Rockford write up deserves a "re-post"A Write-Up on Matica - With Valuation/s...and My Twitter November 2, 2014 Matica Enterprises Looking for a Huge Week! Here’s a short write-up on Matica (GRF on the CSE), compiling some of my due diligence. It should hopefully help address some of the questions as to what the company looks like coming out of the halt - and what it will look like going forward. This doc also discusses some of the metrics behind Matica’s business assets, in order to give an idea as to what a proper valuation might be. Some of the building blocks for a GRF valuation are included in the various parts of the doc. They are then added together at the bottom of this piece to form a whole. Note: I am a shareholder of Matica. The numbers I have come up with are my opinion alone about what the parameters of the valuation should be coming out of the halt (assuming the fundamentals haven’t changed yet again when the halt is lifted). This doesn’t mean, though, that the market will necessarily agree with me and / or automatically understand and adopt Matica’s entire present business model. Re the above, please do your own DD – and as always, take full responsibility for your own trading decisions. Cheers. Jim Rockford FYI: I just got on Twitter and can be followed at: @jimrockfordatSH Matica: What It Looks Like Coming Out of the Halt Matica was halted at the open on August 25th. Since then, then, two massive developments have occurred for the company: 1. Matica have acquired an RTB / MMPR – meaning they are a set inspection (already scheduled) away from becoming the 14th MMPR in Canada! Here is a link to the NR: https://www.maticaenterprises.com/pressreleases/20141009-matica-signs-definitive-agreement-to-acquire-nova-scotia-mmpr-facility.pdf 2. Ten days after GRF’s halt, Elon Musk, Chairman and CEO of Tesla Motors, and his Board of Directors selected Nevada as the official site of their Tesla Gigafactory (an advanced battery manufacturing mega facility). Matica’s Grumpy Lizard Graphite Property happens to be a mere 56 km away! Here is a link to the NR: https://www.teslamotors.com/about/press/releases/nevada-selected-official-site-tesla-battery-gigafactory One of these things, alone, would be fantastic for the post-halt SP…Two, well, it’s just being greedy! Matica Looks Incredible At Its Current Valuation - or: Matica Got an RTB / MMPR During Its Halt, So Its Old Valuation is Out of Whack by Multiples! Matica Comparables Note: In Terms of Progress re Licensing, Matica can be compared to Supreme Pharmaceuticals and Prescient. Note: This comparable is admittedly quite rough – we could go into many more metrics Note: GRF was halted with a Market Cap of $3.8 million on August the 25th. Company - Market Cap - Status Abattis - $14.9 million - Awaiting the Right-to-Build Letter Affinor - $25.5 million - Waiting for Health Canada licenses and approvals Matica - $3.8 million (halted) - RTB/MMPR Supreme Pharm. - $28.1 million - Pre-approval from Health Canada Prescient - $60 million plus (halted) - RTB / MMPR Organigram - $55.7 million - MMPR Bedrocan - $47.2 million - MMPR - importing cannabis - now building Can facility Mettrum - $54.0 million - MMPR Tweed - $72.2 million - MMPR T-Bird Pharma - $25.3 million - MMPR - but very small The Numbers: How Will Having an RTB / MMPR Affect a Company’s Valuation? Take a look at the success stories – both private and public. There are a lot of metrics and even some alchemy involved as to what an RTB / MMPR is worth in the very fast moving and changing med pot landscape. When one looks at the numbers above, one can see that those companies having an MMPR / RTB are worth from a low of $28.1 million to a high of $60 million and those having an MMPR are worth as low as 25.3 million and as high as 72.2 million MMPRS Prescient’s deal on the 18th of September raised the bar re what is being paid for an MMPR licence. As rich as it is, though, this deal may be a fair one, as at the current time, MMPRs are – rightly so - widely seen as a lottery ticket. Good MMPRS….Wow! They can spin off a ton of recurring revenue and profit. I have looked at and played around with a decent number of pro forma’s for both MMARs and MMPRS. Let me throw some quick numbers out. They are quite general, but they may give some of the newer med pot investors the flavour of what I think is feasible in the MMPR space if one can handle the one-time capital costs and run an efficient operation. MMPR Numbers (once you are growing): - I see it as feasible to pull in 80% gross profit once you are up and growing; - and 70% cumulative net income (factoring in wholesale and retail production) - Assuming it takes 6 months to get set up, IMHO, one would be able to achieve ROI in under a year. So, as shown above, the potential ROI and net income from MMPRs is amazing. Matica’s RTB/MMPR By all accounts, Matica did extremely well in gaining a Right-to-Build with THC Dispensaries Inc. of Nova Scotia: “The MMPR licence allows the company to supply dried marijuana, seeds and organic soil to dispensaries throughout North America and Europe. THCD's 6,000-square-foot facility is located on 35 acres in Antigonish, N.S., with an additional 16,000 square feet that can be added to maximize the production allowance in this facility to the allotted volume of 806,250 grams per year.” These are the terms of the agreement: “Under the terms of the definitive agreement, Matica has an option to acquire a 50-per-cent interest in THCD by financing THCD up to $325,000, and further upon THCD becoming a licensed producer, Matica will finance THCD a further $1,175,000. Matica will also issue five million shares of Matica common stock to THCD.” Take a look at those numbers above – and then take a look at the much (much) larger numbers paid by other med pot companies…Much respect to Boris Z. for getting that kind of very shrewd deal for his shareholders. Note: Matica has a 50% interest in the RTB and I can definitely see that number growing. I see Matica either buying more outright in the next short while – or gaining more in the future as both sides go pari passu in paying for expansions beyond the first negotiation. Matica’s Med Pot Backers Make no mistake: GRF has big money med pot backers, in terms of financing building operations, and also in taking care of the real estate side of things. The company's President and Directors had great contacts before they got into the space - and as I think we'll see over the next few months - they've greatly expanded their web, as key players have zeroed in on them as a potential industry leader. Note: IMHO, nobody public in the med pot space should be owning their land or building, unless they are trying to turn their company into a real estate play - or if they are getting really good terms that make economic sense. Rawn Lakhan, President and CEO of Meadowbank Asset Management, moved from an Advisory Role to a Directorship at Matica's Annual General and Special Meeting on September 29. Here is a link to Meadowbank Asset Management's website: https://www.meadowbankasset.com/index.html Health Canada’s Has Made it Tougher to Gain a License A grower looking to purchase an RTB / MMPR has to make sure the facility they are buying is going to cut the mustard in terms of becoming a successful business with strong recurring revenue. They may need to make sure they have structures that can withstand an Ontario winter, or maybe there are building reconfigurations that are only going to work financially in someone’s imagination, etc., etc. What really could bring them down, though, is not paying attention to the much tougher licensing rules being instituted by Health Canada. Some points re the above: - HC has moved to a #8 security designation. Basically, security assessments are 20 pages or longer and mean that “new MMPRs need to be like Fort Knox.” - Architectural design is now a lot more rigid. - In BC, you can’t be on Agricultural Land Reserve (ALR). It has to be zoned as industrial or you are out of luck. - I have been told by an expert that very few new applicant companies have a legitimate chance at an MMPR. Three months ago there were 800 potential RTB applicants, and today, realistically, only about 35 now have a real shot. Note: Matica’s Boris Z. is fully cognizant of the HC changes and has factored it into all his med pot dealings. The Chlorine Dioxide Tablets The chlorine tablets are definitely a potential spin-off and stand-alone business. I have been doing a lot of research on them and on FTI Foodtech International Inc., which gave Matica exclusive Canadian rights (with hopefully, the N.A. rights to follow in the future). Note: Now, this certainly isn’t glamorous, but there are huge applications for the tablet in the port-a-potty space. Apparently all it takes is one tablet thrown down a port-a-potty a day in order to keep the smell under control. There are also a myriad of other potential applications for the tablets – with some of these currently being tested in such things as fraccing (where it may allow a much greater percentage of oil flow). Testing of the Tablets in the Med Pot Space “Chlorine dioxide is a chemical compound with the formula ClO2 and is used in industrial disinfection in varying formats. It’s a powerful oxidizer that haMs been used for a wide range of purposes, this including effectiveness to eliminate many common insects by disinfecting and sanitize the growing environment, Matica plans to use these Chlorine Dioxide tablets in medical marijuana grow operations to prevent commonly found spider mites and study its effectiveness with a strict quality standards. Matica hopes to develop a branded product and process which would become the industry standard for growers of medical marijuana.” “Medical marijuana is grown in very humid conditions that can force licenced producers (“LP”) to contend with fungus, pests, mold and bio-film (A living complex of organic and inorganic components that becomes established on surfaces that are in regular contact with water). As such, a sanitation program for the growing facility is of the upmost importance. Our Chlorine Dioxide tablets eliminate sources and transfers of harmful pathogens and attacks bio-film that form on equipment. Surfaces such as pressurized irrigation lines, non-pressurized recirculation system return lines, holding tanks, mixing tanks and containment vessels are prone to bio-film.” “Matica will conduct testing of these Chlorine Dioxide tablets in marijuana growing facilities though ChroniCare Canada Corp., a privately financed corporation and medical marijuana producer operating as a licensed producer under the medical marijuana access regulations (MMAR). ChroniCare will use these Chlorine Dioxide tablets at their medical marijuana grow facility and will monitor and record the effects on the spider mites, fungus and other issues encountered during the growth of various medical marijuana strains.” The Tablets: Future and Valuation GRF will need to finish the testing of the tablets, get the sales crew in order – and then build out the sales. With this in place, I believe at some point we will see a share dividend for a separate spin-off tablet public company. There is a very high margin on this product - IMHO, it’s easily about 35% to 40%. Taking the efficacy and promise of the tablets, it’s promotability, the margin, the possible spin-off – minus the work that needs to be done – and I have to give of GRF's tablet business a valuation of $2 million on the low side and $4 million on the high side. Note: I believe the valuation for this side of GRF’s business could grow far past the "high side" very quickly if they make the right moves. Note: If people want more info re what this product can potentially do, let me know. Graphite Graphite Is Back! / Tesla - Tesla Motors (https://www.teslamotors.com/) almost single-handedly moved the NIA Graphite Explorers Index up 70% this summer – with most of this taking place quietly over the summer. - Tesla’s new $6 billion lithium-ion battery Giga-plant in Nevada will double the world’s demand for flake graphite. - Tesla needs will require 6 new full-scale graphite mines. - The US does not have a producing graphite mine, and, like the UK and the EU, has designated graphite a critical metal. - Elon Musk has said he "plans to use only raw materials sourced in North America for its U.S. battery factory." - The Nevada plant will produce twice the number of batteries needed – i.e. they will also be producing for SolarCity (another Musk venture), other car manufacturers (i.e. Germany) trying to catch up, and the military. - Panasonic is not only Tesla’s partner at the Nevada Gigafactory – they are a leading car battery manufacturer. - 66,406 electric cars were sold in the first six months of 2014 — a 37% increase over 2013. - Lithium-ion batteries are also used in hybrids. - “Blue-sky potential remains enormous from the incremental demand that will be created by ‘technology grade graphite’ to be used in emerging green initiatives and clean technology.” A Look at Graphite: - Not all graphite is the same - “Graphite comes in basically two forms, powder (amorphous) and flake. Powder is the plentiful and cheap form used in pencils, lubricants and brake pads. Flake graphite is the scarcer form, it commands the highest selling price and is the only form of graphite that can be used in all 180-plus applications used on a daily basis that depend upon graphite. Flake graphite is the only form of natural graphite that can be used for lithium-ion batteries and is used exclusively in new-tech applications, such as graphite foils, which are used in almost every consumer electronics product you own, to cool your electronics. Flake graphite is the requisite mineral behind nearly all advancements in new innovations and nanotechnologies. Flake graphite in its single-layer form is the wonder product graphene and is the key raw material used in large-scale energy storage systems and pebble-bed nuclear reactors.” - “In addition to the graphite used in every lithium-ion battery, portable electronics increasingly rely on graphite to cool components and dissipate heat. Very thin sheets of graphite foil, made exclusively from natural graphite flake, line the insides of electronics and act as both a sealant and a heat sink for all laptop computers, tablets, flat-panel televisions, solar panel arrays, cellular phones and smart phones. Graphite foil is one of the fastest growing end-use segments for flake graphite.” Six key factors to be considered with graphite: - Deposit size and quality - Location - Flake size - Product purity - Product offtake - Time frame to production. Matica’s Graphite Plays GRF has three graphite properties. For our purposes, two of them are important – the Buckingham North Graphite Project in Quebec and the Grumpy Lizard Project in Nevada. https://www.maticaenterprises.com/docs/Grumpy_Nevada_and_Quebec_Summary.pdf Buckingham North Project https://www.maticaenterprises.com/buckingham.php I know for a fact that Boris Z. worked hard to secure this Quebec Property. I like it a lot because it is adjacent to Great Lakes Graphite (GLK on the TSX-V), to the west and to the south - i.e. Matica sits on the same stuff! Below is a quote from GLK’s NR of September 18th: “Great Lakes Graphite Inc.'s preliminary metallurgical testing of graphite samples from the company's Lochaber graphite project in southwestern Quebec has demonstrated that a graphite concentrate containing over 57-per-cent large flakes (plus-70 mesh or greater than 180 microns) can be produced from that material. In addition, over 45 per cent of the concentrate was classified as jumbo flake (plus-50 mesh or greater than 300 microns). This represents an exceptional size distribution and the potential for a graphite product that typically attracts a premium price based on the size of the flake. These results confirm the outcome of previous testing carried out on diamond drill core samples by Rock Tech Lithium Inc. in 2013. This testing has also validated the performance of a new process flow sheet that can be incorporated into future economic and feasibility studies to be commissioned by the company.” Here is a summary of the distribution of particle sizes taken from GLK's Lochaber Property: Graphite Class - Mesh - Microns Percentage Superjumbo flake/XXL +30 >500 1.44% Jumbo flake/XL -30 to +50 >300 44.00% Large flake -50 to +70 >180 12.20% Medium flake -70 to +100 >100 13.60% Fine flake -100 to +140 >106 7.70% Powder -140 <106 21.10% total large, jumbo and superjumbo 57.60% so, we know glk have large flake and jumbo flake and that it confirms previous testing. from the above, we also know that they are potentially commercially viable re producing large-flake graphite and spherical graphite. glk will start a pilot plant in october to confirm the process flow sheet and to optimize operating parameters. within the next month and a half we should see further results, including optical microscopy, sem studies and geochem analyses of the graphite concentrates. glk will continue towards a 43-101. four target areas on the property have been recommended to the company for diamond drilling to supplement the resource estimate in progress. the company plans to initiate a program of 1,000 metres of drilling in eight drill holes in these areas as part of this program. no further permitting is required, and the drill program will commence immediately upon obtaining landowner consents. matica's grumpy lizard play matica signed an loi to acquire 100% of the grumpy lizard graphite project in north west nevada on january 14, 2014. https://www.maticaenterprises.com/newsdetail?&newsfile=20140114.html the definitive agreement to complete the loi was made on september 18th. https://www.maticaenterprises.com/pressreleases/20140918-matica-to-acquire-highly-prospective-graphite-property-near-proposed-tesla-gigafactory.pdf fact: you could drive from the grumpy lizard to tesla's new nevada plant on a third of a tank of gas – i.e. the grumpy lizard property is just 56 km from the new tesla plant! and there is road access. that alone makes this a very da-n good bet to get a very hard look from elon musk and his tesla executives. yes, the grumpy lizard is a grassroots play, but its topography is like a moonscape – i.e. there is no overburden. because of this, you can see a lot of graphite on surface. this is from the last nr: “the grumpy lizard graphite property comprises 96 claims for a total of 1,920 acres. recent reconnaissance prospecting in the claims area carried out by gold exploration management services inc. observed occurrences of large-flake graphite exposed at surface. the local terrain is mountainous with very little vegetation due to the arid climate and elevation. the numerous exposed outcroppings observed suggest rock bodies of greater than 10 m widths which may run for several kilometres within a much more extensive prospective area which is part of continuing investigations.” “the abundance of graphite mineralization at surface and at economic depths dictates the ability for the grumpy lizard project to host a multi-million ton, carbon rich, large flake graphite deposit.” note: pure energy (pe on the cse) has doubled in stock price since late august….pure energy is adjacent to the us's only lithium mine - and it's in nevada! https://www.stockwatch.com/chart/advanced.aspx?action=go&time=1&symbol=pe®ion=c matica has seen the light. look to boris z. for a very “fast-paced exploration program.” a spin off and share dividend of a stand-alone public graphite company to me, the above makes a lot of sense, as marijuana and graphite are two different businesses and they are worth more apart than together. i could possibly settle for a jv, but it would have to come with a very big cheque attached – upfront - none of this business whereby a shell company puts grf's graphite assets into their shell for free and then leverages them as they go hunting for financing dollars. further to the company’s change of business, it has been stated that matica’s board of directors will be creating a special committee to address the company’s existing mineral property assets, so that the company’s management can remain focussed on matica’s core business of medical marijuana. my dd tells me that we should see work done on the property, a plan for drilling and plans for a spin-off public graphite company with a set record date - all before christmas. and it’s likely they will expand their nevada footprint. matica’s shares outstanding versus their graphite peers after the halt, matica will have 55 million or so shares out. compared to other graphite plays, they have relatively few shares outstanding: fms: focus graphite raises $1.93 million for project financing (110 million shares outstanding) https://www.stockwatch.com/news/item.aspx?bid=z-c%3afms-2214023&symbol=fms®ion=c ccb: canada carbon achieves 99.8 graphite purity at miller property (81 million shares outstanding) https://www.stockwatch.com/news/item.aspx?bid=z-c%3accb-2214017&symbol=ccb®ion=c alp: alabama's bama met test shows 98.5% graphite purity (85 million shares outstanding) https://www.stockwatch.com/news/item.aspx?bid=z-c%3aalp-2213942&symbol=alp®ion=c gph: graphite one resources appoints operations manager for graphite creek (130 million shares outstanding) https://www.stockwatch.com/news/item.aspx?bid=z-c%3agph-2213976&symbol=gph®ion=c glk: tech amends agreement with great lakes graphite (61 million shares outstanding) https://www.stockhouse.com/news/newswire/2014/09/24/wildflower-marijuana-s-c-sun-neighbours-not-happy-but-protest-brings-opportunity llg: mason $4.15-million debenture private placement (86 million shares outstanding) https://www.stockwatch.com/news/item.aspx?bid=z-c:llg-2198273&symbol=llg®ion=c egz: energizer resources announces private placement common share financing (270 million shares outstanding) https://www.stockwatch.com/news/item.aspx?bid=z-c%3aegz-2212578&symbol=egz®ion=c cvn: cavan gains permits, to drill 1,200 m at tetepiska-west (73 million shares outstanding) era: elcora resources 2,582,643-share private placement (42 million shares outstanding) https://www.stockwatch.com/news/item.aspx?bid=z-c%3aera-2212164&symbol=era®ion=c sme: sama tests up to 96% graphite recovery at lola (94 million shares outstanding) https://www.stockwatch.com/news/item.aspx?bid=z-c:sme-2192260&symbol=sme®ion=c ngc: northern graphite's bissett tests at 50% graphite yield (50 million shares outstanding) https://www.stockwatch.com/news/item.aspx?bid=z-c:ngc-2201514&symbol=ngc®ion=c zen: zenyatta's albany met test returns 99.95% cg purity (56 million shares outstanding) https://www.stockwatch.com/news/item.aspx?bid=z-c%3azen-2209334&symbol=zen®ion=c cjc: canada strategic metals (67 million shares outstanding) lmr: lomiko metals inc. (137 million shares outstanding) lomiko options 40% of the la loutre crystalline flake graphite property from canada strategic metals https://www.stockwatch.com/news/item.aspx?bid=z-c%3acjc-2213689&symbol=cjc®ion=c fdr: flinders to acquire big north in all-share deal (57 million shares outstanding) https://www.stockwatch.com/news/item.aspx?bid=b-1554200-c:fdr&symbol=fdr®ion=c&hitwords=graphite grf’s graphite play/s valuation: taking other graphite plays into account and factoring in that the nevada property is 56 km away from tesla's new factory – and very da-n promotable (and attractive to market pros) - i would say that matica’s graphite assets should conservatively be valued at a minimum of $5 million and a maximum of $7 million at this point. the potential matica valuation coming out of the halt tablets low $2 million - high $4 million graphite play/s low $5 million - high $7 million mmpr / rtb low $25 million - high $40 million _________ _________ valuation after the halt low = $32 million high = $51 million middle ground = $41.5 million grf’s potential share price grf has roughly 45 million shares out now. with the tablet deal done, there will be roughly 55 million shares out. as such: re the above, the stock price should run from a low of 58 cents a share to a high of 93 cents a share – with a middle ground of 75.5 cents a share. i feel that in a comparable to any other mj company, a halted matica, with its 8.5 cent per share stock price and $3.8 market cap, is wildly underpriced. i have looked – and there is no other company that has the bandwidth that matica ‘enterprises’ enjoys in terms of fundamentals and potential scalability – and an rtb / mmpr. grf has a great amount of market traction. you can bet that grf will get the best shot available going forward at capturing the eyeballs of investors. re the above, it's my very educated opinion that the chris parry article of last week is just a precursor to a much larger piece on grf, once it is back trading (i can be inboxed re this). i will also say that with the amount of interest generated at the institutional and pro level, we most definitely will be seeing analysts report/s in the very near future. in my very educated opinion, grf is now completely de-risked….it’s all upside from here…and there should be a heck of a lot of upside! again, this is my dd and what i think the sp should be when the halt comes off…this doesn’t mean that market conditions will stay the same – or that the market will understand grf – or even that the market will agree with me. i will leave you with this: grf is in waaaaay better shape than it was in pre-halt. it's almost like b.ziger and the rest of the matica bod sucked back a bottle full of peds - and then got really, really lucky. people, though, make their own luck - and matica's guys are in a full gallop, building on the luck proffered them. as such, i fully expect other major developments to come to fruition in their 'enterprise.'…..and blue sky was not factored into my valuation/s. writing this doc has been a fun and enlightening process. i hope you enjoy it and that it helps you in your own dd. cheers. jim rockford read more at https://www.stockhouse.com/companies/bullboard/c.grf/matica-enterprises-inc#amh5mxiy9hftm1gi.99 21.10%="" total="" large,="" jumbo="" and="" superjumbo="" 57.60%="" so,="" we="" know="" glk="" have="" large="" flake="" and="" jumbo="" flake="" and="" that="" it="" confirms="" previous="" testing.="" from="" the="" above,="" we="" also="" know="" that="" they="" are="" potentially="" commercially="" viable="" re="" producing="" large-flake="" graphite="" and="" spherical="" graphite.="" glk="" will="" start="" a="" pilot="" plant="" in="" october="" to="" confirm="" the="" process="" flow="" sheet="" and="" to="" optimize="" operating="" parameters.="" within="" the="" next="" month="" and="" a="" half="" we="" should="" see="" further="" results,="" including="" optical="" microscopy,="" sem="" studies="" and="" geochem="" analyses="" of="" the="" graphite="" concentrates.="" glk="" will="" continue="" towards="" a="" 43-101.="" four="" target="" areas="" on="" the="" property="" have="" been="" recommended="" to="" the="" company="" for="" diamond="" drilling="" to="" supplement="" the="" resource="" estimate="" in="" progress.="" the="" company="" plans="" to="" initiate="" a="" program="" of="" 1,000="" metres="" of="" drilling="" in="" eight="" drill="" holes="" in="" these="" areas="" as="" part="" of="" this="" program.="" no="" further="" permitting="" is="" required,="" and="" the="" drill="" program="" will="" commence="" immediately="" upon="" obtaining="" landowner="" consents.="" matica's="" grumpy="" lizard="" play="" matica="" signed="" an="" loi="" to="" acquire="" 100%="" of="" the="" grumpy="" lizard="" graphite="" project="" in="" north="" west="" nevada="" on="" january="" 14,="" 2014.="" https://www.maticaenterprises.com/newsdetail?&newsfile="20140114.html" the="" definitive="" agreement="" to="" complete="" the="" loi="" was="" made="" on="" september="" 18th.="" https://www.maticaenterprises.com/pressreleases/20140918-matica-to-acquire-highly-prospective-graphite-property-near-proposed-tesla-gigafactory.pdf="" fact:="" you="" could="" drive="" from="" the="" grumpy="" lizard="" to="" tesla's="" new="" nevada="" plant="" on="" a="" third="" of="" a="" tank="" of="" gas="" –="" i.e.="" the="" grumpy="" lizard="" property="" is="" just="" 56="" km="" from="" the="" new="" tesla="" plant!="" and="" there="" is="" road="" access.="" that="" alone="" makes="" this="" a="" very="" da-n="" good="" bet="" to="" get="" a="" very="" hard="" look="" from="" elon="" musk="" and="" his="" tesla="" executives.="" yes,="" the="" grumpy="" lizard="" is="" a="" grassroots="" play,="" but="" its="" topography="" is="" like="" a="" moonscape="" –="" i.e.="" there="" is="" no="" overburden.="" because="" of="" this,="" you="" can="" see="" a="" lot="" of="" graphite="" on="" surface.="" this="" is="" from="" the="" last="" nr:="" “the="" grumpy="" lizard="" graphite="" property="" comprises="" 96="" claims="" for="" a="" total="" of="" 1,920="" acres.="" recent="" reconnaissance="" prospecting="" in="" the="" claims="" area="" carried="" out="" by="" gold="" exploration="" management="" services="" inc.="" observed="" occurrences="" of="" large-flake="" graphite="" exposed="" at="" surface.="" the="" local="" terrain="" is="" mountainous="" with="" very="" little="" vegetation="" due="" to="" the="" arid="" climate="" and="" elevation.="" the="" numerous="" exposed="" outcroppings="" observed="" suggest="" rock="" bodies="" of="" greater="" than="" 10="" m="" widths="" which="" may="" run="" for="" several="" kilometres="" within="" a="" much="" more="" extensive="" prospective="" area="" which="" is="" part="" of="" continuing="" investigations.”="" “the="" abundance="" of="" graphite="" mineralization="" at="" surface="" and="" at="" economic="" depths="" dictates="" the="" ability="" for="" the="" grumpy="" lizard="" project="" to="" host="" a="" multi-million="" ton,="" carbon="" rich,="" large="" flake="" graphite="" deposit.”="" note:="" pure="" energy="" (pe="" on="" the="" cse)="" has="" doubled="" in="" stock="" price="" since="" late="" august….pure="" energy="" is="" adjacent="" to="" the="" us's="" only="" lithium="" mine="" -="" and="" it's="" in="" nevada!="" https://www.stockwatch.com/chart/advanced.aspx?action="go&time=1&symbol=PE®ion=C" matica="" has="" seen="" the="" light.="" look="" to="" boris="" z.="" for="" a="" very="" “fast-paced="" exploration="" program.”="" a="" spin="" off="" and="" share="" dividend="" of="" a="" stand-alone="" public="" graphite="" company="" to="" me,="" the="" above="" makes="" a="" lot="" of="" sense,="" as="" marijuana="" and="" graphite="" are="" two="" different="" businesses="" and="" they="" are="" worth="" more="" apart="" than="" together.="" i="" could="" possibly="" settle="" for="" a="" jv,="" but="" it="" would="" have="" to="" come="" with="" a="" very="" big="" cheque="" attached="" –="" upfront="" -="" none="" of="" this="" business="" whereby="" a="" shell="" company="" puts="" grf's="" graphite="" assets="" into="" their="" shell="" for="" free="" and="" then="" leverages="" them="" as="" they="" go="" hunting="" for="" financing="" dollars.="" further="" to="" the="" company’s="" change="" of="" business,="" it="" has="" been="" stated="" that="" matica’s="" board="" of="" directors="" will="" be="" creating="" a="" special="" committee="" to="" address="" the="" company’s="" existing="" mineral="" property="" assets,="" so="" that="" the="" company’s="" management="" can="" remain="" focussed="" on="" matica’s="" core="" business="" of="" medical="" marijuana.="" my="" dd="" tells="" me="" that="" we="" should="" see="" work="" done="" on="" the="" property,="" a="" plan="" for="" drilling="" and="" plans="" for="" a="" spin-off="" public="" graphite="" company="" with="" a="" set="" record="" date="" -="" all="" before="" christmas.="" and="" it’s="" likely="" they="" will="" expand="" their="" nevada="" footprint.="" matica’s="" shares="" outstanding="" versus="" their="" graphite="" peers="" after="" the="" halt,="" matica="" will="" have="" 55="" million="" or="" so="" shares="" out.="" compared="" to="" other="" graphite="" plays,="" they="" have="" relatively="" few="" shares="" outstanding:="" fms:="" focus="" graphite="" raises="" $1.93="" million="" for="" project="" financing="" (110="" million="" shares="" outstanding)="" https://www.stockwatch.com/news/item.aspx?bid="Z-C%3aFMS-2214023&symbol=FMS®ion=C" ccb:="" canada="" carbon="" achieves="" 99.8="" graphite="" purity="" at="" miller="" property="" (81="" million="" shares="" outstanding)="" https://www.stockwatch.com/news/item.aspx?bid="Z-C%3aCCB-2214017&symbol=CCB®ion=C" alp:="" alabama's="" bama="" met="" test="" shows="" 98.5%="" graphite="" purity="" (85="" million="" shares="" outstanding)="" https://www.stockwatch.com/news/item.aspx?bid="Z-C%3aALP-2213942&symbol=ALP®ion=C" gph:="" graphite="" one="" resources="" appoints="" operations="" manager="" for="" graphite="" creek="" (130="" million="" shares="" outstanding)="" https://www.stockwatch.com/news/item.aspx?bid="Z-C%3aGPH-2213976&symbol=GPH®ion=C" glk:="" tech="" amends="" agreement="" with="" great="" lakes="" graphite="" (61="" million="" shares="" outstanding)="" https://www.stockhouse.com/news/newswire/2014/09/24/wildflower-marijuana-s-c-sun-neighbours-not-happy-but-protest-brings-opportunity="" llg:="" mason="" $4.15-million="" debenture="" private="" placement="" (86="" million="" shares="" outstanding)="" https://www.stockwatch.com/news/item.aspx?bid="Z-C:LLG-2198273&symbol=LLG®ion=C" egz:="" energizer="" resources="" announces="" private="" placement="" common="" share="" financing="" (270="" million="" shares="" outstanding)="" https://www.stockwatch.com/news/item.aspx?bid="Z-C%3aEGZ-2212578&symbol=EGZ®ion=C" cvn:="" cavan="" gains="" permits,="" to="" drill="" 1,200="" m="" at="" tetepiska-west="" (73="" million="" shares="" outstanding)="" era:="" elcora="" resources="" 2,582,643-share="" private="" placement="" (42="" million="" shares="" outstanding)="" https://www.stockwatch.com/news/item.aspx?bid="Z-C%3aERA-2212164&symbol=ERA®ion=C" sme:="" sama="" tests="" up="" to="" 96%="" graphite="" recovery="" at="" lola="" (94="" million="" shares="" outstanding)="" https://www.stockwatch.com/news/item.aspx?bid="Z-C:SME-2192260&symbol=SME®ion=C" ngc:="" northern="" graphite's="" bissett="" tests="" at="" 50%="" graphite="" yield="" (50="" million="" shares="" outstanding)="" https://www.stockwatch.com/news/item.aspx?bid="Z-C:NGC-2201514&symbol=NGC®ion=C" zen:="" zenyatta's="" albany="" met="" test="" returns="" 99.95%="" cg="" purity="" (56="" million="" shares="" outstanding)="" https://www.stockwatch.com/news/item.aspx?bid="Z-C%3aZEN-2209334&symbol=ZEN®ion=C" cjc:="" canada="" strategic="" metals="" (67="" million="" shares="" outstanding)="" lmr:="" lomiko="" metals="" inc.="" (137="" million="" shares="" outstanding)="" lomiko="" options="" 40%="" of="" the="" la="" loutre="" crystalline="" flake="" graphite="" property="" from="" canada="" strategic="" metals="" https://www.stockwatch.com/news/item.aspx?bid="Z-C%3aCJC-2213689&symbol=CJC®ion=C" fdr:="" flinders="" to="" acquire="" big="" north="" in="" all-share="" deal="" (57="" million="" shares="" outstanding)="" https://www.stockwatch.com/news/item.aspx?bid="B-1554200-C:FDR&symbol=FDR®ion=C&hitwords=graphite" grf’s="" graphite="" play/s="" valuation:="" taking="" other="" graphite="" plays="" into="" account="" and="" factoring="" in="" that="" the="" nevada="" property="" is="" 56="" km="" away="" from="" tesla's="" new="" factory="" –="" and="" very="" da-n="" promotable="" (and="" attractive="" to="" market="" pros)="" -="" i="" would="" say="" that="" matica’s="" graphite="" assets="" should="" conservatively="" be="" valued="" at="" a="" minimum="" of="" $5="" million="" and="" a="" maximum="" of="" $7="" million="" at="" this="" point.="" the="" potential="" matica="" valuation="" coming="" out="" of="" the="" halt="" tablets="" low="" $2="" million="" -="" high="" $4="" million="" graphite="" play/s="" low="" $5="" million="" -="" high="" $7="" million="" mmpr="" rtb="" low="" $25="" million="" -="" high="" $40="" million="" _________="" _________="" valuation="" after="" the="" halt="" low="$32" million="" high="$51" million="" middle="" ground="$41.5" million="" grf’s="" potential="" share="" price="" grf="" has="" roughly="" 45="" million="" shares="" out="" now.="" with="" the="" tablet="" deal="" done,="" there="" will="" be="" roughly="" 55="" million="" shares="" out.="" as="" such:="" re="" the="" above,="" the="" stock="" price="" should="" run="" from="" a="" low="" of="" 58="" cents="" a="" share="" to="" a="" high="" of="" 93="" cents="" a="" share="" –="" with="" a="" middle="" ground="" of="" 75.5="" cents="" a="" share.="" i="" feel="" that="" in="" a="" comparable="" to="" any="" other="" mj="" company,="" a="" halted="" matica,="" with="" its="" 8.5="" cent="" per="" share="" stock="" price="" and="" $3.8="" market="" cap,="" is="" wildly="" underpriced.="" i="" have="" looked="" –="" and="" there="" is="" no="" other="" company="" that="" has="" the="" bandwidth="" that="" matica="" ‘enterprises’="" enjoys="" in="" terms="" of="" fundamentals="" and="" potential="" scalability="" –="" and="" an="" rtb="" mmpr.="" grf="" has="" a="" great="" amount="" of="" market="" traction.="" you="" can="" bet="" that="" grf="" will="" get="" the="" best="" shot="" available="" going="" forward="" at="" capturing="" the="" eyeballs="" of="" investors.="" re="" the="" above,="" it's="" my="" very="" educated="" opinion="" that="" the="" chris="" parry="" article="" of="" last="" week="" is="" just="" a="" precursor="" to="" a="" much="" larger="" piece="" on="" grf,="" once="" it="" is="" back="" trading="" (i="" can="" be="" inboxed="" re="" this).="" i="" will="" also="" say="" that="" with="" the="" amount="" of="" interest="" generated="" at="" the="" institutional="" and="" pro="" level,="" we="" most="" definitely="" will="" be="" seeing="" analysts="" report/s="" in="" the="" very="" near="" future.="" in="" my="" very="" educated="" opinion,="" grf="" is="" now="" completely="" de-risked….it’s="" all="" upside="" from="" here…and="" there="" should="" be="" a="" heck="" of="" a="" lot="" of="" upside!="" again,="" this="" is="" my="" dd="" and="" what="" i="" think="" the="" sp="" should="" be="" when="" the="" halt="" comes="" off…this="" doesn’t="" mean="" that="" market="" conditions="" will="" stay="" the="" same="" –="" or="" that="" the="" market="" will="" understand="" grf="" –="" or="" even="" that="" the="" market="" will="" agree="" with="" me.="" i="" will="" leave="" you="" with="" this:="" grf="" is="" in="" waaaaay="" better="" shape="" than="" it="" was="" in="" pre-halt.="" it's="" almost="" like="" b.ziger="" and="" the="" rest="" of="" the="" matica="" bod="" sucked="" back="" a="" bottle="" full="" of="" peds="" -="" and="" then="" got="" really,="" really="" lucky.="" people,="" though,="" make="" their="" own="" luck="" -="" and="" matica's="" guys="" are="" in="" a="" full="" gallop,="" building="" on="" the="" luck="" proffered="" them.="" as="" such,="" i="" fully="" expect="" other="" major="" developments="" to="" come="" to="" fruition="" in="" their="" 'enterprise.'…..and="" blue="" sky="" was="" not="" factored="" into="" my="" valuation/s.="" writing="" this="" doc="" has="" been="" a="" fun="" and="" enlightening="" process.="" i="" hope="" you="" enjoy="" it="" and="" that="" it="" helps="" you="" in="" your="" own="" dd.="" cheers.="" jim="" rockford="" read="" more="" 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