expression of the plant's genetic potential and the love and hard work they have put into their craft really shows in our first four strains," Kitsch said. "Post-harvest, our flowers were expertly hand-trimmed, hang-dried and artisanally cured. Our handcrafted approach is aimed at producing the finest cannabis with exceptional aroma, flavor and effects."
Each grow room is established with Surna's equipment, providing ductless air handlers, commercial-grade dehumidifiers, and biosecurity products using photocatalytic reaction to sanitize the air and minimize breakouts of pests, pathogens and mold. DOJA's expansion plans include the ability to add over 40,000 square feet, which would increase the company's overall production capacity to more than 5,000 kilograms per year. Once completed and producing, the company's potential revenue, excluding cannabis oil products, is estimated at $60 million.
According to a recent report, DOJA is well capitalized with approximately $4.5 million cash with management holding 33 percent of the shares outstanding. DOJA was founded by the proven entrepreneurial team that started the industry disruptive men's SAXX Underwear® brand. Kitsch is joined by Ria Kitsch as vice-president and co-founder; Ryan Foreman, president and co-founder; and Jeff Barber, CFO, as DOJA's "cannabis futurists."
Emblem Corp. (TSX.V: EMC) (OTC: EMMBF)
Emblem Corp. (TSX.V: EMC) (OTC: EMMBF) is a publicly traded, fully integrated Canadian medical and adult recreational cannabis company led by a team of proven senior executives with experience in the pharmaceutical industry, the cannabis horticulture industry and health care.
Emblem is an "indoor" cannabis producer, growing in six controlled environment indoor grow rooms at its facility in Paris, Ontario. A seventh grow room will be added by spring 2018, which will bring Emblem's total capacity to 2,400 kilograms per year at a cost-effective 1.5 grams per watt.
Emblem is licensed by Health Canada to produce cannabis oils using super critical CO2 extraction technology. The company is currently completing an expansion that will provide about 30,000 square feet to house a GMP extraction laboratory, pharmaceutical production and value-added product facility. In preparation for the Canadian adult recreational cannabis market expected to rollout by July 2018, Emblem is planning to build a 115,000 square foot facility with an indoor capacity of 15,000 kilograms at 1.5 grams per watt.
Emblem has adopted a three-part strategy to the Canadian cannabis industry:
The likely addition of cannabis-infused edibles and other concentrates to Canada's legalization plans for marijuana are expected to produce significant revenue streams for the company. An amendment to Bill C-45, otherwise known as the Canadian Cannabis Act, would ensure these derivatives of cannabis will be available no later than 12 months after the country officially legalizes recreational cannabis in July 2018.
Emblem has invested several million dollars into its Pharma division to research marijuana drug candidates and potential new drugs derived from cannabis. Over time, the company expects this division to be the largest and most profitable as it focuses initially on bringing drugs to market that will address neuropathic pain, anxiety and sleep issues. By providing standardized, consistent doses of cannabinoid-based pills and oils, Emblem intends to lead the industry. Value-added products such as sustained release and accelerated release formulations will materially increase product demand. Emblem's focus on regulating the growth environment by using a holistic, organic method means each cannabis strain is healthy and true to its mother plant, which in turn assures a naturally grown, robust medical cannabis product.
Emblem, which had 2,154 active patients as of August 2017, continues to enroll patients in its GrowWise Health program which is also seeing a marked expansion of its clinic network. Projected growth in this sector, along with the value-added benefits provided for patients and physicians, is expected to ensure ongoing patient registration. Emblem plans to open additional GrowWise Health clinic locations across Canada.
Covering the full cannabis spectrum, Emblem's business is structured to reach new heights from growing to selling recreational and medical cannabis, to educating and assisting patients, to creating new forms of cannabinoid-based medications in standardized, high quality and convenient-to-use formulations.
India Globalization Capital, Inc. (NYSE: IGC)
India Globalization Capital, Inc. (NYSE: IGC) is a first mover in developing a portfolio of products using cannabis-based "combination therapies" for the treatment of Alzheimer's, cachexia, pain and other conditions.
Through a definitive agreement with the University of South Florida, IGC is the exclusive licensee of the U.S. patent filing entitled "THC as a Potential Therapeutic Agent for Alzheimer's Disease." Known as America's most expensive disease with an estimated cost to the U.S. economy of $236 billion, Alzheimer's currently effects more than 5.3 million Americans and over the next 20 years the number of those afflicted with the disease is expected to double. By acquiring the exclusive right to this patent filing, IGC is protecting a potential cannabis-based blockbuster treatment.
The Company has also filed combination therapy formulations for the treatment of epilepsy and cachexia. About 50 million people worldwide are affected by epilepsy and about 1.3 million in the U.S. experience cachexia associated with cancer, MS, Parkinson's, HIV/AIDS and other progressive illnesses. Cancer-induced anorexia/cachexia is responsible for 20% of all cancer deaths. IGC-502 indicated for seizures and IGC-504 indicated for cachexia are unique combination therapies that, if proven out by clinical trials, are expected to treat medical refractory epilepsy and eating disorders respectively, with lower side effects than conventional mono therapies.
Successful treatment of pain represents an enormous market opportunity as well with the national cost of health care due to pain ranging from $560 billion to $635 billion. In addition, the health care cost attributed to the abuse of prescription opioids, closely related to pain, is approximately $25 billion. IGC's patent filing (IGC-501) is a cannabis-based formulation addressing neuropathic and arthritic pain in joints and muscles using a variety of delivery techniques. The Company anticipates commencing clinical trials, and hopes that through its focus on combination therapy it can formulate and commercialize cannabinoid compounds as an alternative to long-term addictive opioid treatments.
IGC's strategy is exciting and unique in that it is aiming to become a leader in the phytocannabinoid-based combination therapy specialty pharmaceutical sector. This first mover advantage can potentially be formidable as it begins clinical trials and further builds its patent portfolio. "The development of combination therapies utilizing cannabis represents a large, unique opportunity in this emerging specialty-pharmaceutical sector. Securing FDA approval for combination therapy is believed to be significantly faster and less expensive than new drug applications. As a result, we believe that we can bring our cannabis-based pharmaceutical products to market in both an expeditious and cost-effective manner," stated Ram Mukunda, CEO.
IGC has recently exited its legacy businesses. An impressive and experienced team, led by Mr. Ram Mukunda, CEO, directs IGC.
Mr. Mukunda holds degrees in Electrical Engineering and Mathematics from the University of Maryland (UMD). He founded and served as Chairman and CEO of Startec Global Communications, an international telecommunications carrier focused on providing voice over Internet protocol (VOIP) services to emerging economies. Startec, the first pure play international long distance carrier, went public on NASDAQ. He has won a number of awards, including the 2013 University of Maryland International Alumnus of the year award. Mr. Mukunda serves as an Emeritus member on the Board of Visitors at the University of Maryland, School of Engineering, and has served as Council Member at Harvard's Kennedy School of Government, Belfer Center of Science and International Affairs. Mr. Mukunda and Dr. Krishna are the originators of all the IGC patent filings.
Dr. Ranga Krishna, Senior Advisor, is a Board Certified Neurologist with a sub specialty in Epilepsy surgery. He is the Director of Neurology at the New York Community Hospital affiliated with New York Presbyterian Weil Cornell Medical College and the Director of Stroke Service at the New York Community Hospital affiliated with New York Presbyterian Weil Cornell Medical College. He is the Medical Director and Chairman of Total Neuro Care, P.C. He is CEO of International Pharma Trials, Inc., which assists U.S. pharmaceutical companies perform Phase II clinical trials. Dr. Krishna is a member of several organizations, including the American Academy of Neurology and the Medical Society of the State of New York. He is also a member of the Medical Arbitration panel for the New York State Workers' Compensation Board and a Founding Member of the New York State Pain Society. Dr. Krishna was trained at New York's Mount Sinai Medical Center (1991-1994) and New York University (1994-1996). Dr. Krishna and Mr. Mukunda are the originators of all the IGC patent filings.
Pressure BioSciences Inc. (PBIO)
Pressure BioSciences Inc. (PBIO) develops, markets and sells proprietary laboratory instrumentation and associated consumables to the life sciences sample preparation market. Sample preparation refers to the wide range of activities that precede most forms of scientific analysis. It is often complex and time-consuming, yet a critical part of scientific research. The market for sample preparation products is currently estimated at $6 billion worldwide.
The Company's product line can be used to exquisitely control the sample preparation process. It is based on a patented, enabling technology platform called pressure cycling technology ("PCT"). PCT uses alternating cycles of hydrostatic pressure between ambient (14.5 psi) and ultra-high levels (up to 100,000 psi) to safely and reproducibly control critical biological processes, such as the lysis (breakage) of cells, the digestion of proteins, and the inactivation of pathogens.
Pressure BioSciences' product line is led by its newly released, next-generation Barocycler 2320EXTREME instrument. Named a finalist in the prestigious 2017 R&D Awards (also known as the "Oscars of Innovation"), the Barocycler 2320EXT is already being touted by some key opinion leaders as an essential element of the $1.8 billion U.S. "Cancer Moonshot" program. For example, Professor Phil Robinson, Co-head of the cancer research center of the Children's Medical Research Institute (Sydney, Australia), said in a recent interview: "We are collecting the whole proteome on 70,000 tumor samples from all classes where complete clinical outcome is known. Due to its unique capabilities, the Barocycler 2320EXT has become a critical part of our program. It is the primary enabler of the high-throughput component of the project. Without this step, our project simply could not be done. In fact, the Barocycler 2320EXT works so well we have just purchased two more."
Momentum is building when it comes to the potential for using the Company's unique PCT technology platform. Leading scientists are intrigued by Pressure BioSciences' approach, which among other attributes, revolutionizes the process of rupturing cells (lysis) for further study, yielding superior biomolecules for investigation. The Company's technology transcends current methods of breaking open cells, which use chemicals, blades, metal beads, or other damaging and altering methods that can ultimately adversely affect the result for researchers. Pressure BioSciences' PCT technology utilizes customized, controlled hydrostatic (water) pressure to rupture cells in a chamber, enabling exquisitely customized levels of pressure to optimally break open different types of cells at prescribed pressure levels—something never before accomplished in a commercial setting. Using this pioneering method, the result is a truer, more legitimate sample, which boosts the efficacy of research and the quality of results. The potential impact of this technology on scientific advancement is enormous, enabling research scientists to begin their studies with biological samples of unprecedented integrity, with the potential to improve research outcomes at the earliest, most critical step. PCT can additionally inactivate pathogens (e.g., viruses, bacteria) using hydrostatic pressure, making the samples safer to study—another innovation with astronomical potential for application in a variety of markets.
The Company's high-pressure instruments for research purposes are marketed throughout the United States, Europe, China and Japan. To date, Pressure BioSciences has installed nearly 300 PCT Systems in over 165 leading academic, government, biotech and pharma laboratories around the world. Its primary applications are in biomarker discovery, forensics, agriculture and pathology. Over 100 scientific papers have been published on the advantages of the PCT platform, which is also being used in the specialized fields of drug discovery and design, bio-therapeutics characterization, soil and plant biology, vaccine development and histology.
Impressive as their biotech business is, there is more to the PBI story. Pressure BioSciences recently received two patents in China for its novel Ultra Shear Technology (UST), a process that has potential in a wide range of industrial applications, including extending the shelf life of some food products and making two insoluble liquids (like oil in water) soluble. Patents have also been filed in many other countries worldwide. UST is a novel technique based on the use of intense shear forces generated from ultra-high-pressure valve discharge.
This important technology has the potential to play a significant role in a number of commercially important areas through its ability to create high-quality, stable nanoemulsions. Scientific studies indicate that improved absorption, higher bioavailability, greater stability, lower surfactant levels and other advantages can be achieved with nanoemulsions – all hugely important factors in the fields of nutraceuticals, cosmetics, pharmaceuticals, and in various medical products. There is an enormous opportunity in the cannabis market, since the technology can potentially reduce oil droplets containing cannabidiol (CBD) to nanoparticles, after which they can be safely suspended in a stable water solution—something many companies have endeavored to achieve without success. Researchers looking for a way to increase the bioavailability of cannabinoids in the body will find this technology a game changer.
The Company's UST technology also has possibilities in the production of clean label foods, which are currently processed using several innovative methods, including high-pressure treatments (such as Starbucks' Evolution line of juices). In 2015, the worldwide market for high-pressure processed (HPP) food was estimated at U.S. $10 billion. UST uses ultra-high pressures and certain valves to generate intense shear forces under controlled temperature conditions to produce nanoemulsions, and which also significantly reduces food-borne pathogens. Pressure BioSciences' initial focus with this technology will be to evaluate UST for the production of high-quality dairy products and beverages.
Victory Square Technologies Inc. (CSE: VST) (OTC: VSQTF)
Victory Square Technologies Inc. (CSE: VST) (OTC: VSQTF) (FRANKFURT: 6F6) (WKN: A2AKL8) is a venture builder that creates, funds and empowers entrepreneurs working in the fields of blockchain technology, virtual reality, artificial intelligence, personalized health, gaming and film. As a technology incubator, Victory Square invests in game-changing entrepreneurs who are provided access to education programs, global mentorship networks, distribution partners, creative workspaces, resources, and other forms of operational support to help them scale internationally.
Victory Square has made multiple early partnerships and investments in the blockchain space. Approximately three years ago the company incubated and invested in BTL Group, which is now a $150 million dollar TSX-listed company offering blockchain solutions across multiple industries with particular focus on the finance, energy and gaming sectors. BTL's showcase product – Interbit – is a blockchain platform that facilitates the rapid development of business applications that dramatically improve efficiency. Some of the world's largest institutions are using Interbit to explore new opportunities on private blockchains.
A new social sports betting platform to be developed by Victory Square's wholly owned subsidiary, FansUnite Media Inc. As a social sports data platform, FansUnite relies on robust data to allow members of its community to engage with like-minded individuals by collaborating, discussing, and predicting the winners of sporting events with a free virtual currency. The integration of blockchain technology into FansUnite's social sports data platform could also lead to blockchain initiatives developed by other divisions and subsidiaries of Victory Square.
Integral to the FansUnite platform is the introduction of FAN Tokens, an in-game currency purchased with the cryptocurrency Ethereum that token holders can use to place wagers. FansUnite members will be able to earn FAN Tokens through participation in any number of networking effects identified in the company's Bounty program.
"Blockchain technology and the inherent security it provides will enable us to push every envelope we can to build the most dynamic and responsive social sports betting platform," said Darius Eghdami, Co-Founder and Chief Executive Officer of FansUnite. "The opportunity to secure data through Blockchain certainly appeals to the accountant in me and we are confident it will become the gold standard among sports betting sites around the world."
Company subsidiary Victory Square Health Inc., which serves as the venture arm dedicated to companies focused on the development of solutions in personalized health technologies, has also invested in Personalized Biomarkers Inc. (PBI). PBI develops test kits that reliably predict the expected response to a number of therapies prior to prescription, with an initial focus on diabetes. Within this field, five potential biomarkers have been identified, allowing PBI to enter a $4 billion market opportunity.
"We are excited for the opportunity to partner with Personalized Biomarkers as they have correctly identified a massive market opportunity, and have formed an exceptional team of industry leaders," said Shafin Diamond Tejani, Chief Executive Officer of Victory Square. "This is another investment that is fully aligned with our newly created subsidiary, and one we expect to significantly impact the landscape of personalized medicine."
A partnership with Insight Diagnostics Inc., also through Victory Square Health, will focus on the development of a personalized diagnostic solution for the improved management and prevention of Type II diabetes.
The company's investment in V2 Games, a development and publishing studio of high-quality mobile games, is another example of incubating great ideas. V2 Games is well known for its successful launch of PAC-MAN Bounce and Beast Brawlers, two of the company's releases that are capturing the gaming world by the millions of downloads.
In a move designed to strengthen its presence in film and entertainment, Victory Square has acquired a 40 percent equity stake in United Film Fund II, LLC, which is producing three major motion pictures in 2017 and 2018 including "What They Had," starring two-time Academy Award winner Hilary Swank.
"This kind of investment in entertainment and film represents a major plank for our Company going forward and we consider ourselves fortunate to have the opportunity to acquire this 40% stake in the Film Fund," said Tejani, who has launched more than 40 startups in 21 countries that employ hundreds of people and generate more than $100 million in annual revenues. "We believe it's another strong initiative in film production for us and our stakeholders," he added.
Victory Square has strategically positioned itself in the legal cannabis industry through an investment in Tantalus Labs, a Canadian-based cannabis cultivation company. Tantalus Labs optimizes plant health and sustainable cultivation by using a unique, environmentally controlled greenhouse engineered specifically for growing cannabis. Called a "SunLab," the greenhouse takes 90 percent less electricity, uses filtered rainwater, and cools the growing environment to prevent stagnant moisture, recycling the air every 7 minutes to achieve maximum airflow.
Victory Square and its leadership team have seamlessly transitioned from its former identity as Fantasy 6 Sports Inc, a company focused solely on fantasy sports, mobile gaming and immersive sports, to a strategic technology company that creates, funds and successfully executes leading-edge ideas. A long-time technology entrepreneur and advocate of the industry, Tejani received the Person-of-the-Year Award at the 2017 Technology Impact Awards in British Columbia, a hallmark award category that recognizes betterment of the tech industry through leadership and philanthropic or enterprise skills and talents. Tejani has pledged to match up to $1 million in donated funds to be shared by a number of Canadian endeavors aimed at education and child-safe projects.
"These are exciting and important steps in the evolution and growth of our Company, and which properly and fully align with our strategic plan focusing on our core competencies in Blockchain Technology, Artificial Intelligence, Gaming, Personalized Health, Film and Virtual, Augmented and Mixed Reality," said Tejani. "We're spurred on by the success we have had in building on our original forays into fantasy sports, mobile gaming and immersive sports. In addition, we are energized by our most recent initiatives in sports, personalized health and entertainment and the confidence being shown by our shareholders in the dynamic direction of the Company."
Victory Square Technologies and its management team believe innovation, incubation of excellent ideas and social responsibility are at the core of its growing success.