Canadian CANNAINVESTOR Magazine October 2017 - Page 199


QCA: We think we bring a professional small cap investment discipline to investing in the space. To date, the sector has performed very strongly and a “rising tide has lifted all boats”. However, as time goes on we think that thoughtful investment decision making will be of increasing importance.

CCIM: How does the recent investment in Canada House Wellness Group benefit QCA and ultimately the shareholders of QCA?

QCA: That investment was made through an instrument that we negotiated directly from Canada House. The investment included convertible debentures at $0.15, full warrant coverage at $0.15 plus fees and up front interest in shares. We thought it was a very attractive package. We get downside protection through the debenture while have over 2x the equity upside through the conversion feature, the warrants and the shares.

CCIM: Building on that last question and the status of the “High Standard” acquisition, should investors be concerned about QCA investing in US based companies such as Herbiculture?

QCA: We think that the US offers very attractive investments at this time. Companies are much cheaper than their Canadian counterparts. There is more regulatory risk in the United States. Accordingly, we will be careful about how we proceed in the US market. As in the case of Herbiculture, investing in debt securities with equity upside offers us some protection from regulatory risk.

CCIM: Aurora Cannabis Corporation (TSX:ACB) is no stranger to our subscribers as we predicted in advance expansion into a Hemp company and into Germany. With the recent announcement that ACB’s CEO Terry Booth has joined your board, what can investors of QCA expect in the months to come?

QCA: I look forward to working with Terry. He is one of the most respected executives in the sector. We think that his participation will let us see more opportunities and make better decisions.