RISE Life Science Corp (CNSX:RLSC) (OTCMKTS:MCUIF) (FRA:L02) CEO Anton Mattadeen joins James West to talk about RISE’s target: consumer products. Mattadeen suggests that with the current industry focus on cultivation, there exists “a brilliant opportunity to actually create a strong brand.” They discuss RISE’s recent deal to acquire California-based companies Cultivate Kind and Life Bloom Organics and how these purchases fit the company’s consumer products target. Mattadeen highlights that Life Bloom Organics’ line of nanoemulsified health and wellness solutions compliment RISE’s existing line of sexual enhancement and arousal products.
James West: Hey, welcome back to Midas Letter Live. My guest in this segment is Anton Mattadeen. He is the CEO of RISE Life Science Corp., trading on the CSE under the symbol RLSC. Anton, welcome to the show.
Anton Mattadeen: Pleasure to be here. Thanks for having me.
James West: Yeah. Let’s talk about RISE. I’ve been sort of watching this thing peripherally with one eye, and it kind of, you know, wasn’t right up in my wheelhouse so I didn’t jump in on it, but what is the raison d’etre for RISE?
Anton Mattadeen: Well, our target is consumer products. You know, we’ve taken a look at the entire market space; we see a lot of movement when it comes to cultivation, and I think that’s being handled very, very well. But we’re looking at the other side of the equation: eventually, these products have to end up in the hands of the consumers, and there’s a brilliant opportunity, I think, to actually create a strong brand, because that’s really what consumers want.
James West: Right, sure. So being focused on consumer packaged goods, you’re not focused on being a cultivator or an extractor, because you’re going to be able to acquire that stuff on the market?
Anton Mattadeen: Exactly, exactly.
James West: That is, I’ve been waiting for somebody to show up here and come up with that business model, because that’s, you know, if you look at the price of CBD and the fact that they’re about to license the first 5,000 acre outdoor CBD facility in, I think it’s in Kansas or Kentucky, there’s all kinds of open field CBD stuff coming. So the price of CBD is going to go down to sub $0.01 per unit of production, without a doubt.
Anton Mattadeen: That’s correct.
James West: THC remains to be seen, but still, we’re looking at a plant that, you know, in a closed environment you can grow six crops a year.
Anton Mattadeen: Yeah, you know, that, I think, is the biggest challenge, is the regulatory conditions, because it’s different for THC and CBD in different environments. Now, we know that with the laws that are being passed in the US, eventually – it could happen very quickly – CBD is going to be de-scheduled. And when that occurs, you know, the lid gets blown off of this thing, because now you can sell to 50 states and 22 countries around the world and it’s a legal product.
James West: Right. Doesn’t even THC have to become de-scheduled now that the FDA has actually approved a drug?
Anton Mattadeen: They’re talking about it, but there’s, you know, they’re still leaning towards what the states want to do. What does each state – what conditions do they want to follow. And then, of course, you’ve got the Feds, that have their own view of things as well, so we’ll have to see where that lands.
James West: Right, and they’re just wacky. So recently you closed a deal to buy Cultivate Kind and Life Bloom Organics. Tell me how they fit into your strategy.
Anton Mattadeen: Okay. Cultivate Kind originally was our agency of record in California. Just as a background, our focus was to ply what is arguably the most creative cannabis market and also the biggest cannabis market in the world, in the state of California. With the advent of legalization, the fact that they’ve had 22 years of retail exposure experience, they probably tried all kinds of iterations, so there’s a very, very good communication strategy with their actual customers.
So Cultivate Kind, as our agency of record, as well as having, you know, great, solid chops when it comes to dealing with consumer products across the board, they’re also deep in the cannabis space. They’ve been one of the early marketers in the cannabis space, and they really understand the market, they understand the nuances associated with California and all the different regions there.
James West: Okay, and what about Life Bloom Organics?
Anton Mattadeen: Now, Life Bloom Organics happens to be a product company: nanoemulsified solutions, so they’re oil sprays. They have two products right now, which is a sleep solution and a pain and wellness solution, and they’re getting great reviews. They’ve been in market since December. So by doing this acquisition, not only do we get the retail engine on the ground and the ability to expand ourselves, we also inherit products and a distribution arena in California. So they’re currently in over 120 premium retail locations. So we’re going to match that with our Kreza line of sexual enhancement and arousal products.
James West: Oooh, that sounds, oooh! Sexual arousement, woooo! Just saying that, woooo! Gotta put my feet in cold water, here. [laughter] Okay, so you’re going to start selling – your products are already available throughout California right now?
Anton Mattadeen: Our products are already in California.
James West: Okay, and so are you planning to stay US-focused, or is this going to be a Canada play, as well?
Anton Mattadeen: This is going to be a global play. I mean, we’re looking at the entire market space. You know, we’re in California, obviously, because of that gravity of that market there; but everything that we produce in that market space, everything that we get a chance to test against the retail market, we can take anywhere that’s amenable. So it positions us perfectly when we go through legalization here; we can bring certain products to market. We won’t know how it acts in market, so, you know, we’ll have those little cues, and then it sets us up to also take a look at the European market as well. So we’ve kind of got a grand strategy around this.
James West: Yeah, I love it. And so, is this something that you’ve got to wait for rules to change in different jurisdictions before you can actually go in there with a product strategy, or is this something where you’re going to say, okay, we’re watching this market unfold, we’re going to develop a product strategy based on what we think is going to happen?
Anton Mattadeen: It’s a little bit of both, okay? I mean, we know for a fact that, from the standpoint of managing CBD, we know that that’s a great entry point to the wider marketplace. So our focus has always been on, and the question that we asked ourselves at the outset was, we noted that most organizations are really focused, and most conversations are really focused, on the 10 percent of the population that actually utilizes cannabis in their lifestyle today.
James West: 10 percent?
Anton Mattadeen: Roughly about 10 percent.
James West: I thought that was very low.
Anton Mattadeen: Well, you know, I mean, it’s a conservative number, but roughly, that’s traditional market space. But what about the other 90 percent? You know, what about all of these people out there that, once the stigma is removed from cannabis and they understand what it can do for them, you know, we believe there’s quite a lot of people that are going to want to roll this into their lifestyle. So that’s why we have our target where it is.
James West: Yeah. I had a strange experience this week in that, you know, I’ve smoked cannabis relentless up until I was about 25, and then it was just like, I got too spacey and I was non-communicative and I was introverted, and I was like, this is not any longer a socially useful substance to me. This week I ordered a 30 mL jar, little vial, of 1,000 mg of CBD with less than 1 percent THC in the entire jar. And the idea was that because I have this dog that has a skin condition that she gets in the summer, and I thought, well, CBDs are supposed to have a homeostatic effect on any animal endocannabinoids. So I thought, okay, well, I’m going to give one for me and one for the dog. And so I tried it, gave some to the dog, and I was thinking, it’s CBD; it doesn’t do anything for you at all.
And then an hour late, I was watching videos on the couch and I’m looking at the dog and the dog is looking at me, and I feel like I’m tingling all over, and I just felt so good. Like, I just felt relaxed and focused, and my mind was sharp, and it was just – there is a CBD effect physically.
Anton Mattadeen: Certainly is.
James West: And it’s not so mental, but I just at that moment realized that I love CBDs. So it’s not that I’ve started, you know, dosing CBD every night, but it’s like, now I think, you know, I’m looking forward to tomorrow night, it’s Friday night, I’m not going to try to smoke a cannabis joint that’s 18 percent THC; no, I’m going to do an eyedropper full of CBDs under the tongue.
So when you talk about the other 90 percent – this is my long-winded way of hijacking your story – the other 90 percent, it strikes me that if there was an entity out there like you guys to say, you know, if the high is not for you – because the high is what turns a lot of people off. They just find themselves losing control. But if you were to do the CBDs, there’s no loss of control mentally of your thought processes, or feelings of anxiety. And so I think that’s probably one of the great opportunities for the other 90 percent that you referenced.
Anton Mattadeen: I believe you’re absolutely correct. You know, we affectionately call it the happy pill, because it really does – there is a noticeable shift if you are utilizing what we call impactful genetics.
James West: Okay, I don’t know what that means, exactly.
Anton Mattadeen: Okay, well, you know, there’s CBD isolate, and then there’s whole plant matrix, and we’ve found that the whole plant matrix just offers a real shift. Like, a noticeable shift. It’s not psychoactive in nature, but what it does, it sets an entire new threshold for your stress. You know, it just drops that baseline. And our argument, and you know, the argument that we put forward with our sexual pleasure products, and with our health and wellness products, is that, you know, the biggest thing that we face out there today is stress. If you can reduce stress, you will operate better in every facet of your life, including better sex and everything else.
So that’s our focus. You know, we understand that there’s been this, you know, cannabis has had a 5,000-year relationship with sex. You know, you go back to the Kama Sutra and there’s, as a matter of fact, one of the product names that we utilize is derived from that; Kreza, our sexual enhancement product, is really focused on – the actual name means the purposeful delay of orgasm in order to achieve the ultimate orgasm for both parties.
James West: Whoa, how tantric.
Anton Mattadeen: That’s tantric, that’s totally tantric.
James West: Wow, I can’t wait to try that. So, it’s for sale now in California?
Anton Mattadeen: It’s for sale in California.
James West: I’m going to California a couple times this month. I’m going to look for it.
Anton Mattadeen: Okay.
James West: So that’s a great introduction to the company, Anton. We’re going to come back to you in a few months’ time, see where you’re at. Thank you very much for telling us about RISE.
Anton Mattadeen: Thanks very much for having me on. Take care.
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