Last month, I attended the Benzinga Capital Conference. If you have never attended, here’s my summary of the event.
To start with, the conference is an elite networking event. While it has booths and a robust agenda, the most significant benefit of this event is the ability to connect face-to-face with the industry’s decision-makers. Other shows like MJBIZCON are so much larger that you need to coordinate to meet with people. At the Benzinga conference, the opposite is true. The conference space is more confined, so almost everyone you try to connect with is in a much smaller place. One of the challenges, but certainly not a negative one, was the issue of being in two spaces at once. Running into one person and saying hello most often led to a few others stopping, making additional introductions and connections.
I tried to live tweet as much as I could. I would have liked to sit in on more panels, but relationships are key, and the cannabis industry is not an exception. The knowledge shared by the presenters was worth the price of admission alone. Whether you are for or against big MSOs, there is no denying that they are currently leading in the cannabis industry. The information that they share and the information that they don’t is telling.
Why, though, Bryan? Isn’t this just like other conferences? The answer is both yes and no.
Boris Jordan is a seasoned executive. It’s not his first rodeo. When he makes statements about beverages or big tobacco, he’s doing so intentionally. His peers are in the room, so the message resonates more deliberately. The why is the tricky point. He said, “personally, five to ten years out, I think Cannabis beverages will represent 50% of the industry.” Curaleaf has a cannabis Infused Seltzer brand line called Endless Coast, only available in MA. Sure, that’s a bold statement and got headlines about beverages, as well as raised awareness about their beverage line. Was that the only reason, or was he signaling to investors that this asset is undervalued? Reply and let me know what you think.
Regarding rescheduling, he suggested, “We’ve heard Senator Chuck Schumer say that he will do anything to keep tobacco companies out of cannabis, but I’ll make a prediction: the minute that marijuana gets rescheduled, tobacco companies will be known as cannabis companies.”
We had Shaleen Title on The Dime, and she broke down how powerful big tobacco is with its endless resources. She said, “They are eventually going to be very influential in cannabis legalization, and when you have unlimited resources, there’s not a lot that can be done to stop you.” Is this a signal to investors to ensure that cannabis companies are adequately armed to defend themselves?
Ultimately, the event’s main takeaway was massive optimism in the cannabis space, but the expectation is that there will continue to be challenges and obstacles. A big focus for many companies is still the same message we have been screaming for two years: looking inward and fortifying current operations. Strengthening internal operations will help defend against margin compression and allow your team to solidify the process, which positively affects the balance sheet.
Also, I want to give a shout-out to Javier Hasse. I’ve been fortunate to be at hundreds of tradeshows, and his question to the head of the Canadian Securities Exchange about US cannabis stock was one of the best I have heard. Such questions are usually ignored but are critical to providing a chance to respond. Well done.
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