Discover Wellness Solutions Chief Strategy Officer Manish Grigo (CSE: WLNS)

Discover Wellness Solutions Chief Strategy Officer Manish Grigo (CSE: WLNS) – RICH TV LIVE – March 12 – 2021 – Discover Wellness Solutions Inc. (CSE: WLNS) (formerly RMMI Corp.) (“Discover Wellness”, “DWS” or the “Company”), a licensed producer and processor under the Cannabis Act (Canada), is pleased to announce that it has entered into a Memorandum of Understanding on Co-operation on Arrangement of Hemp Business in Thailand with Quad Play (“QP”) of Thailand (the “MOU”). Thailand is an attractive market for Discover Wellness as it is the first country globally to deregulate hemp-derived oils and extracts which allows it to be included in consumer product goods. The MOU is the first step in DWS and QP creating a joint business for the development and marketing of consumer-packaged goods infused with hemp extracts for the Asian market, including wellness, food, beverage and cosmetics products.

Hi how you doing today i am your host rich here we have a rich tv live with our very special guest manish griego the chief strategy officer of discover wellness how are you doing today manish i’m doing well rich how are you i’m doing really well thank you for joining us today i wanted to ask you a question can you tell us a little bit about yourself on what

Made you want to join discover wellness yeah so i’ve been um you know capital markets since 2007 um i joined discover wellness in december of 2020. uh what really attracted me uh to discover wellness was the platform it’s lean uh it’s in the cbd business which is more related to wellness uh and different from the psychoactive elements of the cannabis market

And i thought this a little bit still early stages and discover wellness again flat organization asset light we’ve learned from other people’s mistakes and i figured this would be a right time to join them to help them go further okay great and discover wellness is setting up a brand new industrial scale cbd extraction facility can you go through some of the

Production capabilities and what sets you guys apart from other cbd extractors in the market yeah so like i said before you know this is our facility in new orleans close to calgary in alberta essentially this can process about 1 million pounds of hemp a year and again you know it’s a new facility allows us to learn from other people’s mistakes so being a

New new uh newer facility we’re able to see that we can do the same kind of uh ships with uh fewer people you don’t need that kind of heavy regulation that would be typically required with something with higher tfc content or cannabis market so if this is industrial fam which is more like treated like an agricultural commodity yes there are rules and licenses

Around it but however so you don’t have that same kind of resource and regulatory overheads around it can you go through some of the production capabilities and what sets you guys apart from other cbd extractors in the market yeah so like i said before it’s uh you know it’s a light uh organization in terms of the manpower required and we’ve learned work from

Other people and again this is industrial hemp which is treated more like a more like an agricultural product so fewer p uh pure costly overheads in terms of how we manage the inventory and everything and the handling process okay great the discover wellness property is easily scalable can you give us an idea of what that means for the company and what are the

Implications once you guys reach your full potential so in terms of implications would be again based on our extraction facility being fully upgraded what we are our strategy is to be you know have a cost leadership position in this and the reason we can establish a cost leadership position is again it’s a new facility we’ve learned from other people’s mistakes

So we are not over overly overstaffed in terms of if you look at some of the earlier competitors that came in they had to hire a chief scientific officer they had to hire someone doing a lot of the security elements to it so if you peel out all those layers our costs become lot lower compared to everyone else and again we’ve learned from other people’s mistakes

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Over the last four or five years and again being industrial hemp allows us to be you know flat organizations for example right now when we’re not in production we have only four employees so that’s very lean operation and based on a nameplate capacity of one million pounds of hemp if you process that and you assume again you know uh about eighteen hundred

Dollars per pound of concentrated distillate mix you get to about seventy thousand pounds uh and based on that pricing again it works out to about 126 million dollars a year wow we have a lot of work to do we’re not there yet but i’m just saying what the implications would be from a blue sky potential so still have a lot of work to do just want to be clear on

That hey well it’s good that you guys have the scalability that’s huge can you talk to us about your partnership with center genetics biosciences my understanding is that cinergenetics cultivates and engineers their own proprietary hemp strains how does this give you guys a competitive advantage over others and what does the partnership mean for the company

So essentially the sg partnership gives us access to what we call high cbd strain hemp right so what does high cbd strain uh translate to it translates to higher yield when you put it through the processing facility so 15 plus cbd strains on average we are about you know 10 10 plus uh the marketplace roughly you’re getting about five percent plus cbd and you

Know and less than 0.3 thc content which is why you can classify it as industrial hemp as opposed to cannabis or the psychoactive elements are basically missing in this right or it’s very low so classification changes so sg gives us access to high cbd content biomass which essentially entails lower cost of extraction which also means we can process it faster

At a cheaper cost and it goes very much in line with our cost leadership strategy with the cbd market being saturated with all the hemp farms that have come on in the last two years how will you deal with the price of cbd being pushed down we’ve seen the price really come down a lot since legalization how are you guys going to handle that so like i said

Before yeah you’re right so the cost has come down but we have been pursuing a cost leadership strategy and this is one leg of it which means what does that entail for a step one new facility uh learning from other people’s mistakes flat organization for employees right now they’ll be working in shifts the second element is sdsg partnership helps us with

The cost leadership element of it which is what does that mean it means 10 plus 15 plus cbd content so higher content means less product has to be moved through the extraction facility to get the same dollar amount at the or the distillate or the uh isolates at the end of it so that’s the reason so these two elements help us in the in the value chain and

That even with lower prices we’ll be able to compete so essentially the cost leadership strategy is one part of it and the other part would be the global distribution strategy you also recently announced a memorandum of understanding with quad play of thailand what can you tell us about the deal why it’s important for the company and the overall opportunity

In thailand so thailand is actually a very important part of our strategy it’s early stages highland b is the first country in the world to deregulate this market entirely what does that what does a deregulation in entirety mean essentially it means isolates that past less than 0.2 percent thc right with higher cannabis content can be put into food cosmetics

Uh without licenses so the end product can be put on a shelf like a convenience store circuit so essentially a beverage drink with less than zero point two percent pfc uh content with higher cbd would be sitting in on the same shelf as pepsi or coke right so that’s where there’s a key differentiation there yes you would need a license to import the seeds to

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Process it but once the processing is done and the cbdi is lit and everything else has been extracted and it’s been given to the consume so you if you look at kind of a thai newspaper you don’t you understand the excitement around it essentially it’s similar to what canada had when there was a deregulation around it the only key difference is the regulatory

Overheads and everything else reduces dramatically when you’re able to implement it directly into food and cosmetics and beverages for that so the market sizing multiplies quite dramatically again the estimates are around five billion dollars we don’t know that it’s pretty nascent uh so the mou understanding right now with qp uh quad play is essentially a

Thai organization with deep relationships in the pie market in the food beverage industry they also run two wellness clinics so they have been associated with this industry for quite a while and we are leveraging their relationships with farmers which is the cultivators with universities that they have in terms of you know growing it in strains the other part

Would be also with the consumer crop food and beverage markets so these these three uh legs would be they’re part of the growth strategy and the seeds is for us a good way to get an equity to hold in an early market so again going back to our comment on or my comment on us being a flat organization so this is just a very low-cost way of us getting an extra

Uh distribution foothold in thailand and i think with thailand being the first one in southeast asia you see other countries but there’s a first mover advantage to any country changing regulations similar to what canada went through uh when it deregulated before the american market did on a federal level and you saw the whole uh market activity here in canada

Um even today although we are one tenth of the u.s market we’re still uh much larger when it comes to capital market side of it in terms of the companies that grow in so i think thailand’s going to be able to take advantage of course uh being the first country to take a move towards regulation that’s great that’s huge what are some of the milestones set for the

Company this year in 2021 so the first key uh thing would be obviously to get our extraction facility up and running uh we should be able to do it somewhere around end of april uh that’s the expectation kovit has had some impact i mean i would say quite a bit of impact in terms of getting the design and everything ready to uh to a full facility processing

Uh processing facility ready sorry and um and we should be cash flow positive in 2021 the reason we’d be cash flow positive is because sg supplied us hemp in lieu of shares which was disclosed in december 2020. uh what does that entail it means about five million dollars in savings so we didn’t have to raise or delude our shareholders um and essentially when

You translate five 550 000 pounds to an extraction facility every dollar that comes in is right to the cash um cash line right our community is really big in in our communities all over the world we’ll have people in over 100 countries watch this video and it’s extremely important for us to understand the share structure we like tight float stocks companies

That are really responsible with understanding where they put all their shares how they distribute shares that’s extremely important to us so can you explain the share structure and give us a breakdown of discover wellness shares outstanding and how much is held by insiders yes so 52 point so we have basic shares outstanding about 52.3 million shares uh fully

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Diluted about 56.9 million shares and essentially 30 is held by management and insiders so very tight tightly held structure and like you said we are sensitive to dilution so hence we took the inventory uh you know in legal shares rather than going to the market to raise uh capital so what we’re trying to do is be cost effective and you know both in our

Inventory or basically a buying side of it as well as on the distribution side as well as you can see with the thailand agreement or anything else we’re trying to be very cost effective on both sides that’s great that’s music to my ears if there was one thing you would want to know and you would want shareholders to know about discover wellness what would it

Be well like i said before i think kind of the same theme around the story is uh you know cost-effective strategy uh so there’s a two-prong strategy one is a cost leadership when it comes to product uh pricing the second part is cost-effective distribution hence the thailand agreement that we just made so we are trying to do both sides which is collects the

Marketing distribution element as well in terms of pursuing jv’s or mou’s with different countries where we get a marketing agreement and in new of the sg seeds like the high agreement said shows uh to get a distribution wider than what we have so there’s a global distribution strategy as well as a cost leadership strategy within canada with our shareholders

And with all the viewers and subscribers and followers that are going to watch this video they’re going to most likely be interested in getting in contact with the company they’re going to want to learn more they’re going to want to invest they’re going to want to potentially do lois joint ventures because there’s so many public companies watching our videos

What would be the best way for them to get in contact with you so the best way would be either email so ambreego discoverwellnesssolutions.ca or my our phone number the 1-800 numbers which is on our press releases okay great well thank you so much for your time today manish griego the chief strategy officer of discover wellness remember rich tv live everyone

That’s watching is for education entertainment purposes always do your due diligence always do your research before you invest in anything that we talk about here in rich tv live chances are once you do your research and you speak to a financial advisor your financial advisor is going to say where’d you get this pick you can say from rich tv live and they’re

Going to say it’s a really nice pick i really like this company manish i think you guys are doing great work i’ve always been a big fan of cbds always so i love the cbd industry i thought there would be more cbd companies right now and there isn’t so i still still think there’s a huge market for you guys to penetrate and i think that you guys are undervalued

Underappreciated underexposed with a tight flow and a growing story and like you said some huge growth potential as far as revenue which our community loves to buy revenue so revenue generating businesses early stage super growth companies is what we look for and i think you guys are kind of falling in that category so i’m really excited to see how you guys

Are going to evolve now remember if you guys like this video please smash the like button comment down below share the video and subscribe thank you guys for watching if you’re not winning you’re not watching this is rich from rich to be live with manish grigo the chief strategy officer of discover wellness saying have a nice day everybody thank you minish

Thank you rich appreciate your time today thank you have yourself a great day and keep up all the great work you

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Discover Wellness Solutions Chief Strategy Officer Manish Grigo (CSE: WLNS) By RICH TV LIVE

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