>> HELLO HELLO EVERYONE WELCOME
BACK THE CHAIRS CABINET.
>> AND COLORADO'S MARKETS A
COMBINED SO.
PLANS WELL FOR STARTERS, THE
BLACK MARKET IN THE GOLDEN
STATE
IS RIGHT AND AND IS EXPECTED TO
BRING IN 8.7 BILLION THIS YEAR
ALONE. BUT THAT'S JUST ONE OF
THE MANY PROBLEMS CALIFORNIA IS
FACING SONIA LUNA
IS THE FOUNDER AND THE CEO AT
OF THE VA SPECTRUM GREAT TO
HAVE YOU WITH US FROM LOS
ANGELES TODAY, SO CALIFORNIA
INCREASING
OUT HOW TAXES ON MARIJUANA
BEGINNING NEXT MONTH IN JANUARY
LEGAL COMPANIES ALREADY
STRUGGLING TO STAY COMPETITIVE.
MUCH WILL THIS HURT THEM.
>> THIS IS GOING TO HURT THEM A
LOT SO WHEN I DID MY OWN MAP
AND JUST TRYING TO FIGURE OUT
HOW THE EXCISE TAX THAT ALONE
IS GOING TO IMPACT THE
CANNABIS MARKET. YOU'RE LOOKING
AT THE REGISTER TO THE CONSUMER
AT LEAST
I'M IN. 12 AND A HALF PERCENT
INCREASE ON THE PRODUCTS SO
EVEN IF THE PRODUCTS WERE TO
COST THE SAME TO THE RETAILER.
THE CONSUMERS THE STILL GOING
TO PAY 12 AND A HALF PERCENT
MORE NOT TO MENTION SALES AND
USE TAX ON TOP OF THAT.
I'M ESTIMATING IT'S GOING TO BE
AT LEAST 20%. SIR WE'RE LOOKING
AT ACTUALLY A DRY TOP IN
2020 OF TOTAL SALES,
ACCORDING TO CERTAIN INDUSTRY
EXPERTS LIKE BDS ANALYTICS AND
A COUPLE OTHERS IN THE INDUSTRY
SO A LOT OF INDUSTRY INSIDERS
IN CALIFORNIA ARE
TRYING TO. CALM THE LEGISLATORS
AND TELL THEM TO HOLD OFF ON
THIS INCREASE, BUT IT DOESN'T
LOOK LIKE IT'S GOING TO
GO FAR.
>> YEAH, I WANT TO GO THROUGH
SOME OF THE NUMBERS THE AMOUNT
OF PEOPLE THAT ARE IMPACTED BY
IT'S SO NEW THERE'S A LOT OF
LAYOFFS
ARE GOING HAPPEN IN THIS
INDUSTRY FLOW CAUGHT UP BY THE
WAY WHICH BILLS THEMSELVES
CALIFORNIA'S NUMBER ONE SELLING
CANNABIS FLOWER BRAND,
THEY'RE CUTTING A 5TH OF THEIR
WORKFORCE. THEY'RE CHIEF
EXECUTIVE PAUL TO STAY FOR ALL
OF THIS AND THEN LOOK AT ALL
THESE EASE THEY WENT UP
36 PEOPLE WE'VE MAPPED PAX LABS
MEG MUNN EVERYBODY HAS BEEN
LAYING ON SO MANY PEOPLE.
WHAT PERCENTAGE OF THE CANNABIS
INDUSTRY IS EFFECTED BY THIS
AND HOW MUCH BIGGER COULD THIS
GET ESPECIALLY BECAUSE WE WERE
TOLD THIS IS GOING TO BE A
BURGEONING FLOURISHING
INDUSTRY.
>> RIGHT IT WAS SUPPOSED TO BE
BOOMING AND WE'RE GOING TO MAKE
ALL THIS MONEY AND THE STATE
WAS GOING MAKE BILLIONS OFF OF
IT. WELL WE HAD A TOTAL
SHORTFALL OF OVER
200. MILLION IN TAX REVENUE
THAT'S NUMBER ONE AND THIS NEW
TAX HIKE DID NOT IMPACT THIS IS
THIS
RECENT LAYOFFS.
>> WHAT REALLY IMPACTED THE
LAYOFFS THAT WE'RE SEEING NOW
HOW WAS THIS OVER
IN FLEA, GOOD VALUE ASIAN THAT
THE MARKET GAVE THESE
CANDIDATES COMPANIES SO LET ME
GIVE YOU A PRACTICAL EXAMPLE,
SOME OF THESE PUBLICLY LISTED
CANNABIS COMPANIES WERE TOO
RATING AT YOU KNOW 6 TIMES IN A
BID TO OKAY WHICH IS RIDICULOUS
THIS OR THEY WERE TRADING AT 7
TIMES REVENUE OR WHAT HAVE YOU
AND THEY WERE
LOSING MONEY. SO WHEN YOU HAVE
THAT COUPLED WITH THE FACT THAT
INVESTORS ARE STARTING TO LOOK
WHEN THEY GET A RETURN ON
MY INVESTMENT THAT'S WHEN CEOS
OF THESE CANDIDATES COMPANIES
REALIZE LOOK WE NEED TO MAKE
THIS A STABLE PROFIT WILL BREAK
EVEN
BUSINESS BECAUSE THE STORY THEY
WERE TELLING
INVESTORS WERE. HEY GIVE US
YOUR MONEY WE'RE GOING TO MAKE
A BIG IMPACT
WILL BE WHILE THESE LICENSES
CONSOLIDATE CERTAIN MARKETS AND
BY THE WAY SINCE WE'RE
THE LEADERS, WE'LL CAPTURE A
BIG MARKET SHARE. WELL WHEN
YOU'RE NOT MAKING A LOT OF
MONEY IN LOSING MONEY AND
HAVING THESE HIGH VALUATIONS
INVESTORS STARTED TO REALIZE
WAIT A MINUTE BY THE TIME.
CONSUMERS ACTUALLY HEY THESE
INCREASES IN TERMS
OF PRICES GETTING ACCESS TO
CERTAIN LICENSED
CANNABIS MARKETS. THEY WERE
GOING TO WAIT 6 SOMETIMES 10
YEARS OUT SO THAT'S WHEN THE
MARKET STARTED TO PLUMMET AND
THAT'S WHY WE'RE SEEING THESE
LAYOFFS. TODAY IT REALLY HAS
VERY LITTLE CORRELATION TO THIS
TAX INCREASE THAT CALIFORNIA'S
POSING ON SOME OF THESE
CANDIDATES COMPANIES.
>> YES, SO YOU TO THAT POINT I
WAS JUST A LA JUST A FEW WEEKS
AGO AND I LITERALLY PROBABLY
SAW 10 DIFFERENT BILLBOARDS.
FOR
DISPENSARY SAYING WHY THE LEGAL
PRODUCT PLEASE DO NOT BUY STUFF
ON THE BLACK MARKET AND IS
HOPING JUST MENTIONED THE BLACK
MARKET IS STILL THRIVING
BILLION JUST IN SALES ALONE.
THIS SEEMS LIKE THIS MORE WOULD
BE COUNTER TO PROMOTING PEOPLE
TO GET STUFF THAT THESE LEGAL
DISPENSARIES.
YEAH
AND THERE'S A COUPLE OF FACTORS
IN THE MARKET RIGHT
NOW SO.
>> SOME THE INDUSTRY INSIDERS
ARE TALKING ABOUT THIS LONG
INJURY. SO LET'S JUST KIND OF
TAKE THAT IF YOU BUY IN THE
LEGAL MARKET. THE CDC AND OTHER
STATE PUBLIC HEALTH AGENCIES
ARE SAYING YOU HAVE THE LEAST
AMOUNT OF RISK OF
ACTUALLY GETTING LUNG
INJURIES OKAY, SO THAT'S WHAT'S
ALSO GOING ON THE MARKET IS
SAYING BY ILLEGAL TO BE SAFE
AND HEALTHY FOR
YOUR BODY. AND THE CDC FINALLY
CAME OUT A FEW WEEKS AGO SAYING
OK VITAMIN E ACETATE WHEN IT'S
IN A
VAPING PRODUCT HERTZ IN DAMAGES
FOR ALONGS AND AND IN
CONJUNCTION WITH THE STATE OF
ILLINOIS CDC PUT A SURVEY FOR
4,000 PARTICIPANTS HAVE
PARTICIPATED IN THE STUDY IN
THE STATE OF ILLINOIS AND WHAT
THEY FOUND WAS THOSE
INDIVIDUALS THAT HAD THIS LONG
INJURY.
NOT ONLY 85% OF THEM GOT IT
FROM THE ILLICIT BLACK MARKET,
BUT THE USE OF VAPE
PENS AND THE CIGARETTES AND YOU
KNOW TEACH THE VAPING PRODUCTS
ARE USING IT 5 TIMES MORE THAN
THE AVERAGE. CONSUMER SO
BOTH INDUSTRY INSIDERS AS WELL
AS STATE AGENCIES ARE TRYING TO
SAY IF YOU'RE AND BY THE BEING
PRODUCT OR EASIER
PLEASE BUY IT THROUGH THE LEGAL
MARKET BECAUSE NOW THEY'RE
STRONG EVIDENCE TO SUGGEST THAT
IS HARMFUL FOR YOUR BODY AND