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Chemesis International Inc (CNSX:CSI) Deal with First Medical Cannabis LLC for Agricultural Acreage

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Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

Chemesis International Inc (CNSX:CSI) (OTCMKTS:CADMF) (FRA:CWAA) is a licensed producer and manufacturer of medical and recreational cannabis with operations in California, Puerto Rico, and Colombia. CEO Edgar Montero is thrilled with the company’s recently announced exclusive partnership with First Medical Cannabis LLC. The deal provides Chemesis with access to 1,000 acres of agricultural land for hemp cultivation with an option for an additional 5,000 acres. Montero explains that Chemesis intends to grow hemp with high yields of CBD and that the deal is an important part of establishing Chemesis as a competitor in the hemp space. Montero highlights the company’s geographic advantages, noting that its operations in Colombia and Puerto Rico allow Chemesis to grow more crops per year.

Transcript:

James West:   I’m joined now by Edgar Montero, CEO of Chemesis International, trading on the CSE under the symbol CSI. Edgar, how are you today?

Edgar Montero: Hi, how are you, James? Fine, thank you. Very excited to be on your program.

James West:   Ah, great. Okay, well, so let’s start the conversation off with an overview: what is Chemesis International all about?

Edgar Montero: Well, I think I – I talked to you before about the strategy of Chemesis. Chemesis is known most of it for its manufacturing processes, and we are a multi-disciplinary, multi-state, multi-country operation that is based in Puerto Rico, Colombia, and California as of now. And normally we are trying to do expansion in other states. But it’s a company that we started July of last year, and we are doing pretty well. We’re a very exciting company, well established, great staff, and we’re expanding rapidly, James.

James West:   Wow, fantastic. Your most recent press release, you announced a partnership with First Medical Cannabis, bringing 1,000 acres of hemp cultivation into Puerto Rico. So you’re growing hemp outdoors?

Edgar Montero: Yes, yes, of course. That acreage is meant to be outdoors, and it’s a – this is a very good press release, but most importantly, the partnership that we are having with First Medical is going to be quintessential for us for the growth of the company in Puerto Rico. The land is privately owned, we have the right to own its harvest for high CBD crop, so that’s a pretty exciting news, not only for us, but I believe for whole Puerto Rico. We are in a stage in Puerto Rico where we need these type of deals, these type of contracts, to start expanding the capacity of the industry, but also, and I would say to contribute to the growth of the island.

After the Hurricane Maria, I don’t know if you were aware, but last September 2017, we were struck by this Category 5 hurricane, and trying to fix from the roads the electric grid. The entire island has been a challenge for Puerto Ricans, and I believe a project like this one will bring certainty to the industry, first and foremost; will bring a lot of jobs to the community, and we’re trying to put our best effort to try to develop something that is meaningful not only for cannabis, not only for our company, but for the people in Puerto Rico.

James West:   Well, that’s commendable. We’re very well aware of how tough it’s been for Puerto Ricans in Canada after that disastrous hurricane. So that’s great. Well, then, how are you planning to export products? I guess you can’t really export from Puerto Rico into California markets or Colombian markets yet, but is that kind of what the game plan is? To buy your international footprint here in Colombia, Puerto Rico, and California to sort of start to be positioned to capture that international opportunity as the laws in the United States evolve towards national de-prohibition?

Edgar Montero: Exactly, exactly. You’re exactly right. We’re in a position in the US where the regulations have been written, and we are just unfolding what is going to happen in the next, I would say, 18 to 24 months, which is going to be the increase of production for hemp and other products; the relationship that is going to start happening with other companies, other countries, other states, and we are, as you mentioned, trying to position ourselves in the forefront of this new phase.

And obviously with our geographic location, we are not only able to be the liaison between South and North America in Puerto Rico, but we are also positioned to help develop other countries in Europe, as well. Remember that we are close to the Equator, so the sunlight is very beneficial for us. We can grow more crops per year, so that will be, I would say, a characteristic that is going to be very good for our plans to expansion.

So, in the upcoming months we’re going to see much more development in this front, and I would love to share these developments with you in the near future, my man.

James West:   Yeah, great. Well, we’d love to come down with cameramen in tow and shoot everything.

Edgar Montero: I’m going to tell you, this time of year in Puerto Rico is just beautiful, weather-wise. The people are, every time I come here, the welcoming I receive from not only the staff but all the people in Puerto Rico is just great, and they are working very, very hard. It’s outstanding how Puerto Ricans are doing this project, and I cannot thank enough to my staff, the government of Puerto Rico, our partners in First Medical, to give us the opportunity to develop this project.

James West:   You bet. Okay, and so, you’ve got – sounds like you’ve got a large outdoor grow under development in Colombia. Is that something that will be outputting large quantities of cannabis, as well?

Edgar Montero: Of course, yeah. We started with La Finca Interacviva almost a year ago. We were, we started developing different avenues; one of them is the production of seeds, the certified seeds, and now we’re in the presence of validating those seeds, putting the last, in the last process so we can export those to different countries. So that’s pretty exciting; that is happening as we speak.

Obviously we’re going to let people know when the process is fully finished, and we can have that availability. But with this project, with Puerto Rico, we are going to position ourselves to be a large competitor in the hemp space. Obviously also in cannabis, with the rest of our operation, and contribute to the industry. At the end of the day, the industry, as well all know, is in its infancy, and we need productive projects to enhance the variety of products to be able to meet the demand in the market, and to have a footprint that allows us to give our shareholders the value that they are seeking in the industry.

So I think we are on a very, very good path. We’re working tirelessly to achieve these goals, and the only comment I would say is that Chemesis development, it’s in a rapid pace, and we are hoping that the people can see that in our press releases, also in the space that we are operating now. And we are very excited, James. We are really, really excited.

James West:   Yeah, well, it’s certainly an exciting place. I’d be excited, too. Okay, great. Edgar, so what are the big milestones that you’re going to cross this year that are going to give investors a warm and fuzzy feeling, and get them, you know, piling into the stock?

Edgar Montero: Well, I think there are several. We announced a couple of weeks ago that we are under construction in California; I think that’s a market that everybody is looking, and I think that we are going to be a very relevant competitor there. So I think that in the next quarter, you will see the result of our efforts. You know that in California, it’s a place that brings a lot of attention, but also regulatory-wise it’s also complicated. So you need to navigate through that. We have been doing that for the past 24 months, and now I think that we are going to harvest the fruit of our efforts with two manufacturing companies that we acquired there.

Obviously, Latin America is a market that will add to our bottom line in this year, and Puerto Rico, obviously. I think that we have in the kitchen a couple deals. Obviously we’re going to announce them in proper time, but I can assure you that Chemesis, our staff, people that engage in association with us, are very excited about the future of the company; and Latin America looks pretty good for us.

Obviously we’re trying to do other business in other jurisdictions in the US, so I think that this year, Chemesis will continue with its expansion, the credibility of course, and bringing more people into our company.

James West:   Yeah. Sounds fantastic, Edgar. All right, well, let’s leave it there; sounds like it’s working for you, your stock price has increased handsomely over the last year, and looks like you’re doing a great job. Thanks for joining me today.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.