 Hi, how you doing? This is Rich here on behalf of RichTVLive. I'm here with a very special guest. It is Everett, the EVP of Strategy and Investments with Valens GrowWorks. How you doing today? Doing good. And we actually just branded to the Valens company, so we're previously known as the Valens GrowWork, but we just did the Valens company. New ticker symbol, VLNS, so. And in the U.S., the ticker symbol? It is on the OTCQX, and it's VLNCF, so take a look and I appreciate you having me. Very good. I'm very excited to have you here. Our community all over the world is very excited about Valens. You guys have been one of the top cannabis companies in 2019, one of the few that actually went up. Okay, now what does it look like for Valens in 2020 and beyond? So 2020 is really our legalization. If you look at our business model, we focused on the highest quality oil, right? And we are the largest cannabis extraction and white label manufacturing in Canada. And what we've been focused on since 2012 when we were founded is launching our customers products, right? And with Cannabis 2.0 in December kind of coming online, what we have the opportunity in January now is actually to showcase everything we've been working on and all the proprietary technology in house. So I think this is, last year was everyone else's year of legalization. This is our year of legalization. So excited to get some products on the shelf. I actually live streamed an investor conference you did yesterday. Okay. You guys are aware of that conference? Yeah. Yeah. Yeah. OTC. Yeah. Yeah. So I live streamed that yesterday and I was listening to the whole thing and you guys said on the conference that this is really your year, that you're really ramping up for 2020. That's pretty exciting for investors because you guys were, if not the best, one of the best cannabis result companies as far as stock price appreciation in 2019. You guys are profitable. Let's talk about your profit because that's really why I think you guys have done so well. In a sector where there's nobody with profit and everybody's got losses, you guys are the leaders in profitability. Can you explain what has made you guys so profitable? So for us, it's been focused. Like what we wanted to do as a business model is be really good at one thing and we have so many expertise in house on extraction and white label product custom manufacturing that it made sense just to focus on that for our customers. And if you look at, we have over 100 years of cannabis extraction experience. So when going into these 2.0 products, it made sense to actually make sure that our customers are able to put their best foot forward there. And that focus is really what sets us apart, I think, because we weren't spending a whole bunch of different things. We were saying, how do we reinforce the thing that we're good at today? And we're continuing to do that. And if you look at 2020 now, what we have the opportunity to do is now take that. And 2020 is a pivotal year for us as we get products on Canada. And the biggest thing is we have to do is execute on our current contracts. We have 11 extraction contracts, 11 white label contracts. A big thing is that our white label contracts has now overcome our extraction only contract. I saw that. I was really impressed with that because I didn't anticipate that. And then you guys said that you guys are actually getting way more business from your white label side and essentially said that you guys are the biggest in the world as far as white labeling. So why did you go in that direction? Is it just because you noticed that there was way more profitability? Is that the strategy? Yeah, so we ask ourselves every day how we can help our customers, right? And to get more vertically integrated in their platform. And when we're already making different qualities, well, we have five different types of extraction in house, which really set us apart. And we have CO2, ethanol or ethyl alcohol, hydrocarbon, which is really the aims of the world, whether it's butane or propane. And then we have solvent less and terpene extraction. The reason we have five different types is we literally work backwards on what our customer wants from a product and say, hey, you want a wax or a shatter, we're going to actually then we have to use a hydrocarbon extraction. If you just want the fastest way to get to a disclet, CBD disclet, maybe we use ethanol. If you want a full spectrum product, we can use a subcritical, supercritical CO2 run. So it's about customizing that. And now that we have that kind of platform today, it's about actually now pushing that product forward. So now that we have the hydrocarbon, we're the only one in Canada licensed with hydrocarbon in Canada today, it took us two years to get. We had to get reinforced concrete at a bomb, like it's really a bomb proof room, fire suppression systems, HVAC system, took us a long time to get to where we are. Now it's okay, we already have that, let's launch the best product for our customer. And we actually are building out a new facility right next door that'll be online in the first half of 2020. And that'll really kickstart us on that front to even a greater degree than we are today. That's fantastic. Now there's a lot of competition right now in the cannabis sector, but you guys have really risen to the top. What's your secret? Like how are you guys doing that? Like so many companies are struggling, so many companies are losing money, so many companies are struggling with profitability, but you guys have risen to the top in a very short period of time. Is there a secret to your sauce? Is it because you guys have a better product? Is it because you got a strong management? Is a combination of both? What do you think? You know, I think it's a bit of everything. I think if you look at the core team that we have, I think the extraction expertise, I say 100 years of cannabis extraction expertise, but that has built the base of our business model. And it's about the focus and reinvesting back into what you're good at and further developing those capabilities. And I think we've done a great job of that. And this year what I look forward to is actually putting those products on the marketplace. So if you look at profitability and everything else, if you're building a whole bunch of things and as an industry, my backgrounds in portfolio management, I launched one of the first cannabis mandates in Canada. And if you look at everyone, we didn't have it. So they were like, we have to build it from scratch, Greenfield and spend $100 million here. Now we're going to go into retail. We didn't do that. We focused on one thing. And if you look at the profitability on that, the reason we are profitable is because we weren't spending so much. We just wanted to be good at one thing. And I think from a theme for us, for investors to relate on this year, is look at cash flow. I think investors are still been looking at revenue. And I think that's why we're trading still at a five times EVD, a dumb multiple for analyst expectations next year is because everyone's been focused on revenue. For this year, I encourage investors to benchmark us on net income and cash flow. And I think the only reason why they're focused on revenue is most companies don't have any income. They don't have any net income. So what are you going to look at, right? Right. And I think as we grow in an industry, we've got to remember that like I always look for my PM days is that 95% of all investors haven't invested in this market yet because either it's not big enough or it's too risky. And as we get cash flow and as we have real businesses that are running, and what we try to do is get two to five year contracts. So we have that visibility and revenue and even so as those come online, I think we're a great vehicle for the long term with a management team and an overall corporate structure that is focused and really putting the investors in the front. And that's why we initiated an NCIB. I think we're the first cannabis company to do that. We're cash flow positive today. We have lots of cash in the balance sheet. We can now actually make sure that we're putting our investors first. Now there's something really big coming and that's legalization in America. One of, I told my community on Telegram, hey we're going to be interviewing balance. They want to know, are you guys looking into America? So we're looking at it very closely. I think from an opportunity standpoint we've obviously looked at the CBD market and everything else. We still think the best opportunity, the platform, we're the largest third party extraction and white label manufacturer. And for brands that haven't come in the industry, they look at us and say I think we're a great target for doing that. So as long as we see like CPG and Fortune 500 companies that are looking to get in this industry, I think we're well positioned. If you have conversations with them, they're saying are you in the US? And if you say yes, they're saying oh we don't want to deal with you because it's federally legal. So we want to focus on again, focus is key for us and focus on executing on Canada, contracts we have, and then building out a base and we are monitoring as soon as more regulations come out on the CBD side and THC side, we would look to go there. Smart. I mean why why rush it? You've seen what's happened with a lot of companies that have tried to go too quickly and they're struggling, right? We've seen Aurora have problems. Today an analyst gave them a $1.50 estimate like Bank of America gave them a $1.50 price estimate. So I mean obviously the stock's been struggling because they're getting a lot of negative downgrades. You guys have been leading the pack and you guys have done a really good job. Now for investors that are watching, we've got investors in 60 countries worldwide. We get over 11,000 hours of watch time a month on Rich TV Live Alone. They love watching and learning about cannabis companies specifically. What do you want to tell the investors that are watching all over the world? What can they anticipate? What they can expect? Why would they be interested in investing in balance? So as a sector in Canada, like I think we can say that it was a tough year for the space. But what we're seeing from our customers is really innovative products and you're finally seeing these 2.0 products on the shelves. We've made products and our customers now have them on the shelves and they are selling and I think what you're going to see is a continued trend and if you look at even just a macro level, in Canada we had $129 million in retail monthly sales in October, right? So the annualized that's over $1.5 billion, right? So if you look at like what we've come in such a short period of time, it's good and what we don't have is we don't have a lot of retail stores, they're coming and we just launched 2.0 products. So if you look at the overall market size, like you could really see this year being $2.5 billion in sales. Another billion dollars up for grabs. So the fundamentals, the long term of the industry are there. It's now just how are people executing underneath it and what we're seeing from our customers is that I think the tide is turning and there's going to be some really cool products on the shelves and all I have to say is you're just going to have to wait and see them in the next few weeks. Well thank you so much for joining us. It's been a pleasure. I wish you all the best of luck in your future endeavors. Thank you guys for watching. This is Everett from Balanced GrowWorks. Talk to you guys soon.