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This Month's Tiny Gems - April 2018Hiku Brands Co. Ltd. (DJACF)
Net Element (NASDAQ: NETE)
Pivot Pharmaceuticals Inc. (PVOTF)
Victory Square Technologies Inc. (CSE: VST) (OTC: VSQTF)
Hiku Brands Co. Ltd. (DJACF)
Headquartered in British Columbia's picturesque Okanagan Valley, Hiku Brands Co. Ltd. (CSE: DOJA) (OTC: DJACF) is a premium cannabis lifestyle brand growing high-quality handcrafted cannabis flower. Hiku's wholly owned subsidiary is a licensed producer of cannabis under the ACMPR that has requested its Pre-Sales License Inspection, the last step prior to receiving a license to sell cannabis under the ACMPR. Hiku's Dominion Facility is a state-of-the-art ACMPR licensed production facility capable of producing approximately 660 kg year of dried cannabis flower. Hiku's second facility, a 22,580 sq ft warehouse, "the FUTURE LAB", is targeting its Phase 1 completion by Q2 2018 and once the facility is fully built-out utilizing an industry leading multi-tier system powered by LED lighting provided by Fluence BioEngineering, Hiku's annual production capacity is expected to be in excess of 5,000 kgs. Hiku was founded by the proven entrepreneurial team that started SAXX Underwear®.
On December 21, 2017, Hiku and TS Brandco Holdings Inc. ("Tokyo Smoke") announced that they have entered into a binding Letter of Intent ("LOI") to merger the two companies and create a uniquely positioned cannabis company combining a best-in-class craft cannabis producer with an award-winning lifestyle brand and retail-focused cannabis company. It is anticipated that the combined company resulting from the merger will use the name "Hiku Brands Company Ltd." ("Hiku") to refer to the brand house containing premium cannabis brands DOJA, Tokyo Smoke, and Van der Pop.
Hiku recently closed on a $10 million strategic equity investment from Aphria Inc. ("Aphria") (TSX:APH and US OTC: APHQF) to expand their product offering ahead of the recreational market.
Upon completion of the merger, Hiku will have a robust cash position of approximately $31 million, which it plans to invest in expanding its cannabis production capacity, growing its retail footprint, and adding select brands to its portfolio through highly strategic and complementary acquisitions.
About Tokyo Smoke
Founded in 2015 by Alan and Lorne Gertner, Tokyo Smoke is an award-winning cannabis lifestyle brand that brings sophistication and design to the fast-growing industry. With immersive experiences and design-first, non-dispensary retail spaces selling coffee, cannabis accessories and design products, the brand has six locations in Canada, with plans to expand nationwide. Recently named "Brand of the Year" at the Canadian Cannabis Awards, Tokyo Smoke has showcased excellence in brand storytelling, and has developed an international reputation as the go-to destination for engaging content offerings within the industry. With the acquisition of fellow designer cannabis brand Van der Pop, and by partnering with Aphria Inc. (TSX: APH and US OTC: APHQF) and WeedMD (TSXV: WMD), Tokyo Smoke continues to be the leading Canadian brand in the cannabis space.
About Hiku
Hiku is focused on handcrafted cannabis production, immersive retail experiences, and building a portfolio of iconic, engaging cannabis lifestyle brands. Hiku is differentiated as the only Canadian craft cannabis producer with a significant national retail footprint and a growing brand house including premium cannabis lifestyle brands DOJA, Tokyo Smoke, and Van der Pop.
Hiku's wholly owned subsidiary, DOJA Cannabis Ltd., is a federally licensed producer pursuant to the ACMPR, owning two production facilities in the heart of British Columbia's Okanagan Valley. The company operates a network of retail stores selling coffee, clothing and curated accessories, across British Columbia, Alberta and Ontario.
Net Element (NASDAQ: NETE)
Net Element (NASDAQ: NETE) is a global financial technology and value-added solutions group that supports electronic payments acceptance in an omni-channel environment spanning across point-of-sale, e-commerce, and mobile devices. Net Element operates a payments-as-a-service transactional model and value-added services platform for small to medium enterprises in the U.S. and selected emerging markets. Internationally, Net Element's strategy is to leverage its omni-channel platform to deliver flexible offerings to emerging markets with diverse banking, regulatory and demographic conditions. Net Element was ranked as one of the fastest growing companies in North America on Deloitte's 2017 Technology Fast 500 ™ and South Florida Business Journal's 2016 fastest growing technology companies.
Net Element believes the future of global commerce is being revolutionized as consumers quickly migrate toward omni-channel shopping utilizing mobile devices, desktop, and online services. Net Element's all-in-one payment solutions support and unify a whole range of applications through a single, robust platform, allowing global onboarding and support for multiple payment methods.
In a partnership with Bunker Capital, Net Element has also launched a new blockchain-focused business unit that will develop and deploy blockchain technology-based solutions. Net Element expects the new division to create a decentralized crypto-based ecosystem that will act as a framework for an unlimited number of value-added services, connecting merchants and consumers in a seamless, economically efficient transaction. This new business unit intends to also identify and invest in unique projects that decentralize and disrupt the payment processing industry by combining blockchain technology and real-world applications with talented development teams, strong fundamentals and addressable markets large in size.
"We believe that we're at the dawn of a new evolution where additional digital payment methods are being introduced," Net Element CEO Oleg Firer, says. "Introduction of our division focused on blockchain as part of the NASDAQ-listed entity will add transparency and compliance assurance to our investors as well as provide access to deploy value-added services to over 20 million electronic commerce clients that are currently part of Net Element's growing network."
Net Element clients are treated to customized solutions that provide the flexibility needed to keep up with customers. Among the services offered are mobile payment apps that accept payments anywhere, anytime; cloud-based solutions built to increase productivity and enhance revenue for clients and partners; marketing solutions that turn lookers into buyers; and business analytics that make it easy for clients to monitor business metrics, engage with customers and compare the competition. Its multi-channel platform combines e-commerce, offline, point-of-sale, comprehensive back office tools, mobile point-of-sale, credit scoring and customer interaction in one powerful platform-as-a-service technology.
Net Element owns and operates a global mobile payments and transactional processing provider, TOT Group, Inc., with the following subsidiaries:
Net Element is ranked No. 418 on Deloitte's 2017 Technology Fast 500™ list of North America's 500 fastest growing technology, media, telecommunications, life sciences and energy tech companies. Net Element grew 190 percent. The company's chief executive officer, Oleg Firer, credits the company's progression to organic growth in its North America Transactions Segment, specifically the success of its Unified Payments brand, which focuses on value-added payment acceptance solutions for small to medium enterprises in the United States.
"The Deloitte 2017 North America Technology Fast 500 winners underscore the impact of technological innovation and world class customer service in driving growth, in a fiercely competitive environment," said Sandra Shirai, vice chairman, Deloitte Consulting LLP and U.S. technology, media and telecommunications leader. "These companies are on the cutting edge, and are transforming the way we do business."
Net Element's suite of application performing interfaces (APIs) and connectors power commerce for businesses of all sizes through multi-channel platforms, all-in-one digital solutions, and end-to-end encryption of cardholder data utilizing tamper resistant hardware that ensures integrity and simplifies security.
Net Element's corporate team is led by director and CEO Oleg Firer, who is responsible for the overall vision, strategy and execution of the company's mission of powering global commerce. He is joined by CFO Jonathan New, CPA, and Steven Wolberg, who is the company's chief legal officer and secretary. Each corporate officer brings a unique blend of leadership, vision, experience and creative energy to the company.
From mobile payments and value-added transactional innovations such as Digital Provider and Aptito to e-commerce and retail payment transaction processing brands like Payonline and United Payments, Net Element is transforming the online and mobile experience.
Pivot Pharmaceuticals Inc. (PVOTF)
Pivot Pharmaceuticals Inc. (PVOTF), based in Vancouver, Canada, is an emerging biopharmaceutical company engaged in the development and commercialization of pharmaceuticals and nutraceuticals that provide novel treatments for unmet healthcare needs. Pivot's recent acquisition of BiPhasix ™ Transdermal Drug Delivery technology for the delivery of cannabinoids (CBD) to patients provides the answer for an age-old problem associated with cannabinoid-based therapies: the lack of a robust smoke-less delivery mechanism.
Research into the bioavailability of cannabinoid-based therapeutics shows that rates of absorption vary greatly between smoking cannabis to an orally-consumed product, with a difference noted even between individuals. Cannabinoids are degraded in the stomach and smoking may not appeal to patients for health or lifestyle reasons. Topical delivery, while a better alternative, has suffered from weak formulation issues. Transdermal cannabinoid delivery, on the other hand, could provide a better alternative route since it reduces side effects and bypasses other absorption issues. In addition, transdermal delivery provides the benefit of enabling patients to access a steady stream of medication over a prolonged period with fewer side effects.
Pivot Pharmaceutical's newly created subsidiary, Pivot Green Stream Health Solutions Inc. ("Pivot Green Stream"), will focus on improving the bioavailability of cannabinoid-based and pharmaceuticals. BiPhasix™ has been tested in FDA and EMA approved human clinical trials, which have shown the delivery system enhances the bioavailability of many drugs and improves clinical outcomes. Pivot Green Stream is tasked with developing several natural health products containing cannabinoids (CBD) that can receive a Health Canada Natural Health Product (NHP) designation. This marketing method ensures a shorter development cycle and faster revenue generation opportunities.
Pivot Pharmaceuticals Inc., which has positioned itself as a growing and crucial vertical in the cannabis industry, represents a compelling opportunity in the biotechnology field. The company's plans include working with Licensed Producers (LP) and Licensed Dealers (LD) to bring newer therapies to patients. The company has also applied to list on the Canadian Stock Exchange (CSE).
The global medical marijuana market is expected to reach a value of $55.8 billion by 2025, according to a new report by Grand View Research, Inc. The growing number of states and countries gaining approval for using cannabis in therapeutic applications is expected to continue driving the market forward.
Pivot Pharmaceuticals has assembled a highly experienced management team, bringing together a wealth of clinical, commercial, product development and financial experience. Among the many healthcare targets in Pivot's pipeline are cancer supportive care, pain and inflammation, women's sexual dysfunction, dermatology and eye disease.
Victory Square Technologies Inc. (CSE: VST) (OTC: VSQTF) (FRANKFURT: 6F6) (WKN: A2AKL8)
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.