Cannabis Royalty Company Stands Out from the Herd

There are more and more pot deals coming to the market every week and
not all of them will do well or even survive. I find it best to stick with
proven, successful people and those exploiting a niche or where there is
little competition.

Tidal Royalty Corp. (RLTY:CSE) fits both bills. CSE:RLTY; Shares outstanding 153.6 million

Tidal involves many of the same people who started up Cannabis Wheaton
and it has the same royalty stream plan but in this case the focus is on the
U.S. market. Most Americans support legalization and every year we see
new states adopt some form of legalization. Despite this significant
growth, the inconsistency between federal and state laws restricts
capital. In Canada, just now have the big banks started to tip their
toes in the market and in the U.S. capital investment has been mostly
from private investment and some hedge funds.

The Tidal team has built, led and advised some of the most iconic
cannabis businesses in Canada and across the world. They plan to
leverage this expertise to provide non-dilutive and value-adding
capital to exceptional operators and help position them as a model for
best-in-class businesses. Tidal investors get top line access to the
companies that will form the future of this society-benefiting
industry.

Management

Paul Rosen, Chairman & CEO, is a noted career entrepreneur and
management consultant. Over the last five years, he has become one of
Canada’s most active and diversified investors in the emerging cannabis
industry. He is the founder and managing director of BreakWater Venture
Capital, a private venture capital fund and advisory based in Toronto.
Mr. Rosen was a co-founder of PharmaCan Capital, now operating as The
Cronos Group (CRON:NASDAQ, CRON.V), where he served as president and
CEO for three years. Mr. Rosen sits on the board and chairs the audit
committee of iAnthus Capital Holdings (IAN.C), a publicly traded New
York-based investment bank, sits on the
board of Hill Street Beverages, and acts as an advisory to several
companies in the industry. Mr. Rosen is a member of the Law Society of
Upper Canada and received a B.A. in Economics from Western University
in 1985 and LL.B. from the University of Toronto in 1988.

Terry Taouss, president, is an entrepreneur with operational experience
scaling fast-growing businesses. Mr. Taouss was part of the founding
management team at SiteScout, an advertising technology company that he
helped profitably build through its successful acquisition in 2013. In
that role, Mr. Taouss had carriage over all finance, legal and
corporate development functions. Mr. Taouss then served as the managing
director of Centro Canada, with carriage over strategy, product,
marketing and sales, and was a member of the Centro executive team,
helping guide strategy for the company’s broader technology and
services offering. Mr. Taouss received a J.D. from Osgood Hall Law
School and an MBA from the University of Toronto.

Theo van der Linde, CFO, is a Chartered Accountant with 20 years of
extensive experience in finance, reporting, regulatory requirements,
public company administration, equity markets and financing of publicly
traded companies. He has served as a CFO & director for a number of
TSX Venture Exchange and Canadian Securities Exchange (CSE) listed
companies over the past several years.

Courtland Livesley-James, Executive VP, Strategy, is an active investor
and entrepreneur with significant experience in corporate finance and
investment banking. Mr. Livesley-James helped develop the cannabis
practice at Dundee Capital Markets, playing a key role in a wide
variety of domestic and international corporate and commercial
transactions. His work included advising on some of the largest deals
in the cannabis sector. Mr. Livesley-James is also a partner at a
private venture capital fund with a focus on emerging companies in a
variety of sectors. Mr. Livesley-James received an Honours Degree in
Accounting and Financial Management from the University of Waterloo.

Jonathan Beland, VP, corporate development, has been focused on
investing and providing corporate advisory to some of the marquee
clients in the cannabis sector since 2016. Prior to joining Tidal, Mr.
Beland spent seven years in sell-side investment banking roles with
BMO, Deloitte and other firms focusing on the cannabis and mining
sectors. Some of the core clients Mr. Beland was responsible for
covering included Canopy Growth, Aurora Cannabis, MedReleaf,
PotashCorp, Mosaic, Agrium, BHP, Vale, CN, CP and Aecon. Mr. Beland
holds a B.A. in Architectural Theory and History from Carleton
University, an Associate’s Degree in Architectural Technology from
George Brown College, an M.B.A. from the University of Toronto
specializing in investment banking.

Iniataly Tidal will focus on U.S states with adult use markets that are
seeing strong growth like California, Massachusetts. Florida, New York,
Illinois and Nevada. The company is in advanced talks with about 10 possible
royalties deals.

Tidal put out a news release today indicating it has had discussions
with over 100 prospect companies, and have entered into three separate
Letters of Intent to date. Its pipeline of opportunities to fund
high-caliber operators across nearly a dozen key U.S. states continues
to grow and it anticipates that current efforts will lead to multiple
additional agreements as discussions progress.

Today Tidal also announced four advisors.

Hugo Alves is the president of Auxly Cannabis Group Inc. (TSXV:XLY),
formerly known as Cannabis Wheaton Income Corp. Auxly is one of the
world’s first and foremost cannabis streaming companies.

Marc Lustig is the founder and CEO of CannaRoyalty Corp. (CSE:CRZ).
CannaRoyalty is a North American cannabis consumer product company
currently focused on building a leading distribution business in
California, the world’s largest regulated cannabis market.

Joel Sherlock is the co-founder of Doventi Capital Inc. and the
chairman of Vitalis Extraction Technologies. Doventi Capital is a
private equity firm specializing in investment in the regulated
cannabis industry in North America. Vitalis Extraction is an
engineering and manufacturing company producing the highest-flowing
industrial extraction systems for the cannabis industry.

Richard Brooks is the managing partner of Brooks Business Lawyers. The
Brooks firm provides corporate and commercial legal services to some of
the fastest-growing companies in Canada across a number of industries,
including cannabis.

Finance

As part of the go public process, Tidal set out to raise $20 million at
33 cents per share and ended up raising $30 million. This gives them
about $38 million cash on the balance sheet.

Summary

Tidal has the right people to do the job, but not just the royalty
agreements but the influence in financial circles to raise the
necessary funds.

I believe as this becomes known in the investment community we will see
much higher share prices. That said it is always difficult to know how
these new issues will trade. I would use the approach of
buying half of the intended position now and the other half after some trading
history. With a longer-term view, you could just buy your whole position
now and I would bet at some point down the road it will be much higher.

At $0.65, the market cap is about $100 million, not very high in the
marijuana field. I bought into the 33 cent financing and currently own
38,000 shares.

For 27 years, Ron Struthers, founder and editor of Struthers’ Resource Stock Report and Playstocks.net, has consistently beat the comparable benchmarks selecting stocks in the precious metals, oil and gas, clean-tech and disruptive technology sectors. In 2017, 35 stocks in the precious metals sector saw an average gain of 62% and energy clean-tech an average gain of 65%. In disruptive technology, 16 picks saw an average gain of 55%. Past performance is no guarantee of future gains. Struthers leverages his vast network of contacts, approaches investments from a value perspective seeking several 100% gain potential and uses technical analysis to aid in buy and sell levels.

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