Canadian CANNAINVESTOR Magazine October 2017 - Page 249

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Another opportunity may be for LIB to potentially offer offsite storage arrange-ments for existing LPs to assist LPs manage their own inventory ebbs and flows as well as act as an offsite business recovery storage facility. If mail order is allowed then perhaps drop shipping arrangements can be established with Licensed Producers.

So why LIB now as a case study when there are many other companies in this space? This is a case study on many fronts.

Latter stage ACMPR license applicant.

Low Market cap & relatively low float.

Potential opportunity for eligible investors to participate in any announced financing.

The size of the building, the property, and the vault suggest future expansion is possible including JV and/or M&A.

Potential for different business segments (wholesale, distribution/sales, offsite inventory storage for inventory management and/or business recovery, animal care, drop shipping, ancillary lines such as vaporizers, etc).

A sales license avoids the capital costs associated with production and cultivation and allows LIB to stock the strains demanded.

A company that, to some, appears quick to issue NRs with respect to MOUs and LOIs but does not disclose in this same manner when these deals fall through.

Ambiguity and confusion over the nature of the licensee applicant as the language transitioned from “production” to “distribution” in the summer.

There is a $1,000,000 milestone obligation due ninety days after licensing of NRV.

This also serves as good case study in why social media and bulletin boards are less than an ideal source for information. Some users, claiming they spoke directly with the company, confirmed that the GR8 Track acquisition not being finalized was owing to the summer statement by CDS that it was concerned about Canadian companies with USA operations; and, also that the license application was for production. The disclosure that the GR8 acquisition was not being pursued was prior to the CDS statement – this timeline discrepancy is an example as to why there are Ignore and Block features.

I contacted the company directly and advised them of who I was and that I was writing a case study. I plainly asked to confirm that it was not a production license but rather a sales license – “Yes, that is correct, North Road will be the distributer for the most popular strains grown by LPs and retail them to patients or wholesale them to other short stocked LP's or other distributers”. LIB specifically used the term “sales license”. Again, IGNORE and BLOCK the bulletin board/social media hucksters, bots, and headline spammers. It is all noise that distracts and detracts.

In fact, Lib’s concerted focus on sales and distribution is a key differentiator that affords both flexibility and opportunity to the company, LPs, customers, and investors. Now may be just the time for this low share price/market cap latter stage ACMPR applicant to be considered by those with an appropriate risk and speculative appetite and perspective. Have a look at the recent news release from Namaste Technologies Inc with respect to their own latter stage sales license applicant.

Alerting investors, and potential investors, of red flags and opportunities is prudent and one can argue that this case study meets both criteria. In fact, LIB makes an ideal case study in an industry subject to Ecoforming and speculation.

Exposing the hucksters and alerting investors to opportunities is the CannaInvestor Advantage. Only time will tell if this another example of turning green into gold; however, one gets the sense that good news is just around the corner.

Latter stage ACMPR license applicant with a market cap of <$8.2MIllion

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