Analysts' Ideas of the Week - www.researchfrc.com September 27, 2021 - Baystreet.ca

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Analysts' Ideas of the Week - www.researchfrc.com September 27, 2021 - Baystreet.ca
Analysts' Ideas of the Week
Weak Manufacturing Data and Slow Vaccination Rates to Delay Economic Recovery

                           September 27, 2021
                         www.researchfrc.com
Analysts' Ideas of the Week - www.researchfrc.com September 27, 2021 - Baystreet.ca
Page 2

                                     Reddit Discussed Stocks
Our pick last week, Lucid Group Inc. (NASDAQ: LCID), went from US$24.07 on
Monday, to a high of US$28.21 on Wednesday (up 17%). The Electric Vehicle sector
remains the most actively discussed among retail investors, followed by cryptos,
cannabis, and betting. This week, we are observing strong retail sentiment around
Devon Energy Corporation (NYSE: DVN). Key parameters used may include – a) total
number of mentions, b) percentage change in the number of mentions, c) stock
sentiment, and d) market capitalization.

      Sept 27, 2021
      Company                                        Ticker Sector
      Devon Energy Corporation                       DVN Oil & Gas
                                                  Source: FRC

                         Historic Weekly Returns (Mar 1, 2021 – Present)
                        25 out of 30 picks have generated positive returns
                                     Average return = 23.74%

*Returns were calculated based on the assumption that picks were sold at their peak the same
week.
*Past performance is not indicative of future performance.

   ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
                    Click here to view FRC’s complete list of top picks
      PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Analysts' Ideas of the Week - www.researchfrc.com September 27, 2021 - Baystreet.ca
Page 3

                                             FRC Top Picks

The following table shows last week’s top five performers among our Top Picks,
including three cannabis, and two junior resource companies. The top performer,
Southern Silver Exploration (TSXV: SSV), was up 10.3%, as it increased its
ownership in the Cerro Las Minitas silver project to 100%. We were expecting this
development, and have not made any changes to our valuation. Our prior reports can
be viewed here.

                                   Top Five Performers Last Week

                                                  Source: FRC

Companies in our Top Picks list were up 40.0% on average since we initiated
coverage vs -1.1% for the benchmark (TSXV).

   ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
                    Click here to view FRC’s complete list of top picks
      PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
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Page 4

                                         Performance by Sector

                                                  Source: FRC

Our complete list of top picks (updated weekly) can be viewed here.

                                  Weekly Mining Commentary

Global equity indices were up 1.6% last week as North American and European
markets shrugged off fears of a potential spillover of the debt crunch faced by China
Evergrande Group (SEHK: 3333).

                                            Source: FRC / Various

Copper prices gained strength as well.

   ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
                    Click here to view FRC’s complete list of top picks
      PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Analysts' Ideas of the Week - www.researchfrc.com September 27, 2021 - Baystreet.ca
Page 5

                                         Source: FRC / Various

©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
                 Click here to view FRC’s complete list of top picks
   PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Analysts' Ideas of the Week - www.researchfrc.com September 27, 2021 - Baystreet.ca
Page 6

Valuations of gold producers were down 1% WoW; base metal producers were up
2%.

  ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
                   Click here to view FRC’s complete list of top picks
     PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Page 7

Last week, two (unchanged) out of the 15 hardest hit nations experienced higher daily
new COVID-19 cases. Only one country (vs two previously) experienced a WoW
increase in deaths.

Globally, 44.5% have received at least one dose, up 2.2 ppt WoW vs 1.2 ppt the
same time last week. 76.4% of Canadians have received at least one dose (up 1.0 ppt
vs 0.8 ppt). 70.3% of Canadians are fully vaccinated (1.0 ppt vs 0.9 ppt) vs 65.6% in the
U.K. (0.5 ppt vs 0.6 ppt), and 54.6% in the U.S. (0.7 ppt vs 0.8 ppt).

   ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
                    Click here to view FRC’s complete list of top picks
      PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Page 8

We continue to expect a correction in both equity markets and base metal prices,
amid weakness in manufacturing activities (see charts below), and slow vaccination
rates in developed economies.

             China Manufacturing                                            U.S. Manufacturing

                                         Source: Trading Economics

However, we are raising our copper price forecast for H2-2021, as prices in Q3 have
been higher than expected. We are lowering our gold price forecast, as prices have
been lower than expected in Q3.

   ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
                    Click here to view FRC’s complete list of top picks
      PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Page 9

In the following section, we review companies that announced key developments in the
past week.

                                         Mining / Exploration

Company                 Ticker                Current Share            FRC Fair Value
Name:                   Symbol                Price:                   Estimate:
UEX                TSX: UEX   $0.43            N/A
Corporation
PR Title                              FRC Opinion
Wheeler River JV approves feasibility Positive – UEX has a 5% interest in the JV.
study for the Phoenix deposit         Wheeler is a large high-grade project on the
                                      eastern edge of the Athabasca Basin. A
                                      2018 PFS had returned a BT-NPV8% of
                                      US$1.3B, and a BT-IRR of 39%.

Company             Ticker         Current Share     FRC Fair Value
Name:               Symbol         Price:            Estimate:
GoviEx Uranium TSXV: GXU           $0.41             $0.60
Inc.
PR Title                                  FRC Opinion
Positive drilling results at the Mutanga Positive – Reported grades (0.33%) are in
uranium project, Zambia                   line with the project’s existing resource
                                          estimate. We believe that continuous
                                          mineralization     reflects   the   deposit’s
                                          consistency. We believe this program will
                                          allow the company to upgrade some of the
                                          project’s inferred resource. Multiple holes
                                          indicate potential for resource expansion.

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                    Click here to view FRC’s complete list of top picks
      PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Page 10

Company            Ticker           Current Share     FRC Fair Value
Name:              Symbol           Price:            Estimate:
Azincourt Energy TSXV: AAZ          $0.08             N/A
Corp
PR Title                                   FRC Opinion
Fully subscribed $7.6M private placement Positive – The company is now fully funded
                                           to pursue its previously announced
                                           aggressive drill program (7,000 m/30-35
                                           holes) at the East Preston uranium project
                                           in the Athabasca basin.

Company           Ticker        Current Share FRC Fair Value
Name:             Symbol        Price:            Estimate:
Blue Lagoon       CSE: BLLG     $0.51             $1.07
Resources
PR Title                                FRC Opinion
Encounters multiple high-grade veins in Positive – We were pleased with the
new areas at Dome Mountain              following high-grade intercepts: 47.09 g/t
                                        AuEq over 0.65 m, 34.05 g/t over 0.55 m,
                                        7.71 g/t over 3.55 m, and 4.45 g/t over 2.40
                                        m. 18 holes have been completed to date.

Company          Ticker          Current Share FRC Fair Value Date of PR:
Name:            Symbol          Price:            Estimate:
Chatham Rock     TSXV: NZP       $0.145            N/A
Phosphate
PR Content                               FRC Opinion
Closes a $0.79M private placement        Positive – The company is evaluating three
                                         phosphate projects (two in Queensland and
                                         one in the Northern Territory) for acquisition.
                                         All three have JORC resources. The
                                         company is also awaiting approval of a
                                         mining application for a project in the
                                         French Polynesian island of Makatea.

   ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
                    Click here to view FRC’s complete list of top picks
      PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Page 11

Company            Ticker        Current Share     FRC Fair Value
Name:              Symbol        Price:            Estimate:
Vertical           TSXV: VERT    $0.14             $0.32
Explorations Inc.
PR Title                                FRC Opinion
Encouraging initial sales and marketing Positive – Initial orders for VERT’s products
update                                  are highly encouraging. VERT had recently
                                        received a quarry permit for its St-Onge
                                        wollastonite project. The project can be put
                                        back into production relatively quickly and at
                                        a low CAPEX.

Company            Ticker          Current Share     FRC Fair Value
Name:              Symbol          Price:            Estimate:
Colibri            TSXV: CBI       $0.095            $0.29
Resources
Corporation
PR Title                                  FRC Opinion
Option partner receives second batch of Positive – All 10 holes intersected gold.
assays for drilling completed at the El Key intercepts included 0.54 gpt over 6.10
Mezquite gold and silver project, Sonora, m, and 0.50 gpt over 4.58 m. We were
Mexico                                    pleased to see encouraging values from the
                                          project’s maiden drill program.

Company             Ticker   Current Share      FRC Fair Value
Name:               Symbol   Price:             Estimate:
MGX Minerals        CSE: XMG $0.045             $0.75
Inc.
PR Title                            FRC Opinion
Commences review of small modular Neutral – Although details were not
nuclear reactor technology          disclosed, we were pleased to see some
                                    activity within the company. We are looking
                                    forward to updates on its resource projects.

   ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
                    Click here to view FRC’s complete list of top picks
      PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Page 12

Company             Ticker           Current Share FRC Fair Value
Name:               Symbol           Price:           Estimate:
Nexus Gold          TSXV: NXS        $0.035           N/A
Corp
PR Title                                     FRC Opinion
Acquires district scale gold-nickel project Positive – The project, located close to
in Quebec                                    several well-known past and current gold
                                             producers, has never been drilled. NXS is
                                             issuing 12M shares for the project. The
                                             company remains focused on its Dakouli 2
                                             gold concession in Burkina Faso, and the
                                             McKenzie gold project in Red Lake, Ontario.

Company            Ticker           Current Share      FRC Fair Value
Name:              Symbol           Price:             Estimate:
South Star         TSXV: STS        $0.125             $0.52
Battery Metals
PR Title                                   FRC Opinion
Announces successful results from Positive - We believe this will support the
ongoing cycle and value-add testing        company’s financing discussions with
                                           potential investors/lenders. STS is aiming to
                                           commence production next year, and has all
                                           the required permits.

Update on Coverage:
• We are terminating coverage on Inca One Gold Corp. (TSXV: INCA) upon completing
deliverables. Our rating and fair value estimate for INCA are no longer in effect.

   ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
                    Click here to view FRC’s complete list of top picks
      PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Page 13

           Financials, Technology, Energy, and Special Situations

Company                  Ticker                Current Share            FRC Fair Value
Name:                    Symbol                Price:                   Estimate:
Apple Inc.               NASDAQ:               US$145.37                US$163.99
                         AAPL
PR Title                                                  FRC Opinion
Unveils iPhone 13 models                                  Positive – We believe key highlights of
                                                          iPhone 13 are improved cameras and
                                                          unchanged price points. We expect this to
                                                          fuel growth for Q4-FY2021 (ending
                                                          September), as well as the Q1-2022 holiday
                                                          season, and partially offset some of the
                                                          weakness from supply-chain issues caused
                                                          by the semiconductor shortage.

Company            Ticker         Current Share FRC Fair Value
Name:              Symbol         Price:          Estimate:
Trillion Energy    CSE: TCF       $0.27           $0.48
International Inc.
Sector Development                       FRC Opinion
Natural gas prices in Europe have surged Positive – Turkey imports 99% of its gas
in the past few weeks, amid supply consumption. Gas prices in Turkey are up
shortages, primarily from Russia. We 10% to US$7.9/mcf in the past two months.
believe the supply crunch will worsen Although        gas    only   accounts    for
when demand for natural gas increases approximately 10% of TCF’s revenue, we
during winter.                           believe TCF should benefit from the recent
                                         developments as it is seeking financing to
                                         develop the large SASB gas project.

                                                          Our 2021 revenue forecast will increase by
                                                          3.3% if gas prices stay at current levels for
                                                          the rest of the year. As there are no
                                                          structural changes in supply-demand of gas
                                                          in Europe, we expect the recent shortage
                                                          and spike in prices to be temporary.

   ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
                    Click here to view FRC’s complete list of top picks
      PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Page 14

Company              Ticker       Current Share FRC Fair Value
Name:                Symbol       Price:           Estimate:
Hello Pal            CSE: HP      $0.48            $1.81
International Inc.
Sector Development                       FRC Opinion
China declares crypto mining and crypto  Negative – This new development has
transactions illegal.                    created uncertainties for HP’s crypto mining
                                         division. Although our previous discussions
                                         with management have indicated that HP
                                         will be able to re-locate their mining rigs
                                         outside China, we are removing our
                                         revenue projections for the mining division,
                                         for conservatism. We are revising our fair
                                         value estimate from $1.87 to $1.81 per
                                         share. We are revising our 2021 revenue
                                         forecast from $36.36M to $34.99M, and
                                         EPS forecast from -$0.01 to -$0.02.

Company             Ticker        Current Share     FRC Fair Value
Name:               Symbol        Price:            Estimate:
Banxa Holdings      TSXV: BNXA $2.90                $11.76
Inc.
PR Title                                  FRC Opinion
Launches       compliant   crypto  "Sell" Positive – We are pleased to see BNXA
functionality for EURO, GBP, and AUD.     enhance its product offerings. Our FY2022
                                          revenue projection is A$30M (unchanged).

Company           Ticker          Current Share FRC Fair Value
Name:             Symbol          Price:              Estimate:
TAAT Global       CSE: TAAT       $3.97               $5.37
Alternatives Inc.
PR Title                                  FRC Opinion
Now sold in over 1,000 U.S. stores; more Positive – We are pleased to see TAAT
than 600,000 packs sold to date in the continue to generate demand for its
U.S.                                      products. Retail store presence is up 100%
                                          in a little over one month. The company also
                                          announced the launch of its products in
                                          Puerto Rico.

   ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
                    Click here to view FRC’s complete list of top picks
      PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Page 15

Company         Ticker        Current Share FRC Fair Value
Name:           Symbol        Price:           Estimate:
Kontrol         NEO: KNR      $2.59            $4.11
Technologies
Corp.
PR Title                              FRC Opinion
Enters into an MOU with international Positive – The MOU is for KNR’s BioCloud
HVAC company                          technology, and its distribution and
                                      manufacturing outside of Canada. The
                                      undisclosed partner generates $30B in
                                      annual revenue and has a network of
                                      30,000 distributors internationally. We will
                                      wait for sales figures before revising our
                                      revenue projection for 2022 ($64M).

                                                  Cannabis

Company          Ticker    Current Share     FRC Fair Value
Name:            Symbol    Price:            Estimate:
Kiaro Holdings   TSXV: KO  $0.10             $0.23
Corp.
PR Title                          FRC Opinion
Closes acquisition Of Hemisphere Positive – Pleased to see the acquisition
Cannabis                          close per management’s timeline. Kiaro’s
                                  store-count has increased to 16 (across
                                  B.C., Ontario, and Saskatchewan), up from
                                  seven at the start of the year. We are
                                  projecting $29M in revenue in FY2021, and
                                  $46M in FY2022 (unchanged).

Company           Ticker          Current Share FRC Fair Value
Name:             Symbol          Price:            Estimate:
THC BioMed Intl CSE: THC          $0.10             $0.26
Ltd.
PR Titles                                 FRC Opinion
Purchase orders from 30 dispensaries in Positive – We are pleased to see THC
Manitoba; Ontario cannabis stores to sell generate demand for its products across
three new products from THC               multiple provinces. We are maintaining our
                                          FY2022 revenue projection at $9.29M.

   ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
                    Click here to view FRC’s complete list of top picks
      PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Page 16

                               Weekly Cannabis Commentary

Cannabis Industry Performance
               September 27, 2021
                U.S. Companies                                   YTD       1-Week 1-Year
                Curaleaf Holdings Inc.                           -6%         7%    69%
                Trulieve Cannabis Corp.                         -14%         15%   55%
                Green Thumb Industries Inc.                      12%         8%   116%
                Cresco Labs Inc.                                -10%         14%   56%

                Canadian Companies                               YTD       1-Week 1-Year
                Aurora Cannabis Inc.                            -34%         0%     32%
                Canopy Growth Corp.                             -44%         6%     -1%
                Cronos Group Inc.                               -24%         0%     11%
                Tilray Inc.                                     -21%         5%    -22%
                HEXO Corp.                                      -51%         3%    -27%
                Organigram Holdings Inc.                         68%         4%   128%

                         Canadian Average                       -18%         3%           20%
                           U.S. Average                          -4%         11%          74%

                                                    Indices
                               Canadian                          YTD       1-Week 1-Year
                                HMMJ                             -1%         2%    43%
                                MCAN                             0%          3%    43%
                                XCAN                            -15%         4%    33%
                                 U.S.                            YTD       1-Week 1-Year
                                MSOS                            -15%         8%    47%
                                                 Source: FRC

Last week, U.S. cannabis stocks outperformed their Canadian peers, amid several
positive developments.

   ➢ Mississippi lawmakers have reached an agreement to propose a bill to legalize
     medical marijuana.

  ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
                   Click here to view FRC’s complete list of top picks
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Page 17

    ➢ The U.S. House of Representatives endorsed cannabis banking reform (SAFE
      Act) that would let cannabis businesses gain more access to traditional banking
      services.
    ➢ Amazon (NASDAQ: AMZN) announced its continued support for the federal
      marijuana reform act, by reinstating employment eligibility for former employees
      or applicants who were terminated or not considered because of cannabis
      screenings.
    ➢ Chicago lawmakers voted to lift the cap of seven retail stores per zone.

Valuation
As of September 27, 2021, the Canadian big four LPs were trading at a 48% premium
(down from 69% in the previous week) over their U.S. peers. We note that the
premium was 94% two months ago.

                                                           Sept 20, 2021                      Sept 27, 2021
    Canadian Companies                Ticker    TEV/Revenue TEV/EBITDA                  TEV/Revenue TEV/EBITDA
      Aurora Cannabis Inc.           TSX: ACB        6.3        NM                           5.6        NM
     Canopy Growth Corp.            TSX: WEED       12.4        NM                          11.7        NM
       Cronos Group Inc.            TSX: CRON        20         NM                          18.1        NM
           Tilray Inc.             NASDAQ: TLRY     11.5        NM                          11.1        NM
         HEXO Corp.                 NYSE: HEXO       6.3        NM                            6         NM
    Organigram Holdings Inc.         TSX: OGI        9.7        NM                           9.7        NM

                                     AVERAGE              11.0            NM                 10.4            NM
                                      MEDIAN              12.4            NM                 11.7            NM
                                     MINIMUM               5.0            NM                  5.0            NM
                                     MAXIMUM              20.0            NM                 18.1            NM

       U.S. Companies                 Ticker         TEV/Revenue TEV/EBITDA             TEV/Revenue TEV/EBITDA
     Curaleaf Holdings Inc.         OTC: CURLF           8.5        31.6                    9.1        33.9
    Trulieve Cannabis Corp.         OTC TCNNF            4.8        10.5                    5.3        11.6
   Green Thumb Industries Inc.      OTC: GTBIF           8.1        22.0                    8.5        23.2
        Cresco Labs Inc.            OTC: CRLBF           4.7        14.5                    5.1        15.6

                                     AVERAGE               6.5            19.7               7.0            21.1
                                      MEDIAN               6.5            18.3               6.9            19.4
                                     MINIMUM               4.7            10.5               5.1            11.6
                                     MAXIMUM               8.5            31.6               9.1            33.9

Implied Premium (Canada vs U.S.) (Average)                69%                               48%
                                        Source: S&P Capital IQ, FRC

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                    Click here to view FRC’s complete list of top picks
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Page 18

The following chart shows the average EV/R of the companies we track in both
countries:
                                Average EV/R

                                                                    Source: S&P Capital IQ, FRC

Canadian Retail Cannabis Pricing
Province (As of 2021/09/27)             Average Price per Gram           Average Price per Gram THC          Average Price per Gram CBD        # of Products          Min. Price         Max. Price
B.C.                              $                        9.45     $                           9.52   $                            8.45                 236      $        3.93     $        15.71
Ontario                           $                        9.22     $                           9.35   $                            7.87                 390      $        3.57     $        19.99
Quebec                            $                        9.14     $                           9.15   $                            9.05                 277      $        3.60     $        21.68
Alberta                           $                       10.55     $                          10.54   $                           10.61                 445      $        3.14     $        22.00
N.B.                              $                        9.32     $                           9.42   $                            8.07                 228      $        3.57     $        15.99
P.E.I.                            $                        9.64     $                           9.65   $                            9.34                 195      $        4.40     $        23.30
Newfoundland                      $                        9.91     $                           9.86   $                           10.24                 187      $        4.08     $        15.40
Yukon                             $                       16.33     $                          15.13   $                           13.95                   5      $       13.68     $        22.28
N.S.                              $                        9.94     $                           9.98   $                            9.50                 206      $        4.64     $        42.85
Nunavut                           $                       13.15     $                          13.35   $                           16.41                  32      $        9.43     $        17.91
Northwest Territories             $                       14.53     $                          12.64                                                       4      $       12.08     $        17.28
Manitoba                          $                       11.31     $                          11.22   $                             11.46               373      $        4.87     $        23.57
Saskatchewan                      $                       11.78     $                          11.70   $                             12.07               274      $        4.40     $        38.50
CANADA                            $                       11.10     $                          10.89
Province (As of 2021/09/20)           Average Price per Gram         Average Price per Gram THC        Average Price per Gram CBD      # of Products       Min. Price       Max. Price   Max. Price
B.C.                          $                          9.49   $                           9.56   $                          8.45               237   $        3.93    $       15.71    $   15.71
Ontario                       $                          9.22   $                           9.36   $                          7.88               382   $        3.57    $       19.99    $   22.66
Quebec                        $                          9.16   $                           9.17   $                          9.05               275   $        3.60    $       21.68    $   21.68
Alberta                       $                         10.57   $                          10.56   $                         10.61               441   $        3.14    $       22.00    $   22.00
N.B.                          $                          9.37   $                           9.48   $                          7.91               224   $        3.57    $       15.99    $   16.28
P.E.I.                        $                          9.64   $                           9.65   $                          9.34               194   $        4.40    $       23.30    $   23.30
Newfoundland                  $                          9.94   $                           9.88   $                         10.24               185   $        4.08    $       15.40    $   15.40
Yukon                         $                         16.33   $                          15.13   $                         13.95                 4   $       13.68    $       22.28    $   22.28
N.S.                          $                          9.94   $                           9.98   $                          9.50               205   $        4.64    $       42.85    $   42.85
Nunavut                       $                         13.15   $                          13.35   $                         16.41                32   $        9.43    $       17.91    $   17.91
Northwest Territories         $                         14.53   $                          12.64                                                   4   $       12.08    $       17.28    $   17.28
Manitoba                      $                         11.31   $                          11.21   $                         11.55               376   $        4.87    $       23.57    $   23.57
Saskatchewan                  $                         11.78   $                          11.74   $                         12.07               278   $        4.40    $       38.50    $   38.50
CANADA                        $                         11.11   $                          10.90

                                              Source: Online Provincial Cannabis Stores, FRC

The average retail price per gram fell week-over-week from $11.11 to $11.10. The
chart below shows the Canadian retail dried cannabis flower pricing trend:

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                          Click here to view FRC’s complete list of top picks
            PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Page 19

                        Canadian Retail Dried Cannabis Flower Pricing

                            Source: Online Provincial Cannabis Stores, FRC

Canadian Retail Cannabis Stores
As of September 27, 2021, there are 2,578 retail cannabis stores, a week-over-week
increase of 21 stores across Canada, including 18 in Ontario alone.

                                         Nationwide Store Count

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Page 20

                        Aug-23-2021 Aug-30-2021 Sept-7-2021 Sept-13-2021 Sept-20-2021 Sept-27-2021
Geographic Region       Store Count Store Count Store Count Store Count Store Count Store Count         Population Population / Store
Alberta                        671          673         677          677           684           688     4,428,247             6,436
B.C.                           368          369         373          373           374           373     5,120,184            13,727
Manitoba                       107          107         107          108           108           108     1,379,121            12,770
N.B.                            20           20          20           20            20            20      780,890             39,045
N.S.                            25           25          25           25            25            25      978,274             39,131
Newfoundland                    30           30          30           30            30            30      520,437             17,348
Northwest Territories            6            6           6            6             6             6       44,982              7,497
Nunavut                                                                                                    39,486
Ontario                      1,028        1,053       1,077        1,087          1,112         1,130   14,745,040            13,049
P.E.I.                           4            4           4            4             4             4       158,717            39,679
Quebec                          77           77          77           77            77            77     8,552,362           111,070
Saskatchewan                   110          110         112          112           112           112     1,181,987            10,553
Yukon                            5            5           5            5             5             5       41,293              8,259
CANADA                       2,451        2,479       2,513        2,524          2,557         2,578   37,971,020            14,729
                                            Source: Provincial Websites, FRC

                                     Weekly Psychedelic Commentary

Psychedelic Industry Performance

                           September 27, 2021
                           Company                                          YTD      1-Week 1-Year
                           COMPASS Pathways plc                            -27%        2%    -13%
                           Atai Life Sciences N.V.                         -20%        -2%   -20%
                           Numinus Wellness Inc.                           -28%        -1%  212%
                           Mind Medicine Inc.                              -17%        4%   279%
                           Braxia Scientific Corp.                         -75%        10%   -75%
                           Cybin Inc.                                       59%        2%   220%
                           Levitee Labs Inc.                               -12%        5%    -32%
                           Seelos Therapeutics Inc.                         65%        28%  143%

                                         AVERAGE                            -7%           6%         89%
                                           MIN                             -75%           -2%       -75%
                                           MAX                              65%           28%       279%

                                           Indices             YTD 1-Week 1-Year
                                            PSYK              -24%    3%  -24%
                                             PSIL              -4%    0%    n/a
                                               Source: TMX Money, FRC

       ©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
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           PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
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         PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
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