Newstrike Brands Ltd NWKRF

Email from investor relations if anyone is interested

[StockMonster99]

1- what is happening with the sales license for the Niagara facility, and when will the first harvest there be ready?
 
We've applied for the sales license with Health Canada, now we wait. That said we expect a decision soon but we cannot speak to their timeline entirely. First harvest was completed in August and we've continued to expand our cultivation in Niagara.
 
2- why did the 5th strain previously included on company information not get released with the other 4 strains?
 
The 5^th strain is being cultivated in volume now and will be available in the New Year, we focused on accumulating the other 4 for the Oct 17 launch.
 
3- when will oils and pre-rolls be sold?
 
We’re targeting pre-rolls for the early 2019 and oils I don’t have a date yet, we sold much of our initial flower and shake for oil production to MediPharm. Right now, demand from the provinces is largely dried flower although CBD oils are selling well but in very limited supply across the industry. We’re producing as much dried flower as we can to fulfill the current demand and will release other form factors in 2019.
 
4- how much inventory does newstrike/UP have remaining?
 
Inventory will be disclosed with our Q3 financials in early-mid Nov.
 
5- why are so many stock options being given out?
 
Options are a pretty standard compensation component for public companies. It aligns the interests of management with shareholders. I’m sorry but I don’t have time to do a lot of research on this, but pulling the latest quarter’s financial statements and comparing to Canopy and Aurora Cannabis I see that Newstrike has 35.7mm options issued on 554.0mm shares outstanding (6.4% of shares out), Canopy has 19.0mm options issued on 201.3mm shares outstanding (9.4%), and Aurora has 28.2mm options on 568.1mm shares outstanding (4.9%). It’s only a small sample but I’m guessing if you looked at a broad bucket of cannabis companies we’re within the range of normal.
 
6- what is the reasoning behind not providing investors with very much information over the past few months?
 
We try to keep investors up to date on our developments. There is always a perception when a stock is down that maybe there isn’t enough news, although we’re not convinced there is a correlation. We issued 10 PR’s in Sep including Jay’s CEO update, Canopy did 9, Aurora did 14. I’m reciting the number even though I really don’t believe it matters who does more. In Oct we only issued a few PR’s and other companies issued more but all the cannabis stocks sold off significantly. Jay was also on Midas Letter in Oct and did several media interviews.
 
That said, we were very focused on the 3-day Up Cannabis music events in Toronto’s Dundas Square the week prior to Oct 17 and that generated media mentions in over 28 publications including CP24, Global, CityNews, National Post, etc… That exposure was important from our perspective for the Up Cannabis brand. We try to stay in front of our audiences – investors and consumers as often as we can, but for the stock in particular the intent is not to put out a certain number of PR’s rather update investors when there is relevant developments to discuss.
 
7- where is the new investor presentation?
 
We have a completely new presentation that will be posted soon
 
8- when can we expect Q3 financials to be released?
 
Noted above.