Stock Selections

Selection Criteria Natural Resource

#

CRE

1

Large capitalization over $100 million

✔

2

Certified “NI 43-101” asset

✔

3

Recent financing within the year in place

✔

4

Consistant and active daily volume

✔

5

Experienced management

✔

6

Growth industry

✔

7

Technically sound as analyzed by daytrader1.com

✔

8

Well position to capitalize on current / future demand

✔

9

Strategic location for their industry

✔

10

Strategic buyer for their products

✔

11

Low cost producer for their industry

✔

12

Institutional or influential shareholder

✔

13

In an explosive growth sector

✔

Selection Criteria Non-Resource

#

HEXO

RAY.A

1

Large capitalization over $100 million

✔

✔

2

Recent financing within the year in place (Minimum $5 million)

✔

✔

3

Consistant and active daily volume

✔

✔

4

Experienced management

✔

✔

5

Growth industry

✔

✔

6

Technically sound as analyzed by daytrader1.com

✔

✔

7

Well position to capitalize on current / future demand

✔

✔

8

Strategic location for their industry

✔

✔

9

Strategic buyer for their products

✔

✔

10

Low cost producer for their industry

✔

✔

11

Institutional or influential shareholder

✔

✔

12

In an explosive growth sector

✔

✔

Stock Selections

Current Positions:

Date

Ticker

Company

Industry

August 1, 2018

CRE

Critical Elements

Junior Lithium Producer

August 1, 2018

HEXO

The Hydropothecary Corp

Cannabis – Marijuana

August 10, 2018

RAY.A

Stingray Digital

Music

The “Sizzle” for each of our TenBagger Positions:

CRE: Critical Elements is a lithium producer whose wholly owned Rose lithium-tantalum project has an internal rate of return at 34.9 percent after-tax with a net present value is estimated at $726-million at an 8-percent discount rate. The mine will produce a total of 26.8 million tonnes of ore grading an average of 0.85 percent Li2O (lithium oxide) and 133 parts per million Ta2O5 (tantalum oxide), including dilution. The mill will process 1.61 million tonnes of ore per year.

THCX: This company was selected as it has a strategic relationship with Quebec’s cannabis dispensary which is the SAQ, (the provincially owned alcohol retailer). The Hydropothecary Corp. has entered into a commercial agreement with the Societe des Alcools du Quebec (SAQ) to be the preferred supplier of cannabis products for the Province of Quebec for the first five years post-legalization, with an option to extend the term for an additional year. Under the agreement, Hydropothecary will supply 20,000 kilograms of products in the first year of the agreement and is expected to supply 35,000 kg in the second year and 45,000 kg in the third. The volumes for the final two years of the agreement will be established at a later date based on the sales generated in the first three years. The supply arrangement covers the full range of the company’s products and brands, from flowers to cannabis oil.

RAY.A:  Stingray Digital is a music / radio/ content consolidator and provides music and media services to over 400 million customers in 156 countries.  It is currently building momentum by buying industry leaders in this unique space.  Stingray recently purchased Newfoundland Capital, Canada’s second-largest private radio broadcaster, for $506-million, including the assumption of $112-million of debt.  It trades at 13 times forward earnings with a decent balance sheet and solid growth prospects. Earnings per share are expected to double this year while revenue has grown every year since 2013.