Financial jargon demystified
For our U.S. readers we found an interesting article offering simple answers to investing questions that many don’t dare to ask. Although we understand that our readers are seasoned investors, the article is worth sharing with the younger members in their network.
‘What The Heck Is A 401k?’ And Other Investing Questions You’re Too Embarrassed To Ask
Rather than risk looking stupid, you’ve smiled and nodded your way through many a financial conversation. Here are the answers to what you’re too afraid to admit you don’t know.
Before I started my job here at Forbes, I went around to some of my friends and asked them what they’d like to see me cover. What, if anything, confused them most about the world of finance? What were they too embarrassed to ask a professional? It was in the middle of one of these conversations that one friend burst out, “What the eff is a 401k?”
I laughed, then realized she was serious. (Let’s dispense with the mystery, for all of you who have asked this very question: So named for the part of the internal revenue code that authorized its creation, a 401k is a workplace savings plan that lets employees invest a portion of their paycheck before taxes are taken out. The savings can grow tax free until retirement, at which point withdrawals will be taxed as income. A large majority of employers will match an employee’s contribution – up to a point – thereby boosting the employee’s savings rate.)
Fortunately for her wallet – and financial future – this friend was saving at a rate above the recommended 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of her income; such is the beauty of a workplace savings program with auto-enrollment and a more-than 5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} employer match. But not every employee is so lucky. Only about half of Americans work for a company that offers a 401k, and of those, recent studies show, little more than a third of companies sweep their employees into the plan automatically. This means that the majority of you have to actively open a retirement account on your own if you want any hope of building a nestegg for your golden years. And if inertia is one of the biggest obstacles to success in savings, imagine how hard it is to decide to do something you don’t fully understand.
Here’s the good news: you don’t have to be an expert in order to start saving for retirement. You just have to – at least in the beginning – make the decision to save and, as Nike has told us for years, just do it.
“You don’t actually have to know how a transmission works in order to successfully drive a car,” reasons Stuart Ritter, a financial planner with T. Rowe Price. “Likewise, you don’t have to know what a price to earnings ratio is in order to invest and achieve your financial goal. You don’t have to know all the answers to all the questions before you start. ”
Stephany Kirkpatrick, a senior director of financial planning at LearnVest, agrees with Ritter. “The advice I give to clients is this: if you’re learning something new about investing, don’t let that hold you back from continuing to put money away for retirement,” she says. “It’s not what perfect stock you pick, what is important is that you actively save.”
They’re both right. That being said, there might be some questions you have that feel too basic to even begin to take their advice. With that in mind, here are some questions – along with the answers! – about investing that you might be too afraid to ask:
What exactly is “the market”? When someone refers to the market, they’re talking about the stock market – which, in turn, is shorthand for the three major stock indices: the S&P 500, the Nasdaq and the Dow Jones Industrial Average. The S&P 500 is an index of the 500 most widely-held companies (i.e, the stocks that the most people own) and is seen by many as one of the best ways to track the U.S. economy. The Nasdaq index tracks 4,000 stocks that are listed on the Nasdaq exchange (which, alongside the New York Stock Exchange, is where people can buy and sell stocks). The 4,000 stocks it tracks are weighted towards the information technology sector, leading many to nickname the Nasdaq the “blue chip” index. And the Dow Jones Industrial Average is the third major stock index: first calculated in 1896, the Dow is comprised of 30 well-known companies that have changed 58 times since the index’s inception. While the Dow was initially created to reflect the American industrial sector (hence the name), its current components include the likes of Disney, Microsoft, Apple, Coca-Cola and Nike.
LearnVest’s Kirkpatrick says that when people refer to “the market,” they usually are referring to the Dow – but because some people might mean S&P or Nasdaq when they say “the market’s up!” it can’t hurt to ask for clarification if you’re not sure.
What’s a 401k? Only about half of American workers have access to a 401k, which is a workplace savings plan that lets employees invest a portion of their paycheck before taxes are taken out. The savings can grow tax free until retirement, at which point withdrawals will be taxed as ordinary income. A large majority of employers will match an employee’s contribution – up to a point – thereby boosting the employee’s savings rate.
What’s an IRA? IRA stands for “individual retirement account (or arrangement)” and it allows you to save money for retirement even if you don’t have a 401k from your employers. There are two main types of IRAs: a traditional IRA, which functions nearly identically to a 401k, as taxes come out on withdrawals, and a Roth IRA, in which you pay taxes on the front end but can withdraw money in retirement tax free. For more on Roth IRAs, check out this article, this article, or this article. (Note that your contributions to a traditional IRA may or may not be tax deductible, depending on your income.)
Why do I need a 401k or IRA, anyway – especially if I’m buried in student loan debt? The short answer is: because if you want to stop working someday, you’ll still need money to live. The long answer is: because the earlier you start saving, the more time your money has to grow, and thanks to the beauty of compound interest, starting to save at an early age can mean a six-figure difference in retirement.
(Note that if you have private loans with very high rates — say, north of 7{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} or 8{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} — some financial experts acknowledge the value of getting rid of that debt before you start putting extra money into your 401k, since avoiding the compound interest of the loan is the same as getting a 6{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} or 7{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} return in the market. But before you do anything — pay debt, put money in a 401k, etc — you must have an emergency fund! Your debt-free existence won’t mean squat if your car breaks down and you have to eventually charge the price of the new transmission to your credit card.)
Everyone keeps talking about an employer match… what’s that? It’s the money your employer puts in your 401k for you. Many people call this free money, because that’s really what it is: it’s your employer saying (for example) “if you put 3{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of your salary into your 401k, I’ll put 3{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of your salary into your 401k.”
T. Rowe Price’s Ritter says, however, that “how much your company matches is a red herring,” because their matching percentage doesn’t necessarily mean that’s your savings goal. “The employer match distracts people from the real number they should be paying attention to, which is 15{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. That’s how much [of your take-home pay] you should be putting into an account for retirement every year,” he says. “If your employer is putting in 3{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}, you need to be putting in 12{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}.”
(If 15{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} sounds un-doable, try something lower — like 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}, or even 5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} — and work your way up 1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} at a time. Eventually, saving 15{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} will feel like a breeze.)
Should I invest in my 401k even if there’s no match? There’s no rule that says you MUST put money into a 401k (though if your employer offers a match, not saving in yours means leaving free money in the table). The important thing, though, is to save something, somewhere — and ideally somewhere other than a money market fund. If you’d prefer to save in a Roth IRA because you think your tax rate is lower now than it will be when you retire, go for it. If you like the convenience of having savings deposited directly from your paycheck into your 401k, and watching that savings grow tax-free, that’s a fine option, too.
It’s also worth noting that many companies now also offer a Roth option within their 401ks – meaning you can contribute to your workplace plan after-tax and then take the money out in retirement tax free. Again, that’s worth considering if you expect your tax rate to be higher later.
How and how much do I need to have to open a retirement account and start investing? That is a trickier question than you realize, as each bank — or robo-advisor — has a slightly different fee structure. Some will let you open an account for free but have a $3,000 minimum to invest in an index fund; others want you to have that money simply to open an account. You can find a breakdown of some of the most popular savings options — and their fee structures — here.
What’s an expense ratio, and why are they aren’t the same for every investment? LearnVest’s Kirkpatrick says that fees come up a lot in conversations she has with clients, and the easiest way to explain them is “to think about a budget for a business. That cost can be higher depending on what you as the business owner need to pay people to do.” An expense ratio, therefore, is essentially what you pay someone — usually a fund manager – to invest your money in the market. It comes out of the return you get in a year, so if your investments grew 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and the expense ratio is 1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}, you’ll really walk away with 9{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} growth.
“What can make an expense ratio more expensive is if the mutual fund is actively managed,” Kirkpatrick explains. “That means there’s a team of mutual funds analysts who all weighin on what the mutual fund should look like – versus a passive fund like an index fund that just follows a stock index. In that case, there aren’t as many salaries to pay, and in turn, fewer expenses to deduct from the fund’s annual return.”
Finally, she notes, paying 1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of your money a year as a fee might not sound like much, but with funds out there charging 0.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} or less, it’s worth it to read the fine print and make sure you’re not giving up more of your return than you need to.
What’s asset allocation? “Asset allocation is the mix of stocks, bonds and cash you have,” Ritter explains. “That’s all it is. How much of your portfolio for a particular goal do you have in stocks, bonds and short term investments?” (There are other asset classes too, like real estate and commodities. But at the most basic level of asset allocation, the three main categories are stocks, bonds and cash.)
Speaking of bonds: stocks make sense to me, but what are bonds? As FORBES’ Sam Sharf explains here, the easiest way to think about buying a bond is to think about buying debt: you’re essentially lending money to a government or company that needs it. This isn’t because you’re a nice person and want to help Puerto Rico(for instance): you do this because interest is paid on the loan, and as the investor, you get that interest. The more creditworthy the borrower, the lower the interest rate, so when investors want a higher yield, they will sometimes buy what is known as “junk bonds” from companies and governments with lower credit ratings. This whole field is also known as “fixed income investing.”
How can I determine my risk tolerance? If you’ve heard of risk tolerance in life, it’s essentially the same in investing: how much risk are you willing to take in order to get what you want? Stocks have the potential to give you a higher return than cash, but since the stock market can go up and down, stocks are riskier investments in the short term; since the value of cash is relatively stable, keeping your savings in a money market account is a more conservative way to approach things. (But note that over time, inflation can eat away at the value of your cash – so that’s a risk too.) Taking a quiz can help you understand how important it is to you to get a high return — and how we’ll you’ll be able to sleep at night in the process. Vanguard, Wells Fargo and Bankrate.com all offer good risk tolerance and asset allocation quizzes here, here and here (respectively).
Is my financial adviser judging me for asking basic questions? LearnVest’s Kirkpatrick said no, not at all. You should be able to leave a meeting with your financial adviser having understood everything he or she said. However, if you do feel uncomfortable and as if he or she is judging you, it could be a sign that you need to find a different adviser.
How much money do I need to save for retirement? Ah, the million dollar question. With retiree healthcare spending topping more than $200,000 per couple, the target is probably higher than you might want to hear. Ultimately, though, this target will change from person to person depending on their situation: will you own or rent your home in retirement? Will you travel all the time? Will you keep working a few days a week? All of these things will affect how much you need to have in the bank. To find the target that’s appropriate with your lifestyle goals, try one of these calculators.
The original article, written by Maggie McGrath, appeared in Forbes on May 15, 2015. You can find it here.
InMed Looks into Treating COPD with Cannabinoids
InMed Adds Chronic Obstructive Pulmonary Disease (COPD) Program to Therapeutic Pipeline
InMed Pharmaceuticals Inc. (“InMed”) (IN:CSE)(IMLFF:OTCQB), a clinical stage biopharmaceutical company that specializes in developing safer, more effective cannabis-based therapies, announced it has initiated a program to identify and evaluate cannabinoid compounds for the treatment of chronic obstructive pulmonary disease (COPD). Initial drug discovery and preclinical development is currently underway in collaboration with members of the Department of Anesthesiology, Pharmacology & Therapeutics at the University of British Columbia.
Craig Schneider, President & Chief Executive Officer, stated, “We’re excited to explore avenues to further expand InMed’s pipeline with the addition of new program targeting COPD, the third leading cause of death in the United States. Similar to our ongoing program in orofacial pain, we are leveraging our proprietary intelligent drug design platform technology to identify promising therapeutic candidates. In addition to advancing our current product candidates, expansion into respiratory disease marks our fourth major disease focus, highlighting our commitment to building a leading pipeline of cannabinoid-based therapies.”
Dr. Sazzad Hossain, Chief Scientific Officer, stated, “Current treatments for COPD are complex and ineffective and there is currently no cure available. It is well known that cannabinoids exhibit bronchodilatory, immunosuppressive, and anti-inflammatory properties and thus cannabinoid-based therapy may offer safer and more effective treatment options for COPD.”
InMed researcher, Dr. Dmitri Pechkovsky, will conduct the initial discovery work in the laboratory of Dr. Pascal Bernatchez at the University of British Columbia. Dr. Pechkovsky has extensive research experience in pulmonary disorders, specifically, COPD, idiopathic pulmonary fibrosis, and asthma. He earned his Ph.D. in Immunology and Allergy from Minsk State Medical Institute in Belarus and conducted post-doctoral training at the Research Center Borstel-Leibniz Center for Medicine and Biosciences (FZB), Luebeck University, and University of Freiburg in Germany.
About COPD
Chronic obstructive pulmonary disease (COPD) is a chronic disease of the lower respiratory tract in the lungs that makes it progressively more difficult to breathe. Currently, over 50 million people globally have been diagnosed with COPD. However, studies estimate the actual prevalence of COPD is twice that amount. According to the Centers for Disease Control and Prevention (CDC), COPD is the third leading cause of death in the United States.
The disease typically develops as a result of inhalation of air pollutants including cigarette smoke, air pollution, chemical fumes, and dust. Those who suffer from COPD show symptoms including shortness of breath, increased production of mucus, coughing, and chest tightness, caused by the restricted airflow through airways in the lungs. Currently, there is no definitive cure for COPD, but a variety of treatments do exist.
About Cannabinoid-based Therapy for COPD
Recent studies have indicated that cannabinoid-based therapy may be effective in ameliorating major symptoms of COPD. THC, the major active ingredient in cannabis, has been shown to exhibit bronchodilation for up to two hours after administration. To counteract the heightened COPD-induced immune response in the lungs, THC mobilizes myeloid-derived suppressor cells (MDSCs), a group of white blood cells, which inhibit T-cell proliferation and activation. Cannabinoids also exhibit anti-inflammatory effects through the inhibition of cyclooxygenases COX-1 and COX-2, enzymes that produce inflammatory compounds.
About InMed
InMed Pharmaceuticals is a publicly-traded clinical-stage biopharmaceutical company specializing in developing therapies through research and development into the extensive pharmacology of cannabinoids coupled with innovative drug delivery systems. InMed’s development pipeline includes product candidates for glaucoma, arthritis, and epidermoylsis bullosa (EBS), as well as active discovery programs in orofacial pain, ocular allergies, and chronic obstructive pulmonary disease (COPD). InMed’s proprietary Intelligent Cannabinoid Drug Design Platform (IDP), therapeutic product pipeline, and accelerated development pathway are the fundamental value drivers of the Company.
Corporate Presentation
- Published in Blog, Life Sciences
Sirona Biochem CEO Update: to complete licensing deal by year-end
Sirona Biochem CEO Update: Significant Interest From Top Cosmetic and Pharmaceutical Companies for Lead Compounds
Sirona Biochem Corp. (SBM: TSXV) (ZSB: FRANKFURT) today provided a business update.
Dear Shareholders,
I would like to provide an update on our progress and to communicate the corporate strategic priorities that will deliver value to our shareholders in the near and long term.
Recently we announced the development of the safest, most effective skin lightener in the world, with SBM-TFC-1067. Our main focus is to license this asset to a major corporation with a global commercial and R&D infrastructure in Japan and Asia-Pacific. These regions represent the vast majority of the $20 billion skin lightening market.
SBM-TFC-1067 has attracted significant interest up to the level of material transfer agreements from nine of the top cosmetic and pharmaceutical companies that dominate the skin care market. The growing problem with current treatments is that they are either hydroquinone based, or release hydroquinone. Hydroquinone has known safety risks associated with its use, and there is evidence that it may be a potential carcinogen. It has been banned in Japan, the European Union, Australia, Korea, and also found on Canada’s toxic substances list.
Sirona has developed a solution for the problem, since there is zero hydroquinone released with SBM-TFC-1067. A major corporation could establish a large share of the skin lightening market through a licensing agreement with Sirona. Furthermore, this asset does not directly compete with SBM-TFC-849, which has been licensed to Valeant/Obagi, with a focus on the physician-dispensed channel in the US.
Our anti-aging and regenerative medicine lead candidate, SBM-TFC-837, has delivered breakthrough scientific results demonstrating significant protection in fibroblasts against the stressed conditions of nutrient deprivation, UV irradiation and most recently, oxidative stress. There is ongoing development of this asset to further characterize the multiple mechanisms by which this glycoprotein exerts its positive effects. There are eight major corporations that have expressed interest in this asset and, most importantly, we have obtained the commitment from a major corporation to execute a material transfer agreement to test our compound in their own facility.
The anti-inflammatory project is undergoing compound optimization to ensure maximum commercial viability. In 2016, the project will be transferred to our partner, Bloom Burton, to be further developed as a pharmaceutical.
For our ongoing collaborations, we continue to provide tech transfer consultations to both Valeant/Obagi and Fosun/Wanbang Biopharmaceuticals as they continue the development of SBM-TFC-849 for skin lightening in the physician dispensed channel in the US and SBM-TFC-039 for type 2 diabetes in China.
The company continues to maintain a healthy balance sheet despite being over a year since the last private placement. We recently generated an additional $400,000 as a result of shareholders exercising approximately 2.8 million warrants and our investor base was expanded through a successful European road show.
Moving forward, we anticipate at least one successful licensing agreement by the end of the year, which would be structured to include upfront, milestone and approval payments at each stage of clinical testing, scale-up and formulation, followed by a royalty stream.
In the near term, we will be presenting and participating at BIO International in Philadelphia, attending the World Congress of Dermatology in Vancouver, attending Cosmetics 360 in Paris and BIO Europe in Munich.
Looking back, over the last 6 months, Sirona Biochem has completed the following:
- Tests completed on our third skin lightener and creation of a comprehensive non-confidential slide deck which is being actively reviewed by leading global pharma organizations.
- Advanced the anti-aging and cell preservation projects into cell studies, which are also being reviewed by global pharma organizations.
- Entered into several partnering discussions with leading cosmetic and pharmaceutical companies for testing of both the skin lightener and anti-aging compound.
- Presented at 5 pharma/biotech conferences, increasing the awareness of the assets within our pipeline.
- Secured funding from the French organization BPI and region Haute Normandie for the anti-aging project.
We remain committed to our goal of becoming a global leader in commercializing carbohydrate chemistry by providing leading cosmetic and pharmaceutical companies with innovative products.
With your continued support and our ongoing efforts, together we can realize this goal.
Sincerely,
Dr. Howard Verrico, CEO
About Sirona Biochem Corp.
Sirona Biochem is a cosmetic ingredient and drug discovery company with a proprietary platform technology. Sirona specializes in stabilizing carbohydrate molecules with the goal of improving efficacy and safety. New compounds are patented for maximum revenue potential.
Sirona’s compounds are licensed to leading companies around the world in return for licensing fees, milestone fees and ongoing royalty payments. Sirona’s laboratory, TFChem, is located in France and is the recipient of multiple French national scientific awards and European Union and French government grants. For more information visit www.sironabiochem.com.
Corporate Presentation
- Published in Blog, Medical Marijuana
Proximity Marketing: “Near me” Impact Mobile
Impact Mobile, part of the DealNet Capital Corp. (DLS:CSE), offers customer engagement services via mobile marketing solutions. Proximity marketing strategies enable retailers to reach customers with relevant content and solutions tailored to client’s immediate needs. Google’s “I-want-to-go” moments sketches the portrait of a connected consumer who not only makes decisions but also takes actions based on a satisfactory search result.
Can ‘Near Me’ Searches Make or Break Local Businesses?
If you walk down a busy city street, you’re likely to see many people glancing down at their smartphones as they go. Yes, some of them are reading emails and text messages — but some are probably searching for the closest location to purchase something they want right now.
Mobile devices have changed the entire process of looking for and retrieving information, especially when it comes to finding local products and services. In a recent article on Google blog Think with Google, author Matt Lawson, director of search ads marketing for Google, called these location-specific queries “I-want-to-go” moments — instances in which consumers use mobile search to quickly find what they want in the immediate area.
“Words like ‘near me,’ ‘closest’ and ‘nearby’ are increasingly common across the billions of queries on Google every month,” Lawson wrote. “More and more, people are looking for things in their vicinity — be it a gym or a mall, a plumber or a cup of coffee. Google search interest in ‘near me’ has increased 34 times since 2011 and nearly doubled since last year. The vast majority come from mobile — 80 percent in Q4 2014.”
As you might expect, “near me” searches aren’t solely for informational purposes; people make decisions and take action shortly after they find a satisfactory search result. According to Google data, 50 percent of consumers who conduct local searches on their smartphone go to a store within 24 hours, and nearly 20 percent make a purchase within a day. Therefore, businesses need to be searchable, especially via mobile, if they want to attract local customers.
“With a world of information at their fingertips, consumers have heightened expectations for immediacy and relevance,” Lawson said. “They want what they want, when they want it. They’re confident they can make well-informed choices whenever needs arise. It’s essential that brands be there in these moments that matter — when people are actively looking to learn, discover, find or buy.”
Brands can prepare for these spontaneous, act-now moments by thinking through situations in which consumers might search for their store and making sure they’re ready for them, Lawson said. Data analytics tools, and even day-to-day observations and patterns, can help you figure out when these situations are most likely to arise. Specific days and times will vary depending on the type of business you run — for instance, a restaurant or boutique might see spikes during night and weekend hours, while a coffee shop would likely see more foot traffic in the mornings and afternoons.
Lawson made the following recommendations for getting consumers in the door after they find your local business through a search:
- Think about how customers are interacting with your brand or category, particularly via their smartphones, when they are near one of your stores.
- Find ways to be there when people are looking for your business’s location, or when they want to know where they can connect with your brand.
- Incorporate user context into your ad messaging with technologies like location extensions or local inventory ads to show users relevant information about stores nearby.
- Easily deliver useful local information — such as directions, inventory and pricing — when people land on your site or app.
- Measure the impact of digital interactions both online and offline: Have a system in place to estimate or track how much store traffic results from digital interactions.
No matter which tactics or technologies you choose to implement, what matters is that you do plan for these “near me” searches that are sure to occur.
“Whether you’re a small business or global brand, you need to deliver on needs in these moments,” Lawson wrote. “Those who stay centered on the consumer’s context and intent in the moment will not only deliver on needs, they’ll also seamlessly advance the consumer journey and build brand preference along the way.”
Original article by Nicole Fallon, appeared in the Business News Daily. Read the article here.
InMed applies to patent EPS treatment in U.S.
INMED PHARMACEUTICALS FILES PROVISIONAL PATENT COVERING NOVEL COMPOUNDS FOR TREATING EPIDERMOLYSIS BULLOSA SIMPLEX (EBS)
InMed Pharmaceuticals Inc. (“InMed”) (IN:CSE ; IMLFF:OTC), announced today that it has filed a provisional patent application with the United States Patent and Trademark Office (“USPTO”) relating to the treatment of Epidermolysis Bullosa Simplex (EBS) using novel formulations of natural cannabinoid compounds developed by InMed.
Dr. Sazzad Hossain, InMed Pharmaceuticals’ Chief Scientific Officer, commented, “We are excited to file our first patent covering the use of our products in a high-value orphan disease category. Based on preliminary studies, our compounds are expected to positively address the significant medical needs of EBS by promoting improvement of the key hallmarks of the disease (anti-itching, wound healing, anti-microbial, pain, anti-inflammation). We are continuing the process to build our IP within the dermatology area, adding further value to our pipeline of novel therapeutics.”
A provisional patent application is a legal document that establishes an early priority date for the benefit of claiming “first to file” status against other companies or individuals that may want to file for a patent with similar claims after the filing date of our provisional application.
About InMed
InMed is a clinical stage biopharmaceutical company that specializes in developing cannabis based therapies through the research and development into the extensive pharmacology of cannabinoids coupled with innovative drug delivery systems. InMed’s proprietary platform technology, product pipeline and accelerated development pathway are the fundamental value drivers of the Company.
- Published in Blog, Life Sciences
Nomad Ventures Announces Third Purchase Order
Nomad Receives $1.6-million, 50,000 tonne Stone Order
Nomad Ventures Inc. (NMD:tsxv) has received a purchase order for 50,000 tonnes of quarried stone products from a well-established Lower Mainland heavy construction and aggregate company. The Purchase Order also includes 50,000 tonnes of construction fill that will be tug and barged back to the St. Vincent Bay Property for processing. The Purchase Order represents revenue of more than $1.6 million and has a delivery schedule over the next 2 years.
The addition of this Purchase Order and the previously announced Apex and Headwater Purchase Orders (May 14, 2015 and May 20, 2015) now represents more than $5.9 million dollars in revenue for Nomad.
Brent Forgeron, President/CEO, states “Nomad has reached another very important milestone by securing a third Purchase order since announcing receipt of our commercial sand, gravel and granite quarry permit from the BC Ministry of Energy and Mines on March 9, 2015. This further validates the quality of the deposit located at the St. Vincent Bay Quarry and the demand for the aggregate and specialty rock products that will be produced there.”
Additional aggregate and specialty rock supply contracts with British Columbia based construction and development companies are currently being negotiated by Nomad to meet the initial allowable volumes of the Company’s mining permit.Technical material in this news release has been reviewed by James H. Place, P.Geo., a Director of the company and a Qualified Person as defined in NI43-101.
The commencement of production on the St. Vincent Bay Property will not be based on a feasibility study of mineral reserves demonstrating economic and technical viability.
About the Vitaleaf Community
Vita Leaf
The vital link between alternative medicine patients, prescribers and distributors. Currently Vitaleaf is producing an online ebook that includes various information on medicinal herbs as well as interviews with doctors and patients who are currently using medicinal herbs to treat various ailments and diseases.
Invictus MD Strategies (IMH:CSE) currently owns 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of Vitaleaf.
Invictus – Investment portfolio and cash flow generation
With a diverse portfolio, INVICTUSMD engages in long-lasting, strategic investment opportunities, which will promote durable growth and shareholder value. The companies targeted for investment must demonstrate specific traits including proven brand recognition, sound management, compelling market that will support growth, sustainable and differentiated advantage over competitors.
You can find below a brief description of the 6 verticals developed by INVICTUSMD, from which 3 are cash flow positive.
- Published in Blog, Medical Marijuana
Interview with Invictus MD Strategies’ CEO Dan Kriznic
Invictus MD Strategies rolls up six weed companies in four months; more to come?
by: Chris Parry, Stockhouse.com
Q: A lot of people would have been very happy to spend a few decades in your former position at Deloitte as well as your executive position at PrimaCorp. Yet you stepped back from an important role at a respected multinational, and opted to go solo with your own venture. What was the motivation behind that switch, and how are you feeling about that move in the early days of Invictus? Everything you wanted and more?
I left Deloitte back in 2009 to work for one of my clients who had just recently done a fairly large acquisition and needed my support to build the company. The most difficult part about leaving Deloitte was moving on from the numerous client relationships I had built during the 10 years that I was there. I’ve always had a sense of entrepreneurship in me since I was young and wanted to dive deeper into industry so I could utilize street smarts combined with my CA education. For over 6 years I was an integral part of building Canada’s largest for profit education company. The motivation to move on and incubate Invictus was primarily drawn from watching various footage with regards to medicinal cannabis and how it is helping the young and old. I am not a 420 recreational type of person. I saw this as a revolution where I could utilize my previous business experience and really make a difference. I never look back and truly believe the decision you make at the time you make it is always the right decision. Sure hindsight might suggest something different but when you’re running a fast growing company like Invictus there isn’t any time to look back. I more excited and motivated than ever before.
Q: You raised a small amount of cash as part of going public in December 2014, around $413k. Later you raised an additional $770k and combined turned that into six companies organically and by way of acquisition and still have $175k in change left over. Why are people so keen to sign over a large piece of their business to Invictus?
We raised approximately $413k when we went public at the end of December 2014 and an additional $770k a few months after. With those proceeds we were able to purchase and start up 6 companies, 2 of which are already revenue producing. Those companies include:
1. Vitaleaf – our patient education and management company dedicated to providing information to patients, producers, prescribers, policy makers and the general public. The full website will launch in Spring of 2015
2. Future Harvest – A manufacturer of hydroponic equipment as well as lawn and garden related products. They have three product lines including Nutradip which manufacturers metering and monitoring products, Plantlife Products which includes various nutrients for growing and Sunblaster which has introduced a number of lighting products to the hydroponic and in-door growing industry.
3. Smokazon – An American based multinational corporation engaged in worldwide marketing and selling of aromatherapy related gear and accessories.
4. The Edison Vape Co. – a unique new type of vaporizer technology that is currently in the proto type phase
5. Cannabis Health Sciences – Owns and operates the Cannabis Health Journal. Initially started back in 2002 with 21 issues. We are launching a comeback in Fall of 2015 with some amazing interviews and write ups.
6. Greener Pastures MD – This is our grow management and production vertical. We are seeking acquisitions in this vertical but do not currently have a license.
We are extremely efficient with our capital. I guess this is part of my roots as a Chartered Accountant. A day doesn’t go by that I don’t focus on the cash flow of the business. I’ve always considered myself very creative in the boardroom in terms of structuring deals. The secret is to understand the motivation of both parties and find a win-win solution. We pride ourselves on building a real cannabis company that will be around for many years. Business owners see this and want to be a part of a bigger movement. All acquisitions include a component of cash and shares in Invictus based on performance. That gives each company incentive to help and grow every vertical under the Invictus umbrella.
Q: I imagine a lot of the companies you’ve talked to maybe started out as mom and pop shops, found a little success, developed a nice niche, made some good money… What happens to those ground floor companies when someone like you walks in, takes inventory, and starts hitting cleanup?
We are very much operators at heart. We work with each vertical to understand their business before starting to implement improvements. I am a big believer in the saying “what you can’t measure you can’t manage”. We build Key Performance Indicators for each vertical and manage them in great detail. Every two weeks we have a full day management meeting with all the verticals to ensure we are on track with our growth plan. This is a time where the management of other verticals are welcome to join in any meeting to learn more about the company and provide their knowledge and expertise. A prime example is Smokazon is now working with one of our business advisors Dario Meli to provide web content through his company Quietly. We are already starting to see improvements in traffic as a result of this relationship.
Q: A lot of the moves you’ve made to date have been in acquiring what might be called marijuana services companies. Is that where you see the strongest future in the cannabis sector?
Invictus will be operating within all areas of the cannabis sector as we continue to raise and deploy capital. Our mission of increasing shareholder value by combining organic growth with a disciplined acquisition philosophy holds true within the services businesses as well as the production business. We have focused our acquisitions within the service areas at the moment more to manage regulatory risk than anything. There have been too many company’s in Canada that went public on an application to Health Canada and continue to be at their mercy. We wanted to be different. We wanted to protect the capital invested by our shareholders until such a time that we feel comfortable with the regulations.
Q: As your model starts to fill out, a company that joins your group will be able to take advantage of each of your verticals – coverage in Cannabis Health, products from Edison Vape, being distributed through Future Harvest, etc., not to mention being able to access the collective knowledge and experience base from your team. What’s missing from that model? If you could wave a magic wand, what sort of business would you like to add to that roster?
You are exactly correct. Invictus is a conduit to many of the verticals in the space. We give people access to resources they need and the connections they crave. To fill out our model we are seeking production opportunities as well as research and development opportunities. We want to continue building on the cash accretive assets and eventually start using those funds to support verticals in further research and development. We are currently looking at a few opportunities in Israel, Czech Republic and the US.
Q: When you started acquiring businesses, you kept the news very much to yourself. In fact, even now, yours is one of the less promotional companies in this space, yet I keep hearing your name mumbled by very serious people as an interesting play. Is that how you wanted things to roll out? Earn the respect and the investors will follow?
Yes. You don’t see too many companies going public 2 days before Christmas. This was all done by design. We wanted to acquire more assets before getting the word out to the general public. Keeping the market cap in line with our intrinsic value is important to us. I want investors to feel they have made the right decision based on economics rather than hype. We are in this for the long term.
Q: As an investor, I’m looking out for companies that are likely to rise in share price, but a lot of junior companies dilute to grow. You’ve been very focused on not diluting, and even cancelling shares out to further tighten the float. Is it likely we’ll see more of that in the future, or even a shift towards a dividend down the road?
Using stock as currency for acquisitions is definitely part of our acquisition philosophy. When we see an opportunity that makes economic sense we consider the impact of dilution to our existing shareholders. Typically we mitigate the negative impact of dilution by adding in significant performance metrics for the verticals including metrics for the management team at Invictus. Our goal is to continue incubating and consolidating private companies in the space and eventually exit with the verticals that make sense by way of sale, merger or even taking them public. We have only been public for 4 months and have already received offers. A dividend model down the road is definitely something we have considered pending cash flow from operations as well as proceeds on future exits. We want to give back to the shareholders who are currently supporting us and continue to do so.
Q: You’ve clearly evaluated a lot of potential acquisitions in the last several months. Are there any cannabis-related companies out there that, in a perfect world, you’d love to have gotten a piece of if the planets had aligned? Or, for that matter, any company that you just truly respect in how they’re doing business?
Everything happens for a reason. You can’t consummate all the deals that come across your desk nor would you want to. A recent example was a deal when I was in Tel Aviv which we were incubating for about 2 months. We were a couple of days from getting across the finish line when the deal terms shifted on us. It would have been a great international play for us however the terms were not right for Invictus and our shareholders so we decided to pass.
In terms of a company that I truly respect….At this stage I would say GW Pharma based on what they are doing for the industry as well as the capital they have managed to raise to date. There is a lot of noise in the market with minimal operations to back it. More so I respect the industry and the efforts some of the genuine operators have put into it.
Q: A vertical integrator draws strength from diversity, but the risk is often that the pieces can’t work together. How is your team building out to ensure that’s not an issue for Invictus?
We have built a very diverse team in a short period of time including industry operators, government officials, doctors, accountants, lawyers and marketers both operational and public markets. Each of the team members have something to add. Our stock of knowledge, habits, social and personality attributes is strong. As a combined force we are very strategic and creative and have the ability to produce economic value to our shareholders.
- Published in Blog, Medical Marijuana
Nomad Ventures Announces Second Purchase Order
May 20, 2015 – News Release – Nomad Ventures Inc. (“Nomad”) (NMD:tsxv) is very pleased to announce that it has received a purchase order for 85,000 tonnes of aggregate and specialty rock products from Headwater Management Ltd. (“Headwater”), a North Vancouver and Lower Mainland excavation and trucking contractor. (the “Headwater Purchase Order”).
The Headwater Purchase Order also includes 100,000 tonnes of construction fill that will be tug and barged back to the St. Vincent Bay Property for processing. The Purchase Order represents revenue of more than $2.3 million and has a delivery schedule over the next 2 years.
The Headwater Purchase Order is another important milestone towards establishing Nomad as a significant aggregate and rock product supplier for the Vancouver/Lower Mainland market.
Additional aggregate and specialty rock supply contracts with British Columbia based construction and development companies are currently being negotiated by Nomad to meet the initial allowable volumes of the Company’s mining permit.
The Headwater Purchase Order and the previously announced Apex Purchase Order announced May 14, 2015, now represents more than $4.3 million dollars in revenue for Nomad.
Technical material in this news release has been reviewed by James H. Place, P.Geo., a Director of the company and a Qualified Person as defined in NI43-101.
The commencement of production on the St. Vincent Bay Property will not be based on a feasibility study of mineral reserves demonstrating economic and technical viability.
Aurora Cannabis Signs Deal with CanGenX for Plant Tissue Culture
Aurora Signs Agreement with CanGenX BioTech Inc. for Pharmaceutical Type Production and Rapid Propagation to Increase Crop Yields
Aurora Cannabis Inc. (CSE: ACB)(FRANKFURT: 21P)(WKN: A1C4WM)(OTC PINK: PSNTF) (“Aurora” or the “Company) is pleased to announce that the agreement to undertake plant tissue culture as the Company’s production basis has been formalized with Dr. Geoff White of CanGenX BioTech Inc.
Plant tissue culture offers several distinct advantages over the traditional asexual propagation technique known as ‘cloning’. With plant tissue culture, each plant is produced under completely sterile conditions ensuring all batches begin in a disease-free environment. These controlled conditions provide for massive scalability in predictable timeframes along with consistency, ensuring the integrity of future crops. In addition, unlike traditional cloning, plant tissue culture allows for faster propagation while utilizing fewer resources. This leads to greater production efficiencies and increased yields due to improved plant vigor and health. Plant tissue culture melds well with pharmaceutical type production as it incorporates Good Manufacturing Practices in every aspect of the process.
Dr. Jason Dyck, Board Director and head of Aurora’s Research Council said, “Healthcare practitioners can be assured that plant tissue culture is just one of the many systems Aurora has implemented to ensure patients have access to safe, high quality standardized cannabis. The signing of the CanGenX BioTech contract confirms once again to our shareholders and industry stakeholders that the Company is committed in ensuring that the Aurora Standard is the Gold Standard throughout North America.”
About Aurora Cannabis Inc.
Aurora’s wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical marijuana pursuant to the Marihuana for Medical Purposes Regulations and operates a 55,200 square foot expandable state-of-the-art production facility in Alberta, Canada. Aurora’s wholly-owned subsidiary, Australis Capital Inc., seeks to be an active participant in the U.S. Cannabis market. Aurora is trading on the Canadian Securities Exchange under the trading symbol “ACB”.
- Published in Blog, Medical Marijuana