Investment Q&A

Q: Hello Peter,
This is a comment with regards to Saeed's question "I read somewhere that in the gold rush, those who sold shovels, pickaxes, rented mules, etc. made the most money. " i just wanted to add QCC (Quadron Cannatech Corporation) could fit into the category as well. They focus on extraction and processing...

Q: Happy new year Peter & Team

It was announced Wed QCC entered into a "letter of engagement with PI Financial as sole lead underwriter, pursuant to which PI has agreed to purchase for re-sale 7,142,858 units of the Company at a price of CAD$0.70 per Unit, for total gross proceeds of CAD$5,000,000. Each Unit consists of one common share and one common share purchase warrant . Each Warrant is exercisable into one common share (“Warrant Share”) at a price of CAD$0.83 per Warrant Share, for a period of 24 months following the closing date of the Offering"

What are your thoughts on this move and what effect it has on the Company moving forward?

Thanks for all you do

gm

Q: Hey Peter & Team,

Seems I'm all about Cannabis these days. QCC today reported the first sale of their BOSS Co2 Extraction System into the US market and the price immediately jumped and is now up over 55% on the day with a volume of 4.8M. (ave 384K)

Had another frank conversation with an executive in the company and he informed me they have a number of sales in the pike after a very good showing at the MJBiz Conference in Las Vegas a month ago.

Things I have noticed... Moral around their offices is great. They genuinely believe in what they are doing and expect to do very well in the coming years plus, are looking to expand sales world wide. Their offices aren't fancy, don't even have a name or sign outside the building and the inside is neat, tidy and busy with no frills attached. Their markup on these units is 100% and they are expecting to sell a dozen if not more of of these proprietary systems per quarter next year. Makes sense considering they announced their first sale Dec 20, their 2nd the next day and now their 3rd system today.

I know I am in danger of sounding like a promoter but... I am now up almost 300% in less than 4 months and am starting to wonder what I should do. Buy Sell Hold... The original investment represented 0.5% of my portfolio.

If the announcement of three systems does this to the stock, what will happen when they start announcing additional sales at the same pace in the coming year?

Really look forward to hearing your advice.

Thanks for all you do

gm

Q: Good Morning 5i team,

re: Cannabis... QCC gained 50% in the past 3 weeks and over 25% today after announcing the first two sales of their patented BOSS CO2 Extraction System. And expectations have it there are a number of additional sales expected in January with many more in the pike.

I know you have told us this is a small company with little attention being paid, so it is risky. Cannabis Oil is they wave of the future and from what I have learned, this BOSS system is impressive. I also know extraction of "high quality" Oil is a difficult process to master and it sounds like these guys have figured it out.

Would I be a fool to invest in this company?

Thanks for all you do

gm

Q: Morning 5i team... apologize in advance for the length of my question!

Am I wrong in thinking we should all looking for who will be the future big winners in the Marijuana sector? Personally, I think this is going to be a significant global industry moving forward with lots of cash flow yet, on September 20 you said “We are really not endorsing any in the sector…” when asked what company should be looked at.

My question(s) is two-fold;

First, do you mind me asking which you aren’t endorsing any companies in this sector? Is it because you don’t see any quality companies at hand? Or is it more of a sector avoidance thing? And on that thought, do you have an opinion on how this sector could play out over the next 5 years?

Second, QCC recently announced a non-brokered private placement of units of the Company at a price of twenty cents per unit for aggregate proceeds of up to $1 million. I have visited QCC personally and met with Management. Their operation appears to be running well, they are very busy, are a proud group and are very optimistic re their new BOSS C02 extractor (oil production) which according to them is cutting edge technology. I have seen these units first hand and up close and they do look slick. They produce an incredibly pure product which is difficult and costly to do, and I think Cannabis Oil has to be the future as no one will be comfortable getting behind anything that is carcinogenic.

It appears the stock has seen a nice gain in the past few days. Do you think it’s because of the placement news? (I know it’s small) Or is there another reason at hand for the gain? Can you provide any additional insight on the future of this company, (I know they are small) and if the Private Placement is a good thing, bad thing, or irrelevant because of the size? And do you think there is a market for growers buying their "portable" extractor?

I’d love to get into a small company that takes advantage of the Billions sure to be spent on cannabis products over the next 10 years plus!

Thanks for all you do

gm

Q: Anything new to discuss regarding QCC? And I'm curious about your opinion regarding the 2018 summer expected announcement regarding legalizing marijuana.