RavenQuest BioMed Inc (CNSX:RQB) Client Bonify Achieves Landmark Health Canada Licence Reinstation
RavenQuest BioMed Inc (CNSX:RQB) (OTCMKTS:RVVQF) (FRA:1IT) CEO George Robinson join Midas Letter to discuss its client company’s landmark success. RavenQuest provides comprehensive management services including operational direction and oversight to Bonify’s 320,000 square foot cannabis production facility located in Winnipeg, Manitoba. For the first time in the history of Canadian legal cannabis sales, Bonify has had its Health Canada license suspension lifted and sales license fully reinstated. RavenQuest provided the necessary direction and corrective action to restore confidence with Health Canada and ultimately fully restore Bonify’s sales license. RavenQuest has a history as a leading consultant in the Canadian cannabis space improving and streamlining production operations.
James West: George Robinson joins me now. CEO of RavenQuest Biomed. George, welcome back.
George Robinson: Awesome. Good to be back
James West: George, interesting press release today. Bonify, the company that RavenQuest was assisting recover its license has successfully regained its status with Health Canada. That’s a first in the entire history of the system if I’m not mistaken.
George Robinson: First-of-its-kind. There’s a pathway back from let’s say the suspension. There’s now a pathway back to getting your full license back. And this press release talks about, from the RavenQuest side, talks about that they have the full capacity to sell to anyone to a patient to a province. They can sell now outside of the country, inside of the country. It’s a full reinstatement of the license. So, we now have created a pathway back from suspension to full license.
James West: So, is this a possibility that CannTrust is exploring as well?
George Robinson: Well, I mean, I’m sure they’re starting to discover the pathway and it’s not easy to go down and we’ve heard things that have happened there in the last few days, but now this creates a probability story that if they follow the right process they can also get their license back.
James West: Okay, and your role as CEO of RavenQuest was to spearhead all of the aspects that Bonify had to go through and in that process you became also the CEO Bonify.
George Robinson: Correct. Yeah, so they needed some leadership there that they could rely on I guess and knew the regulations, so they brought me in as their interim CEO to sort of guide that process for them and that was a very exciting role. And then with the RavenQuest hat. I was the lead sort of person on our team of about seven or eight people that re-establish the culture, the processes, the standard operating procedures to put that facility back on the right path. So, its interesting wearing both hats, but I think it worked out for the best. Health Canada had knew that they had someone at the helm of the company that understood the processes the challenges, that were faced, and how to create a culture that would bring them back to the point where Health Canada would feel comfortable that Bonify could run on its own. I think RavenQuest and our team of Consultants really understood that very well and it’s what drives our company anyhow, because we run our company the same way that we manage modify.=
James West: Sure. So, what does this make Bonify now? Like what is its footprint? What is it status? What’s it going to become?
George Robinson: Yeah, with my Bonify hat on, we are really lucky to say that it’s a small company, small private company now we can edge back to the sales side of the business and start generating revenue. Luckily, we were able to maintain our cultivation license, so we would be able to fill the vault up completely with product. Dried flower. So now with that allows us to do to get instantaneously back into revenue. So we’ve been working very diligently on taking a look at what those opportunities look like, what the brand of the company will look like, but again a small private company now just with our head down want to do the right things, for the right reason to get back into revenue. Which will start in the near term.
James West: Does RavenQuest BioMed or Bonify have a strategy in place for the Edibles Market at this point?
George Robinson: RavenQuest does for sure. I mean we have already talked about our joint venture with not-so-gentle Tea to create the tea product which I think is one of the most reasonable ways to bring certain demographics into it. We now know that there’s a large need for tea, a lot of younger people are drinking tea, but we also think that there’s an older demographic for it so, that for us and RavenQuest is one of the past and we’ve talked about the Vaping process. I think what we’re doing right now, yesterday, McGill had its inauguration of 92 researchers. Six faculties are now completely embedded into cannabis research. We are going to be actually testing our Vape product there to make sure there’s no harm. With all the other stuff that’s going on about Vape products, we’re going to take the pathway of actually testing our product to make sure that there’s no harm. Take that study to Health Canada along with our product actually get our Vape Pen license. So, it’s a different approach, but we think it’s the right one with all then negativity around vaping right now.
James West: You bet. So, does that mean you’re going to use McGill’s Medical Campus to actually conduct medical analysis of the effects of vaping?=
George Robinson: Exactly. So, it’s very interesting. You know when you start talking about it, they have probably the most unique equipment to actually help us do what we want to do. For example, we can now do what we call an imaging or magnetic imaging of it. And also, what we call drug Discovery. So, what we’re doing is actually taking the Cannabis molecule and we’re going to look at it in three dimensions to see what’s all in there rather than just the two-dimensional images that we get typically from each HPLC’s so we’re going to do there’s understand what’s in behind it. And then with that we’re going to be able to use in the toxicology side is now we’re going to be able to draw it in through the toxicology side and see in The Vaping process or in the compounds is anything converting appropriatyl through The Vape products that could cause harm and we just think that that’s what Canada and what the world’s going to need is someoneto step forward and say if you’re going to get into The Vaping business proving no harm strategy that you’re doing in long before you can get to efficacy and all that other stuff.
James West: Right. So will the sort of Vape testing protocols established at the McGill Cannabis Center for Excellence become an industry standard testing vaping ahead of product releases?
George Robinson: We don’t know but that’s one of the things I’d like to be able to do, is start saying, okay. Let’s start looking at this differently. Let’s not look at strict commercialization. Let’s look at harm, but if we can do it at McGill first and maybe it can also become a standard but there may be other things that other universities are other testing agencies want to do but I think if we start their people are going to look at this and say what else can we do at McGill, not only RavenQuest, what can other people do their to say? There will be no harm in if you choose to use this product,
James West: Right. So, that’s quite a big deal that McGill has established this Centre of Excellence for cannabis. What is its overarching purpose?
George Robinson: So, I think what they wanted to do and we’ve been at it for all I’ve been with McGill for three and a half years. What we want to do is create an understanding about the research of cannabis that’s a positive experience for the school. Obviously, I can’t speak for the school, but what I heard very clearly, they want to make sure they wouldn’t lose any of the donors or alumni if they ventured into the research side of cannabis.
James West: Right.
George Robinson: But we’re beyond that now. We had the reputational board approve the process back about two and a half years ago. What it really means is this: you can go anywhere from studying cannabis in law, Finance, which are outliers when you think of cannabis, but now you can be in toxicology. You can be a neurology. You can be in Pediatrics. You can be in Imaging. You can be in drug Discovery. You can be in plant Sciences. All those researchers work to get together on the same campus with the same overarching guidelines that this will be a positive for the school where many other places have researchers that are working at different universities. But researcher to researcher is very different than a whole campus and a whole school backing it from a funding perspective it. Backing from an experience for the researchers. So, this is where I see the benefit of it. And right now it’s the largest institution or even University that’s backing up with six faculties and 92 researchers. And yesterday we heard about some of the early research that starting already which was unbelievable.
James West: Well, I can’t wait to learn more about that. Okay. So, then what’s driving the engine at RavenQuest now, you guys are still executing, firing on all cylinders. This Bonify business constitutes a revenue event for RavenQuest and is representative of a somewhat typical Consulting engagement.
George Robinson: Yeah, I think the revenue side on the on the Bonify side really just tells the world that you know, not only are we a technology company that grows cannabis. We’re also a consulting company that can help people when things get into trouble or they need some help in that area. So maybe if you take a look at on a broader scheme of outside of Canada that Consulting experience is going to be of extremely high value. Even if you remember at McGill, we actually helped write some of their applications for the research and development licenses. So the Consulting arm actually creates a lot of value to the company and having Revenue continue to develop one of the Consulting side, they know kind of helps along the idea of offsetting some of the costs. Remember a lot of our consultants are still the managers of our business. So, they’re actually driving Revenue at the same time they’re managing our business. So ,it’s really quite exciting to maintain that Consulting arm.
James West: You bet. all right, that’s great update as per usual. George will leave it there for now and come back too soon. Thanks for joining me.
George Robinson: Thank you.
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