September 13, 2019

RavenQuest BioMed (CNSX:RQB) Producing Consistent Cannabis at Low Cost

Midas Letter
Midas Letter
RavenQuest BioMed (CNSX:RQB) Producing Consistent Cannabis at Low Cost

RavenQuest BioMed Inc’s (CNSX:RQB) (OTCMKTS:RVVQF) (FRA:1IT) Mathieu McDonald joins Midas Letter to discuss the company’s cannabis plant research at McGill University to produce consistent cannabis at a low cost. The agreement with McGill University studies methodologies behind cannabis plant stabilization and yield maximization. Mr. McDonald also discusses the company’s Cannabis Biocare joint-venture, which will provide full funding for facility build-outs and the company’s revolutionary Orbital Garden technologies globally. Initial production will focus upon Portugal and European expansion into East Africa, West Africa and the Middle East. Discussing the company’s growing technology in comparison to the industry standard green house growing operations, Mathieu McDonald states “We fit 500 square foot of row space on that, using 65% less power, 90% less nutrients and dripping 0 water to waste.”

Midas Letter
Midas Letter
RavenQuest BioMed (CNSX:RQB) Producing Consistent Cannabis at Low Cost

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Mark Latimer: Welcome back. My guest today is Mathieu McDonald from RavenQuest. Welcome to the show Mathieu.

Mathieu McDonald: Good to be here. Thank you, Mark.

Mark Latimer: Let’s jump right In. There’s your big partner in innovation with McGill in cannabis. Can you touch on some of the work you’re doing with McGill?

Mathieu McDonald: Yeah, so I think it’s important to realize that the care of the legal cannabis space. We’re really only in around the first or second inning when it comes to understanding of the plant because this plant has been illegal to possess and cultivate here in Canada for over a hundred years. It’s been virtually impossible to do any real meaningful research, scientific research, into the plant itself and how to produce a plant that can consistently express in a very repeatable fashion, so that the patients and consumers and consumers know exactly what to expect from their product. We are very cognisant of that at RavenQuest as a science and innovation company. We partnered with McGill when we first started trading publicly a couple of years ago. So, we’ve identified some very interesting aspects called beneficial microbes which are really a natural way to stress the plant in a positive way, so we’ve been working on that at McGill University. It appears when you look at the Health Canada license page that McGill has now actually received its cultivation and production and possession license for the cannabis plant itself. So we’re now going to be able to take that knowledge that we’ve been garnering over the last couple or three years with McGill University and apply that directly to the cannabis plant and we’re really excited to really move that to the final stages, identifying out those beneficial microbes which can stress the cannabis plant very positively and I’d be happy to talk more about that.

Mark Latimer: Yeah. Absolutely the live microbes. Can you elaborate a little bit more about how these can benefit the plant

Mathieu McDonald: So live microbes are essentially looking at the way cannabis been produced outside the legal realm. In order to generate a plant that can then produce high levels of THC, which is a very popular area in the recreational market right now.

Mark Latimer: People do like a lot of THC in their plants. That’s for sure.

Mathieu McDonald: Absolutely, so the high THC plants have been bred over a long period of time many generations to generate that high THC, but what those plants are doing is actually giving up some of their defense mechanisms in order to apply more energy to generate more THC and that’s why in many cases these plants can be more susceptible to things like powdery mildew and other pathogens that can enter into the grow room and infect the plant itself, in many cases outside the legal Market. What you’re forced to do is use pesticides and things like that in order to protect the plant. What RavenQuest is doing with McGill is we’ve identified natural ways using what you would describe and what we describe as live microbes in order to reduce the nutrient system and the plant can defend itself against these diseases and pathogens in a natural way without using GMO or without using pesticides. And really that is a huge market. Not only in the cannabis space, but as well throughout the entire agricultural industry. The live microbes Market is about a three billion dollar per year industry right now worldwide and that’s estimated to grow into a 12 billion dollar per year industry worldwide by 2026. So RavenQuest is cognisant of that. We have identified these microbes in our research with McGill University and we will own those microbes, which will be available to us in our cultivation and we can also license that out as a revenue source worldwide in the Cannabis space and beyond the Cannabis space as well. So very exciting news as we move forward with our research partnership with McGill.

Mark Latimer: It sounds really exciting. So you’ll be able to take these live microbes and basically license them out. Is that what I understand?

Mathieu McDonald: We will own those microbes. So that will be a revenue source for RavenQuest.

Mark Latimer: Absolutely, let’s talk a little bit about your joint venture with Biocare. That’s recent news. Am I right, that happened a little over a week ago?

Mathieu McDonald: Yeah. So last time we spoke here on the Midas letter. We were hoping to get across the finish line with the definitive agreement with our partners Biocare to develop a joint venture for expansion into the European marketplace. And since that time, we have signed that joint venture agreement. We announced that about a week and a half ago, very positive news because now RavenQuest is able to move forward with Biocare and start working on developing our facilities in the two sites that we have picked out in Portugal. So, we’re expanding now. What that means for the marketplace for the European marketplace and for RavenQuest, our shareholders is 35 thousand kilos per year of annual production out of our Portugal facilities, within the next 18 to 24 months as we complete those facilities. That’s a huge expansion for RavenQuest because we get 50 percent of that. Which means 17,500 additional kilos of annual production on a non-diluted basis as Biocare brings all of the funding for that joint venture partnership, and we bring what we’ve talked about before the Orbital Gardens and all the technology and of course the live beneficial microbes, which was something that Biocare was extremely interested in when we first started chatting about entering into the joint venture, which we now have with Biocare.

Mark Latimer: Well, it sounds like a great deal and you also have some technology that I believe is unique to your company; the Orbital Gardens. Can you touch on, I know I’ve seen some videos I’d love to see it live, but can you speak to the Orbital Gardens and what that means?

Mathieu McDonald: So obviously, licensed square footage in Canada in the legal space is extremely valuable and hard to get your hands on as a licensed producer. So, throughout the first sort of run-up in the Cannabis Market many many players talked about the idea of having massive amounts of square footage. Whether it be Greenhouse or whatever, and that was a really interesting sort of run-up in the Cannabis Marketplace where RavenQuest took a different approach. And what we do is we actually use the cubic footage of the room. So ,we’re talking about plants revolving around a light and then stacked up three high and too wide. So, actually when you unroll those tubes that the plants grow inside and add up all that square footage that surface area. We’re able to fit over 500 square feet of gross space onto a 65 square foot footprint. So, think about a space about the size of a parking space. We fit 500 square foot of row space on that, using 65% less power, 90% less nutrients and dripping 0 water to waste. So, the orbital Gardens are also automated. So we can control all the aspects of that plants life inside those Orbital Gardens with precision from outside to grow room using only two individuals to control the entire facility. So, this is an efficient way to grow. It’s a way that we can control the plants environment and deliver consistent plant material for consumers and patients. And obviously, we think this is a disruptive technology. We’ve now started populating our Edmonton facility, which actually has the Orbital Gardens throughout the facility with plant material and so we have now proven out that technology and we’re really excited to both use that and ramp up our production here in Canada, as well as overseas in Europe to the tune of 35 thousands kilograms of annual capacity out of Portugal within the next 18 to 24 months.

Mark Latimer: Well, you’re clearly a leader in technology and innovation with your research partnership with McGill. What else are you looking forward to in the next months to come?

Mathieu McDonald: Well, as I said the Canadian facility, here in Canada, our Edmonton facility is now ramping up production very rapidly and just in the coming weeks and perhaps months what RavenQuest is excited about his discussions that we’re having with other parties outside of our existing supply agreements. Both at the province’s, some of the major English-speaking provinces in Canada. We’re looking to get some supply agreements across the finish line hopeful to bring that to the market in the near term. So that’s something that we’re very excited about and of course now that the joint venture has been signed. We are moving forward rapidly to begin construction overseas and Portugal again to expand capacity to 35 thousand kilos annually.

Mark Latimer: Well, I’m very excited for what’s to come and we’ll keep watching the stock and thanks so much for your time Mathieu. Appreciate having you on the show.

Mathieu McDonald: Great to be with you. Thank you, Mark. Have a great day.


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