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>> TO CHEDDAR THIS TENTATIVE OR
TALK ALL ABOUT THE BUSINESS OF
MARIJUANA ON THE JOB AND I'M
BRETT SMITH THANKS FOR
JOINING US.
>> THAT DOESN'T HAVE A VERY BIG
SHOW TONIGHT, ONE OF THE TOP
STORIES WE'RE FOLLOWING OF
COURSE THIS WEEK MASSIVE RIGHT
DOWN TO MOUNT ABOUT
$2 BILLION. THAT'S EXPECTED TO
COME OVER AND OVER OR CANNABIS
IS AFTER ANALYSTS AND
DISCOVERED THAT THE CANADIAN
POT FROM IS LOOKING TO SELL A
LARGE
CULTIVATION FACILITY IN ONTARIO
IS JOINING US TO DISCUSS THIS
IN A WHOLE LOT MORE IS JOHN
TRAV AND IS A PARTNER OVER OUT
TO THE BEST MANAGER JOHN GREAT
TO HAVE YOU HERE I WAS ALWAYS
WORK IT WAS THEIR SHARES FALL
OF THAT WITHIN THE
LAST YEAR, 56% IS HOW MUCH THEY
FELL LAST YEAR
2019. THE NEW YEAR NOT REALLY
KICKING OFF TO DO ANYTHING
BETTER SO MUCH FOR THEM SO
QUARTER OR MAYBE STAGE A
COMEBACK HERE.
>> I THINK YOU'RE ALWAYS A GOOD
EXAMPLE, REPRESENTATIVE KIND OF
STOCKS
IN GENERAL WHICH HAVE HAD A
HUGE RUN-UP IN VALUE OVER THE
LAST
2 YEARS AND HAVE NOW GONE
THROUGH HUGE CORRUPTION.
I THINK THAT CORRECTION IS
HEALTHY FOR THE MARKET AND FOR
THE PROSPECTS OF THE COMPANIES
THAT WILL ACTUALLY BE THE
WINNERS IN
THIS CASE.
>> SO RIGHT RIGHT NOW IT LOOKS
LIKE THE SELLING OFF OF CERTAIN
ASSETS SO IS THE
TARGETED STRATEGY. WHAT ARE
SOME OF THE OTHER ASSETS THAT
THEY DO HAVE THAT IF NEEDED
THEY COULD UNLOAD IT WAS A
TYPICALLY IT CANNABIS
VERTICALLY INTEGRATED COMPANY
IS GOING TO HAVE REAL ESTATE
AND IT'S GOING TO HAVE
A EQUIPMENT. RIGHT AND THAT IT
HAS A IT HAS INTELLECTUAL
PROPERTY AND UH YOU KNOW AND
MARKETING STRATEGIES. SO IF
THEY HAVE NOT
SOLD OFF THEIR REAL TO RATES
THAT COULD BE ANOTHER WAY TO
MONETIZE ASSETS AND THEN LEASE
THOSE BACK VERSUS JUST SELLING
AND
GET READY. GETTING RID OF IT
THEY COULD BE BRINGING IN
EQUIPMENT FINANCING OR THEY
COULD CERTAINLY TRY TO APPROACH
THE MARKET FOR ADDITIONAL DEBT
OR EQUITY.
>> WE SAW IN OCTOBER CANADA
BASICALLY STARTED CAMERAS TO
POINT OUT IN CANADA WHERE THEY
CAN NOW FINALLY BE ABLE
TO SELL DOUBLES AND OTHER
PRODUCTS, THEY WEREN'T ABLE TO
DO IN THE FIRST WAVE OF THE
LEGALIZATION.
>> DO YOU SEE ANYTHING CHANGING
THE MARKET WANTS TO POINT OUT
THAT STARTED OR IS EVERYTHING
PRETTY MUCH THE SAME AS WHAT WE
SAW IN THE FIRST PLACE I THINK
I THINK HAVING MORE PRODUCT
IT'S AVAILABLE TO
THE CONSUMER.
>> IS GREAT RIGHT I THINK THE
CANADIAN STRUCTURE, IT
IS NOT THE MOST EFFICIENT
STRUCTURE IN THE WAY THAT BOTH
MEDICAL AND RECREATIONAL
CANNABIS
IS SOLD. SO I THINK THOSE
STRUCTURES ARE IMPEDIMENTS A TO
THE ULTIMATE PROMISE OF WHAT
KIND OF THE CANNABIS MARKET CAN
BE AND CANADA HAVE YOU SEEN A
TO SERVE.
>> A BULL MARKET REACTION FROM
CANADA'S CANNABIS TO POINT OUT.
>> I
AGAIN I THINK IT'S REFLECTIVE
OF THE BROADER MARKET ISSUES
WHICH IS WE WE CAME WE'VE GONE
THROUGH THIS HUGE START OF
SIGHT. YEAH AND THIS HUGE WHAT
I WOULD CALL RATIONAL
EXUBERANCE ON A VALUATION SIDE.
AND COMING THROUGH THAT
CORRECTION I DON'T THINK ANY
COMPANY IS GOING
INTO THAT THAT CORRECTION AND
AGAIN I THINK THIS IS VERY
HEALTHY FOR THE WINNER EMERGE
AND UH THE MOST PRODUCTIVE
COMPANIES BE ABLE TO ATTRACT
CAPITAL AND TO A TO USE THAT
CAPITAL PRODUCTIVELY TO
CREATE VALUE. SO I THINK THIS 2
POINT O OR 3 POINT OUR KNOWS
WHAT YOU KNOW WHICH CURRENT
CYCLE.
WE'RE IN. BUT WE'RE CLEARLY IN
THE CYCLE OF A SET OF EMERGING
GROWTH
STAGE COMPANIES. A TOUGH BEING
DEFINED RIGHT NOW AND WILL BE
THE ULTIMATE WINNERS,
THE INDUSTRY ON THAT SPECIFIC
STRATEGY OF VERTICALLY
INTEGRATED OPERATORS.
>> GERMANY GOT HAS BEEN AN
ATTRACTIVE AREA FOR A LOT OF
CANADA, CONSUMERS RETAILERS
BUSINESS EXACT LIKE WHAT DO YOU
SEE THE CANNABIS INDUSTRY
LOOKING LIKE IN EUROPE OVER THE
COURSE OF THE NEXT YEAR
OR SO.
>> THEY WERE VERY EXCITED ABOUT
EUROPE AS AN INVESTOR A WE HAVE
A LONDON OFFICE AND WE'RE AND
WE'RE
A LOT OF EFFORTS TO INVEST
THROUGHOUT EUROPE. WE HAVE A
FOR INVESTMENTS
DOWN HERE. I THINK THE EURO
MARKET IS DIFFERENT THAN NORTH
AMERICA EUROPE IS BEING SOLD
THROUGH MUCH TIGHTER
REGULATED CHANCE AS FOR
CANNABIS PRODUCTS FOR THC BASED
PRODUCTS I THINK GENERALLY IF
YOU LOOK AT THE NORTH
AMERICAN PLAYBOOK MEDICAL
PROGRAMS WILL START AND THEN A
COUPLE YEARS LATER RECREATIONAL
PROGRAMS WILL
COME ABOUT. SO WE THINK IT'S
VERY EARLY DAYS AND DIFFERENT
THAN NORTH AMERICA, BUT THE
CLEAR OPPORTUNITY TO DEVELOP
FOR DEEPLY INTEGRATED
MULTI-JURISDICTIONAL OPERATORS
AND THAT'S WHAT REALLY EXCITES
US ABOUT THE
EUROPEAN OPPORTUNE IT'S TOUGH
BUT THEN THE QUESTION BECOMES
AS AS AN INVESTOR AND AT IS AND
MANAGER OF 3RD PARTY CAPITAL.
ARE YOU WELL SUITED TO INVEST
IN THOSE MARKETS YOU HAVE THE
SKILL SET
TO DO BUT AN ALTITUDE VERY MUCH
HAS THAT WE HAVE YEARS OF
INVESTING IN THE CANNABIS SPACE
FOR REALLY DECADES OF
INVESTING. IN EUROPE THROUGH
OUR PRIOR EXPERIENCES AND SO
BRINGING THOSE 2 SKILL SETS
TOGETHER. I
THE ISSUE UNIQUE FOR US AND
DIFFERENTIATES US TO BE ABLE TO
EXECUTE THAT STRATEGY FOR
EUROPE ARE
REALLY EXCITED. IT WILL BE A
SLOWER DEVELOPING MARKET
OPPORTUNITY. BUT THE EARLY DAYS
OF OF
FINDING THOSE COMPANIES THAT
ARE GOING TO BE THOSE WINNERS
IS NOW.
>> AND SO YOU'VE ALSO GOT
CANADIAN FROM GROUP PURPOSE
INVESTMENTS THEIR SET THE
LAUNCH THE
FIRST CANNABIS ATF AND EUROPE
ON JANUARY 13TH, THE TIMING
WHAT DO YOU MAKE OF IT
ESPECIALLY COMING OFF A WHAT
WAS A DISMAL YEAR
FOR AND.
>> WELL I I THINK PROVIDING
LIQUIDITY TO COMPANIES AND
GIVING AVENUES FOR NEW
INVESTORS. TO GET EXPOSURE TO
THE INDUSTRY
IS GREAT. AND WITH THESE NEW
AVENUES IT WILL REALLY SHOW THE
DEATHS OF THE DEMAND OF
INVESTORS SMALL AND LARGE.
I THINK THE QUESTION RIGHT NOW
WHICH WHAT KIND
OF ASSETS IS THAT ETF GOING TO
HOLD THE EARLY DAYS OF THE
TEMPS IN NORTH AMERICA WHERE A
HODGEPODGE OF
CATALYST COMPANIES AND MEDICAL
COMPANIES JUST TRYING TO GET
SOME KIND OF A REFLECTION OF
THE
CANNABIS INDUSTRY. THE US ETF
SUMMIT MEETING THE TIPS HAVE
EVOLVED AS CANADIAN AS HEAD OF
THE COMPANIES HAVE
COME ABOUT. THAT'S THE QUESTION
FOR THAT VEHICLE IS ARE
THEY FINDING. A EUROPEAN BASED
COMPANIES TO BRING IT INTO
THERE
A PORTFOLIO OR WILL IT JUST BE
NORTH AMERICAN COMPANIES
PRIMARILY BUT GIVING A LIQUID 8
GIVING THE ABILITY FOR EUROPEAN
INVESTORS TO TRADE IN AND OUT
OF IT.
>> JOHN LET'S GO BACK STICKLEY
OBVIOUSLY A COUPLE STATES
POTENTIALLY MIGHT LOOK LIKE THE
PRODUCT IN 2020 NEW JERSEY IT
MIGHT BE ON THE BALLOT
IN NOVEMBER. DO YOU THINK THE
INCREASE AND POTENTIALLY MORE
STATES LEGALIZING IT THIS YEAR
WILL DRIVE MORE TENSION
MAYBE 12 A LOT OF THESE STOCKS
THESE CANDIDATES TOXIN LEVEL
PEOPLE TO TAKE THE RISK I THINK
I THINK INHERENTLY SRU
A 33.
>> STATES THAT HAVE A MEDICAL
PROGRAMS AT 11 THAT OF
RECREATIONAL AND I THINK
THERE'S A ROUGHLY
ABOUT 20 THAT ARE GOING TO WORK
PUSHING FOR SOME SORT OF
BALLOT INITIATIVE OR
LEGISLATION TO LEGALIZE MEDICAL
OR RECREATIONAL THE TREND LINE
TO
YEAR BY YEAR MORE AND
MORE STATES ARE GOING LEGALIZE
CANNABIS AS THE PRODUCT IS MADE
AVAILABLE THROUGH LEGAL
CHANNELS FOR SAFE TESTED
QUALITY PRODUCT THAT'S GOING TO
RAISE CONSUMER AWARENESS.
AND THEN NATURALLY THAT WILL
PULL IN INVESTOR INTO THE SPACE
AS MORE INVESTORS GET
COMFORTABLE WITH THE IND