 Hi, how are you doing today? I'm your host Rich. Here we have a Rich TV live with our very special guest, Manish Grigo, the Chief Strategy Officer of Discover Wellness. How are you doing today, Manish? I'm doing well, Rich. How are you? I'm doing really well. Thank you for joining us today. I wanted to ask you a question. Can you tell us a little bit about yourself and what made you want to join Discover Wellness? Yeah, so I've been in a capital market since 2007. I joined Discover Wellness in December of 2020. What really attracted me to Discover Wellness was the platform. It's lean. It's in the CBD business, which is more related to wellness. I'm different from the psychoactive elements of the cannabis market and I thought there's a little bit still early stages and Discover Wellness, again, flat organization, asset light. We've learned from other people's mistakes and I figured this would be a right time to join them and help them. Okay, great. And Discover Wellness is setting up a brand new industrial scale CBD extraction facility. Can you go through some of the production capabilities and what sets you guys apart from other CBD extractors in the market? Yeah, so like I said before, you know, this is our facility in New Orleans, close to Calgary in Alberta. Essentially, this can process about one million pounds of hemp a year. And again, you know, it's a new facility allows us to learn from other people's mistakes. So being a new new new facility, we're able to see that we can do the same kind of shifts with pure people. You don't need that kind of heavy regulation that we typically required with something with higher TSC content or cannabis market. So this is industrial hemp, which is more like treated like an agricultural commodity. Yes, there are rules and licenses around it. But however, so you don't have that same kind of resource and regulatory overheads around it. Can you go through some of the production capabilities and what sets you guys apart from other CBD extractors in the market? Yeah, so like I said before, it's, you know, it's a light organization in terms of the manpower required and we've learned from other people and again, this is industrial hemp, which is treated more like a more like an agricultural product. So pure, pure costs and overheads in terms of how we manage the inventory and everything and the handling costs. Okay, great. The Discover Wellness property is easily scalable. Can you give us an idea of what that means for the company and what are the implications once you guys reach your full potential? So in terms of implications would be, again, based on our extraction facility being fully upgraded, what we are, our strategy is to be, you know, have a cost leadership position in this. And the reason we can establish a cost leadership position is again, it's a new facility, we've learned from other people's mistakes, so we are not overly overstaffed. In terms of, if you look at some of the earlier comp competitors that came in, they had to hire a chief scientific officer, they had to hire someone doing a lot of the security elements to it. So if you peel out all those layers, our costs become a lot lower compared to everyone else. And again, you've learned from other people's mistakes over the last four or five years. And again, being industrial hemp allows us to be, you know, flat organizations. For example, right now, when we're not in production, we have only four employees. So that's where you lean operation. And based on a name-plated capacity of one million pounds of hemp, if you process that and you assume, again, you know, about $1,800 per pound of concentrated distillate mix, you get about 70,000 pounds. And based on that pricing, again, it works out to about $126 million a year. Wow. We have a lot of work to do. We're not there yet. But I'm just saying what the implications would be from a blue sky potential. So still have a lot of work to do. Just want to be clear on that. Hey, well, it's good that you guys have the scalability. That's huge. Can you talk to us about your partnership with Cine Genetics Biosciences? My understanding is that Cine Genetics cultivates and engineers their own proprietary hemp strains. How does this give you guys a competitive advantage over others? And what does the partnership mean for the company? So essentially the SG partnership gives us access to what we call high CBD strain hemp. So what does high CBD strain translate to? It translates to higher yields when you put it through the process of facility. So 15% plus CBD strains. On average, we are about 10% plus. The marketplace roughly you're getting about 5% plus CBD and less than 0.3% THC content, which is why you can classify it as industrial hemp as opposed to cannabis or the psychoactive elements are basically missing in this. Or it's very low. So the classification changes. So SG gives us access to high CBD content biomass, which essentially entails lower cost of extraction, which also means we can process it faster at a cheaper cost. And it goes very much in line with our cost leadership strategy. With the CBD market being saturated with all the hemp farms that have come on in the last two years, how will you deal with the price of CBD being pushed down? We've seen the price really come down a lot since legalization. How are you guys going to handle that? So like I said before, you're right. So the cost has come down, but we have been pursuing a cost leadership strategy. And this is one leg of it, which means what does that entail for a step one new facility, learning from other people's mistakes, flat organization for employees right now. It'll be working in shifts. The second element is the SG partnership helps us with the cost leadership element of it, which is what does that mean? It means 10% plus 15% plus CBD content. So higher content means less product has to be moved through the extraction facility to get the same dollar amount at the, or the distillate or the isolates at the end of it. So that's the reason. So these two elements help us in the, in the value chain and that even with lower prices, we'd be able to compete. So essentially the cost leadership strategy is one part of it. And the other part would be the global distribution strategy. You also recently announced a memorandum of understanding with quad play of Thailand. What can you tell us about the deal? Why it's important for the company and the overall opportunity in Thailand? So Thailand is actually a very important part of our strategy. It's early stages. Thailand B is the first country in the world to deregulate this market entirely. What does that, what does a deregulation in entirety mean? Essentially, it means isolates that pass less than 0.2% THC, right, with higher cannabis content can be put into food, cosmetics, without licenses. So the end product can be put on a shelf like convenience stores. So essentially a beverage drink with less than 0.2% THC content with higher CBD would be sitting on the same shelf as Pepsi or Coke. Right? So that's where there's a key differentiation there. Yes, you would need a license to import the seeds, to process it. But once the processing is done and the CBD isolate and everything else has been extracted and it's been given to the consumer. So if you look at kind of high newspaper, you don't understand the excitement around it. Essentially, it's similar to what Canada had when the deregulation around it. The only key difference is the regulatory overheads and everything else reduces dramatically when you're able to implement it directly into food and cosmetics and beverages for that. So the market size in multiplies quite dramatically. Again, the estimates are around $5 billion. We don't know that it's pretty nascent. So the MOU understanding right now, with QP quad play is essentially a high organization with deep relationships in the high market in the food beverage industry. They also run two wellness clinics. So they have been associated with this industry for quite a while and we're leveraging their relationships with farmers, which is the cultivators with universities that they have in terms of growing it in strains. The other part would be also with the consumer park food and beverage markets. So these these three legs would be the part of the growth strategy and the seeds is for us a good way to get an equity drill hole in an early market. So again, going back to our comment or my comment on us being a flat organization. So this is just a very low-cost way of us getting an extra distribution foothold in Thailand. And I think with Thailand being the first one in Southeast Asia, you'd see other countries, but there's a first mover advantage to any country changing regulations similar to what Canada went through when it deregulated before the American market did on a federal level. And you saw the whole market activity here in Canada in this day. Although we are one tenth of the US market, we're still much larger when it comes to capital markets. I'd afraid when some of the companies are growing, I think Thailand's going to be able to take advantage of being the first country to take a move to a deregulation. That's great. That's huge. What are some of the milestones set for the company this year in 2021? So the first key thing would be obviously to get our extraction facility up and running. We should be able to do it somewhere around the end of April. That's the expectation. COVID has had some impact. I would say quite a bit of impact in terms of getting the design and everything ready to a full facility processing facility ready. And we should be cash flow positive in 2021. The reason we'd be cash flow positive is because SG supplied us hemp in lieu of shares, which was disclosed in December 2020. What does that entail? It means about $5 million in savings. So we didn't have to raise or dilute our shareholders. And essentially, when you translate $550,000 to an extraction facility, every dollar that comes in is right for the cash line. Our community is really big and our community is all over the world. We'll have people in over 100 countries watch this video. And it's extremely important for us to understand the share structure. We like tight float stocks, companies that are really responsible with understanding where they put all their shares, how they distribute shares. That's extremely important to us. So can you explain the share structure and give us a breakdown of Discover Wellness shares outstanding and how much is held by insiders? Yeah, so 52 points. So we have basic shares outstanding about 52.3 million shares. Pull it diluted about 56.9 million shares. And essentially 30% is held by management and insiders. So very tightly held structure and like I said, we are sensitive to dilution. So hence we took the inventory in lieu of shares rather than going to the market to raise capital. So what we're trying to do is be cost effective and both in our inventory or basically buying side of it as well as on the distribution side as well as you can see with the filing agreement or anything else. We're trying to be very cost effective on both sides. That's great. That's music to my ears. If there was one thing you would want to know and you would want shareholders to know about Discover Wellness, what would it be? Well, like I said before, I think kind of the same team around the story is cost effective strategy. So there's a two prong strategy. One is a cost leadership when it comes to product pricing. The second part is cost effective distribution. Hence the filing agreement that we just made. So we are trying to do both sides which is collects the marketing distribution element as well in terms of pursuing JVs or MOUs with different countries where we get a marketing agreement and in lieu of DSG seeds like the high agreement said chose to get a distribution wider than what we have. So there's a global distribution strategy as well as a cost leadership strategy. With our shareholders and with all the viewers and subscribers and followers that are going to watch this video, they're going to most likely be interested in getting in contact with the company. They're going to want to learn more. They're going to want to invest. They're going to want to potentially do LOIs, join ventures because there's so many public companies watching our videos. What would be the best way for them to get in contact with you? So the best way would be either email so mbgo at discoverwellnesssolutions.ca or our phone number, the 1-800 number which is on our press releases. Okay, great. Well, thank you so much for your time today. Manish Grigo, the chief strategy officer of Discover Wellness. Remember Rich TV Live. Everyone that's watching is for education, entertainment purposes. Always do your due diligence. Always do your research before you invest in anything that we talk about here at Rich TV Live. Chances are once you do your research and you speak to a financial advisor, the financial advisor is going to say, where'd you get this pick? You can say from Rich TV Live and they're going to say, it's a really nice pick. I really like this company. Manish, I think you guys are doing great work. I've always been a big fan of CBDs. Always. So I love the CBD industry. I thought there would be more CBD companies right now and there isn't. So I still think there's a huge market for you guys to penetrate and I think that you guys are undervalued, underappreciated, underexposed with a tight flow and a growing story. And like you said, some huge growth potential as far as revenue, which our community loves to buy revenue. So revenue generating businesses, early stage super growth companies is what we look for. And I think you guys are kind of falling in that category. So I'm really excited to see how you guys are going to evolve. Now remember, if you guys like this video, please smash the like button, comment down below, share the video and subscribe. Thank you guys for watching. If you're not winning, you're not watching. This is Rich from Rich to Be Live with Manish Grigo, the chief strategy officer of Discover Wellness saying, have a nice day everybody. Thank you, Manish. Thank you, Rich. Appreciate your time today. Thank you. Have yourself a great day and keep up all the great work.