Highlights from MJBizCon

Automatic TRANSCRIPT

Thanks to quip for supporting market fully. Join over three million healthy mouths and check everyone off your gift list right now with quip just go to get quip dot com slash fool to save on gift sets and get your first refill free with a refill plan. Monday December sixteenth sixteenth. Welcome to market foolery. I'm Chris Hill with me in studio today. She's back from a week away from full Emily Flip and thanks for being here. Thanks for having me so so last week. Forty thousand people from seventy five countries descended upon Las Vegas. For 'em Jay. Bilas Khan the biggest cannabis abyss conference in the world. You were one of them. There were a few people from full headquarters who went. Let's start with this. What's your headline for? This year's 'em Jay bilas discount. Yeah I mean look. It doubled in size year-by-year so part of me wants to say the headlines. Something like cowboys put on suits. You know it's still the wild wild west and cannabis and the reason why that analogies top of head is because in addition to 'em Jay Bilas Khan happening Las Vegas and the Las Vegas Conference Center. There is also I. I think it was a national rodeo convention happening in the same center next door. And there's something just so appropriate about that to me because in a lot of ways that people we we saw at Md.. Kahn this year. You know they're. They're very different than the people we saw last year. And they're still new. They're still entrepreneurs are still just getting started in a really really untracked industry but the same time they're they're making a business out of it and so that's very clear. That's pretty amazing that the size of the conference doubled year over year. It doesn't surprise surprised that it grew but the fact that it doubled is pretty astonishing and my assumption is that you had a lot of new faces. A A lot and to your point Some of the faces that were there in two thousand eighteen. Probably weren't there this time around Wh what was the general mood of the conference the French because the headlines going into it from a business standpoint a lot of the headlines I saw were about the biggest players. Here's the biggest public companies in the cannabis space and they're smaller than they were a year ago you know. CNBC had a story about the six. Biggest public. Companies in cannabis have lost a collective twenty five billion dollars worth of market cap as a result. was that reflected in the mood or was it more upbeat than that. Not really no and I think that's probably again to the people who are listening to this. PODCAST US in. Our jobs are focused so much on the public markets that we forget about the industry as a whole and we forget that industries exist even where public market retail investors. Do not so what was surprising about injustice Konta me as somebody who has followed that cannabis market over the past year and Sceni- drink was the fact that there is still so much optimism. I mean in a Lotta ways. I'm Jay Bilas Khan is aimed at entrepreneurs it's m j Biz Con. It's aimed aimed at small businesses. And the reason why it doubled your ears because there's so many more small businesses in cannabis today then. There was a year ago. And so the mood I would not describe describe as down because of the public markets. No I don't think anybody there really cared unless you're coming as a retail investor. You're just interested in the space. Nobody there who was working really really cared about you. Know the market cap of canopy growth. Right I'm a CD company operating in Oregon. I'm not worried about the Canadian cannabis. Market for instance however however it was a kind of negative sentiments simply because of the steps that our government has taken here in the US which has hurt the ability for these businesses to grow. So there's a lot of I guess disappointment around the safe banking act really becoming stagnant and in the Senate right not moving past the house. There's fear about the FDA's seeming crackdown on CBD companies here in the US. I mean it was all these regulatory hurdles which are making people really afraid. Were very very different than what you may expect from the public markets being down. was that a counterbalanced in any way. By talk of states that are are going to have some form of cannabis of either decriminalization or legalization on the ballot. In twenty twenty I know and and part of the reason I ask. That is is because there is an expectation that the state legislature will pass some source sort of decriminalization in two thousand twenty. That news article actually broke about Virginia. While you're at an MD.. Kahn and the day before we had actually had a panel about you know where where do experts in the field. You'll see the most opportunity for cannabis on a state level next and the overwhelming consensus was. Virginia I honestly scoffed a little bit. I think it's easy for people to forget. Just how big it just how Conservative Virginia really is a states but yeah it seems like decriminalization at least could be a reality for twenty twenty. Here's the problem. It's easy to be very very positive and frame up cannabis as Domino's and I do think that is an essential domino effect. However the states legalized cannabis with the exception of Illinois? Annoy which will legalize on January first in two thousand twenty is they via ballot initiative which is not an the best way to legalise cannabis because yet to iron out all the details and we saw two states which are really expected to pass legalisation in two thousand nineteen. That's New York and New Jersey Fail to do so and twenty nine thousand nine simply because they couldn't iron out those little details so I think it's easy to say there's a general consensus around most people. Most Americans that cannabis should at least be decriminalised. Why has nothing been done? What about on the state level for a lot of these bigger more liberal states and the reality is it's really hard to get everybody on the same page about those little details though going to twenty twenty? I'm I'm hopeful. That states will have it on their November twenty twenty ballots something regarding decriminalization legalization of cannabis improving their medical programs. But when push comes to shove politicians are politicians and you get stuck up in the granularity well and it goes back to something you touched on just with reference to banking you know you can and you can pass a legalization given state but if the infrastructure for the businesses again to go back to the conference. This is a group of entrepreneurs if they don't have the underlying support system particularly when it comes to banking but other support services as well then They're going to struggle are the part of the reason. Why M J BIZ CON is so popular is because they don't have the support system and NJ based con acts as support system so if you're missing something? He was an entrepreneur. Have the ability to head out to nj I'm Jay based CON and make connections that you don't really get the opportunity to make otherwise so I think it's filling in needed whole but nothing can really fill the hole that is the government regulatory regulatory actions which everybody has just been praying for for the past year. As you mentioned. One of the breakout sessions. You went to. I know you were very busy. You were going to a lot of breakout sessions conducting getting a lot of interviews not looking to play favorites necessarily but wh what is either a breakout session or a person that you interviewed that struck you as particularly clearly interesting. There were a number of lawyers that we had the opportunity to talk to which I always find super interesting. Because I'm not a lawyer by trade myself but the space Seems to be acting in a sense of you. Don't know what's wrong until you get a lawsuit over it. Lawyers Accountants all these people are framing their businesses around around mistakes that have already been made in the space so a lot of people I mean. Virtually every person we interviewed was kind of you know I go back to that headline is it's the wild wild west. You are acting in government in a regulatory structure. That's extremely uncertain. So you don't even know what's legal to do until you try to do. It's so a lot of companies are being more aggressive and doing stuff that could potentially get them in regulatory trouble trouble and a lot of people are doing stuff. That's more conservative. A little bit more in line. They see the regulations panning out but are really hampering. Their growth see again. I just continue to be reminded by the underlying system. And how a I. It's a great line about you. Know you never know what's wrong until the lawsuit pops up but but yeah that's just one more thing where whether it's at a federal level or state by State Level One lawsuit leads to court action leads to possibly an appeal of some sort. The judges have to weigh in so seems like it's all moving a little bit more slowly than than certainly the entrepreneurs would like. Yeah I mean the FDA for instance in two thousand nine hundred expected have guidance for CBD companies here in the US by by the end of the year and they asked for research they sent out that request for research and they got none back. And you know why because it's really hard to get research grade cannabis consider. Yeah takes time. It takes time. And it's it's a schedule one substance right so the fact is is that you can't legally get medical research research grade cannabis in the US at least not readily accessible. So the fact is nobody has the research the research takes time. And what does the FDA do they take what little battery search search they have a study on rats. Actually that shows that if you give them absurd amounts of CBD it causes liver failure and tell people CBD Causes Liver failure and you know what that does to every CBD business here in the US makes their job twenty times harder when they have research right and people have been using CD and have different antidoto research. That says the only if you take thirty times your body weight and so does it. Cause a problem and there are a number of substances out there that aren't regulated like this Vitamin D. Where have you take lots and lots? Lots of it causes issues. Anything causes issues. It's like we saw earlier this year with vaping where one of the one of the challenges around the vaping industry is we have decades worth of research around what cigarettes do to the human body There is not decades of research of what vaping does the human body because it hasn't been around for decades so yeah and it very well could be very negative so the eminem frame this all very positively. There's nothing wrong. There's nothing wrong. They being there could be but the point is that we we don't know yet and that takes time and it causes uncertainty for most of these businesses. Quick Shoutout to quip as I'm sure everyone's aware of the holiday shopping season is here in this year. Your gift can start. Next year's good habit with quip quip is something that is sure to put a smile on everyone's mouth because it's dental care that people will actually wanNA use every today. 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What is the booth that you went by and did a double take because you're like what in the world is that? There are so many things and for marijuana masters members out there wrote an entire dispatch dispatch about the interesting stuff that I saw. I mean there are companies that are incorporating a I in a are into their products and labeling and but I think the strangest thing I saw actually wasn't on the a convention for our team had the ability to go to planet thirteen which is public trade company and it's the largest cannabis dispensary in the world Went down there are met with management and the COSIO said. Oh have you seen the airshow yet. The air show on the air show and we have no idea what he's talking about the air show so he brings us down to the dispensary floor. And he's like okay. Look up and I there's a special orbs is what he called them but essentially they had imported these orbs from in Germany program to fly around the ceiling of the dispensary. kind of like a light. Show that you'd expect you're on Christmas music and Christmas lights. But with a-this cannabis orbs so that was in general. Probably the strangest thing but also moves entertaining thing that we saw I. I don't know what I expected you to say. But Flying Cannabis was definitely not on the list. One or two things separate from the conference. Did you get a chance to hit the gaming aiming tables. Did you get a chance to get a good meal a lot of good restaurants in Vegas. Well I'm always good at eating. I do not gamble though and I unfortunately saw some people who are very upset. Ah there you know losses gambling. That always reminds me that that's usually a good decision. You know what the funniest thing was is what we were. Super busy at the convention was my first time in Las Vegas. You know so I had the ability to kind of walk around and see all the people drinking on the street it was very absurd but are huge analysts. You came with us. He had never been to an in and out Burger before. Yep so out of all the things eight in Las Vegas we all really we have to go to in and out right. He's never had it and what was his review. He's he's a very reserved person in the sense that he doesn't get super excited the way that I do about you know in and out Burgers milkshakes but he was very very positive on it which makes me think that the average a person would have blown their mind in in his own quiet. Or that's how I'm interpreting it though you know. I want to believe that. That was his reaction being a vegetarian. Now I unfortunately had to sit there and watch them eat those delicious burgers. You didn't get a milk shake you did. I did get a milkshake. I got shaken. I did my fries in it which you know grossly upset a lot of people at the table. Well look anyone who's ever been to Las Vegas for a conference knows that you're spending a lot of time in your feet if you've got a step counter you're logging a lot of miles. You know someone with eight to ten miles easy when you're on your feet all day to copy more than earned the trip fever better about my life choices family put. Thanks for being always the formal conditions for to buy or sell stocks. So that's GonNa do it for this edition. Shows Mixed by the end boards himself. Golf extra listening and a okay. Thanks uh-huh uh-huh

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