Tag Archives: cse listed issuers

Namaste Technologies moves closer to buying “vaping” online business

The acquisition by Namaste Technologies Inc (CVE:N) of various assets currently owned by Haze Industries has moved a step closer.

The Canadian company, formerly known as Next Gen Metals but now focused on medical marijuana and alternative medicines, said that it has now signed an asset purchase agreement that will see it acquire a number of web site domains, a customer list of more than 150,000 individuals plus intellectual property and goodwill of VaporSeller, an e-commerce platform for the fast-growing vaporizer and accessories market.

Namaste will pay US$500,000 in cash when the deal closes, and will hand over five million shares of the company. In addition there is any earn-out clause of US$1.5mln over a three-year period that could be triggered by revenue, margin and operational controls.

Namaste anticipates closing the transaction on or about June 30, 2016, subject to the receipt of all director and regulatory approvals, including approval of the Canadian Securities Exchange if required.

Namaste also revealed it has arranged a non-brokered private placement of at least 8.5mln units but no more than 12.5mln units at C$0.12 a pop, to raise between C$1mln and C$1.5mln.

Each unit comprises one common share of Namaste plus half a warrant; each pair of warrants would entitle the owner to exchange them for a single common share upon payment of C$0.18 any time up to 24 months after the date of issue.

The net proceeds from the offering will be used to fund cash closing costs associated with the VaporSeller transaction, inventory expansion and for general working capital purposes.

“The signing of the definitive agreements for the acquisition of VaporSeller represents a significant step forward in terms of the completion of this transaction. As the first of multiple opportunities we have identified to expand through acquisition, our management team is high focused on ensuring an efficient and effective execution of this transaction as well as a seamless integration of our current platform and VaporSeller,” said Sean Dollinger, president and chief executive officer of Namaste.

This story was originally published at www.proactiveinvestors.com on June 8, 2017 and featured in The CSE Quarterly.

Learn more about Namaste Technologies Inc at http://www.namastetechnologies.com/ and on the CSE website at http://thecse.com/en/listings/diversified-industries/namaste-technologies-inc.

Fantasy 6 Sports blends top technology trends to create own momentum in Big Data

Fantasy 6 Sports (CSE:FYS) is a challenge to figure out at first because it is so cutting-edge you can’t think of any obvious comparisons to help put its business into context. A fascinating array of concepts to be sure, but how do you wrap your head around it?

Best start with the broader theme and work your way down to the individual businesses, then consider how they fit together. By the way, we are talking about a company simultaneously shaping fields such as Virtual Reality, Artificial Intelligence, Augmented Reality, Blockchain and Big Data – only 5 of the 10 technology trends forecast to define the world’s digital landscape in 2017.

At its most basic, Fantasy 6 leverages its capabilities in these technology segments to help brands take their consumer engagement to the next level. “It doesn’t matter what type of industry you look at, data is driving decisions,” explains Ray Walia, Fantasy 6’s Chief Operating Officer and a 20-year veteran of the technology scene. “We are collecting data, we can anonymize it and it can drive decisions for other brands and corporations.”

Sounds like any number of Big Data companies who passively collect data and try to re-sell it with some analytical bells and whistles to entities who need insight into their target customers, right?

Here is where Fantasy 6 is different – this company generates its own data by interacting with a specific consumer base valuable to existing and potential clients. Because it collects data this way, its database is unique and proprietary. And it focuses on a very large and multi-faceted business sector that provides new opportunities for data collection and analysis every day – sports.

A good starting point in exploring the product side is FansUnite, a platform Fantasy 6 acquired earlier this year and is in the process of turbocharging from both the user appeal and business potential perspectives.

True to its name, FansUnite is a place where sports fans who like to bet on games come together to discuss strategies and try to develop an edge, or simply just learn more. “The idea is we are building a community around sports betting and sports predictions that adds a layer of direct fan engagement,” says Walia.

FansUnite gives members a free virtual currency so that they can place bets without putting actual money on the line. It’s the perfect risk-free way to keep score and it gives you bragging rights if you’re good. More importantly for the platform, it separates the skilled from the newcomers and inspires serious discussions around strategy and upcoming opportunities. And for those who operate in the real-money betting world, FansUnite is a universe rich in sports and odds aficionados who can help give them an edge. Think you know better than everyone else what is going to happen in tonight’s game? Well, put your virtual money where your mouth is.

The proprietary data side is well illustrated by shifting popularity among sports, and even the emergence of new competitive pastimes. “The most popular sport in North America for betting is the NFL, worldwide by far it is soccer, but the fastest growing one is e-sports,” says Walia. “The emergence of e-sports has caught a lot of people off guard. Having a site like FansUnite collecting all this data, you cut through the noise and the hype and people are actually seeing that there is active engagement worldwide.” By the way, e-sports is video gamers competing in organized competitions with games such as Counterstrike, League of Legends and other titles you may know. And don’t harrumph – these competitions fill stadiums with spectators.

Mobile games and Virtual Reality (VR)/Augmented Reality (AR) games are additional arrows in the Fantasy 6 quiver, the first commercial release being Football Fantasy Coach. As you might have already guessed, Football Fantasy Coach requires the player to analyze a virtual game scenario and call plays. As with fantasy sports, your choices are based on real players, with the game providing performance statistics that change in real time as actual games are being played. “It is a bridge of technology into the real world that directly engages the fan,” explains Walia. And it is one more way for Fantasy 6 to collect data for analysis alongside other sources to draw conclusions for client brands.

It is not all just about online experiences, mind you. Some of the “immersive” work that Fantasy 6 does requires actual fan participation, such as when the team built a “dynamic 360 virtual arena” for one of the largest companies in Canada recently that enabled visitors to have their pictures taken and receive an image on their mobile phones that looked as if they were standing at centre ice in Toronto’s Air Canada Centre. Not quite the same as lining up to the right of Auston Matthews, but still pretty cool.

“We maintain the right focus by keeping balance among these three verticals,” says Walia. “Each has synergies with the others but they all have different skills required to execute. The games division is going on its own with good partners and intellectual property, the data division is collecting data and it is a different audience that they appeal to. And then the immersive side is more corporate relationships.”

And who does Walia think would be willing to pay the big dollars for high-quality sports data? “In context, our data is all around sports odds and so those who can benefit include any entity in gaming, casinos or sports books for a start. They will value the data one way, and then a sportswear company would have its own different use.”

Fantasy 6 is well-funded to move forward with its plan, having received a convertible note facility in the amount of $10 million from fund Victory Square, which Walia, with partner and Fantasy 6 Chief Executive Officer Shafin Tejani, oversee.

And unlike a lot of technology companies for which revenue always seems to be a “tomorrow” concept, Walia has made sure that sustainability is part of the corporate ethos. “The convertible note is designed to show that we have the wherewithal to execute, but a lot of the ideas we pursue are intended to generate revenue and be self-sustaining. That is one of the reasons why we are able to tackle all three of our verticals at the same time. They leverage each other but drive revenue on their own and the teams sustain themselves.”

The next six to nine months will see data continue to build, the games division debut new titles in different genres, and a big push on the immersive experiences side, with the lead role in a $1.5 million fan experience project for the BC Sports Hall of Fame in Vancouver a part of the effort.

“We are putting ourselves in position to be a strong player in VR/AR and mobile games as well as sports data driven by artificial intelligence, which will be the long tail,” says Walia. “There will be huge value and opportunity around that. And we know that Virtual Reality is attracting attention and we can connect brands with this and other technologies to help them reach important objectives.”

This story was originally published at www.proactiveinvestors.com on Nov 30, 2016 and featured in The CSE Quarterly.

Learn more about Fantasy 6 Sports Inc. at http://fantasy6.com/ and on the CSE website at http://thecse.com/en/listings/technology/fantasy-6-sports-inc.

MGX Minerals thinks outside the box in pursuit of grand goal

This story was originally published at www.proactiveinvestors.com on March 1, 2016 and featured in The CSE Quarterly.

The stated goal of MGX Minerals (CSE:XMG) – to put seven to ten mines into production over the next decade – is as ambitious as they come.

But speaking to the company’s CEO, Jared Lazerson, a philosophy begins to show itself that is different than that typically followed within Canada’s junior mining community. It is certainly one that fits the company’s objective.

MGX does not embrace an exploration model aimed at defining an ever-expanding resource, but rather a more standard business model with near-term profit as its core objective.  Thus the vision of bringing multiple mines on-stream, and doing so as quickly as possible.  Or what Lazerson refers to as a “right into production model.”

The first property scheduled for production is Driftwood Creek, a 776 hectare magnesium project located in the East Kootenay region of British Columbia.

Magnesium is a mineral most people have heard of but few probably know what makes it useful.

In different forms, magnesium can do everything from strengthening steel to fortifying vitamins, and is also used for wastewater treatment.

Lazerson believes magnesium oxide (what the magnesite at Driftwood Creek would become after beneficiation and secondary processing) is suited to yet another application which is still emerging but could grow to be huge.

“One of the potential game changers in the magnesium oxide market is that it can be used as a replacement for gypsum in drywall,” Lazerson explains.  “There is in Asia very heavily produced magnesium oxide wallboard and this is a market we are moving on quickly.”

He goes on to explain that wallboard out of China is characterized by “a wide variety of qualities,” which means there is opportunity for a company with a reliable source of high-quality magnesium oxide to address North American demand for wallboard.

“It is being used in high-rise buildings and also in Florida and other areas where flooding is common,” says Lazerson, explaining that drywall containing magnesium oxide has parallels to cement products, absorbing some moisture but not losing its structural integrity when it dries out.

“In terms of where the massive growth in market demand for the commodity is, we are betting on that,” he says.

Magnesium alloy is a different story and, for the time being, not something MGX wants to target.

Like various other commodities, magnesium alloy’s is a market somewhat controlled by large players and governments.  Lazerson explains that the US maintains high tariffs to discourage Chinese and Russian imports, leaving the country with the highest magnesium alloy prices in the world.  “You have one market that is fantastic and then the rest of the world is reasonably priced.  It fits more into that space where there is sufficient supply globally to support demand.”

With the end user equation seemingly figured out, the question of what hurdles are left to clear before reaching commercialization at Driftwood Creek is an obvious one.  MGX announced in January of this year that a mining lease had been awarded for the project by the province. Separately, it received a permit to conduct bulk sampling of 100 tonnes of material at the site in the fourth quarter of last year.  Its road permit came around the same time.

“In terms of getting stakeholder sign-off – government, First Nations, local community – the mining lease required everybody to sign off, so that is a big step in terms of not running up against any major delays,” says Lazerson.

The bulk sample, he explains, “will allow us to put some hard economics to it – we will see really what it is and what it costs to operate in a true mining environment.”

Major steps to go include construction, meeting capital requirements, environmental permitting, and then obtaining the actual mining permit.  Anyone who knows anything about mining understands that while that might be a short list, the timeframe to check all the boxes is almost always tremendously long.

But Driftwood Creek has a major advantage in that production will not result in any tailings to speak of.  “We don’t have any tailings – we will essentially sell 99.8% of our product,” says Lazerson, adding that “our permitting will be tied largely to showing the public and government and other stakeholders that there are no tailings issues.”

If all goes according to plan, the mine could be in production before the end of 2016.

Looking beyond Driftwood Creek, MGX recently entered a purchase agreement to acquire a 100% interest in 96,000 hectares of property in Alberta.  The land package contains multiple oil and gas wells that the company says contain brines rich in lithium, potassium and magnesium.  It comprises six permits and six permit applications.

Like Driftwood Creek, the Alberta properties reflect an approach of acquiring projects with fairly well outlined deposits that can be put into production for initial outlays of no more than $50 million.

Lazerson explains that lithium, similar to magnesium, is a fit for the company mandate: “industrial minerals, Western Canada, low barriers to entry, low capex.

“We are going back into existing oil fields that are essentially barren.  You are at a 98% water to oil ratio, so there is some oil in there, but it is nominal compared to the level of brine.”

Risk management is another theme that runs throughout a discussion with Lazerson.

In discussing MGX’s commitment to operating in Western Canada he references his team at length.  “Everybody on the ground in terms of geology and engineering has done a tremendous amount of work in Western Canada and I can’t overstate how important an understanding of the local geology, community and infrastructure is – these are what allow us to do things relatively inexpensively, but more importantly than anything, quickly.

“That’s what maybe sets us apart about the way we do business.  We consider time as the most expensive thing, and really the enemy of all that we do.”

Another pillar of the MGX strategy is a focus on industrial minerals with “a small footprint,” the reason being, according to Lazerson, that these types of projects tend to require smaller amounts of capital to put into production.  Driftwood Creek is a good example, and because it is a magnesium oxide resource there should be minimal environmental impact at the mine or in the processing.

Implied, if not directly stated, in all of this is the vision of establishing MGX as a company that walks the walk, if you will.  A company that gets mines up and running efficiently and makes money.  Once that track record has been established, attracting new projects and financing, not to mention all the other tasks that need taking care of in order to accomplish corporate objectives in this incredibly challenging business, would become that much easier.  Ambitious to be sure, but worth the effort.

Learn more about MGX Minerals at http://www.mgxminerals.com/ and on the CSE website at http://thecse.com/en/listings/mining/mgx-minerals-inc