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Cannabis Law Now Podcast: 2024 Cannabis Industry Pitfalls on Blast

 

Published:

October 01, 2024
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In this episode, we hear from seasoned cannabis industry advisor, Marc Hauser, and host Hilary Bricken, about the top pitfalls and traps in today’s cannabis industry. Marc, a former practicing transactional and corporate attorney, is the current Chief of Staff of Jardin, a well-known Nevada-based cannabis retailer. Marc shares with listeners the variety of issues he’s witnessed in the past seven years in the cannabis industry, including with federal enforcement, state regulation, public and private markets, cannabis company governance, and misguided perceptions of the industry. Marc also discusses the current perils tied to cannabis politics, rescheduling, “hemp versus marijuana”, and the industry scuttlebutt surrounding the same. If you want to cut through the noise to get down to the hardline cautions currently in the cannabis industry, tune in now!

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This transcript has been auto generated

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[Music]

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[Applause]

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welcome I'm your host Hilary Bricken and

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this is the Cannabis law Now podcast

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where we regularly discuss issues

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related to the Cannabis industry

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including investment day-to-day

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operational issues and potential reform

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on the horizon that will impact all

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cannabis businesses and investors in the

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United States

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hi everybody welcome back to the podcast

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today we have Mark Hower on who is one

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of the most widely recognized leading

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advisers to the US cannabis industry and

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what's really fun about Mark is that

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prior to having his own advisory service

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to the industry he was the head of the

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Cannabis Practice Group at Reed Smith

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which is a giant law firm and he was

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doing deals in capital markets for 24

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years so Mark really knows his stuff

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both inside and outside the Cannabis

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industry when it comes to deal and deal

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making but as of today he is the chief

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of staff at hardine which is a

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well-known and really popular Nevada

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based cannabis company and dispensary

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and the only other thing I'll say about

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Mark before I let him take the mic is

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that he has a widely read newsletter

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called cannabis musings that he's had

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out since 2018 Mark welcome to the

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podcast ah it's great to be here I love

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talking cannabis law cannabis policy

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it's it's a whirlwind well you're

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definitely in good company and today's

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topic for the Pod is basically given

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your background which is sophisticated

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and also now intimately involved with

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cannabis I really wanted to bring on

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somebody who could give the straight and

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narrow to folks about their kind of top8

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to 10 pitfalls and beware alls for the

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industry in 2024 because I know you've

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seen a ton just right off the bat

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whether it's a new listener or a

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seasoned vet in the Cannabis industry or

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somebody that just entered in one of

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these states like Minnesota Ohio New

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York what would be at least your first

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Pitfall on the list for their

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consideration well I've been in this

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industry for coming up on seven years

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now which makes me both a veteran and a

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newbie at the same time and I and I

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respect that and that I you know I know

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a lot of people in the industry I know a

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lot of things in the industry but

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there's also a lot I I don't know

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relative to the you know our friends and

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colleagues who've been in this industry

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for a very long time um but the one

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thing that I've observed both as a

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lawyer and as a an observer you know

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writing about the industry and then now

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as an operator on the operational side

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and I tell everybody who wants to

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understand this industry is that you

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can't rely on logic and what works

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elsewhere when you think about the

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Cannabis industry and cannabis policy

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you know think technique

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and operations and you know and the way

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investors and business people think

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about running things in other Industries

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and making it work they generally don't

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work in the Cannabis industry expecting

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the way cannabis policy is going to work

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whether you know particularly on the

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federal level and the way the FDA or the

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DEA or congress approaches this industry

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deals with it what works in in some

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other industry whether that's tobacco or

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alcohol or you know consumer package

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Goods or you know food or beverage it's

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totally different here and I think that

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it all comes down to the

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problem that I I call the quantum

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physics problem of cannabis is that it's

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both legal and highly regulated at the

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same time and everything flows from that

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problem you've got an industry that is

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operating completely illegally and is

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just and exists purely by the grace of

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the federal governments and the

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Department of Justice not shutting it

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down but also is on the state level a

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lot of States was it

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34 at this point I I I I need to look

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that up I least forget the exact number

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but is completely legal but is

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incredibly regular and there are few

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other Industries out there that are so

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deeply regulated on on the state level

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everything flows from that problem of

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having to sort of

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comply with state law which is

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incredibly expensive and Incredibly

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difficult and then complying with

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illegality on the F and then you put on

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top of that that it's an incredibly hot

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button issue you know I grew up in the

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just say no era and it is you've got

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this sort of legacy of the the stigma

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around it and which is still ve very

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much out there um and drives a lot of

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the politics whether you know and so

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just because something is the right

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thing is the right approach what makes

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logical sense and you mentioned

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obviously the States they're picking up

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the slack for the feds because the feds

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are half in half out most of the time on

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enforcement and reform do you think the

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states are doing a good job I know

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you've worked with clients across the

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country do you think the states are

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nailing it I think that most States and

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the The

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Regulators out there want these wants

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this industry to survive

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and wants to do the right you know I I

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think that the execution it's hard to

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say that the

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execution you know in every state has

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been great you've had a lot of missteps

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lately certainly in New York City and

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New York state is just sort of the

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latest example you know California here

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the way it's structured makes it very

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difficult but I think you know I think

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if you distinguish The Regulators and

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the people behind it those offices from

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the laws themselves I think that the

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Regulators generalize it we genuinely

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want this industry to work and are are

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usually good to work with but they're

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also you know they tend these offices

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tend to be under staff they're sort of

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not making it up as they go along but

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don't have a lot of guidance from the

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regulations and the laws and so are

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facing novel questions that they're just

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not ready for that operators and lawyers

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are coming in with questions that work

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in other Industries for example merging

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companies or you know quirky ownership

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issues uh that just aren't contemplated

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by the regulations usually these the The

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Regulators want to work with you to make

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it make it done I think the problem is

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more on on the legal side in the way the

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statutes work you've got you know every

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state has has a completely different

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legal and Licensing ir reggulator and

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some work are flexible some are

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incredibly inflexible you know you've

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got some states that are fully fully

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require full vertical integration and

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have very few licenses others you know

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is Oklahoma has over 2,000 licenses I'm

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getting that number wrong also I should

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remember numbers better but there's

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thousands of licenses and you've got

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states where you know like Nevada for

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example is the laws are fairly business

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friendly and so it really is an

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interesting Dynamic it's hard to operate

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on the state level uh but at the same

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time I think it's more of a problem of

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the laws rather than the than the people

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themselves I think that's right too I

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think it's really tough to rule make

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create the law in this area with no

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blueprint really to look at because it's

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not Pharma it's not alcohol it's not

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tobacco I don't envy those regulators

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and I too empathize with them even if I

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don't always like the results of the

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regulatory now let's let's move on to

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another Pitfall I think still shockingly

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but I'm inside there's this perception

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that this industry is just rolling

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rolling in capital and the Cannabis

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sells itself and you don't really need

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brains or operational knowhow investors

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will come no matter what because it's

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such hot essentially Contraband and

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should sell like a vice product what's

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your take on that at this point yeah and

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that is that is definitely a myth about

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this industry it's it's one that's

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proven itself wrong time and again there

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are a number of folks out there who who

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do very well and have been very

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successful but think that that there has

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been but I I think that there the

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exception rather than the norm and there

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are companies out there that you know

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that are still we licensed companies

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that are still sort of you know making

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it work by selling into the black market

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sorry the illicit Market as well the

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unlicensed market so you know that

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there's a lot of rumors about that it's

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hard to sort of prove any of that but

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that remains a big problem but look I

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think you know the the focus here is and

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I guess my takeaway is that well cash is

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kid and liquidity is the most important

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thing for any cannabis company the

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reason is is because cash is really hard

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to come by and when I talk about cash I

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mean you know cash generally not

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physical cash back when things were from

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the sort of

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2016 to

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2019 period this industry was flood

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with

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investment particularly Equity

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investment with companies going public

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on the Canadian Securities Exchange

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valuations went through the roof on sort

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of crazy speculation on these stocks and

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and companies raised millions and

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millions of dollars on with barely a

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business plan and they it's similar to

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what happened in the first round of the

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uh doc com grou and in about mid 20109

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stock prices Came Crashing Down and

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liquidity just completely dried up in

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both the public and the private markets

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and it never has really recovered since

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then there's there's been a rise in

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lending um that's that tapered off for a

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while but it's starting to come back but

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that really only works for companies

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with a lot of hard assets because it's

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hard to lend against licenses it's very

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hard to lend against inventory because

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you can't quickly pick the stuff up and

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sell it you need State approval and so

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and and companies can't file for

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bankruptcy so it's a weird industry to

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lend into so there's just it's capital

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is extremely expensive whether it's debt

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or equity and there are very few

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investors who are really putting

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significant amount amounts of money into

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this industry you don't really have

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institutional Capital coming in you know

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none of the traditional uh institutional

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investors to touch the industry because

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it's illegal and you know the pension

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rules and foreign investors P Pension

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00:11:07,279 --> 00:11:11,360
funds and foreign investors and

268
00:11:08,639 --> 00:11:14,120
insurance companies the like who

269
00:11:11,360 --> 00:11:17,360
fund institutional you know private

270
00:11:14,120 --> 00:11:19,639
equity and Venture Capital can't invest

271
00:11:17,360 --> 00:11:22,760
in Canabis you know and changing to

272
00:11:19,639 --> 00:11:25,000
schedule 3 isn't going to fix that

273
00:11:22,760 --> 00:11:27,959
rescheduling probably you know isn't

274
00:11:25,000 --> 00:11:30,079
going to fix that I'm sorry I I st

275
00:11:27,959 --> 00:11:32,560
banking if could ever pass wouldn't fix

276
00:11:30,079 --> 00:11:36,600
that it's really hard to come by money

277
00:11:32,560 --> 00:11:39,040
and so preserving cash keeping a clean

278
00:11:36,600 --> 00:11:41,079
balance sheet and managing liabilities

279
00:11:39,040 --> 00:11:43,920
is really th those are the companies

280
00:11:41,079 --> 00:11:46,120
that are going to survive now you

281
00:11:43,920 --> 00:11:51,160
mentioned it so we got to open the door

282
00:11:46,120 --> 00:11:53,480
third Pitfall the feds and rescheduling

283
00:11:51,160 --> 00:11:55,839
Etc are they coming to save us are they

284
00:11:53,480 --> 00:11:57,120
going to bring a method to the madness I

285
00:11:55,839 --> 00:11:58,760
think again there's a common

286
00:11:57,120 --> 00:12:01,320
misconception and maybe it's because

287
00:11:58,760 --> 00:12:03,519
people are more hopeful than informed

288
00:12:01,320 --> 00:12:07,040
that the feds want to regulate this and

289
00:12:03,519 --> 00:12:09,839
they want to bring an end to the

290
00:12:07,040 --> 00:12:11,680
dysfunction and the disjointedness lack

291
00:12:09,839 --> 00:12:13,880
of interstate commerce Etc what do you

292
00:12:11,680 --> 00:12:16,199
think I don't think that we're going to

293
00:12:13,880 --> 00:12:18,440
see any real movement any time suited

294
00:12:16,199 --> 00:12:21,040
this industry has always suffered from

295
00:12:18,440 --> 00:12:24,959
wearing rosecolor glasses when it comes

296
00:12:21,040 --> 00:12:27,240
to federal policy I think that schedule

297
00:12:24,959 --> 00:12:29,560
rescheduling to schedule three happens

298
00:12:27,240 --> 00:12:32,040
but I think that's that's only happening

299
00:12:29,560 --> 00:12:34,480
it's the executive branch doing it not

300
00:12:32,040 --> 00:12:38,240
the legislative branch doing it and it's

301
00:12:34,480 --> 00:12:40,079
all through in a administrative process

302
00:12:38,240 --> 00:12:42,160
but you know State banking I mean I

303
00:12:40,079 --> 00:12:45,760
remember conferences in

304
00:12:42,160 --> 00:12:48,480
2018 where you know people on stage were

305
00:12:45,760 --> 00:12:51,160
breathlessly anticipating State banking

306
00:12:48,480 --> 00:12:53,760
passing any day now and I've won a

307
00:12:51,160 --> 00:12:56,639
number of bets unfortunately that state

308
00:12:53,760 --> 00:13:00,079
Banky wouldn't pass it's just expecting

309
00:12:56,639 --> 00:13:02,240
Congress to do anything uh that requires

310
00:13:00,079 --> 00:13:04,279
political Capital even if it's the quote

311
00:13:02,240 --> 00:13:06,279
unquote right thing to do or makes

312
00:13:04,279 --> 00:13:08,240
perfect logic go going back to my first

313
00:13:06,279 --> 00:13:10,199
point we shouldn't expect Congress to do

314
00:13:08,240 --> 00:13:12,440
anything anytime soon you know that

315
00:13:10,199 --> 00:13:16,320
because it is still such a hot button

316
00:13:12,440 --> 00:13:19,000
issue because it's it's drugs and the

317
00:13:16,320 --> 00:13:21,279
people you've got a you know you got

318
00:13:19,000 --> 00:13:24,920
particularly in the Senate you've got a

319
00:13:21,279 --> 00:13:28,279
number of Senators who on it's primarily

320
00:13:24,920 --> 00:13:29,720
Republican Senators who are who really

321
00:13:28,279 --> 00:13:31,320
their constituents

322
00:13:29,720 --> 00:13:33,240
are the folks that vote in the primaries

323
00:13:31,320 --> 00:13:36,040
and the folks that vote in the primaries

324
00:13:33,240 --> 00:13:38,519
tend to be more politically engaged in

325
00:13:36,040 --> 00:13:40,680
more the extremes and that I don't mean

326
00:13:38,519 --> 00:13:43,120
that pejoratively I just mean that they

327
00:13:40,680 --> 00:13:45,680
they tend to be more hardcore and that's

328
00:13:43,120 --> 00:13:49,880
on the left as well but they're the ones

329
00:13:45,680 --> 00:13:52,639
who who make up that you know 20 25

330
00:13:49,880 --> 00:13:56,880
percentage of the country that don't

331
00:13:52,639 --> 00:14:00,360
want cannabis legalized and so why would

332
00:13:56,880 --> 00:14:03,079
a senator take spend that political

333
00:14:00,360 --> 00:14:05,560
capital and take that risk to legalize

334
00:14:03,079 --> 00:14:08,120
cannabis uh and I think that it's

335
00:14:05,560 --> 00:14:11,040
unfortunately just this reality you know

336
00:14:08,120 --> 00:14:12,600
the president can't unilaterally

337
00:14:11,040 --> 00:14:15,079
legalize

338
00:14:12,600 --> 00:14:17,040
Canabis the DEA there's there's

339
00:14:15,079 --> 00:14:19,320
questions about whether and I'm not an

340
00:14:17,040 --> 00:14:22,399
expert in this about whether the DEA

341
00:14:19,320 --> 00:14:24,800
could completely deschedule it but

342
00:14:22,399 --> 00:14:27,440
descheduling I wrote this in my cannabis

343
00:14:24,800 --> 00:14:30,759
museums recently descheduling isn't

344
00:14:27,440 --> 00:14:34,199
going to happen without full regulation

345
00:14:30,759 --> 00:14:35,480
in taxation as a practical matter I me

346
00:14:34,199 --> 00:14:37,800
you know they're not going to give up on

347
00:14:35,480 --> 00:14:40,279
Taxation and the FDA is going to want to

348
00:14:37,800 --> 00:14:42,360
say it all of bit now I think the the

349
00:14:40,279 --> 00:14:45,320
slight Wild Card which is kind of

350
00:14:42,360 --> 00:14:48,839
interesting is is H vice president

351
00:14:45,320 --> 00:14:51,160
Harris and you know she has been a

352
00:14:48,839 --> 00:14:53,680
champion of she has said in the past

353
00:14:51,160 --> 00:14:55,519
that she wants to legalize and so you

354
00:14:53,680 --> 00:14:57,880
know creates sort of an interesting

355
00:14:55,519 --> 00:15:00,120
little Dynamic but then again you know

356
00:14:57,880 --> 00:15:02,920
until unless the Democrats get rid of

357
00:15:00,120 --> 00:15:05,600
the filibuster which they didn't in 2016

358
00:15:02,920 --> 00:15:07,920
or sorry in 2020 when they took over the

359
00:15:05,600 --> 00:15:11,120
Senate I don't know how you get past the

360
00:15:07,920 --> 00:15:13,600
phoster fair enough and kind of in a

361
00:15:11,120 --> 00:15:16,720
similar vein

362
00:15:13,600 --> 00:15:19,040
another beyond the lookout for don't

363
00:15:16,720 --> 00:15:22,440
take it at base value we had a

364
00:15:19,040 --> 00:15:26,720
significant change to the administrative

365
00:15:22,440 --> 00:15:30,120
realm when it comes to agency difference

366
00:15:26,720 --> 00:15:32,079
and Ru making and some of you listening

367
00:15:30,120 --> 00:15:33,839
may or may not know the name of the big

368
00:15:32,079 --> 00:15:35,800
doctrine that everyone's talking about

369
00:15:33,839 --> 00:15:38,480
it's Chevron which is the name of a case

370
00:15:35,800 --> 00:15:40,920
back in the 80s that set precedent um

371
00:15:38,480 --> 00:15:43,440
precedence with federal courts that the

372
00:15:40,920 --> 00:15:45,079
court must give deference to an agency

373
00:15:43,440 --> 00:15:47,560
in the event essentially of ambiguity

374
00:15:45,079 --> 00:15:49,920
around their own rules and oftentimes

375
00:15:47,560 --> 00:15:51,680
this resulted in the agency kind of

376
00:15:49,920 --> 00:15:53,600
prevailing Bar None on the way that it

377
00:15:51,680 --> 00:15:56,880
would interpret its own rules Etc has

378
00:15:53,600 --> 00:15:58,600
big big impact small and far-reaching on

379
00:15:56,880 --> 00:16:00,920
the livelihood of many businesses that

380
00:15:58,600 --> 00:16:03,160
are regulated in this nation there's

381
00:16:00,920 --> 00:16:06,319
been a recent case that essentially

382
00:16:03,160 --> 00:16:08,959
overturned this Doctrine and Mark I know

383
00:16:06,319 --> 00:16:11,240
you keep a beat on it lots of opinions

384
00:16:08,959 --> 00:16:13,079
around what this means for the Cannabis

385
00:16:11,240 --> 00:16:14,880
industry and I think our listeners would

386
00:16:13,079 --> 00:16:16,040
benefit from your take on kind of how to

387
00:16:14,880 --> 00:16:18,440
approach that because it's very

388
00:16:16,040 --> 00:16:21,399
complicated and it's opaque my take on

389
00:16:18,440 --> 00:16:24,920
it listen to whatever I think about it

390
00:16:21,399 --> 00:16:26,839
you know this listen to The Experts and

391
00:16:24,920 --> 00:16:28,440
this goes to a broader you know like

392
00:16:26,839 --> 00:16:31,160
anything else out there there's a lot of

393
00:16:28,440 --> 00:16:33,720
opinions and a lot of them are

394
00:16:31,160 --> 00:16:36,480
incredibly underformed and when it comes

395
00:16:33,720 --> 00:16:38,800
to something like Chevron the Chevron

396
00:16:36,480 --> 00:16:40,959
Doctrine an administrative law it's

397
00:16:38,800 --> 00:16:43,880
something that's extremely Arcane

398
00:16:40,959 --> 00:16:47,000
extremely complex and uh you know just

399
00:16:43,880 --> 00:16:50,000
reading the statute alone or reading the

400
00:16:47,000 --> 00:16:52,040
the rule alone doesn't really sort of

401
00:16:50,000 --> 00:16:54,759
give you an answer as to how something

402
00:16:52,040 --> 00:16:56,920
will play out you need to have an

403
00:16:54,759 --> 00:16:59,399
understanding of the way the regulatory

404
00:16:56,920 --> 00:17:01,480
agency works you need to understand

405
00:16:59,399 --> 00:17:03,279
the the case law back there I mean it's

406
00:17:01,480 --> 00:17:05,880
like a lot of other areas of law you

407
00:17:03,279 --> 00:17:09,679
know tax law Securities Law the way the

408
00:17:05,880 --> 00:17:12,240
rule reads is has very little to do with

409
00:17:09,679 --> 00:17:15,319
the way it's actually practiced this is

410
00:17:12,240 --> 00:17:17,319
one of those areas where you know you

411
00:17:15,319 --> 00:17:20,640
particularly if you spend any time

412
00:17:17,319 --> 00:17:23,720
online on social media looking at you

413
00:17:20,640 --> 00:17:27,520
know people trying to uh prognosticate

414
00:17:23,720 --> 00:17:30,600
what it means you know most of them are

415
00:17:27,520 --> 00:17:34,039
wrong uh and you know there's a lot of

416
00:17:30,600 --> 00:17:37,360
non-experts giving advice in this space

417
00:17:34,039 --> 00:17:42,240
and so you know I try to preach that you

418
00:17:37,360 --> 00:17:46,039
really need to a cannabis law is so

419
00:17:42,240 --> 00:17:49,120
difficult because it is so new and

420
00:17:46,039 --> 00:17:51,600
because it has to thread this needle of

421
00:17:49,120 --> 00:17:54,200
again being illegal and highly regulated

422
00:17:51,600 --> 00:17:57,880
at the same time and

423
00:17:54,200 --> 00:18:00,440
so un so understanding something like

424
00:17:57,880 --> 00:18:05,159
the effects of sh on and what it might

425
00:18:00,440 --> 00:18:07,600
mean for federal policy going forward

426
00:18:05,159 --> 00:18:10,679
you know seek out the folks that

427
00:18:07,600 --> 00:18:13,400
actually practice that area of law you

428
00:18:10,679 --> 00:18:16,440
know don't don't just listen to somebody

429
00:18:13,400 --> 00:18:19,440
who you know who was a deal lawyer try

430
00:18:16,440 --> 00:18:21,400
to understand such as myself try to

431
00:18:19,440 --> 00:18:24,440
understand what Chevron could actually

432
00:18:21,400 --> 00:18:26,720
mean yeah I think that's fair advice um

433
00:18:24,440 --> 00:18:29,760
administrative law is its own animal let

434
00:18:26,720 --> 00:18:31,440
alone layering in the applications of

435
00:18:29,760 --> 00:18:32,640
cannabis and what it's going to mean

436
00:18:31,440 --> 00:18:34,360
with the federal government which I

437
00:18:32,640 --> 00:18:37,400
don't think anybody really knows the

438
00:18:34,360 --> 00:18:39,280
answer there anyway another area kind of

439
00:18:37,400 --> 00:18:40,760
moving along in our our little pit of

440
00:18:39,280 --> 00:18:42,000
despair here about what to look out for

441
00:18:40,760 --> 00:18:44,480
but these are good things people should

442
00:18:42,000 --> 00:18:47,720
be aware of them in my experience still

443
00:18:44,480 --> 00:18:50,039
again shockingly 14 15 years in seems

444
00:18:47,720 --> 00:18:51,760
like cannabis operators because they are

445
00:18:50,039 --> 00:18:53,200
in direct violation of federal law they

446
00:18:51,760 --> 00:18:55,640
believe that they have a license to

447
00:18:53,200 --> 00:18:57,159
violate every other law and that maybe

448
00:18:55,640 --> 00:19:00,159
enforcement isn't watching and I don't

449
00:18:57,159 --> 00:19:03,080
mean law enforcement I mean the SEC

450
00:19:00,159 --> 00:19:04,440
other state laws that could apply to the

451
00:19:03,080 --> 00:19:06,400
way they're running their businesses how

452
00:19:04,440 --> 00:19:09,559
they're treating their investors in your

453
00:19:06,400 --> 00:19:11,039
experience have people ignored those to

454
00:19:09,559 --> 00:19:13,559
their detriment and can you maybe give

455
00:19:11,039 --> 00:19:15,640
some examples oh yeah no this is this is

456
00:19:13,559 --> 00:19:17,919
somewhere where you should be listening

457
00:19:15,640 --> 00:19:21,080
to a deal of in corporate lawyer such as

458
00:19:17,919 --> 00:19:23,280
yourself or well I used to be lawyer but

459
00:19:21,080 --> 00:19:25,880
that is such a big problem and it

460
00:19:23,280 --> 00:19:27,720
remains a problem in this industry there

461
00:19:25,880 --> 00:19:30,960
is

462
00:19:27,720 --> 00:19:34,840
the the industry as you said is so used

463
00:19:30,960 --> 00:19:37,000
to you know being legal that it just it

464
00:19:34,840 --> 00:19:38,360
kind of figures all right well you know

465
00:19:37,000 --> 00:19:41,480
what's what's being a little more

466
00:19:38,360 --> 00:19:43,960
illegal going to hurt things and it has

467
00:19:41,480 --> 00:19:46,559
this sort of renegade attitude towards

468
00:19:43,960 --> 00:19:49,640
fiduciary duties it would keep me up at

469
00:19:46,559 --> 00:19:51,240
night seeing companies self-dealing you

470
00:19:49,640 --> 00:19:54,080
know affiliate

471
00:19:51,240 --> 00:19:55,720
transactions uh keeping relevant

472
00:19:54,080 --> 00:19:59,400
information from

473
00:19:55,720 --> 00:20:02,440
investors things like that not sharing

474
00:19:59,400 --> 00:20:04,960
the fact that such as the fact that a

475
00:20:02,440 --> 00:20:08,520
supplier or the or the owner of the

476
00:20:04,960 --> 00:20:12,520
building happens to be the the CEO

477
00:20:08,520 --> 00:20:15,240
related party companies that uh are set

478
00:20:12,520 --> 00:20:17,880
up and transact with the main business

479
00:20:15,240 --> 00:20:21,520
so that they're sucking economics out of

480
00:20:17,880 --> 00:20:24,760
the deal it is a uh it remain stuff like

481
00:20:21,520 --> 00:20:28,200
that remains a big problem and I still

482
00:20:24,760 --> 00:20:30,120
see it and it really what it it means

483
00:20:28,200 --> 00:20:32,400
asking the right questions as an

484
00:20:30,120 --> 00:20:34,120
investor as well as a you know somebody

485
00:20:32,400 --> 00:20:37,600
who's wants to do business with somebody

486
00:20:34,120 --> 00:20:41,200
else it matters it means asking the

487
00:20:37,600 --> 00:20:43,000
request questions as an investor what

488
00:20:41,200 --> 00:20:45,280
kind of affiliate transactions do you

489
00:20:43,000 --> 00:20:47,120
have what kind of controls what does the

490
00:20:45,280 --> 00:20:49,280
board look like what are your standard

491
00:20:47,120 --> 00:20:53,320
operating procedures to prevent to

492
00:20:49,280 --> 00:20:55,360
comply with law and so and making sure

493
00:20:53,320 --> 00:20:58,720
the basic fiduciary duties that a

494
00:20:55,360 --> 00:21:01,640
company needs that a board and a and the

495
00:20:58,720 --> 00:21:04,360
executive team need to follow are being

496
00:21:01,640 --> 00:21:06,880
followed oh yeah I'm kind of sighing in

497
00:21:04,360 --> 00:21:08,880
consternation here well because of the

498
00:21:06,880 --> 00:21:11,039
federal illegality and the fact that the

499
00:21:08,880 --> 00:21:13,760
States they're they are making it up as

500
00:21:11,039 --> 00:21:16,120
they go even if it's the good old

501
00:21:13,760 --> 00:21:18,039
College try but The Regulators are not

502
00:21:16,120 --> 00:21:19,880
necessarily paying attention to those

503
00:21:18,039 --> 00:21:21,400
particular issues because again like

504
00:21:19,880 --> 00:21:23,440
administrative right corporate

505
00:21:21,400 --> 00:21:25,840
transactional is its own animal with all

506
00:21:23,440 --> 00:21:27,840
of these checks and balances but that's

507
00:21:25,840 --> 00:21:29,600
not going to carry water with a cannabis

508
00:21:27,840 --> 00:21:31,840
regulator the companies are kind of on

509
00:21:29,600 --> 00:21:34,480
their own and I do think because of that

510
00:21:31,840 --> 00:21:37,320
it still attracts this element that I

511
00:21:34,480 --> 00:21:40,480
really hope will be winnowed down as the

512
00:21:37,320 --> 00:21:42,520
years progress and I think that's that's

513
00:21:40,480 --> 00:21:44,279
everybody's problem in attracting

514
00:21:42,520 --> 00:21:45,960
investment to the industry basically

515
00:21:44,279 --> 00:21:48,600
changing the image of the industry to

516
00:21:45,960 --> 00:21:51,159
more mature and trustworthy uh I think

517
00:21:48,600 --> 00:21:53,679
would be helpful on the whole now here's

518
00:21:51,159 --> 00:21:56,320
here's another little interesting one

519
00:21:53,679 --> 00:21:58,039
which I agree probably a red herring at

520
00:21:56,320 --> 00:22:00,080
the end of the day back when I first

521
00:21:58,039 --> 00:22:03,000
started in the practice the major

522
00:22:00,080 --> 00:22:05,880
concern was this idea of quote unquote

523
00:22:03,000 --> 00:22:07,520
back then big marijuana versus you know

524
00:22:05,880 --> 00:22:08,720
your craft your mom and pop companies

525
00:22:07,520 --> 00:22:10,799
that are starting from the ground up

526
00:22:08,720 --> 00:22:13,120
generational Farmers Etc do you think

527
00:22:10,799 --> 00:22:15,600
that is actually an issue and is it an

528
00:22:13,120 --> 00:22:17,760
issue today as we're now kind of seeing

529
00:22:15,600 --> 00:22:19,919
these Democratic experiments play out

530
00:22:17,760 --> 00:22:22,200
because to me I'm just seeing a lot of

531
00:22:19,919 --> 00:22:24,720
failure across the board generally

532
00:22:22,200 --> 00:22:26,000
regardless of size but what do you think

533
00:22:24,720 --> 00:22:29,360
I think it was

534
00:22:26,000 --> 00:22:30,919
also the concern was probably over it

535
00:22:29,360 --> 00:22:33,720
was probably more of a concern than it

536
00:22:30,919 --> 00:22:36,559
actually was you've got big companies

537
00:22:33,720 --> 00:22:38,039
are have had just as the same kind of

538
00:22:36,559 --> 00:22:40,000
financial difficulties that small

539
00:22:38,039 --> 00:22:42,919
companies have had you know very few

540
00:22:40,000 --> 00:22:45,600
large companies still make an actual net

541
00:22:42,919 --> 00:22:48,120
profit um they've e but they don't make

542
00:22:45,600 --> 00:22:50,320
an actual net profit just like a lot you

543
00:22:48,120 --> 00:22:54,600
know most small companies don't make an

544
00:22:50,320 --> 00:22:56,720
actual profit uh they the same CH most

545
00:22:54,600 --> 00:23:00,200
not the same but a lot of the same

546
00:22:56,720 --> 00:23:02,600
challenges that that big compan face uh

547
00:23:00,200 --> 00:23:04,919
apply to this to the small ones as well

548
00:23:02,600 --> 00:23:08,559
you know whether it's you know the the

549
00:23:04,919 --> 00:23:11,120
the impact of of taxes in 28 and having

550
00:23:08,559 --> 00:23:13,799
to comply with lots of the fact that you

551
00:23:11,120 --> 00:23:16,840
know you brand loyalty is still really

552
00:23:13,799 --> 00:23:19,720
hard to come by uh Supply chains are

553
00:23:16,840 --> 00:23:22,200
difficult uh testing remains a

554
00:23:19,720 --> 00:23:24,720
bottleneck you know all the big stuff

555
00:23:22,200 --> 00:23:27,640
that that that that makes this industry

556
00:23:24,720 --> 00:23:30,720
so difficult to to work in everybody has

557
00:23:27,640 --> 00:23:32,840
those problems and so you know the the

558
00:23:30,720 --> 00:23:36,080
part of the difference is that when you

559
00:23:32,840 --> 00:23:39,640
are a larger public company it does

560
00:23:36,080 --> 00:23:42,720
access to Capital is a little easier um

561
00:23:39,640 --> 00:23:45,440
but again that does what gets you so far

562
00:23:42,720 --> 00:23:48,120
you know and I think that the you know

563
00:23:45,440 --> 00:23:51,000
you still see a lot of concern that big

564
00:23:48,120 --> 00:23:54,000
cannabis is going to drown out small

565
00:23:51,000 --> 00:23:57,320
cannabis in the long run and I I'm less

566
00:23:54,000 --> 00:24:00,480
of a proponent of that I think that this

567
00:23:57,320 --> 00:24:03,799
there is still even with large you know

568
00:24:00,480 --> 00:24:07,520
once we someday see interstate commerce

569
00:24:03,799 --> 00:24:09,440
and legal federally legal Catabus um I

570
00:24:07,520 --> 00:24:13,200
still think that there is going to be

571
00:24:09,440 --> 00:24:15,760
room for the small producers who are pro

572
00:24:13,200 --> 00:24:19,000
who are providing some you know craft

573
00:24:15,760 --> 00:24:21,360
cannabis to the you know for lack of

574
00:24:19,000 --> 00:24:23,880
term the the Cannabis connoisseur or if

575
00:24:21,360 --> 00:24:25,760
you want to be smart about it canis St

576
00:24:23,880 --> 00:24:28,559
you know that that that really are

577
00:24:25,760 --> 00:24:31,520
focused on a higher quality more

578
00:24:28,559 --> 00:24:33,240
distinctive product um and that's okay I

579
00:24:31,520 --> 00:24:35,640
mean you know we have that with lots of

580
00:24:33,240 --> 00:24:38,840
other things uh you know where I think

581
00:24:35,640 --> 00:24:41,799
that it will be the harder place to be

582
00:24:38,840 --> 00:24:44,080
will be that middle where you've got um

583
00:24:41,799 --> 00:24:46,279
you know and sort of the midsize company

584
00:24:44,080 --> 00:24:49,600
that that has sort of one foot in each

585
00:24:46,279 --> 00:24:52,240
of those those areas uh that I think

586
00:24:49,600 --> 00:24:54,440
will be a bit more of a challenge um but

587
00:24:52,240 --> 00:24:56,640
I think that this the industry and the

588
00:24:54,440 --> 00:24:59,760
opportunity is big enough for both I

589
00:24:56,640 --> 00:25:02,760
hope so and I think you right if alcohol

590
00:24:59,760 --> 00:25:04,640
is kind of any indicator which it may be

591
00:25:02,760 --> 00:25:06,640
those consumer habits are just really

592
00:25:04,640 --> 00:25:08,919
tough to nail down in cannabis at the

593
00:25:06,640 --> 00:25:12,240
moment any reliable data I'd love to

594
00:25:08,919 --> 00:25:14,799
know and let's talk about another

595
00:25:12,240 --> 00:25:18,760
Boogeyman this one might be real I'm not

596
00:25:14,799 --> 00:25:21,720
quite sure this is a very divisive

597
00:25:18,760 --> 00:25:23,480
polarizing topic really depending on

598
00:25:21,720 --> 00:25:25,760
who's speaking and what they Advocate

599
00:25:23,480 --> 00:25:28,320
how they read into these things is

600
00:25:25,760 --> 00:25:31,480
another Pitfall to cannabis the cannabis

601
00:25:28,320 --> 00:25:34,000
industry as a whole this idea of

602
00:25:31,480 --> 00:25:36,760
competing with these hemp derived

603
00:25:34,000 --> 00:25:40,559
intoxicating canabo that have now sprung

604
00:25:36,760 --> 00:25:45,279
from the bosom of the 2018 farm bill I

605
00:25:40,559 --> 00:25:48,640
recently wrote in my musings that to me

606
00:25:45,279 --> 00:25:50,720
you know rescheduling is not the biggest

607
00:25:48,640 --> 00:25:53,120
thing facing or biggest thing that's

608
00:25:50,720 --> 00:25:56,159
going to happen to cannabis because to

609
00:25:53,120 --> 00:25:59,600
me you know it will rescheduling really

610
00:25:56,159 --> 00:26:01,399
will just make taxes well reduce taxes

611
00:25:59,600 --> 00:26:05,640
and make everybody's balance sheets a

612
00:26:01,399 --> 00:26:07,840
little cleaner hemp drives cannaboids uh

613
00:26:05,640 --> 00:26:10,640
THC and the like that to me is the

614
00:26:07,840 --> 00:26:14,640
biggest issue facing um non-em cannabis

615
00:26:10,640 --> 00:26:16,000
right now because it is you've got you

616
00:26:14,640 --> 00:26:18,600
know on the one hand you've got the

617
00:26:16,000 --> 00:26:20,360
licensed industry that is working

618
00:26:18,600 --> 00:26:23,279
through again this sort of State

619
00:26:20,360 --> 00:26:26,120
regulated federally illegal process and

620
00:26:23,279 --> 00:26:28,960
all of the hair that comes with that and

621
00:26:26,120 --> 00:26:32,159
then you've got you know from a consumer

622
00:26:28,960 --> 00:26:34,880
perspective a substantially similar

623
00:26:32,159 --> 00:26:37,440
project product maybe not identical in

624
00:26:34,880 --> 00:26:40,520
all ways but some of the products are

625
00:26:37,440 --> 00:26:43,679
indeed identical uh that you could buy

626
00:26:40,520 --> 00:26:47,640
at Total Line or at a you know a sports

627
00:26:43,679 --> 00:26:50,240
arena or at a gas station and you know a

628
00:26:47,640 --> 00:26:52,120
lot of it's tested some of it's not some

629
00:26:50,240 --> 00:26:54,679
of it you can buy over the Internet with

630
00:26:52,120 --> 00:26:57,240
a click uh without any sort of like you

631
00:26:54,679 --> 00:26:59,080
know adult signature required and it's

632
00:26:57,240 --> 00:27:02,679
all through this

633
00:26:59,080 --> 00:27:05,679
loophole uh in the 2018 Farm Bill the

634
00:27:02,679 --> 00:27:08,080
biggest question that nobody knows the

635
00:27:05,679 --> 00:27:10,200
answer to at this point is whether that

636
00:27:08,080 --> 00:27:11,919
loophole is going to get closed up in

637
00:27:10,200 --> 00:27:14,200
the upcoming farm bill that's being

638
00:27:11,919 --> 00:27:15,880
debated right now there's been some

639
00:27:14,200 --> 00:27:19,039
amendments proposed to the draft farm

640
00:27:15,880 --> 00:27:21,960
bill that will indeed close it up um and

641
00:27:19,039 --> 00:27:25,520
basically for lack of a term eliminate a

642
00:27:21,960 --> 00:27:28,440
lot you know this this industry uh the

643
00:27:25,520 --> 00:27:30,880
the sorry the the hemp derived tab

644
00:27:28,440 --> 00:27:33,840
industry what's also being referred to

645
00:27:30,880 --> 00:27:35,880
is intoxicating hemp which is probably

646
00:27:33,840 --> 00:27:37,120
you know not a fully accurate term

647
00:27:35,880 --> 00:27:39,919
there's not really a good way to

648
00:27:37,120 --> 00:27:43,840
describe it um or sort of a succinct way

649
00:27:39,919 --> 00:27:46,440
to describe it but if it doesn't then

650
00:27:43,840 --> 00:27:49,000
the the the licensed cannabis industry

651
00:27:46,440 --> 00:27:51,760
has a real problem because now it's it's

652
00:27:49,000 --> 00:27:54,240
not just competing against the illicit

653
00:27:51,760 --> 00:27:57,640
unlic Market but now it's also competing

654
00:27:54,240 --> 00:27:59,159
against the the hemp toide market and

655
00:27:57,640 --> 00:28:01,519
you know

656
00:27:59,159 --> 00:28:03,799
it's there isn't really great data out

657
00:28:01,519 --> 00:28:06,679
there yet but we're you know I think I

658
00:28:03,799 --> 00:28:10,480
think that most operators most license

659
00:28:06,679 --> 00:28:13,320
operators would tell you that it's it's

660
00:28:10,480 --> 00:28:14,840
it's hurting sales um it's hard to sort

661
00:28:13,320 --> 00:28:18,760
of you know

662
00:28:14,840 --> 00:28:21,760
think figure you know otherwise and so

663
00:28:18,760 --> 00:28:24,320
you know if I think that if the farm

664
00:28:21,760 --> 00:28:26,159
build doesn't close this loophole I

665
00:28:24,320 --> 00:28:29,120
think that you're going to see a lot of

666
00:28:26,159 --> 00:28:32,399
more Catabus licensed Catabus companies

667
00:28:29,120 --> 00:28:34,760
pivot because they would have to um I I

668
00:28:32,399 --> 00:28:37,720
think it's just this situation just kind

669
00:28:34,760 --> 00:28:39,600
of forced at hand yeah it's not ever

670
00:28:37,720 --> 00:28:42,240
something I would have predicted or

671
00:28:39,600 --> 00:28:43,880
foreseen that's for sure no I mean it

672
00:28:42,240 --> 00:28:46,399
was interest it's interesting that you

673
00:28:43,880 --> 00:28:49,600
know the two industries after the 28

674
00:28:46,399 --> 00:28:54,000
Farm Bill really sort of um split and

675
00:28:49,600 --> 00:28:56,720
sort of naturally because the the CBD

676
00:28:54,000 --> 00:28:59,519
hemp Drive CBD was really the focus that

677
00:28:56,720 --> 00:29:01,679
sort of you know I sort of fell apart

678
00:28:59,519 --> 00:29:04,519
because the FDA never did anything about

679
00:29:01,679 --> 00:29:07,480
it but now you know but then then H

680
00:29:04,519 --> 00:29:10,519
arriv canab THC sort of became the thing

681
00:29:07,480 --> 00:29:12,000
it also I think well from a from a

682
00:29:10,519 --> 00:29:14,720
policy perspective what I would really

683
00:29:12,000 --> 00:29:16,720
like to know because CBD was marketed

684
00:29:14,720 --> 00:29:19,240
For Better or Worse right in violation

685
00:29:16,720 --> 00:29:22,640
of federal laws as medicinal medicinal

686
00:29:19,240 --> 00:29:25,399
in nature and had these Curative effects

687
00:29:22,640 --> 00:29:28,320
for various ailments but now it's kind

688
00:29:25,399 --> 00:29:31,840
of been perverted into the fact that you

689
00:29:28,320 --> 00:29:33,320
can get high quote unquote from these

690
00:29:31,840 --> 00:29:35,440
cannabinoids and I would just like to

691
00:29:33,320 --> 00:29:37,799
know you know has the consumer sentiment

692
00:29:35,440 --> 00:29:39,799
shifted where people were never really

693
00:29:37,799 --> 00:29:41,880
interested that interested in CBD it

694
00:29:39,799 --> 00:29:43,840
really always has been about maybe

695
00:29:41,880 --> 00:29:46,039
getting stoned and this is the way to

696
00:29:43,840 --> 00:29:47,679
accomplish that so again when you look

697
00:29:46,039 --> 00:29:51,440
at cannabis from the federal policy

698
00:29:47,679 --> 00:29:54,240
perspective is it medicine is it a party

699
00:29:51,440 --> 00:29:56,320
instrument I don't know I mean this this

700
00:29:54,240 --> 00:29:59,159
is fascinating and frustrating at the

701
00:29:56,320 --> 00:30:00,880
same time but and and there's no good

702
00:29:59,159 --> 00:30:02,320
answer it really will come down to

703
00:30:00,880 --> 00:30:04,120
Congress and enforcement and what the

704
00:30:02,320 --> 00:30:06,679
states do and the states are starting

705
00:30:04,120 --> 00:30:08,480
again to pick up the slack to regulate

706
00:30:06,679 --> 00:30:11,799
it a number of different ways I mean

707
00:30:08,480 --> 00:30:13,760
talk about a patchwork quilt of headache

708
00:30:11,799 --> 00:30:16,559
that's being born I think at this very

709
00:30:13,760 --> 00:30:17,440
moment but with the last minutes that I

710
00:30:16,559 --> 00:30:21,080
called

711
00:30:17,440 --> 00:30:23,120
you I think kind of the last Pitfall

712
00:30:21,080 --> 00:30:25,360
awareness you know don't hang your hat

713
00:30:23,120 --> 00:30:27,320
on this maybe or don't get your hopes up

714
00:30:25,360 --> 00:30:29,320
too high I want to talk about the can of

715
00:30:27,320 --> 00:30:31,279
provisions case which I think at the

716
00:30:29,320 --> 00:30:33,159
outset of the Year people were getting

717
00:30:31,279 --> 00:30:35,279
pretty hyped for what this case could

718
00:30:33,159 --> 00:30:37,279
mean for a number of reasons number one

719
00:30:35,279 --> 00:30:39,640
facts and circumstances have changed

720
00:30:37,279 --> 00:30:42,159
from the last big kind of federal

721
00:30:39,640 --> 00:30:44,559
enforcement constitutionality of the CSA

722
00:30:42,159 --> 00:30:47,840
inate since the last case back in the

723
00:30:44,559 --> 00:30:51,000
early ASDS is quite different in that

724
00:30:47,840 --> 00:30:53,600
it's boy Schiller and these are very

725
00:30:51,000 --> 00:30:55,159
very well seasoned constitutional appell

726
00:30:53,600 --> 00:30:57,279
at attorneys that have gotten huge

727
00:30:55,159 --> 00:30:59,279
decisions before The Supreme Court in

728
00:30:57,279 --> 00:31:01,639
support of essentially civil liberties

729
00:30:59,279 --> 00:31:03,440
do you think we should be putting stock

730
00:31:01,639 --> 00:31:05,120
into this case and and if you do or even

731
00:31:03,440 --> 00:31:06,919
if you don't you know what does it mean

732
00:31:05,120 --> 00:31:09,480
for the industry I've been less

733
00:31:06,919 --> 00:31:12,360
optimistic than I think the average uh

734
00:31:09,480 --> 00:31:16,360
industry person about this case it's you

735
00:31:12,360 --> 00:31:19,960
know I always am I I'm always heartened

736
00:31:16,360 --> 00:31:22,960
by the Ingenuity of folks to try to

737
00:31:19,960 --> 00:31:26,120
figure out you know how do we make life

738
00:31:22,960 --> 00:31:28,720
easier how do we deal with fit us you

739
00:31:26,120 --> 00:31:31,159
know into the the system and the

740
00:31:28,720 --> 00:31:32,960
regulations and structure that we have

741
00:31:31,159 --> 00:31:35,880
the the cards we've been the cards we've

742
00:31:32,960 --> 00:31:37,600
been dealt s for mixing metaphors there

743
00:31:35,880 --> 00:31:39,240
can of Provisions is is one of those

744
00:31:37,600 --> 00:31:42,159
it's sort of trying to figure out all

745
00:31:39,240 --> 00:31:45,519
right well how do we thread this needle

746
00:31:42,159 --> 00:31:47,880
and make a a credible argument that you

747
00:31:45,519 --> 00:31:50,919
know the Congress shouldn't be

748
00:31:47,880 --> 00:31:53,440
regulating intrastate Commerce which is

749
00:31:50,919 --> 00:31:57,120
sort of the heart of of the can of

750
00:31:53,440 --> 00:31:59,880
Provisions case I don't think that this

751
00:31:57,120 --> 00:32:02,519
is going to successful even though I you

752
00:31:59,880 --> 00:32:06,840
know I I love the fact that people are

753
00:32:02,519 --> 00:32:09,480
trying to do this but I I don't have a

754
00:32:06,840 --> 00:32:13,000
lot of expectation for Success because

755
00:32:09,480 --> 00:32:14,960
one you know the the the the law firm

756
00:32:13,000 --> 00:32:17,240
and the companies that are behind Canada

757
00:32:14,960 --> 00:32:20,000
Provisions started working on their

758
00:32:17,240 --> 00:32:22,880
argument and to try to find some sort of

759
00:32:20,000 --> 00:32:26,039
path for over a year before they filed

760
00:32:22,880 --> 00:32:27,960
the case and what they filed was much

761
00:32:26,039 --> 00:32:29,799
narrower than what was sort of

762
00:32:27,960 --> 00:32:32,559
originally pronounced and sort of

763
00:32:29,799 --> 00:32:35,600
originally uh in the original sort of

764
00:32:32,559 --> 00:32:37,600
press about it it was sort of originally

765
00:32:35,600 --> 00:32:40,320
Ted going to be that they were going to

766
00:32:37,600 --> 00:32:43,159
focus more constitutionality generally

767
00:32:40,320 --> 00:32:45,039
and instead it's more just an attack on

768
00:32:43,159 --> 00:32:48,840
the the application of the Controlled

769
00:32:45,039 --> 00:32:52,399
Substances Act within intra on an

770
00:32:48,840 --> 00:32:55,600
inate basis uh so it's a much narrower

771
00:32:52,399 --> 00:32:58,399
and and then it's focusing on a policy

772
00:32:55,600 --> 00:33:01,559
argument that in earlier

773
00:32:58,399 --> 00:33:04,919
Supreme Court precedent no longer makes

774
00:33:01,559 --> 00:33:08,240
sense which is a harder thing to pull

775
00:33:04,919 --> 00:33:10,320
off and then so it would have to this

776
00:33:08,240 --> 00:33:12,880
case really needs to get to the Supreme

777
00:33:10,320 --> 00:33:14,240
Court in order for it to be successful

778
00:33:12,880 --> 00:33:17,919
in order

779
00:33:14,240 --> 00:33:20,799
overturn Supreme Court precedent and so

780
00:33:17,919 --> 00:33:23,960
you know fewer than 1% of cases that go

781
00:33:20,799 --> 00:33:28,559
up for C are actually accepted so you've

782
00:33:23,960 --> 00:33:31,799
got an extremely you know narrow window

783
00:33:28,559 --> 00:33:33,840
there to actually make it work and then

784
00:33:31,799 --> 00:33:36,159
you have to convince the Supreme sorry

785
00:33:33,840 --> 00:33:37,600
even to get to the Supreme Court and

786
00:33:36,159 --> 00:33:39,639
then you have to convince the Supreme

787
00:33:37,600 --> 00:33:42,480
Court to bother to overturn its own

788
00:33:39,639 --> 00:33:45,080
precedent based upon you know based upon

789
00:33:42,480 --> 00:33:47,000
a it's effectively a policy argument now

790
00:33:45,080 --> 00:33:49,440
you know you do have the and they've

791
00:33:47,000 --> 00:33:51,600
sort of latched on to the to Justice

792
00:33:49,440 --> 00:33:56,039
Thomas made a comment a number of years

793
00:33:51,600 --> 00:33:58,919
ago in in in a in a descent that you

794
00:33:56,039 --> 00:34:00,760
know that that the earlier case law

795
00:33:58,919 --> 00:34:03,880
earlier president doesn't make sense

796
00:34:00,760 --> 00:34:05,559
anymore so you know that sort of was the

797
00:34:03,880 --> 00:34:09,399
spark for the idea from what I

798
00:34:05,559 --> 00:34:11,839
understand but I just I don't think that

799
00:34:09,399 --> 00:34:14,879
we should ex it would be great if we got

800
00:34:11,839 --> 00:34:17,919
it but I don't think we should expect a

801
00:34:14,879 --> 00:34:19,960
success here that's just my two sets but

802
00:34:17,919 --> 00:34:23,200
then again I'm not a supreme court

803
00:34:19,960 --> 00:34:25,359
lawyer I wasn't a supreme court lawyer

804
00:34:23,200 --> 00:34:28,359
and you know I spent a lot of time on

805
00:34:25,359 --> 00:34:31,359
the Constitutional issues but you know

806
00:34:28,359 --> 00:34:34,200
they keeping to my prior arguments of

807
00:34:31,359 --> 00:34:37,440
listen to experts I would call myself an

808
00:34:34,200 --> 00:34:39,639
intermediate expert on this so seek out

809
00:34:37,440 --> 00:34:41,800
other advices such as yourself seek out

810
00:34:39,639 --> 00:34:44,760
other you know talk to people like

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00:34:41,800 --> 00:34:48,119
Hillary here oh no no Mark is Mark is

812
00:34:44,760 --> 00:34:50,079
about ASI as I am um on something like

813
00:34:48,119 --> 00:34:52,119
this again highly specialized but I

814
00:34:50,079 --> 00:34:54,480
think the bottom line is folks probably

815
00:34:52,119 --> 00:34:56,839
don't bet the house on the results of

816
00:34:54,480 --> 00:34:59,440
one litigation matter and especially one

817
00:34:56,839 --> 00:35:01,200
like this that has quite a ways to go

818
00:34:59,440 --> 00:35:04,160
before I would even make it right to the

819
00:35:01,200 --> 00:35:06,079
big stage mark thank you so much for

820
00:35:04,160 --> 00:35:08,079
coming on to the podcast and giving us

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00:35:06,079 --> 00:35:10,599
the ins and outs of these pitfalls and

822
00:35:08,079 --> 00:35:12,280
red herrings I love doing these things

823
00:35:10,599 --> 00:35:15,040
and putting people on notice I think

824
00:35:12,280 --> 00:35:17,720
it's hugely helpful and folks if you're

825
00:35:15,040 --> 00:35:21,079
still listening please sign up subscribe

826
00:35:17,720 --> 00:35:23,359
to receive Mark's newsletter cannabis

827
00:35:21,079 --> 00:35:25,920
musings you will be better off for it

828
00:35:23,359 --> 00:35:28,400
again Mark thanks thank

829
00:35:25,920 --> 00:35:31,119
you and that concludes today's episode

830
00:35:28,400 --> 00:35:34,740
of the Cannabis law Now podcast until

831
00:35:31,119 --> 00:35:38,960
next time stayer stay alive

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00:35:34,740 --> 00:35:38,960
[Music]

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