On February 23rd, 2019 GCAC CEO Brad Moore held a town hall conference call with the participation of over 80 investors. Below are highlights of the conversation with video clips for your convenience. If you have any questions or wish to find out more about investment opportunities please do not hesitate to contact us at email@example.com or call 1.855.269.9554
- In February 2016, when I joined the Fundamental Applications Corp. as CEO there was one version of a working app, undercapitalized and outstanding issues. 6:13
- None of C Levels, at that time or currently, have ever had founder’s shares. Any market positions have been paid for like other shareholders. 6:22
- We finalized the acquisition of Opinit thru stock, with the idea of using an Instagram/Pinterest style app interconnected with a focused buy/sell to provide real-time data sets. 8:20
- When Facebook marketplace launched in October 2017 we realized that current business could not compete so we put together an exploratory team to investigate new opportunities. 9:24
- At this time there was an explosion in cannabis. 9:36
- We believed a gap existed in the claims made about cannabis actually being an actual medicine. We determined that there was no ‘doctors desktop book of cannabis’. The result was whether you were a doctor, nurse, or budtender your access to hard facts was based on what you found out online, conversations or product sheets from suppliers. 10:08
- What we found was a huge amount of scattered and randomized data including clinical studies, product surveys and most importantly online conversations from actual users. 11:40
- In April 2017 we felt that we had validated the business case to formally move the company into medical cannabis and completed the necessary filing with the exchange and changed the name to Global Cannabis Applications Corp (GCAC). 12:45
- During late 2016 and 2017, we began building a team of some of the best minds in the medical cannabis space to help us. 13:16
- Cannabis was routinely compared to the Gold Rush; however, a data-driven technology solution would be the modern-day version of the ‘providing picks and shovels to the miners’ . As such while designing the technology plan, we felt we needed to cement a first mover advantage by launching the Citizen Green brand and subsequently the ‘Pain to Strain’ concept. 14:38
- The core principle of ‘Pain to Strain’ came from the concept of aligning users to specific strains based on efficacy against the greater data user set. The goal was to create a better start point and journey for patients and confidence for prescribers. Additional MANY people abandon cannabis treatment due to negative side effects, a core objective to resolve in 2019, with the ‘Pain to Strain’ model evolving over 2018 15:23
- We conceptualized both CannaMed (now defunct) and CannaLife apps to start building a user base. By using existing code basis from Foro and Opinit, it was our first attempts of providing a truly medical cannabis orientated solution for patients, vs the current recreational apps on the market. 18:28
- 22017 was pivotal GCAC for cementing many value-added partnerships in both technology providers, the cannabis industry in Canada, Lithuania, Australia and ultimately Israel. 18:56
- This footprint was critical in helping us to truly understand the scale of the global medical cannabis opportunity. 19:35
- With a materialized concept in hand, we started to recruit and build a core technology team with the required depths of knowledge to map and architect a solution 20:14
- In April 2018 we published our White Paper. The White Paper outlined GCAC’s Citizen Green information technology development plan, the market development strategy for the blockchain application, mobile applications, artificial intelligence, and the token economy. 21:42
- Note: while we did initially explore an ICO we soon came to realize the risk associated and move to a utility model. THIS WAS CLARIFIED IN THE PRESS RELEASE ABOUT THE UTILITY LETTER. 22:00
- As our operating company for the token economy is based in Lithuania, we submitted the White Paper to the Bank of Lithuanian. In May 2018 we were granted an important opinion letter from the bank stating that the Citizen Green token use, in fact, a utility token. At that time, we were among only a handful of companies to receive this distinction. 23:00
- During this period of time at we kept in constant communications with regulators in BC to ensure that we were in operating within guidelines as required of as a public company. 23:26
- In April the GCAC was introduced to Blockshine. We had previously met with Sam Lee in February 2018 at an event in Lithuania. Sam and I both felt that this was a significant opportunity for the Company because of the heavy data nature of the project. Sam made an investment of $4M at $.33/share in a private placement. 24:55
- The Company engaged Blockshine to provide consultation and management of the Citizen Green token economy. The development work was financed by the Company for $3 million using part of the proceeds of the private placement. 25:36
- The funding provided to Blockshine to conduct these services is repayable to the Company by than April 12, 2019. The loan is secured with a general Security Agreement and hypothecation of shares purchased in the private placement as security. The details of the agreement were disclosed in the June 30 financials. 25:54
- The objective of this transaction was to create an opportunity for users to create cash for their coins earned from their data inputs on the Prescriptii apps and for the development work to be funded by the service provider, de-risking the project from the perspective of the Company. 26:34
- The first exchange for the coin to be listed was the Canadian Crypto Exchange. 27:12
- In June with the approval of the token economy in hand, the company held a business planning summit in Tel Aviv with all stakeholders. We laid out what the current iteration of the Citizen Green solution which includes the Citizen Green Community, Prescriptii Retail – Patient interface and crypto-based loyalty program. 28:02
- We have described our solution as ‘Sale to Seed’ where real valuable consumer data can be fed back not only to retailers who grow their businesses with it but also to product producers. Detailed information about the Citizen Green solution is available on the citizengreen.io website page under resources. 28:34
- I believe the ability to directly associate crypto to a sales at the till, will do much to create acceptance of crypto a legitimate financial tool. 35:45
- The financial opportunity to GCAC is enormous as we see businesses on the Community grow and with more retailers and LPs joining, thus driving the demand for Citizen Green Coins. These facts significantly into revenue modeling. 36:09
- In November 2018 we launched the Citizen Green solution: Prescriptii, Onwards, Community at MJ-Biz con, conducting 16 back to back meetings with potential enterprise opportunities who were stunned by what we achieved. 36:17
- From those efforts, we closed our first deal with Grassroots SPA in Chile, finalized our distribution deal with Cannact. In the following weeks we opened another 4 major enterprise opportunities with product providers and partners in Poland, Macedonia, Puerto Rico, and Canada. While still early to tell we target our closing dates with 90-120 days from the first call. 36:46
- After the Christmas break, we launched the following marketing campaigns: 38:32
LinkedIn Campaign with a conversion of 7.50%, 40 conversations, and 3 booked sales meetings
Email Campaigns with an open rate of 12% projecting 16 sales meetings. Adding another 1000 contacts this week alone
- This coincided with extensive marketing outreach efforts to retailers in the southwest states including California, Arizona etc. directly to create brand awareness, resulting in 9 advanced sales cycle with multiple storefronts. 39:03
GCAC top priorities at the moment
How fast does it take for users to get going?
How are dispensary feeling about the monthly prices for Prescriptii?
Plans doing anything in a recreational marijuana space?
Is the app available for all devices?
Will the old CannaLife app shut down or get updated?
Some dispensary have dual licences meaning they can distribute for Rec and Med cannabis
Who are the main competitors?
Marketing and PR plans
One sentence GCAC pitch: CGAC building medical cannabis around the world
There is a lot of talk about GDPR, how are you referring to it?
What is the insiders ownership on shares on public?
Do you see it as a loyalty rewards system?
When will investors be able to see the application?
Is Headset competition for GCAC apps?
How does a handshake works?
Can a client switch between dispensaries?
When are enterprise deals will appear?
When will the token be live in Germany?
Anything on the horizon in China?
How are the Israeli guys are involved?
The coin is a stable coin, but will it ever show up as a financial or asset?
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