Editors’ Note: This is the transcript version of the podcast. Please note that due to time and audio constraints, transcription may not be perfect. We encourage you to listen to the podcast, embedded below if you need any clarification. We hope you enjoy!

This week we are joined by Olivia Alexander, CEO of Kush Queen  to discuss:

  • How Olivia’s disrupting the Beauty Industry
  • Cannabis as a wellness product
  • Building a brand for your targeted customer
  • And so much more 

Olivia Alexander has grown Kush Queen into a multi-million dollar, multi-channel brand manufacturing only the finest cannabis infused products. The Kush Queen product line includes award-winning bath bombs, pain relief lotions, indigestible, wellness supplements, and skincare.

Referenced as the Queen of CBD by the LA Times, Olivia has a knack for being able to develop, connect and relate cannabis to the community, health, and wellness.

As a voice for progressive change and industry inclusion, Olivia was recognized as one of the cannabis industry’s top women founders by Variety Magazine, Green Entrepreneur and Ganjapreneur in 2020, as Dope Magazine’s 2017 Social Media Influencer of the Year and shouted out as “The Mariah Carey of Weed” by ELLE In 2020. Olivia’s book, The Essential Guide to Cannabis for Women: How to Buy, Use, and Enjoy Cannabis for Recreation and Wellnessreleases on sale on March 29, 2022. 

https://kushqueen.shop/
https://www.instagram.com/thelivalexander
https://www.instagram.com/kushqueenco

#Cannabis #CannabisWellnes #Cannabiscommunity

At Eighth Revolution (8th Rev), we provide services from capital to cannabinoid and everything in between in the cannabinoid industry.

8th Revolution Cannabinoid Playbook is an Industry-leading report covering the entire cannabis supply chain 

The Dime is a top 50 Cannabis Podcast 

 Contact us directly at [email protected] Bryan Fields: @bryanfields24 Kellan Finney: @Kellan_Finney 


[00:00:00]B: What’s up guys? Welcome back to the episode of The Dime. I’m Brian Fields, and with me as always is Ke Finnie. And this week we’ve got a very special guest, Olivia Alexander, CEO of Cush Queen. Olivia, thanks for taking the time. How you doing today?

[00:00:13]Olivia Alexander: I’m doing wonderful. Thanks for having

[00:00:15]B: me. Excited to dive in.

[00:00:16] Kelin, how are you doing?

[00:00:17]Kellan Finney: I’m doing really well. Excited to talk to Olivia. Excited to talk to another West Coaster.

[00:00:22]B: How are you, Brian? Whoa, whoa, whoa. I think we’re gonna have to just put for the record, Olivia is an origin East coaster, so I think that’s where her heart is. Olivia, for the record. I’m

[00:00:34]Olivia Alexander: a West coaster.

[00:00:36]B: You tried to get it in there? No, no.

[00:00:38]Olivia Alexander: West Coast. West Coast.

[00:00:40]B: Oh, no, no. I that, that part’s have to get edited out. We’ll have, So Olivia, for our listeners, that unfamiliar right. You can you give a little background about selves?

[00:00:51]Olivia Alexander: Yeah. So, uh, believe it or not, I tried cannabis for the first time when I was 18, and I immediately got a job at a dispensary.

[00:00:59] Um, [00:01:00] cannabis immediately changed my life. I struggled with mental health forever, like since I was a kid. And, uh, the big thing with me was sleep. I couldn’t sleep. So the first time I smoked, I, these guys gave me this giant bong. I hid it and I was like, Holy crap, this is the best sleep I ever had. And, um, Being in a dispensary, working as a bud tender in 2006, like I learned everything I know about cannabis there, about the people who buy cannabis, why they buy it.

[00:01:29] And the one thing that I knew from that moment when I stood behind the counter was like, I wasn’t a part of this culture. I wasn’t represented, I, I was nowhere. My experience was a little bit different. Um, and so I worked in the industry. Sold weed, did the things. And then, um, in about 20 12, 20 13, I started a company called the Crystal Colt making Swarovski crystal vaporizers and cannabis accessories t-shirts that said Cush Queen High Maintenance.

[00:01:56] And I started really sharing my cannabis use online way back then. [00:02:00] Um, you know, like just a glam girl’s perspective, a a just different experience of a stoner. But I am a stoner. I wake up and I smoke weed every day, all day. Who? It’s my medicine. So did that, started a social media agency, became the largest social media influencer in cannabis in about 2013 to 15.

[00:02:19] I had 3 million followers at the height of it, making content on every app, YouTube, Insta. Um, now I do TikTok, but basically summer 20 15, 16 starts to get deleted, like pretty much all cannabis content did back then. And, uh, lost a million and a half followers in one day and decided that instead of having that be the end of my agency, it would be the.

[00:02:44] Beginning in rebirth of Cush Queen, um, I sort of rebranded the products. I was selling bath bomb cells and some CBD through crystal coal. And then Cush Queen was like the weed vape that we had. Um, within like six months, I had us on the shelf of like over 250 [00:03:00] dispensaries in California. We were in the medical market then, and then we transitioned into compliant cannabis.

[00:03:04] Around that time I launched our hemp cbd. Started selling the cannabinoids online as we all did. Um, and really it’s just been kind of an insane journey ever since we did a collaboration with a $300 million a year fashion brand. Allison, Olivia, I got to go to New York Fashion Week. I’ve now written not one but two books.

[00:03:26] Um, and I really just get to be the fearless leader of a company, just trying to do something different, trying to speak to someone different. I’m not trying to be an mso. I’m never gonna be. , but I am gonna make sure that I’m being me and I’m representing, um, women, queer people, and all the people who don’t feel like they belong in that traditional 18 to 35 year old male stoner.

[00:03:50]B: I appreciate you sharing that, and I always like to start in the very beginning. Obviously you, you got to cannabis around 18, but earlier on, did you always think cannabis would be a part of your life? Did it surprise people [00:04:00] around your life when you kind of migrated into Canada Space? Can you share a little insight about.

[00:04:04]Olivia Alexander: Well, believe it or not, I actually knew someone in Louisiana where I grew up, whose brother was murdered buying weed in our town, and it like was very fucked up in my life and it caused a lot of issues very young. And the first time I was around cannabis at like 14, I cried. I told my mom like I was really freaked out.

[00:04:20] I was in like a recording studio, so I was like a dare kid. More than that, I was kind of like, you know, a good. So trying to always fight the urge to be a bad girl. And, you know, being southern and having these sort of like expectations put on me at a young age by my family and, and then being an actor, like none of it I kind of saw coming, but like from the moment I touched the plant, that’s when everything changed.

[00:04:46] And it was kind of like this weird thing where I didn’t use cannabis and then I was a stoner. It was, there was no like transitionary period. It was like, Whoa. This is my whole world. But I think it’s [00:05:00] because it had such a powerful effect on me from a wellness perspective. That’s why I make the products that I do, is, you know, along the way I got diagnosed bipolar, I started taking traditional meds.

[00:05:10] I did everything they said. I was in the meetings. I did, I was seeing a psychiatrist. I was sober for three years, not using cannabis, and I got worse. You know, I didn’t get better. and once I really started taking my own wellness into my hands and honestly using cannabis more as a wellness tool, not as just getting high.

[00:05:28] Look, I get high. I love getting high. Um, there’s nothing wrong with that, but there is a huge population of people, especially women, um, and especially people with mental illness who are looking to navigate the plant, um, for different reasons. And that’s really what I specialize in and that’s really one of the things that has given me a voice in a business.

[00:05:47] What’s been,

[00:05:47]Kellan Finney: uh, one of your favorite aspects of that journey from a business perspective since you first started using?

[00:05:52]Olivia Alexander: Um, well, you know, I really thought that, The industry would shift more to that. I really didn’t see [00:06:00] this whole wreck movement being sort of, it, I didn’t, I didn’t foresee hype weed in like this whole culture.

[00:06:06] I should’ve, It was the culture. It will always be a part of the culture, but I think it’s just getting to connect with so many people who have felt ignored. You know, I think when a person comes up to me at like an event and says like, Your content speaks to me, or I read your book, or like, you know, I use your bath bombs and they help me sleep, or they really, they really changed my life, especially cause in the beginning, like everyone laughed the bath bomb out of the shops.

[00:06:29] Like people thought it was a gimmick, they thought it was snake oil. Um, and that’s really, truly like the most meaningful part of it. And the most surprising part is just like how many people’s lives like. I’ve affected, cause I never was one of those people who was like, I’m gonna do this. You know, like I didn’t have a business plan, I just wound up here.

[00:06:50] And I always fail forward and I always keep moving and I always keep focusing on what can I do to be different? You know, I’m never going to have as much money as these people, [00:07:00] but they’re never gonna be me. And that is worth so much more. And that’s really what, um, is the most meaningful too, is to like, Be seen for who you are in business.

[00:07:12] That’s fucking rare,

[00:07:13]B: you know? Uh, I think that’s so powerful, especially hearing your story about how, like, once you found the plant, you found that connection that you didn’t know you never needed, but then you instantly fell in love and then having others who instantly gravitate towards that when they experience that for the first time.

[00:07:26] So obviously cannabis has a ton of stigmas, right? So how do we do. A wider range of getting other women to feel comfortable, to experiment, to try more products? Like what kind of message can we put out there to help them?

[00:07:38]Olivia Alexander: I think a lot of it has to do with the marketing. I think a lot of it has to do with the delivery methods.

[00:07:42] You know, I, um, I’ve made over the years Kush Queen in the compliant market in the medical market. We did sauce, we did infuse pre-rolls, we did pre-rolls, we did flour, but we also did topicals. We did a bath bomb, a product. Makes them feel comfortable. Um, I think [00:08:00] also in our marketing, we try to speak to all experiences and users from the pro, the stoner to a newcomer.

[00:08:07] And also, um, you know, just that I don’t see a significant portion of brands, uh, Companies spending time to find new users. I did beautycon in 2019. We were one of three cannabis companies allowed in and I, um, I got over like seven or 8,000 new customers in that weekend and 75% of them had never even tried CBD before.

[00:08:30] And that’s a very intentional thing that I do as a business owner, as an influencer, I constantly, if I’m like interviewing a new agency or talking to a new publicist or something, I say, Are you gonna take me to places? That cannabis isn’t. That’s where I wanna go. I. I grew up here, you know, I won cannabis cups.

[00:08:49] I’ve been, I was that cha, you know, I was here at a very unique time in California cannabis. I got that outta my system, and now I just want to [00:09:00] be an evangelist for the plant from a wellness perspective. And it is literally all about delivery methods, how you appear in your marketing. What you speak to, you know, everyone says like, Oh, our brand, our brand, but like, they don’t really have a brand.

[00:09:14] They have like a bunch of products or like they think they’re a brand, but a brand is really like a really good story or something that matters. And like that’s, that’s what we have. My story, my passion and my, my greatest passion of lowering people to the dark side of cannabis wellness.

[00:09:35]B: I I, So when you’re out there and you hit the nail in the head, I think you hit the nail in the head, especially from a marketing standpoint.

[00:09:40] And one of the things I wanna highlight and understand more is Cush Queen was that original focus point. Did the kind of, the name and the origin that come after the other concepts, like how did you put the puzzle pieces together?

[00:09:52]Olivia Alexander: Well, I was a pageant girl, you know, like being in like beauty pageants like queen, that kind of thing was always like, just like a word in our [00:10:00] vernacular.

[00:10:00] And I was a warmer beauty queen and I don’t know, I was just like at the dispensary, like very young and I was like, Push queen. That’s it. And I thought it was gonna be a movie, like I wanted to make a movie, Sisterhood of the Traveling Pants, but about girls who sold Weed. And I wanted to like share that experience because me and the, the other bud tenders at the shop, which is still around, it’s called the Artistry now, but it was called The Green Easy.

[00:10:23] And a bunch of the women who work there with me are still in the industry. Like we have a little. Sisterhood a little bit. And um, I thought it was magical and I thought that we were like kind of the backbone of the shop and I thought, Mm, cush queen that speaks, you know, And I’d always felt like Cover Girl, you know?

[00:10:39] I always wanted to be like, Oh, it’s Cover Girl, but it’s not. And then when I started my vape company, I needed a name that would tell people it was for weed, because this was still a time where we were like, You really weren’t supposed to be selling weed stuff for weed online especially, and you couldn’t show it with cannabis.

[00:10:57] And I was, and I called it Cush Queen. And then I started [00:11:00] making apparel. And that’s when my, uh, lawyer at the time shout out to David Schneider. He, I got rejected for the trademark and he was like, I think we can get it. Like, let’s argue that cushy is a lifestyle. It’s not cannabis. And we won. And so I got the trademarks back like early, I think.

[00:11:20] 20 14, 20 15. And that’s when I was like, Oh, now that I have a trademark, now that I’ve sold ancillary things, I can actually sell weed. And that’s when I really started to make products for the dispensaries with the name on it. And I just always thought the name Cush Queen was a vibe. You know, I actually, um, I have a tattooed on my arm.

[00:11:40] Love it. I got this when we did our first million dollars in sales, and I wanted to remember that feeling, you know that feeling because I bootstrapped this thing. You know, I really started. Zero. I had like maybe 10 or $20,000. Like that doesn’t even exist anymore. I was like making bath bombs with my friends, my parents’ garage.

[00:11:59] I was getting [00:12:00] pallets delivered to a residential in Santa Clarita, California, which is a fucking suburb where you’re not trapping, you know? And um, it just, it’s a true, real story. And it also, like cush queen, it is me, but it’s not me. Um, it’s, it’s bigger than me now. So it really is just, I got so lucky.

[00:12:20] You know, I mean, I’ve had a lot of trademark issues because people love to put cush queen on things, but my lawyers have had a field day. I

[00:12:29]Kellan Finney: can only imagine. So what was, uh, some of your original products used

[00:12:32]B: that you went into the

[00:12:34]Olivia Alexander: cannabis space? Vapes, vape cartridges. Like flavored disgusting vape partridges, like mint chocolate chip fucking vapes with like soccer mom open, blasted fucking shatter that we were making, like literally in a backyard and like, Blowing our eyebrows off.

[00:12:51] Um, I did this amazing infused pre-roll called the Queen Septer, and the best part was like, I was so serious about it. We [00:13:00] grew the weed, we extracted the extract ourselves, and then my friend gave me all the key from her farm. So it was like this labor of love. We did, um, We did sauce, we did. And then the bath bomb.

[00:13:13] You know, SALs like these greasy ass SALs. Thank God we don’t do that anymore. Um, but it was pretty, just pretty much that. That was another thing I always tried to do with Cush Queen was because we started to get this name for this bath bomb. I was like, Oh fuck. We’re in the topicals category. It’s the smallest category and everyone thinks they’re snake oil, so we.

[00:13:34] Be in bigger categories or we like won’t survive. And I also think that that’s like the issue from a business perspective with the industry is like, there’s a lot of brand names, but they sell a single product. Like even Kiva, they’re just an edibles company. They’re not a brand in every category. And I wanted to build something that could exist in all categories and give people, you know, [00:14:00] An option to support a woman, an option to support an independently owned business, and then also in the product.

[00:14:07] I know people are gonna say You’re biased, but quality is queen. . And that’s why I have a business is because when you start with a batch of 12 and then you go to making 50,000 bath bombs in a single month, you gotta have a killer product. And that was also like what I was focusing on. And I thought like, Oh, the name Cush Queen, like it honors the plant in her highest form.

[00:14:30] And it’s also about like that pure passion that lives inside me every day. Seemingly hasn’t gone away .

[00:14:36]B: And I think if you’re not singing the praise of your brand, I don’t know who who’s gonna do that. Right? Because at the end of the day, like you are a user of the products, so it’s really important when you stand behind your products, you feel comfortable in the way it is.

[00:14:47] Because you know when women are glancing through various products, right? We talk about going to a Spencer and you see endless amounts of products. They wanna find a product that kind of speaks to them. And I think having a brand name like Kush Queen on it is instantly [00:15:00] gravitating towards that, the color.

[00:15:01] Packaging the concepts behind and the naming speaks directly to them. So coming up with new products, is that something that you handle directly? Do you have the team? How does that

[00:15:08]Olivia Alexander: work? Yeah, I do not handle that. I am not the genius behind a lot of our great products. I was, I guide sort of like the, the.

[00:15:18] You know, high level view of the company. And my partner Michael Sawyer, he was a cultivator. He was, um, the person who really helped me, like bring the products to life. He’s a wizard. He came up with our patent pending nanotech. I know a lot of people have water soluble tech, but we have our own at Cush Queen.

[00:15:37] We developed that in 2016, so we could actually have transdermal topicals. Um, They, him and another OG guy from the medical days, Levi, they really, man all of our product development. I’m like the, the tester, you know, like when I was developing a lot of the other topicals, especially the water based topicals, I was like weaning off of like eight years of [00:16:00] pharmaceuticals.

[00:16:01] So, and I really am bipolar and I really don’t take meds. So it has to work. And it has to work. Um, the same, I think I have a. A furious obsession with the quality and I, we struggle with it now at scale. I think that’s really the thing that I’m trying to figure out is how to get the same quality we had at a batch of 12 now at a batch of 80, and then we’re doing, you know, 30 batches a day with our team.

[00:16:26] So, um, we’re so passionate about the products and. The consistency, you know, there is no consistency in the medical days like you there. The products were all over the place. I mean, maybe there still is none. I don’t know. I, it’s tough. You know what we’re all doing? It’s, it’s, it’s agriculture, it’s formulation.

[00:16:45] It’s, I, I, that’s one thing about the cannabis industry, like, It’s really hard, and I don’t know if people really know that. Like anytime I see someone like getting into this industry or creating a product, like I used to get like so upset and be like, Oh fuck, you know, [00:17:00] more people. But now I’m just like, You do you.

[00:17:03] Good luck. Because even after being in this all this time and. It’s grueling, and especially from the product standpoint, keeping that quality, keeping that efficacy, um, and then, you know, which molecules do we introduce? Do we go into minor cannabinoids? Do we want to, um, make decisions based on market size and data?

[00:17:24] Do we wanna make decisions because it’s important to the brand? Like there’s just so much to juggle when it comes to developing product.

[00:17:33]B: Can cannabis be used in daily life? I know for you that’s a common practice, but for others out there who maybe you’re not as comfortable using that, how, how can that be?

[00:17:42]Olivia Alexander: Yeah. You know, my big thing is like elevating you daily is, uh, a daily use of cannabinoids. I believe that can, cannabinoids are like carrots, vegetables. We should be having them morning, noon, and night. So, um, you know, that’s a lot of what has like, just been so great in the. On our hemp [00:18:00] side, especially getting people to understand that you can wake up, use a tincture hit a, you know, hit a THCV gummy instead of coffee.

[00:18:08] Um, maybe take a bath at night for sleep. Hit a sleep gummy. I really believe it is the constant use of cannabinoids that actually regulate the body, that create that homeostasis that we know, um, cannabinoids create. But I think too many people, especially in the wellness side, they come when they’re too sick.

[00:18:27] They come when they’re already stressed out. They come when they’re not feeling their best. And we can work with that. You know, we work, I work with that all the time. That’s a lot of what my book is about, is about helping people navigate. that Side of it is, well, what are you struggling with? Because that’s your symptoms.

[00:18:42] You know, Are you in pain? Can you not sleep? Um, and then it’s really about finding the right dose and, and really getting people to let go of that stigma. Because when you tell people, I use cannabis morning, noon, and night, that’s where they go, Oh, you’re a drug addict. Oh, you’re addicted. [00:19:00] Oh, you, you have serious issues.

[00:19:01] And it’s like, No, I’m literally healthier than ever. Um, I. I got this crazy life insurance policy to protect the business and like there was like all this drama because I was bipolar and like, Oh God, it’s gonna be crazy expensive. And they literally ranked my health as high as possible. And I know it’s because I use these products every day and I live and breathe This type of wellness perspective, I mean, it’s not gonna replace not working out, not eating healthy.

[00:19:28] Taking care of your mind and your body, but it’s a, it’s a first start, especially now with the mental health crisis we’re living in. I mean, no one could have seen Covid coming and it’s just given me like an even bigger platform to try to spread this type of messaging. Um, not just to women, but to all people.

[00:19:47] So

[00:19:47]Kellan Finney: with consumers that have never tried cans before, how do you. Suggest they walk into some of these products and implementing them into their lifestyle?

[00:19:57]B: Just like a CBD first or a [00:20:00] thc, or is it kinda a case by

[00:20:01]Olivia Alexander: case basis? It’s a case by case basis. You know, there are some people who just get drug tested and I’m never gonna suggest that they take its.

[00:20:07] THC bath, but probably smart. Especially like the people who are really scared of thc. Like I always give them the bath bomb first because it’s just like a door opener. That’s literally why I have stayed on the shelves of this market. Also because they’re effective, like, um, your skin is your biggest organ.

[00:20:23] You soak in a tub of hot water, open up your pores, and then your body is absorbing the cannabinoids and it’s like you don’t get high. From the bath bomb, but your skin gets high and people, it changes their lives. And then especially like athletes recovery. I mean, Lady Gaga like uses my bath bombs after her show is in Vegas.

[00:20:42] Like all those viral baths she was posting, those are Kush queen bath bombs. There’s so many, um, athletes and people who have, I mean, there’s a group of nuns who are buying. Us out at the A MedMen store. They’re buying everything they had. And it’s because they basically told people at Med Men that like our baths, were [00:21:00] helping them speak to God.

[00:21:01] And I think it’s because it’s also a form of meditation. You know, you get in there, you’re soaking, you’re not really on your phone, you’re like with yourself. And that’s like the. The product that like evangelizes people, also the weed lube, you know, um, you give people a water based latex safe lube that works almost instantly and increases that blood flow to the area and give people an orgasm or two for the first time.

[00:21:26] They’ll literally send you messages that you couldn’t even know you wanted to receive. Um, . But yeah, it’s, it’s all about delivery method too. You know, there are a lot of people who don’t take baths. There are people in cities like San Francisco that don’t have bathtubs, so we have a psychoactive shower gel, and it’s also about getting people to see that.

[00:21:45] There’s nothing wrong with smoking cannabis. Like I have an ashtray of joints on my desk, like I still smoke. But it’s really, um, just treating a symptom. And when you’re using cannabis topically and orally, that’s when it’s a medicine and that’s when you’re really gonna get to the root of things. But [00:22:00] it’s all about trial and error and the.

[00:22:02] The biggest thing that I’ve learned from my chief science officer, shout out to ion, um, MIT grad, and he’s developing some incredible technology, um, to help better understand the endocannabinoid system. And essentially he’s taught me that it’s as unique as your fingerprint. You know, and our environment is, is affecting our body so much.

[00:22:23] So it’s like right now I’m in the throws of so much stress. I’m upping my dose way up. I wouldn’t normally be consuming this much CBD and thc. Um, but that’s also it is I really try to encourage people to have full cannabinoid profiles, really explore the minors, really try to stay away from isolate based products, um, and really try to understand that THC does have a purpose, especially with pain.

[00:22:45] It’s something that’s been villainized and it’s not good to be afraid of things, but it’s good to be open and understand that all the cannabinoids work better together. And, um, you know, it really just depends on consistency and really [00:23:00] surrounding yourself with a brand or with people who have the knowledge and, and really learning how to listen to your body, which is a big thing that I’ve discovered a significant portion of the population doesn’t know how to

[00:23:09]B: do.

[00:23:11] I, I think it’s so important that you shared those things, especially con starting like a new product line, right? Because not everyone is going to smoke cannabis as a way of getting high, but they can consume in other methods. And I think using the, the bath method or the shower is a perfect example. And I’m continually working with my wife to figure out new creative ways to get her to consume.

[00:23:27] And she’s been very, he hesitant, She’s not interested in smoking, she doesn’t want to eat it, she doesn’t wanna drink it. So I’m continually looking for new ways and I think one of the things that you shared is really important is that you’re not getting high in those experiences, but you’re relaxing your body and improving and.

[00:23:40] Expand on that, Like why is that important and how do people feel comfortable in that first experiences that are consuming THC in some capacity, but are unsure of exactly what to expect to. Well,

[00:23:50]Olivia Alexander: it’s the blaster of the stigma. What causes the stigma is fear. What causes the stigma is people having bad experiences with edibles.

[00:23:58] People, you know, going to the [00:24:00] hospital like saying, I’m too high. Or just like, especially a lot of women, like they don’t want to feel out of control, they don’t want to feel like they have no control over their body. Um, you know, Now you. Eat a certain amount of thc, your heart’s going to increase. But that also happens to the skin.

[00:24:16] To the body. You, you increase circulation, you have like a deep relaxation, and then we combine them with essential oils, which is also combining a whole different type of herbal medicine. And so you’re really seeing, you know, a targeted effect for pain, targeted effect for relaxation. And it’s, it’s just so much.

[00:24:33] about Giving people an experience that blasts through the stigma. And the stigma is be afraid. It’s scary. You’re gonna get high. And there’s just a huge amount of people who don’t want that. They wanna feel better, they wanna be cool and actually use cannabis. They just don’t necessarily also wanna smoke things or put things in their lungs, like, look at how much we’ve stigmatized smoking.

[00:24:57] I always think that’s like such an interesting thing that [00:25:00] we’ve stigmatized smoking and vaping so much. And then now the biggest categories in cannabis are what? Vapes and smoking. And that’s gonna, that’s gonna clash eventually. Um, but at the same time, like, you know, I just was looking for stuff that really worked for.

[00:25:18] The, the root of this brand, the root of why behind every product is most likely gonna come back to me and me coming in and saying, I can’t feel this way. I’m feeling this way again. I’m having these symptoms. What can we do? Um, and or seeing products that were made on the market incorrectly, like Foria calling their product a lube.

[00:25:40] It’s not a lube, it’s a marinade. I made a lube. A lube in its basis of formulation is a. and a coconut oil is not that, you know? So back in the day there was a lot of weird shit like that happening in the, in the medical market and I was just like, this is silly, you know? But it all [00:26:00] comes back to just blasting people’s minds with something that makes them feel safe and something that just, and, and then you have that positive experience, they’re gonna keep coming back to your brand, you know?

[00:26:12] And I had to build an audience because I didn’t have. 600 million to run through, or a rich daddy.

[00:26:25]B: I let that one sit nice and nice and open. No, just let it, let it linger. I love it. I love it. So can cannabis use to be used to age gracefully? Is, is that something that, that your team is getting behind?

[00:26:38]Olivia Alexander: Yeah, well, you know, that’s actually something that blew my mind about writing my book.

[00:26:42] So I get approached by this publisher. They’re like, Hey, we want you to write The Essential Guide to Cannabis for Women. I’m like, Okay, I’ll do that. Um, I’ll learn how to write a book. I wasn’t like, Oh, I’m gonna write a book about cannabis for women. Oh yeah, let’s sell it. Like, these people came to me, they wanted me to do it.

[00:26:56] So I was like, All right, so they want me to write this [00:27:00] chapter, you know, on aging gracefully and. Like what, you know, but you have to think about like the changes like a woman’s body goes through with menopause, um, hormonal changes, not to mention like aging wrinkles. And there’s a lot of like very interesting, good overlooked science that talks about how cannabis is a neuroprotective for the brain and it can actually slow down aging.

[00:27:21] And like the other side of it is like, what is the root of aging and disease? It’s infl inflammation. It’s uh, all of these things that we know cannabis. Works in also stress, cortisol. These things age us at a crazy rate, and these things can actually be controlled with cannabis, especially at the right doses.

[00:27:43] Um, so that was the part that blew my mind. Like I was like writing this book, like thinking like I know everything about cannabis. Like I’m not gonna learn anything like. Um, also like avoiding my deadlines. Like, Oh God, take an entrepreneur, give her deadlines after 10 years of being an [00:28:00] entrepreneur, Oh, it’s gonna be rough.

[00:28:01] Um, but I really learned like, so much writing this book and that was like the most interesting chapter for me. And I think that, um, we are about to enter an age of, I hope, preventative wellness and biohacking is something I’m very interested in. Microdosing, you know, uh, that whole psychedelic fringe.

[00:28:20] Space and I just don’t see cannabis. Um, As a huge component of that conversation, but it’s also a massive market, just like weight loss and pain and sleep. You know, at, at a certain point these things are super beneficial cuz they’re the problems that bring the consumer to you, but they’re also these massive markets.

[00:28:40] And because I’ve always trying to be different. I’m not trying to focus on the cannabis industry. I’m trying to disrupt someone’s. Buying patterns of Dove. You know, I’m trying to disrupt someone going and buying a cush queen bath bomb over a lush bath bomb. You know, I was at Hall of Flowers [00:29:00] recently, um, and I sat in some of the educational sessions where a vc, a vulture capitalist Yes.

[00:29:06] Had the nerve to sit there and say that, you know, bath bombs are a bad business. I’m sitting in the audience that bath bombs are a bad business. Because people only buy them once a

[00:29:16]B: quarter. Was that a

[00:29:17]Olivia Alexander: man who said that it was a woman actually who’d invested shockingly enough in the, you know, smallest percentage of the edibles category, the beverage category.

[00:29:27] But you know, they’re all gonna be hanging on at their numbers that they crunch for the next 10 years. Telling everybody that everyone’s gonna drink cannabis. Everyone’s gonna drink cannabis. But, um, I’d really love to see their, their PNLs cuz I don’t believe for a second that people are ready to drink cannabis.

[00:29:41] Um, they’re barely ready to eat a microdose gummy. The bulk of consumers. But yeah, so she says this and I’m sitting there having sold, you know, I don’t know, tens of millions of dollars in bath bombs knowing that Lush is a a $300 million a year company. Billion dollar valuation. Never even had to like [00:30:00] raise money.

[00:30:01] And I was just like, you know, I’m gonna get up and walk out and I’m not gonna say something, but I keep looking for the clip cuz I’m gonna Rick roll that bitch and I’m gonna say, look. You don’t know what you’re talking about. Um, sorry I got off, but I’m still triggered by that. But yeah, it’s just really interesting cuz people, like, they also just don’t think that there’s money in the wellness side of cannabis.

[00:30:22] I think like, I think that’s why like, especially in California, like everything has gone hype weed, recreational. Like, it’s almost like the stoner has had like a resurgence because of burner and everyone’s like, We gotta do that, we gotta get them. And they’re a massive customer. They spend all their money on weed.

[00:30:37] They do, but there. Something to selling cannabis to women. There is something to building something niche for 50% of the population who hold the buying power and the fastest growing demographic of cannabis consumer right now buying legal compliant cannabis is Gen Z and millennial women, aka my people.

[00:30:56] So I’m always just kind of like, you know, [00:31:00]

[00:31:01]B: I think there’s ton of overlap. I, I, I think it hit the nail on the head and I think that category’s been one of a fascinating one for me because when they make those projections, I don’t think they’re taking the fact that some of the consumers that may be purchasing those products are not standard cannabis consumers right now, but they might be in Sephora looking for replacement product and those people spend money.

[00:31:21]Olivia Alexander: You, you have a culture with beauty where also, like you spent, you have a cabinet. You, you carry, you have 50 brands. You know, there’s just a different energy around spending when it comes to the buying power of a beauty consumer or the buying power of, you know, women. And look, I believe in beverages. Our nanotechnology was developed for a beverage.

[00:31:45] I was one of the people who said beverages are gonna be the future. But, uh, I was wrong. and people are not ready for that. And there’s just a huge disconnect between the VCs and these capital companies [00:32:00] and MSOs and what they want, they think people want, and what people actually want. And I always just am like sitting in the corner of the room like.

[00:32:10] I have a business because I spend my time and energy on someone different. And if you did that and you spent your time and energy on building an audience and not a 4,000 light grow that no one needs, that’s just gonna push out a bunch of mids. Like ultimately, you might actually have a profitable business because I have a smaller business, but I have a profitable business.

[00:32:31] And that to me is also important because what. Catering to a new demographic and customer. What is making unique products if I don’t succeed? Because I literally will affect someone else’s ability in the future to be on someone’s truck or to work with an MSO or do these things. Like that’s also it.

[00:32:50] Being a woman in this space is not easy, and it hasn’t been, and I’m very lucky that I’ve been shielded by a lot of great men who had, um, [00:33:00] Well, they had fear in their eyes cuz I’ve been told I’m scary. Which I’m like, really? Me? No. But it’s, uh, that’s what it’s also about is women have been a huge backbone of this industry, but we haven’t had representation where it really matters.

[00:33:14] And that’s also in the, the stakeholder position. I could have easily gone and got a six figure job at any major cannabis company, but that was not what I was looking to do. I was looking to create it and show people. You can do it. Like if you want to, you totally can. And that, that story is not being told right now in our space because, well, you need, you can’t do it.

[00:33:38] You need 50 million in, you know, some mids. I’m

[00:33:45]B: kidding. What other, what other areas of the beauty industry can, cannabis can unlock?

[00:33:50]Olivia Alexander: Well, you know, you’re talking to a girl who literally made psychoactive makeup and got it sold in dispensaries in California. So, um, that’s really I think [00:34:00] the, like the last of the place that I wanna continue to drive forward.

[00:34:03] It’s like we, we have over 20 shades of foundation fully developed and ready to launch, but then covid hit and one of the most important things you need to do in matching someone’s. Foundation is touch them. So we’ve just kind of put it on pause. I also think it’s still too early for these types of products as well, but I have a real passion for getting people high through, um, methods that are not smoking.

[00:34:26] And I think cosmetics are a huge one. I. Also think that we haven’t necessarily seen, um, anyone successfully break through how to apply cannabinoids to hair care. I think it’s a massive space as well. And also just like, um, other weird places like dentistry. You know, like I went to my dentist and he’s like, Can you start selling me your cbd?

[00:34:47] Like, I, these people are bat shit crazy and they’re, they hate the dentist and I need to give them something even before I give them actual. Drugs, pharmaceutical drugs. And so yeah, I, I, there’s just like all kinds of pockets, you know, we’ve [00:35:00] had a massive, uh, business in nail salons because back in 2017 we did a collaboration with a nail salon chain called s and they started doing manicures and pedicures with all of our products.

[00:35:11] So you soak your foot in the bath bomb, they scrub you down with the scrub, they rub you down with the pain lotion, and then they give you a gummy. And let me tell you, I shouldn’t say this, but I did the conure about a year ago and I actually. Someone leaving the nail salon and it’s because I was so deeply relaxed, aka kind of litty.

[00:35:28] Um, and, uh, but nail salon spas, I mean, when I still think about the fact that there’s no THC consumption licenses ever given to a spa yet in this entire country, um, I think that there’s just so much opportunity left to be untapped when it comes to a beauty consumer or a wellness consumer. Um, and then, you know, Target is still not carried CBD yet.

[00:35:53] They’re carrying CBD brands with products without cbd. There’s a lot of, uh, work to still be done in the retail sector. [00:36:00] Obviously, Sephora’s doing their thing with their brands, but there’s a lot of places and spaces that CBD hasn’t gone yet. And in ingestible form, let’s be real, a lot of these companies are scared to give people to sell gummies, to sell tinctures, to sell these types of delivery methods that have opened up a whole nother um, Space for people to grow their DTC business like Cush Queen.

[00:36:24]B: Is it, Is that exciting or is that kind of intimidating understanding that a lot of these barriers and these concepts that you have in the ideas for the future roadmap are just not yet getting that started for, for anyone? Um,

[00:36:36]Olivia Alexander: in the early days it was a bit daunting because you’re spending your company’s hard earned money, and it’s money that we actually made, not money we got from investors.

[00:36:45] Um, but I’ve learned along the way as the CEO that it really isn’t personal. Um, and it really is just about always being able to pivot and adapt very quickly. I keep my company small for a reason. We only have like 21 employees, and anytime [00:37:00] someone suggests hiring, I’m like, We really shouldn’t, because once it gets to a certain.

[00:37:05]B: Olivia, when you started your journey in the cannabis space, what did you get? Right? And most importantly, what did you get wrong?

[00:37:12]Olivia Alexander: Okay, what I got right was building an audience. I see 99.999% of people building businesses that have no actual audience. They have no demand. They have no desire. Um, and I’ve built, you know, an email list over a hundred thousand people and counting any given time, I want to Hit them up and tell them about what I’m doing. They’re gonna be there for me. They’re gonna buy my products. They’re the ones who go to dispensaries. They’re the ones who’ve literally like, put food on my table and kept me going. My audience is invaluable, and I focused on that. Um, and that was because I, you know, I was saying something and I was catering to a niche that didn’t exist.

[00:37:56] What I got wrong. Hmm. [00:38:00] A lot. Um, , I think what I got wrong was, um, Just how quickly people would adapt to certain things and, and people catching on. And also I think, um, the investment side of it, I really did think that because I was able to make a multimillion dollar business, bootstrapped it to a certain point that a ton of people would wanna invest in me.

[00:38:23] And I think that the hardest part and the hardest pill that I’ve had to swallow in the past few years is seeing how many people don’t actually wanna invest in a women run business. And maybe it. Being a woman. But when you have a profitable company, when you have good books, when you like look around your company, I have like a wall of press.

[00:38:42] I’m like, what’s the problem here? You know? But I also think it’s that a lot of people don’t understand cush Queen, and it’s really hard for the people who write the checks to understand what I’m doing and why it’s important. Um, and then just the timeline of all [00:39:00] this, you know, I never. I never thought that this is where we’d be in the California compliant market.

[00:39:07] I never thought that it would take us this long to get federal progress, um, with banking. So I think that was really what I just, also, just like the whole thing about being a ceo. I thought I was gonna wear a cape suit and wear like a red lip and get my picture taken and have people like you guys interview me every day and like gas me up and instead I’m dealing with, uh, people like.

[00:39:30]B: No, I’m dealing with .

[00:39:32]Olivia Alexander: I’m dealing with leaking pipes and HR departments, but it’s all, It’s all part of the journey, but it’s like, be careful what you wish for, cuz you just might get a completely different version of what you ask for. ,

[00:39:47]B: what is one factor statistic about operating the canvas industry that would surprise or shock others to?

[00:39:54] Uh,

[00:39:56]Olivia Alexander: probably just that the amount of women in the C-suite [00:40:00] and in power positions are declining. You mentioned Jane West earlier. You know, she was quite a trailblazer when it came to women grow and really trying to advocate for women to get in the industry. And I remember like women grow used to tout that, um, That statistic that like this was gonna be an industry controlled and run by women and we had this chance and um, you know, just to see my mentors brands and a lot of people that I started making products cuz I saw women making products and winning cannabis cups.

[00:40:30] Like no longer have brands in the space and just it we’re going backwards. You know? I think that’s like the most shocking thing because we’re having like such progress when it comes to women in business but not in cannabis.

[00:40:43]B: Before we do predictions, we ask all of our guests, If you could sum up your experience in a main takeaway or lesson, learn to pass onto the next generation, what would it be?

[00:40:53] Oh, bet on yourself.

[00:40:54]Olivia Alexander: That’s easy. You know, like I. Bet on myself [00:41:00] every day. I bet on my talent. I bet on my passion. I bet on the way that I see the world and I Yolo hardcore raw dog it right into that bet. And that is what the next generation has to do. And that’s what they’re gonna have to do in order to make space for themselves in this industry.

[00:41:20] Um, because when you bet on yourself, when you think. How unique every single person is. You’re like, Oh, well you can do anything when you look at it from that perspective, as opposed to sitting around and saying, Well, you know, I’m not a corporation, I’m not an mso. I don’t have whatever they have. Um, so yeah, just in anything, not just in cannabis, BET on yourself and you can’t lose.

[00:41:44]B: Prediction and time. Oh, Olivia, As cannabinoids rise in the mainstream society, where can early consumers, specifically women, look to incorporate cannabinoid therapeutics into their life? [00:42:00] Uh,

[00:42:01]Olivia Alexander: especially right now, stress and mental health. After Covid, after just like seeing my friends who are moms struggle, trying to take care of their kids.

[00:42:11] You know, the burnout we’re all experiencing, like it’s real. Um, and I think with technology and where it’s taken us on like in the endless doom scroll of life, I think cannabis is gonna be that thing that is going to, um, Allow people to feel better, look better, and also, let’s be real, we’re living in the most divisive time it feels like ever.

[00:42:36] And I feel like we know social media is making us all more divided. And I think that cannabis is that thing that brings us together. And that’s really like, I don’t know if that’s the right answer to the prediction, but that’s kind of what I think. It’s like this. Tool that it can really make us all come together.

[00:42:55] Cause like, it doesn’t matter what people believe politically, if they smoke weed, [00:43:00] we all, we get along .

[00:43:03]Kellan Finney: That was, you know, I’m gonna go with stress and sleep. I think those are probably the two main, uh, ailments, I guess is an ailment, the right word for. . Um, but I think stress, uh, mainly with CBD is what I would, I would say, uh, I’ve heard anecdotally speaking that vapor rising CBD from, uh, a couple mothers has been a godsend for them, um, as far as just like taking that little bit of stress off and letting them manage their children without being as short fus.

[00:43:42] Expo, Of course, this is all anecdotally, I’m not a mother, I don’t have children. Right. Uh, but I think those two are probably the easiest

[00:43:50]B: ailments to

[00:43:51]Kellan Finney: treat with cannabis, at least from um, a consumer’s

[00:43:56]B: experience. Right. What do you think, Brian? I can [00:44:00] speak on behalf of a mother that I’ve seen take C, b, D, and it’s helped her tremendously dealing with all of the stress.

[00:44:06] Uh, it definitely makes a big difference. I think I’m most intrigued with the, the shower bomb that you described, Olivia. I hadn’t thought about that concept, but I think that would be a great. Product for, for my wife to try. I think it’d be beneficial. It’d be something different than she’s been thinking about.

[00:44:19] And I think you would make her feel exactly as we described today. And I think it could be that early door opener to get her more involved in, in the industry and be interested in trying additional products. For sure. I,

[00:44:31]Olivia Alexander: I have a by the way, just hit me up with an address

[00:44:35]B: after. Definitely. I have a random question.

[00:44:37] Why

[00:44:38]Kellan Finney: we, just speaking of the, the shower gel, um, If you incorporated like the nano emulsion or like a water soluble cannabinoid in with the shower gel. And so then when

[00:44:49]B: is it that, Is that what it is? So when it is actually

[00:44:51]Olivia Alexander: really psychoactive? Yeah. So you can actually get high in the shower. Yeah, that’s what I was.

[00:44:58] You lather up and the [00:45:00] particle size is so small, it’s actually absorbing through the dermis of the skin into the bloodstream. And you feel this like, you know, it can’t be compared to like hitting a bong or eating an edible. Of course, of course more of a micro dose. It’s more of like a puff on a joint, but it’s a head change.

[00:45:15] And especially for like people like myself who um, can sometimes have like an aggressive energy in the morning. Um, really. Like really relaxing and, and feeling that is, is a huge, um, is a huge thing.

[00:45:35]B: I believe it. I mean, the only thing you’re missing in that trifecta is probably like a notepad for the creativity that comes.

[00:45:40] You’re incorporating two of my favorite things together.

[00:45:42]Olivia Alexander: I have a new book and it’s called the Creative Stoner Journal, and you basically, I wrote like 150 prompts and it’s all for. Stimulating your creativity and um, that actually comes out November 22nd.

[00:45:55]B: So I love it. So I guess the last question is for our listeners, they [00:46:00] wanna get in touch, they wanna buy cush queen products and they want to read your book.

[00:46:03] Where can they find you? Cush

[00:46:05]Olivia Alexander: queen.shop, and then they can follow me on social media. Where at Cush Queen Shop. And I’m at the live Alexander on TikTok, Instagram. Um, not a big Twitter, but Twitter, whatever it is. That’s what

[00:46:18]B: they can find me. Awesome. We’ll link those up in the show. Thanks for taking the time. [00:46:22] Yeah, thank you.

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Jason Spatafora aka Wolf of Weed Street has been investing in cannabis stocks since 2013.

  • With Safe Banking dead, are Cannabis stocks dead?
  • How does Jason leverage risk when investing 
  • What catalyst is he looking for that would make the stocks explode?
  • Comparing Investments thesis Blue Chip stocks vs. Cannabis

About Jason Spatafora :

Jason Spatafora has greatly impacted the cannabis sector through his alter ego Wolf of Weed Street. He holds one of the biggest audiences in the cannabis sector through his Twitter (@wolfofweedst) and his website, marijuanastocks.com. 

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[00:00:00]Bryan Fields: What’s up guys? Welcome back to an episode of The Dime. I’m Brian Fields with me, as always, as Ke Finney. And this week we’ve got a very special guest, Jason Spata for Wolf of Weed Street. Jason, thanks for taking the time. How you doing today?

[00:00:13]Kellan Finney: I’m doing great. How are you guys? I’m

[00:00:15]Bryan Fields: doing well, ke. How are you doing?

[00:00:17]Kellan Finney: I’m doing really good. Really excited to talk to Jason. Really excited to learn about the intricacies associated with, uh, cannabis trading. How are you, Brian?

[00:00:25]Bryan Fields: I’m doing well, Jason? Uh, we have a east coast, west coast battle. So for the record, your location please? I’m on the East Coast. There it is. K i I don’t know how many straight east coast we’ve had, but at a certain point I think we’ve got it.

[00:00:38] So Jason, our listeners, and on from about you, can you give a little background about.

[00:00:42]Jason Spatafora: Um, yeah, sure. Um, uh, I am an Aquarius, um, two children Star, star

[00:00:49]Kellan Finney: Wars fan. . I’m a Star Wars,

[00:00:52]Jason Spatafora: uh, fan. No, I mean, you know, like, I started investing. Investing, okay. Cuz there’s always this misconception that I’m a [00:01:00] trader. I started investing in, um, 2013, um, was gravitating towards things that like.

[00:01:07] That I thought the world would need. My first investment was, uh, a desalinization company. Um, and then I moved to like distressed banks that needed to be propped up by, you know, um, the EU basically. And I just started to just kind of get my feet wet and, um, you know, I started out small. And I was, you know, it was like good returns.

[00:01:32] And, um, one day I was at home and I, I heard, uh, Eric Holder and he was talking about, um, he was talking about. Uh, cannabis and how the DOJ wasn’t gonna go after states. Um, and I was like, are pot stocks a thing? And so like, I, so I, I went to, you know, the Google machine and I typed in pot stocks and it brought me to this website called marijuana stocks.com.

[00:01:59] And there was like [00:02:00] 10 companies listed. And I was like, oh, well this one says it’s a payment processor. So I bought it and I’d never bought a penny stock before in my life. It was like, um, 5 cents. And then like two days later it was like seven, uh, like seven and a half cents. And I was like, oh. I was like, this thing’s up 50%.

[00:02:18] I was like, this is amazing. And then two days after that, it was down 50%. So I was like, how did I just lose 150? Um, so I started to dig

[00:02:27]Kellan Finney: into

[00:02:28]Jason Spatafora: it. Um, and you know, I, it, the, the volatility kind of attracted me, right? And, um, you know, I knew Colorado, uh, was gonna go legal. Um, and I was just kind of thinking, all right, you know, there’s gonna be all these animal spirits.

[00:02:43] It’s weed, it’s a new industry. Um, let’s see what happens. I start doing that and. You know, every other week I would just add to the position, add to the position, and I was doing what you probably shouldn’t do, which was putting all your eggs in one basket. [00:03:00] Um, and I was buying this stock at like 4 cents.

[00:03:03] Colorado went legal, everything just started booming. And, um, you know, from there, um, like finding information on cannabis online was like nonexistent. So, You know, with the little digging that I was doing, I’m like, man, there’s so much crap out here. I need to, like, I, I don’t want it blowing back on me. So I, you know, I created the Wolf of Weed Street, um, Twitter account, and I would use people, um, online.

[00:03:35] I’d be like, Hey, does anybody live in Colorado Springs? And somebody would be like, yeah. Like, Hey, can you go see if this is a PO Box or a real company? I’ll send you a hundred bucks on PayPal. Right. And so I was using like Twitter as like boots on the ground and then identifying companies. And then, um, you know, uh, then the market just started ripping.

[00:03:59] And I [00:04:00] got a call from a friend and he was like, sell all your pot stocks. Now at this point, like my $8,000 investment was like 55,000 and. And I’m just like, this is the greatest thing in the world. And my, my buddy calls me and he is like, Hey, I heard you were doing really well. I talked to uc. Uc is our other friend.

[00:04:22] He’s like, sell all your pot stocks right now. And I was like, why? He’s like, these things are about to get crushed. I’m like, what are you talking about, man? I was like, he’s like, they’re scam companies. And I’m like, no, they’re not. I’m like, I’m, you know, mine sells like lights and like pipes and irrigation and.

[00:04:41] He’s like, I’m looking at shorts, building up. He, and I’m like, okay. He’s like, I got a Bloomberg terminal. I was like, what’s a Bloomberg terminal? So . So I was like, I get off the phone with him and I was like, this guy’s an idiot. And while I’m on the phone with him, my account’s just going, keeps going up and.[00:05:00]

[00:05:01] I was like, you know what? Let me just tweet out his warning, right? So I tweet out the warning and then I kid you, not like 30 minutes later, an article on Bloomberg came out about these things and the entire market dropped 60% into the close. So my, my 55 when I started, when I was on the phone with him, um, by the end of the conversation was like 70.

[00:05:28] To give you an idea how crazy it was, and at close it was 29. And I was just like, oh my God, what happened? I was like, I just so much money, you know? And I was getting ready to get married in like two months and I was like, well, you did tweet the warning, right? So now, because I’ve been looking at these things so hard, I had a pretty good idea of, you know, what would bounce.

[00:05:53] Um, and then I just kind of started calling it out. And then from there, um, you know, these things just got [00:06:00] hyper-inflated. Um, and then I would look for comparable companies that nobody had ever heard of. Um, and you know, I found one that was like a half a penny. in the next three months, it went up 10000%, you know, and the, the moves were wild.

[00:06:14] Um, like thousand percent moves in in like two weeks a month were not unheard of. Um, so it was like a real wild time. And then, you know, I got married, um, and I was going on my honeymoon and I was just holding like, A massive amount of pot stocks, like almost seven figures worth of pot stocks like penny stocks.

[00:06:39] And I was like, time difference is 17 hours. I’m like, I, I need to start getting out. I could always come back in and while I was on. In Thailand, Thailand or Cambodia. The market tanked, like blew up. And after that I’m like, man, you know, you really need to learn about, you know, [00:07:00] just the markets in general.

[00:07:01] Like you just got, this was a gift and your simulation, this was an amazing gift. Um, and then I started to go back and look and I was like, man, you know, this time of year. Um, in the O T C, everything drops off a cliff. And then from there I like formulated this odds of March thesis and, you know, going into the next year, um, and the year after that.

[00:07:27] And the year after that, by February, March, like I was. 80 to a hundred percent out, and then I’d wait for the summer. If I still liked the idea, I would get back in. Um, and that’s how I would grow my, my size. So like, to give you an idea, I did this with Aurora in 2016. I bought 20,000 shares of Aurora, like 89 cents.

[00:07:53] And. Then, uh, and this was the summer of 16, and then that Constellation Brands announcement came out [00:08:00] and the thing jumped to like three something. And so I, I sell it at three bucks and I was like, oh my God. I was like, this is, this is nuts. And I’d play the market the rest of the year and I was playing like natural gas and like oil ETFs.

[00:08:14] And then in the summer, aurora’s back at a. It was actually like a dollar three, like 98 cents. So I was like, um, let me put it back in. So I put it back in, and then it goes from a dollar to 10, you know, into, um, 2017. And then same thing, well taking it off, take it off the next, you know, the next year it goes from 10 to five.

[00:08:38] I don’t put all of it back on cuz I bought some other stuff, but you kind of get the point. And you know, that strategy has just saved me, um, tons and tons of money. Um, You know, and then like little tricks, like if anything hits an all time high in February, I sell it, you know, which is exactly what happened with all the MSOs, [00:09:00] um, in 2021.

[00:09:02] You know, like you, you take out your principle, um, take out the profit and then go from there. I mean, my wife and I have, um, Uh, an investing company and we have an operating agreement. And the operating agreement spells out in black and white. Like when, when we sell and when we redeploy. And it’s like a year and a day.

[00:09:22] If you’re up, you’re, you’re taking, you’re, you know, half of the money out. Um, and then, you know, if you’ve, if you bought anything else, you’re kind of parring your losses. Like you’ll, you’ll tax loss harvest. in 21. I said to my wife, I was like, no, don’t, don’t sell it. I was like, I don’t wanna sell these. I’m like, and to give you an idea, it was like, juror Leaf was like 1250.

[00:09:47] Cresco was like 10. Um, Terra was like eight, seven or eight, and I was like, don’t do it. I was like, I don’t want you to do it. And um, she’s like, I was like, let’s talk about it. You know, [00:10:00] at the end of the day, well, she already put the order in. I had no idea. And I’m like, where’s all this pressure coming from?

[00:10:05] And I’m like, buying in my. Meanwhile she, my wife was selling into me, you know, and I always tell her like, I’m like, you’re the best cannabis investor in the world, cuz you just don’t care. You’re just like, am I profitable? Yes. All right, well, I’m gonna take that. Am I gonna redeploy? Because, you know, there were times where we were like, all right, let’s, you know, redeploy.

[00:10:27] Um, and then, you know, it kind of became clear. , you know, we didn’t really want to just keep trading these things. Um, so, you know, the only way that we would redeploy

[00:10:39]Kellan Finney: was by

[00:10:39]Jason Spatafora: using the spread, you know, meaning, you know, when she sold, uh, pure Leaf at 1250, um, and then all of a sudden pure leaps seven. Right.

[00:10:49] Well, what’s the difference? From the amount of shares she sold, you know, that five, five and a half dollars difference. And then, okay, well what’s half of that? Okay, well, we’ll use half of [00:11:00] that and buy at seven and then, you know, just to kind of keep ourselves protected, but have a zero cost basis on our positions, which had a zero cost basis anyway.

[00:11:11] You know, because we took the principal out at, I mean, I, I think I was the top tick on, on cure leaf at like 1838. In, in February. But yeah, I mean, that’s kind of my story, you know, um, I’ve just kind of seen it all, um, invested in a lot of companies early in Canada, um, helped raise some money. Um, and that was just super speculative and, and I think we were all kind of a little wet behind the ears.

[00:11:37] Um, but just kind of keeping to that like, you know, manage risk, manage risk, take profit, um, you know, we were able to, you know, not get. . Right. So yeah, I think that’s, that’s kind of me in a nutshell.

[00:11:51]Bryan Fields: So kinda expanding on that. Obviously early on in, in cannabis, some of the companies might have been different, right?

[00:11:56] So we’ve seen the origin of some of these MSOs. So take us through those [00:12:00] early days. Did you get to see kind of the birth of the cure leaf when it went from a smaller company, or Tru Leaf or G T I to kind of a, a bigger company is today?

[00:12:07]Jason Spatafora: Um, yeah, you know, So I invested in Harvest before it went public. Um, I think I did Pure Leaf also.

[00:12:18] I’m not sure. Um, and the reason I say I’m not sure is cuz we, you know, uh, it, myself and a couple other people had a group and, and we just kind of put money in and then see what happens. Um, yeah, I mean, you know, we definitely saw like. When, when I remember when Tru leave was coming out, cuz I’m in Florida, so I, I was very well aware of them.

[00:12:45] Um, you know, I, I was a

[00:12:47]Kellan Finney: little bit familiar

[00:12:48]Jason Spatafora: with Green Thumb, um, cure Leaf. You know, I just remember kind of when they came out, when they went public, it was just kind of like everything was just starting to melt down. And that was like the same with [00:13:00] harvest and acreage, um, acreage. , they were doing their, their, uh, their go public at like $20 and they told me I couldn’t do it.

[00:13:12] So, which, you know, I have to thank that person, whoever that, that, that soul is. Um, because I would’ve, like, I would’ve been down 75% by the time, you know, I could have, uh, sold. But yeah, I mean, you know, When I was in, when I was doing, uh, the Canadian things, um, you know, and after I exited in like the rest of my position in like March of 2019, um, I was still so up.

[00:13:41] And you know, if I use kind of like the, the model that I use now, I would’ve bought all of these things in the summer because I, I still kinda like the story, but because of where I, you know, cuz I, I took off, um, like 80% right before C 45 was implemented, [00:14:00] which was October 18th. I even made a calendar when I’d be selling.

[00:14:04] You know, I put it on Twitter and, um, I was so up, like I could buy like five times my position in some of these things and I had to ask, um, a quant to, to give me like, I, I’m like, I, I need data. Like, is this worth getting back into? And, and that was the summer and I was like, there’s no way I can, you know, come into, come into this.

[00:14:32] Um, and I was waiting for the US companies to show, like, consecutive growth before I, I, I, you know, decided to put any money back into it, but, you know, Tru leave, you know, next time you talk to Kim, ask her, ask her the story about true light. Right. So, you know, I got in to Tru leave at like eight and um, [00:15:00] you know, and I was, I was telling some friends, I was like, you gotta see, I was like, this company is, uh, it’s in Florida.

[00:15:06] It’s everywhere. Um, you know, I think that they’re killing it. And they were like, and my friend was like, He was like a serious trader. He’s like, what’s a symbol? I’m like, T R U. Okay. And you know, so I was like, put it out there. And um, and I was talking about, I was like, Hey, you know, true leave, you know, and I like tweeted about true leave right now.

[00:15:31] I’m careful about my tweets. I’m not like, if I buy something, I’m not like selling it like, uh, you know, you always give it time. Um, so I put, I was like, guys, take a look at this company, Tru Leave. And I put the symbol, but I put the symbol for true. Which I didn’t know was a like some crappy, like penny stock.

[00:15:50] It was like a penny. This thing short squeezed and all my friend calls me, he’s like, dude, thank you. So what did you do? I’m like, what are you talking [00:16:00] about? He’s like, I’m up like 500%. And so I had to go back on Twitter, and I’m like, that is, I’m like, no, it’s T rul dot c. I go, if you, you have to call your broker, you know, if you’re in the United States, and get a broker assist to buy it.

[00:16:15] So anyway, that thing starts running up. So people start selling their true light, which they’re up like hundreds of percent, and they just dump it into true leave, you know? But the crazy thing about True light is it kept going for like, It, it went up like 2000%, 3000, something ridiculous, you know? So that’s like the, the, you know how like Kim and I got acquainted.

[00:16:42] It’s a really funny story, but, but yeah, I mean, you know, look, the, you know, it was always the main differences between Canada and the us right? And, and really it came down to population, um, amount of dispensaries and, you know, just kind of the makeup of the people. [00:17:00] So pretty quickly. Um, you know, and I didn’t even really think of this, um, when I was investing in Canada was like, okay, well, you know, What are they producing and then what are they able to sell?

[00:17:14] And when I saw like a graph of what they were able to sell and then what they were ha having to turn into oil, you know, it was like, it was really scary. You know, you kind of look back and you’re like, how did I make any money in this sector? Um, because it really was just hype and momentum. Um, and then of course you have government intervention that just kind of blows up the industry and that’s pretty much what happened in Canada.

[00:17:38] And now we’re kind of seeing the same thing here in the United States. How

[00:17:42]Kellan Finney: much did, uh, federal legalization, like the thought of it affect like the early days, like it does now? Same kind of excitement, let down excitement but down, or was it less

[00:17:51]Jason Spatafora: so? No, it was, yeah, it was definitely, you know, the excitement was always there.

[00:17:57] It was, you know, I remember [00:18:00] when, um, GW Pharma, um, got to like a phase three trial with like, Epidiolex. Yeah. Like that was a big mover for the sector. Um, you know, talking about legalization. It, it was, you know, back then, um, . And if you asked me back then, like I was very public, I was like, I don’t want legalization.

[00:18:20] Um, like I never wanted legalization. You know, it was more important what states were coming online, whether it was Nevada, California, Colorado, Oregon, whatever, and then the bigger states to come because, you know, you always had that momentum, but it was, you always knew that that momentum would fizzle out.

[00:18:42] By the time like February rolled around. Um, and people always, you know, will, will keep firing money at that story. Um, you know, especially in the summer when these things get low. I mean, some people, you know, they dollar cost their, they dollar [00:19:00] cost average themselves to oblivion. Um, but I liked the, the system because it was like, Hey, we’re running.

[00:19:08] We’re going up 50%, a hundred percent, 200, whatever it is. And then I know we’re coming down 50% easy. And, and, and those have been the drawdowns. The drawdowns have been like 50, 60, 70% always. I mean, this drawdowns like brutal because. Of, you know, just the dynamics at hand, you know, where, where is all the liquidity coming from?

[00:19:30] Well, it’s coming from the ET tf, well, the ET TF is in a very good, you know, and I’m talking about M MSOs and I like those guys, right? I love Noah and I like Dan, but it’s supposed to be an actively managed E T F, and they basically made a bunch of pipe bombs. Right, based off of, with the hopes they wouldn’t have, like, they wouldn’t go off, um, because of, uh, you know, what was going on in DC and they’re buying into [00:20:00] this rally a lot, you know, I mean, they spent like 14 million bucks on in three days before we, we, we hit that top on just green thumb.

[00:20:12] That position’s worth seven. And that’s across the board, you know, and the whole, oh, well, you know, when people put money into the fund, they expect us to buy. Well, you know, they expect you to be good custodians of that capital. And, and then you get put into a situation where, Shit, we’re not getting it.

[00:20:38] What do we do? And you can only sell your big board stock so much, cuz at some point you’re gonna run out. You’re gonna run outta your IPRs, your grogen, and whatever else you have. And then you’re gonna have to start dipping into the green thumbs. The cure leaves the true leaves. And that’s kind of where we’re at right now.

[00:20:58] You know, you’re gonna start [00:21:00] seeing redemptions and. It’s just a massive, massive bomb. Right. And just nobody, I mean, I’d say 95% of people weren’t prepared and the people that were prepared and could see it coming, um, were just cowards and couldn’t, you know, and couldn’t say it out loud.

[00:21:24]Bryan Fields: Gotta let that, uh, let that marinate real quick. Is that one that’s, that’s pretty powerful stuff you just said right there. I guess staying with that Safe banking obviously is no longer with us. We, we have lost, we have lost the, the safe banking fight, unfortunately. But , the question now is, are cannabis stocks dead?

[00:21:41] Right? We’ve seen the numbers, just disasters, but are, are they left for dead? And is there hope that there’s another catalyst in the

[00:21:47]Kellan Finney: future?

[00:21:50]Jason Spatafora: You know, look, uh, I don’t think, um, I mean,

[00:21:57] If, if you go through my

[00:21:58] Twitter feed in like [00:22:00] 2020, like, uh, I think maybe there’s like one mention of safe banking, right?

[00:22:04] You know, people, we’ve got to get away from this idea that safe banking is the end all, be all of the cannabis industry. Because I can tell you I’ve been making a lot of money in the space, um, and it’s never had safe. Right. So you know, the first thing we need to do, you know, if we want a healthy environment is people have to be better stewards with their capital.

[00:22:27] They can’t dollar cost average all the way up and then all the way down. And then think like, well, at some point, I’m a 5 10 year investor. Well, you know, I remember a lot of dollar cost averaging that happened in Canada too, and those people got destroyed. You know, these are not one you dollar cost average.

[00:22:47] Microsoft, apple, Amazon, you know, those companies are going to be around you do not dollar cost average, um, pot. And I don’t care how much you, you know, like how legit the [00:23:00] company is, there can always be something, um, that that comes. out To, you know, affect it in an adverse way. You never know, who knows, like in five years, the United States can turn into the hand maintenance tale and what are you going to do now?

[00:23:16] Right? I mean, obviously we have bigger problems at that point, but you see my, you know my point, so, are cannabis stocks dead? Yeah, they’re dead. They’re dead for a while, you know? Part of the reason they’re dead, um, besides safe banking is, you know, where on the cusp of like real serious risk in the overall market.

[00:23:41] Whereas, um, you know, I, I had that thread that I put up on like the weekend before we hit that high and I was like, look, it looks like safe banking’s gonna happen, but. It’s still gonna get faded, right? You are still gonna get faded from here because of [00:24:00] everything that’s going on, and there’s not gonna be a deviation from, you know, the, the pot stocks, even if you had safe, okay?

[00:24:10] Because there still has to be custody to get worked out. There’s no language in safe banking for custody. Um, So we were gonna come down anyway. Now do I think we would’ve come down this fast? No. I mean my target was like eight bucks, right? Um, and that’s if we got safe. Now I think that the target’s probably, you know, five or under on you talking MSOs.

[00:24:38] On MSOs, that’s probably the easiest gauge, right? And. Look, I think if you’re coming into this industry cold. Yeah, I mean some, I mean, look, I was looking today and I was like, man, I was like, Veronica’s $2 and 80 cents. And I’m like, oh look, green Thumbs back where I bought it, you know, at eight bucks. [00:25:00] Pure Leaf is, you know, four bucks.

[00:25:03] Um, true leaves, you know, set under seven. I was like, this is, this is crazy. Crazy. But. , you know, I start thinking about it and I’m like, I’m not buying shit. You know, it’s the opportunity cost, right? So, where do I want, where, you know, do I wanna sit? Why would I buy them right now when I still know that there’s still, you know, um, all this risk in the market.

[00:25:30] Right. You know, if the spy goes to like 3 30, 300 as some analysts think, like real analysts, not these Cantor Fitzgerald. Cowan like idiots, and now all of a sudden when they say anything good, we listen to ’em. Not these morons, but like Mike Wilson from Morgan Stanley, like, um, Mike Kreitz. Like these guys have been on the money.

[00:25:55] And where do you think. If we, if we [00:26:00] hit eight 70. All right. On

[00:26:03]Kellan Finney: M S O

[00:26:03]Jason Spatafora: S, um, in October, right when the market hit eight 50 and there was still hope for safe, what happens when you take that hope away and then let the market tank? It’s a, it’s a real different picture, right? And then it’s like, if you’re still, you know, at, at some point people are gonna waive the white flag and try and par their losses by buying growth, which I think, and, and that’s what happened during Covid, you know, and people would say, oh, well my average on, on cure leaf is $3.

[00:26:39] I’m like, good for you. I bought, you know, I was buying Boeing at 90 bucks. You know, it doubled in a week. How long did you have to wait? You know, I was buying Square at 40. It went to 200 Lulu limit, like on and on and on, because people are going to pile into growth and that’s really where the [00:27:00] generational opportunity is to make money.

[00:27:02] Because Covid was like that. But you know, COVID was an anomaly and 2018 was like that. And we had that little bear market. And the thing that’s interesting about Covid and you know, The conditions for pot stock were perfect. They will never be that perfect again. You had all of these people, kids getting money from the government, you know, opening

[00:27:28] up eTrades, Robin Hoods, TD

[00:27:30] accounts, um, And what are they gonna buy?

[00:27:35] I mean, weed is like the biggest meme stock out there, you know? And it’s like if you weren’t on Robinhood, then you’re like, oh, I can buy Curaleaf I can buy Trulieve I can buy all this stuff. And there was just all of this QE happening that was just jacking up the market and the market. You know, like stocks want to go.

[00:27:55] Right, if the conditions are there and all the conditions were there, but it gave you [00:28:00] these hyper-inflated valuations and these prices that were unrealistic, but you know, if you were averaging up on Trulieve at 50. And all of a sudden it’s 25, you’re like, it’s a steal. It’s 50% off. But the market doesn’t function like that.

[00:28:18] And you can see that by the other stocks in the mar. I mean, look at Nvidia. Look at Roku. Roku was 450 bucks. It went from 60 to four 50 during Covid, it’s in the forties again, you know, and like Shopify, like all so many of these companies. So it’s, we are not in like our own little. Like 80%, 90, I mean, Carvana, come on.

[00:28:42] Carvana was three 50. Now it’s like three bucks. And the pot stock investor is just kind of oblivious to all this. And they try and say that they’re not, but they’re oblivious because [00:29:00] they wouldn’t be talking about dollar cost averaging. They wouldn’t be trying to, um, you know, Draw parallel between like M S O S and ARC or like X B I like these idiots.

[00:29:14] They wouldn’t talk about, oh, it’s the algorithm. It’s the algorithm. No, it’s your stupidity like traders, cuz there’s a part. Of us, or you know, like a portion of of, of, uh, of my account that I trade. Right. And it’s got a very specific reason. Like I trade and I mainly trade options. And I trade options. I take half of the profit and I put it into long term stocks.

[00:29:39] That way I don’t need to grow my account with my money. I use it from my trades. And, and that’s a good, just a good way to manage risk, right? Like we would see. You know, and I’ve, I’ve tweeted some of these like screenshots. They’re like, oh, Dan’s buying all right. Yeah, let’s buy, let’s buy [00:30:00] these puts, let’s buy these puts like, this is all artificial buying.

[00:30:04] So like in September, um, when mj u s was buying, Dan was buying right alongside of that and inflating, you know, uh, the sector, right. Inflating the sector. Well, when somebody that knows what they’re doing sees that, they’re like, this is going to come down so hard. And so what happened? We went from like 1381 to eight 70 in like two weeks and everybody was short.

[00:30:34] You, you dumped, your risk got short. And then it’s like, okay, well now I can buy everything half off, you know? Buy it back, you have zero risk and then you do it again and again and again. And you know, like that’s been the best setup is just watching, you know, watching like foolishness in the market and, and taking advantage of it.

[00:30:59] Right. [00:31:00]

[00:31:01]Bryan Fields: So to quickly put, push back on you, isn’t time in the market for someone, let’s say who’s a more novice, let’s say they, they put 10% of their investible assets in cannabis stocks and they look at true weave and they go, Florida is still medical. Only soon there’ll be adult use. Georgia’s gonna come online, Pennsylvania’s gonna come online.

[00:31:17] Maryland’s gonna come online. And if I can get it in at $7, it’s probably has an opportunity to grow over the next five to 10 years. Isn’t it a worthwhile position still to hold if you have it in the sizable portion of diversified p.

[00:31:30]Jason Spatafora: Uh, yeah. Yeah. If you’re coming in cold like today, yeah. I think that you know, one, you know, you have to make, you have to create a budget.

[00:31:38] How much do you want? Okay. So if you’re saying, all right, I wanna buy thousand shares, right? So that’s how I approach. Any, any investment, any trade, any option, whatever. I look at it and I’m like, if I had to hold this how much, and I couldn’t, I could only buy it once, how much would I buy? I’m like, okay, I’ll buy a thousand shares.

[00:31:56] Right, of true, of true leave. Right? I mean, not me, [00:32:00] but, you know, some, some novice, but maybe you

[00:32:02]Kellan Finney: right. . No, I, I wouldn’t

[00:32:05]Jason Spatafora: buy a thousand chairs. I come in and I’m like, all right, so I don’t know what the closing price was. Let’s say just say seven bucks. Okay, that’s $7,000. That’s my budget. You know what? I’m gonna buy 2,500 right now because I, I, there’s still some risk and it could go lower, and I’m gonna wait.

[00:32:25] Right? I’m gonna see what the market does and I’m gonna tier. All right. That’s a lot different than dollar cost averaging, right? Because you’re going in there with a plan dollar cost averaging people the way that they talk about it. No, you’re just averaging down, right? Which that means you, you had no plan, you had no stop loss.

[00:32:46] And, and let’s say, you know, when you do get into this position and then all of a sudden you’re at your full position and it’s just not working for you, um, your stopwatch should be like 10 15. [00:33:00] And I know stop loss is like, it’s like alien in the cannabis industry, but, um, is that a universal rule that you would apply?

[00:33:09] Yeah. It’s like that, that, that, that’s a universal rule that I, that I apply. Like maybe if something’s outta support, um, then I’ll give it like 15%. But like I always tell myself because I, you know, I hate being wrong. Right. Especially when I trade. Um, everybody does. So, If the thing’s going against me and I’m like, this thing’s probably gonna go lower, I just tell myself, it’s not that you’re wrong, it’s that your timing is off and that’ll end up saving you a lot of money.

[00:33:38] Um, because, you know, like you, you, you can’t get into a stock. Like, look, there were people that are getting into the sector in like February, 2021 when it’s like peak, peak bubble, right. And. They were just like, oh, I’m, I’m just gonna add [00:34:00] more. They’re getting cheaper. They’re getting cheaper, but at some point you have to say no.

[00:34:04] Now I’m just, I’m just losing money. You know? And if you are gonna do that way, well, you know, maybe you shouldn’t understand how to hedge your position. Right? Nobody knows how to hedge their position. It’s, and it’s really easy, you know, like the greatest trade in pot stocks was to just be short M S O S, um, in February and just get a year long contract.

[00:34:29] I could only imagine what that thing is paying, but,

[00:34:33]Kellan Finney: Um, most people they’re sponsoring this podcast today,

[00:34:38]Jason Spatafora: That’d be amazing. Just That’d be amazing.

[00:34:42]Bryan Fields: So what’s your thoughts on the business model versus the, the share price? Do you look at when you’re making those investments? I guess you look at ’em differently between trades and

[00:34:49]Kellan Finney: long-term investments. Yeah, you have to, you have to, are trades just all technic.

[00:34:54]Jason Spatafora: Well, no, I mean, I mean, of course other factors in there. I mean, no, it it, [00:35:00] I mean, when you said, like, when you said technical, you mean like on a chart? Yeah.

[00:35:04]Kellan Finney: Like looking at more like technic, like technical, like support resistance, like Yeah. You know, macd or all of those

[00:35:10]Jason Spatafora: kinda stuff. Yeah. Technic technicals have been out the window for this sector for years.

[00:35:15] You know, they’re, they’re like, um, , they’re good to know, but those technicals are gonna lie to you more than they’re gonna tell you the

[00:35:25]Kellan Finney: truth

[00:35:26]Bryan Fields: because it’s gonna influence you to think it’s a good idea.

[00:35:29]Jason Spatafora: No, because cause the, the market

[00:35:32]Kellan Finney: not mature. They’re not blue stock, they’re not like blue chip stocks that

[00:35:34]Bryan Fields: behave according to

[00:35:36]Jason Spatafora: his historical trends.

[00:35:37] Right? There’s not like a volume shelf that you can really look at and be like, oh, look at all this. I mean, these things don’t trade a lot. Okay. So like, people, when people are like, oh, I’m looking at the technicals, it’s gonna, you know, we’re gonna get safe banking, we’re gonna rip to 25. I’m like, Like, where do you buy your drugs?

[00:35:55] Cause I’d I’d like to, I’d like to get your hookup. [00:36:00]

[00:36:00]Kellan Finney: Invest in that company. .

[00:36:02]Jason Spatafora: Yeah. I mean, look, it’s, it’s all animal spirits and, and psychology. Like, look, you can get one headline. A company, a chart could look great, right? Um, and then boom, like, did anybody think that we were just, I, we blew

[00:36:17]Kellan Finney: through.

[00:36:19]Jason Spatafora: Every support that was created from September to two weeks ago just got blown up on high volume.

[00:36:30] Right. So, so, yeah. You should pay attention to the downside. Cuz now that’s, you’ve got all that resistance. That resistance is gonna play a part, but then also you have to factor in the fatigue of the market. You know, the guy that bought, um, M S O S at 10 and thought that it was the bottom right. If that thing gets to 10, he’s probably gonna be like, I, I’m just gonna get out.

[00:36:53] And then you gotta deal with the guy at 11 and the guy at 12 and 13 and 1425. And, [00:37:00] and 35 . And 50 and, yeah. Oh, Nancy Mac is gonna kill. Gonna do it. Oh. 33,

[00:37:08]Kellan Finney: you know, like,

[00:37:09]Jason Spatafora: so, so yeah, like that. You can’t really look at like technicals, but you know, if you’re looking at like the company, um, like what they’re doing, like what their product is like Med Men, right?

[00:37:21] Med Men’s a great example. Med Men’s an amazing brand, right? It is

[00:37:26]Kellan Finney: one of the most

[00:37:27]Jason Spatafora: disgusting public companies that has ever existed in this. Disgusting. Like you, if, if you went through that prospectus, you were like, this thing is just a share selling scheme. Okay. Now if I go into a Med Men, I’m like, oh, this is great.

[00:37:46] Like, oh, nice, you know, oh, maybe I’ll get one of these like, uh, med men shirts. Um, you know, so completely different animal. And there’s, it’s a, it’s really hard for investors to [00:38:00] separate the. Right. They’re like, oh, look at, look at how much,

[00:38:05]Kellan Finney: um, true leave is dominating

[00:38:08]Jason Spatafora: in Florida. Okay. And does, you know they’ve been dominating in Florida forever.

[00:38:15] Has it helped their share price?

[00:38:17]Kellan Finney: At what point does like these companies generate cash? So like, what point is that cash flow gonna actually affect

[00:38:23] the stock price? Um,

[00:38:27] I know that’s the, what do you think , when, when,

[00:38:30]Jason Spatafora: when you get rid of two 80 e

[00:38:32]Kellan Finney: you think that’s the biggest catalyst

[00:38:33] or, so I think two 80 is the biggest catalyst for the sector.

[00:38:36]Jason Spatafora: Yeah. I think it’s always been that because you’re basically just making these companies 30% more valuable. Yeah, I, I

[00:38:43] talked, I talked to a banker kind of, uh, too, and he said that safe banking won’t even move the needle for like a lot of the larger institutes, like your JP Morgans and your Wells Fargos.

[00:38:53] They, they said that it has to be rescheduled for them to like actually seriously consider it. Yeah. Is there

[00:38:58]Bryan Fields: any truth to that statement?

[00:38:59]Kellan Finney:[00:39:00] Yeah, that’s,

[00:39:00]Jason Spatafora: that’s probably true. Right. You know, they, they don’t want to, they don’t want to have to deal with like compliance and SN and everything, you know, and, you know, and that’s what kind of caused the blow up.

[00:39:13] In 21, right? Because you had all these promises. Safe banking, oh, we’re gonna make it, make these things. Um, uh, the banks are gonna be able to custody them. So what did the banks do? Well, the banks are like, well, I need to be compliant because I want in on that money, on those fees, on those exchange fees. So I’m gonna force everybody to sell that way.

[00:39:36] I’m like, when I come to them and this is ready to go, I’m like, Clean slate. I don’t have any cannabis stocks. We are not holding any cannabis stocks. So they forced, um, they f they forced a fund out, I think a Wasatch like 300 million position, like basically at the top, like, you’re welcome Wasatch, you know, wherever they were, housing that.

[00:39:59] Um, and [00:40:00] then, You know, and so then it was like JP Morgan and then and Morgan Stanley and Merrill Lynch and you know, um, bank of America, all these things trying to get compliant. And the market pulled back and then we’re going into the summer and we’re on like the normal cycle, right? 30, 40% pullback. June is the worst part, and then volume slowly starts creeping back up.

[00:40:26] M S O S went down tap 30, 35, and then we started to just like float back to into the forties and then, Schumer and Booker did their press conference. And um, it’s funny because some of the banks were like, yes, we’re working on it. We’re working on it. And then you didn’t hear from them. And uh, then the market tanked.

[00:40:49] And then when, when Safe got put into the N D A A, it was actually, um, Uh, Morgan Stanley came out with a note and Bank of America yet, [00:41:00] you know, our clients are asking for cannabis stocks. We think that we’ll have a solution by like January once. It wasn’t in the N D A A. Again, you never heard from those people again, from those banks again.

[00:41:15] So like the custody of the stock is, it’s massive because there’s always gonna be an oversupplied stock coming into the market from these companies. You know, either through acquisition, insiders, founders, whatever, you know, original like. Uh, debt holders. Um, and if you don’t have institutional support to backstop the stock, you, and you leave it into the ha in the hands of retail who’s notoriously dumb about trading or investing, then you get what, what we have right now, which is like the worst parts of the Bible in this sector.

[00:41:55]Bryan Fields: Let’s do a, a quick rapid fire. If you had to choose one cannabis [00:42:00] company to hold forever, who.

[00:42:03]Jason Spatafora: Oh my God. Probably green. One.

[00:42:07]Bryan Fields: Bigger threat to the cannabis industry. Big pharma or big tobacco.

[00:42:13]Jason Spatafora: Neither

[00:42:15]Bryan Fields: medical operators should be allowed to convert to adult use when the markets open up. Yes. Which event is more disruptive to the cannabis industry? Federal legalization or interstate commerce?

[00:42:28]Jason Spatafora: I mean, they’re basically the same thing. Well, I’d say federal legalization. W but not in a good way.

[00:42:36]Bryan Fields: It’s fair, true or false?

[00:42:37] You were involved in the game stock.

[00:42:40]Jason Spatafora: Game game like G M E? Yeah. False.

[00:42:44]Bryan Fields: Better investment plant touching operators or selling shovels to the operator.

[00:42:51]Jason Spatafora: Um, selling shovels to

[00:42:52]Bryan Fields: the operators shovels true, true or false? The wolf persona is actually Jason in real life, a character or combination in both.[00:43:00]

[00:43:00] Combination of both. What is one ideal or fact about investing in cannabis that most wouldn’t know

[00:43:09]Jason Spatafora: that when legalization happens, most companies are gonna get killed?

[00:43:17] Because then it be then like the whole, you know, then bec it becomes an execution story. You know, and this is why I got out of like 80% of the Canadian companies right before C 45, you know? Then it’s like brands, and then are you executing? Are you, what are you doing with your capital? Um, At that point then

[00:43:39] yeah, it’s,

[00:43:40] you see a lot of death in the industry.

[00:43:42] It’s like, um, and, and you saw that in Canada. There were so many public companies in Canada that were like, you know, TGA Aurora or Danagram, you know, um, so many. Supreme Pharma, man, I don’t even know that. Thing’s like 2 [00:44:00] cents or something. Um, and once, once legalization happens, everybody thinks it’s like, oh, this is it.

[00:44:07] We’re gonna be rich. Most of you

[00:44:09] are gonna be poor.

[00:44:12]Kellan Finney: When you started, yeah.

[00:44:14]Bryan Fields: When you started your journey in the cannabis space, what did you get? Right? And most importantly, what did you get

[00:44:18]Kellan Finney: wrong? What

[00:44:20]Jason Spatafora: did I get right? What I got right was, Playing the momentum, taking my profit. Moving on to the next thing, treating the industry like a giant game of Frogger.

[00:44:33] Um, what did I get wrong? Um, maybe pressing, uh, some positions a little too hard. Um, believing too much in management. Um, you know, and, but from that, um, I’ve become a much better investor. Right,

[00:44:53] because the way that I look at it is you have to treat

[00:44:56] every single company, every single c e o, [00:45:00] as if at some point they’re going to try and screw you.

[00:45:03] So you always have to be on guard and you know, I, I know it’s like, It’s really easy because a lot of these, uh, these CEOs and, you know, some of them I love, you know, let me say that like I love Kim. Like I’m ride or die for Kim. Um, you know, other ones where I’ve had good relationships. Have done stuff where I’m like, that was like really messed up.

[00:45:31] Right. And you know, like understanding that sometimes the, the public persona of some of these people is not what you think it’s a, it’s. It’s like n never meet your heroes, right? I don’t treat any of these like heroes. I don’t treat them like sports teams either. You know, at the end of the day, the only thing that matters is your roi, right?

[00:45:53] Your return on investment. Like, can I turn a dollar into two? Um, or you know, [00:46:00] can I turn two into four? But what you also need to think about is, If I put in one, is it gonna become 50? Right? Everybody likes to think about all the money. They’re gonna, oh, we’re gonna be rich. We’re gonna buy Lambos and stuff.

[00:46:13] Let me tell you something. When you get to that point, you’re so conscious about money that you’re like, I’m not buying a Lambo. That’s a waste of money. Like that’s a depreciating asset. Um, Yeah, like I’d say yeah, maybe putting a little too much faith that some of these companies would do the right thing.

[00:46:34] Um, yeah, like especially early on, before

[00:46:38]Bryan Fields: we do predictions, we ask all of our guests, if you could sump your experience in a main takeaway or lesson learned to pass onto the next generation, what would

[00:46:45]Jason Spatafora: it be?

[00:46:51] If I could say that again. If

[00:46:54]Bryan Fields: you could sum up your experience in a main takeaway or lesson, learn to pass onto the next [00:47:00] generation, what would it be? This could be life advice, this can be lesson advice.

[00:47:03]Kellan Finney: Yeah. For, you know, in, in investing advice I would say, you know,

[00:47:06]Jason Spatafora: you see a hundred dollars bill on the ground, you pick it up.

[00:47:09] You don’t try and walk another block and say, well, maybe there’s a thousand bucks, and you just walk past that a hundred bucks, you know, if you’re gonna take profit. Like, always be conscious of like, you know, the market is very hard, okay? It’s not, you know, it’s there to take your money. It’s not there to make you money and.

[00:47:30] If you keep that front and center, you’re always gonna be aware of your risk, right? And when you do have a big win or you get lucky, you have to pull that, that capital out. You know? So you have to have rules and you have to stick to them, you know? And I, you know, in life I would say, um,

[00:47:53] Sometimes you’re gonna have to say things that are really unpopular. Um, and, uh, you’ll be [00:48:00] vilified for it sometimes, but there’s always gonna be somebody that, that listened, um, that took the advice and, uh, you know, that makes it worth it. But you know, like we. Like, try and help people. Right. You know, don’t be like so gung-ho an idea that then all of a sudden the idea doesn’t work and you know it’s not working.

[00:48:26] And then you keep pressing that idea onto them because then you’re just like, Jim Jones and you’re handing out Kool-Aid to people with cyanide, you know, and we just, we just had our, our Jim Jones, uh, moment in the cannabis. You know, um, which is

[00:48:46]Kellan Finney: really sad

[00:48:47]Jason Spatafora: because I know a lot of people, uh, just got completely wiped out.

[00:48:51] Um, and it definitely didn’t have to be this way. Well said.

[00:48:56]Bryan Fields: All right. Prediction time. Jason, I’ve given you a magic [00:49:00] wand to change anything you want in the cannabis industry. What aspect are you immediately changing that unlocks a cannabis rocket ship?

[00:49:09]Jason Spatafora: The ability for them to trade on a major exchange.

[00:49:13] How quickly do we

[00:49:14]Bryan Fields: see it pop once they do?

[00:49:18]Jason Spatafora: Well, there’ll be, you know, all the usual idiots front running it, but in this case they’re right to front run it. Um, and then, yeah,

[00:49:26] we’ll, you know, we’ll see an oversized move and

[00:49:30] then, uh, you know, just a

[00:49:31] complete rerating. Do I think that they go back

[00:49:34] to, uh, 20, 21 highs?

[00:49:37] Um, they could, um, but down the line, I definitely think. You know, there’s been a lot of deterioration in, uh, the, you know, the overall businesses because like, just like Apple, Amazon, all these other companies, um, that the sector needs to come to grips with. Um, they just think that, oh, these things are gonna moon, but actually the, the businesses and, and the [00:50:00] earnings are, are getting worse.

[00:50:01] And I would expect the next two earnings to be pretty bad in the cannabis industry. Ke. Uh, two 80, I think,

[00:50:11]Kellan Finney: uh, would probably, uh, be a huge difference maker for a lot of these organizations that are struggling with growth capital and, um, all that kind of stuff. I think So

[00:50:25]Jason Spatafora: what do you think, Brian? Go ahead, Jason.

[00:50:27] Well, you know why I didn’t say two 80 d e failure is too because yeah, I, I think that you get a rerate, but then you’ve got nothing, and then you just get a. So like two a, d e? Probably. Yeah. You know, like, look, when these things were making tons of money, they were still going down. , right. You know, like they were, I mean, when I first bought Pure Leaf, I think they were doing like 115 million a quarter.

[00:50:55] Now they’re doing 300 and something. Mm-hmm. a quarter, and [00:51:00] the price is lower than where I first bought it in 2020. So like, Would two 80

[00:51:05]Kellan Finney: e though, like decrease a significant amount of admin costs that these MSOs are, are hundred percent recurring and maybe they could then take that cash and do some stock buybacks or something like, they won’t

[00:51:20] They won’t, Hey, I can dream. I can dream, right. ,

[00:51:24]Jason Spatafora: they won’t do stock buybacks cuz it’s not, it’s not a good enough use of capital because every dollar ev, all the cash is so, So important, right? And most of these got like pure. Like they need cash if they’re gonna do acquisitions, because who the f is gonna take stock, right?

[00:51:42] And that thing’s just gonna keep getting bloated and more diluted and it’s just gonna, it’s just not gonna move at some point. So yeah, cash is, is just too valuable. But if you get up list and then you get 280E then you get. You don’t get 30 gas, [00:52:00] right? You get like a hundred percent like real quick.

[00:52:05]Bryan Fields: I mean that’s the fantasy we can all hold for, right?

[00:52:06] Like that’s, that that’s the formula that we need to unlock. I don’t know how we can get, uh, get DC to get that to happen cuz that, that seems like unlock I’m my biggest concern is that, When these big MSOs that are vertically integrated in multiple states have to get rid of some of these assets because they don’t need to be vertical in only states and people start specializing.

[00:52:23] I’m petrified to see what that does to their business, because I can’t imagine that they’re gonna have just willing takers to take these different aspects across different states.

[00:52:32]Jason Spatafora: Yeah, I mean, you’re kind of seeing something like that with the REITs, but on the flip side, it’s like, Hey, uh, we can’t pay rent anymore.

[00:52:41] Guess what? This is your property now. And they’re like, well, Shit, I, I don’t, I don’t want this, you know, and they’re doing all these lease bags. I sold it to you, .

[00:52:50]Kellan Finney: Yeah. You know, you’re gonna see a lot of these

[00:52:52]Jason Spatafora: greenhouses get converted to like strawberry farms and like, you know, they’re gonna be growing lettuce in them or potted [00:53:00] mums, tomatoes are back baby.

[00:53:01]Kellan Finney: Yeah, there’s always Village Farms .

[00:53:04]Bryan Fields: So Jason, for our listeners, they want to get in touch, they wanna learn more. Where can they.

[00:53:08]Jason Spatafora: Uh, I mean, obviously they can find me, um, on Twitter at Wolf of Weed Street, um, or they can find me in, uh, true Trading Group. It’s one of the head mods and you know, also one of the owners of, uh, you know, basically we, it’s courses and we actually teach you how to like, Trade and manage risk in the

[00:53:30]Kellan Finney: market.

[00:53:30]Bryan Fields: That’s great. Yeah, we’ll link those all up in the show notes to anyone interested in learning and uh, helping themself do better. Can take it. Definitely take advantage. Thanks for taking the time,

[00:53:38]Jason Spatafora: Jason. Thanks guys.

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Breeder Steve is incredibly well known for, exactly as the name says, breeding. Steve has been growing his own since 1989. He shared incredible stories and shared insights into

– Backstory on how he got into breeding

– Living Library of Cannabis Genetics

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– His run-in with the Pope

– Wine and Cannabis similarities

“If you give a man a fish, you feed him for a day. If you teach a man to fish, you feed him for a lifetime.”

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[00:00:00]Bryan Fields: What’s up guys? Welcome back to an episode of The Dime. I’m Brian Fields and with me as always, this Kellen Finney. This week we’ve got a very special guest breeder. Steve. Steve, thanks for taking the time. How you doing

[00:00:12]Breeder Steve: today? Great, man. Thanks a lot for having me, guys.

[00:00:15]Bryan Fields: Excited to dive in. Kellen, how are you doing?

[00:00:18]Kellan Finney: I’m doing really well, Brian. I’m been very excited to talk to Steve and I learned about some, uh, plant science. How are you Brian? I’m doing really well. And Steve, we have an east coast, west coast battle, so I understand your location and your allegiance, please. Hm.

[00:00:34]Breeder Steve: I’m on the west coast by choice. I’m originally from, well not the coast of it, four hours from the coast, but I’m originally from Ontario and southwestern Ontario for Canadian zones.

[00:00:45] That’s easily the best place to grow. Outdoors is pretty close to Detroit cuz Canada kinda dips down there. Most of the borders of 49th parallel. But down there it’s the 42nd. So that’s the same latitude as you know, Northern Cattle in southern Oregon. It’s the [00:01:00] 42nd parallel, so you get the same photo period and similar, not the exact same season, but the uh, the length of the season is fairly similar, I would say.

[00:01:09] Awesome. Yeah. So

[00:01:11]Bryan Fields: for our listeners that are u unfamiliar about you, can you give it a little background about.

[00:01:16]Breeder Steve: Yeah. Well, as far as pot goes, I mean, I started growing my own as a hobby when I was like 18 and never looked back, you know, just, uh, really was so in love with homegrown that I just made it my mission to share that with people and encouraged them and helped them get started.

[00:01:34] And back then, like late eighties there, or early nineties, there was really, uh, not a lot of options. If you were looking to order seeds or something, there wasn’t a lot happening. The grow stores weren’t selling clones or anything . So if you found genetics you liked, you had to preserve them. And as a young guy that didn’t have his own place, I was doing little gorilla patches here and there, and the summer.

[00:01:56] Couldn’t keep mothers all year. Sometimes I would out at a [00:02:00] friend’s place, I might, you know, pass a cutting there to keep for next year. But usually we started making our own seeds, even just a single branch of a plant so that you had that film canister of seeds to look through the next year. You know, it was really a, you know, totally a hobby that got carried away.

[00:02:18]Bryan Fields: So when did we take it from hobby to profession? How did that transition happen?

[00:02:23]Breeder Steve: Well, I, when I moved to Vancouver in the fall of 94, I had brought a, my harvest from that year, but also my seeds. And the next year, another guy I knew from Ontario that was an activist, I didn’t know him well at the time, uh, mark Emory, he was selling seeds at hemp BC in Vancouver.

[00:02:43] He got busted and I went down and, and told the guy I said, I don’t know if you’re gonna keep going or not, but if you’re gonna keep selling seeds, I want to donate a jar to you. So I donated them a jar of seeds and then I came back a few months later to get papers or high times or something, and he [00:03:00] was like, oh, everybody loved those seeds.

[00:03:01] Bring, keep, keep bringing ’em, keep bringing them. So he said, I’ll give you two bucks of seed for all the seeds you can make. And I was like, Hmm, I better start making some seeds, . And then that’s what, that’s when I had to come up with a name for the seed bank, as it were. So I had like a list of names and when I thought a spice of life, I was like, oh, that’s the perfect name.

[00:03:21] So I called it Spice of Life Seeds. And then, uh, that was 94 was the first release of those. That’s incredible. Yeah. It’s a wild now , right? Yeah. That’s very serious. What was the, what was the first, uh, strain? What was that seed? The first one I released, we, I was calling it originally Medway Madness in, in honor of the creek where I grew it back home.

[00:03:45] But it, it, that means nothing to people outside of that county. Right. So I said, I, I called it Jolly Rancher cause it was tangy, it was sweet but tangy, you know, it had the kinda sweet and sour vibe going on. So it was like, [00:04:00] it’s like those Jolly Rancher candies. So I called it that. It was funny. It is those Jolly Rancher candies at all, but disappeared at that time.

[00:04:06] And then it sort of, they came back like a year later. The candies are like relaunched again. It was so funny.

[00:04:14]Bryan Fields: So you sold a co, you sold a couple of those seeds. When did you realize people were starting to get a big appetite for, for breeder Steve’s products?

[00:04:22]Breeder Steve: Well, the, the second release was when I called Sweet Paint Grapefruit, but Sweet Paint Grapefruit was really a name I gave to a clone only That was, uh, clone.

[00:04:31] I was collecting clones, anybody selling clones in Vancouver. I was buying ’em so that I could see everything that was around and, uh, There was this one person, I had new selling pot, and it was always a bit immature, but it was sweet, and you thought, oh, this has potential, whatever it is, give me a clone of that.

[00:04:48] And when I grew it out on my balcony that summer of 95 in Kitsilano I would have people come over and smell it, and I would say, what does that smell like to you And 20 out of 20 [00:05:00] people would say Sweet pink grapefruits. Like the Ruby Reds. You know it like it was unmistakably, like the sweet pink grapefruit.

[00:05:05] So it was a clone only, and then the most stable male I’d worked was from my Jolly Rancher line. So I’d crossed the Jolly Rancher male on that sweet paint grapefruit and called that first seed release of those sweet pink grapefruit. Then it was the next release off of that grapefruit, which was really a.

[00:05:24] You know, a matriarch in my lines which uh, thus became known as Sweet Skunk. And I had originally sold that as Big Fruit with the understanding. Somebody had sold me, uh, a tray of clones that had two. Two things in it. And one was supposed they were freshly purchased from Sensi seeds and they’d made their selections or were in the process of making their selections.

[00:05:48] And they said, okay, this half of the tray is uh, or this tray in black was Northern light haze and this tray with orange mark on it, like orange spray paint. He said, and I [00:06:00] think this one was the big skunk, and I think this one was the NL Hayes. It became apparent later that he had them back, you know, mixed up.

[00:06:07] But originally I thought it was a big, it turned out one of the trays was all male. And I was like, oh now. But it was a beautiful, really robust plant and it was a stick sticky branches and smelled good. And I was like, I’m gonna use this male and hit my favorite females. So that be, I was calling it Big Fruit when I released it for Big Skunk Grapefruit.

[00:06:26] That was a big fruit. But Mark was out of uh, skunk Seeds, so he said, oh, I’m gonna change it to Sweet sku. Cuz we thought it was a big SKU male at the time. And then as we grew them out, it was like, oh, there’s no big skunk in that. That was all N ML Hayes. And the, there was out the 500 F one s I grew out, there would be two recessive narrow leaf plants that were absolutely hazed like, and the rest of them were all far more squat NL looking plants.

[00:06:54] Right. So of the two recessives, I was like, well I can’t keep both of them. I’ll keep one of them cuz [00:07:00] I absolutely love the smell. It would take 12 weeks, the other ones would take eight weeks. And I, and that was. That was the sweet skunk cutting. So the uh, the original sweet skunk, we could call it the oss.

[00:07:12] And then downstream from that later you see the is s the island sweet skunk. And a lot of times I think the clone was passed around was the original sweet skunk, but the seeds they were making from it was this island sweet skunk. It gets confusing and I have no idea at the end where the day, what the real story ends up being.

[00:07:29] Right. But the, uh, that plant is still one of my very favorites and it’s still like, I would say, you know, a lot of people indoors don’t grow the narrow leaf plants, what we used to call sativa’s. Right. But that one has stood the test of time because that came out in either late 95 or early 96 that was around when I was making it.

[00:07:52] And that was, uh, to this day it’s still like sort of the top skinny girl in, in BC and abroad. You know, I see [00:08:00] people growing it in Spain and other places and it just gives me such joy. It’s just such a high note. The aromas of it are really, there’s nothing dirty about them. Whereas everything that’s kind of Afghani dominant, there’s a real earthy undertone or a bit of a stinky.

[00:08:17] And yeah, it can be loud, but if the loud is stinky, how good is the loud ? You know, I want one that’s perfume. And if it really is like, oh, that just gets me excited, you know? That’s more important to me, you know, and the, uh, like, we’re gonna puff whatever we, you know, need to, to stay lifted all day. You might as well get the flavors in you that, that make you most excited.

[00:08:42] Right. And it’s more of a social lift to those kind of buzz. It doesn’t put the herd on people. It gets ’em chatty and having fun. That’s usually why I end up talking for two or three hours on podcasts cuz I’m dabbing some sweets, , twisting one up. Yeah.

[00:08:58]Kellan Finney: Yeah. I mean, I’d like the high from, uh, [00:09:00] uh, cannabis with a much sweeter note.

[00:09:02] I mean, it’s not only the flavor, but like for some reason the high is a lot more

[00:09:05]Breeder Steve: enjoyable. Yeah, yeah. It’s a pleasant, it’s more pleasant. It’s not so, yeah. And it’s,

[00:09:08]Kellan Finney: it’s a little more high. I just feel more creative and like more of a head-high kinda

[00:09:12]Breeder Steve: situation. Yeah. It’s, know what I mean? It’s stimulating as opposed to numbing.

[00:09:15] Yes.

[00:09:16]Kellan Finney: You know? Yes, exactly. Yeah. That’s a great way. Describe it. I had one quick question, Steve, so Sure. When we’re, when, uh, breeders go through and they’re, they’re crossing plants, right? Of course you have a male and a female. Do you physically, are you physically removing the pollen and like brushing it on the female?

[00:09:30] Or is it like you kind of just set ’em next to each other? Have a fan and just shut the mood. Like can you kind of talk our listeners through that whole

[00:09:37]Breeder Steve: process? You know what I mean? Absolutely. No, it’s a great question and it’s, uh, it really depends on the situation. So if you’re doing a small test batch, like I’d never want to make a whole greenhouse of one seed before I’ve made a small batch and grown out a few hundred, you know, and see how they behave.

[00:09:54] So once, if I’ve done the small test batch, that might just be one branch. That, and for collecting [00:10:00] Poland for small batches, what I tend to do is I’d take a shoebox and on the bottom of the shoebox inside I’d put parchment paper and then some cheesecloth or a screen over that. And then I cut some male buds right before they’re opening, just when they’re about to open.

[00:10:17] But havent I’d cut them and then I tape them in the lid of the shoebox. So they open in the shoebox. The pollen drops through the screen. Any little green bits or flower bits stay on top of the screen. And you can even poke a few holes in there so it’s not too humid. The, um, humidity will kill it. The pollen pollen’s got to stay dry to stay viable.

[00:10:39] As soon as it gets wet, it sprouts. And if you look under a microscope at pollen, it’s like really tiny seeds and they, they sprout a long tail, you know, the, um, If I’m going to do a production run, I typically put live males at, you know, by a fan in a room or in the air intake [00:11:00] end of the greenhouse. Like when I was doing big batches in Switzerland, in my greenhouse, I would hang four males There were cuttings of the same male, but I would hang four males at the air intake end of the greenhouse, and that just cloud of pollen would go down and hit everything in the greenhouse. So I’d get, you know, 20 kilos of seed or something from, yeah, okay. That those greenhouses are about 12 kilos of clean seed per time.

[00:11:26] And I might have four different females in there, or five different females, you know, taking the same pollen. So that was, uh, a good way to go. You excuse me for 20 seconds here or less. I gotta let my dog in. I.

[00:11:44]Kellan Finney: I’ve always wondered about that, that process. You know what mean? I think that’s a great question. That’s a great question. Like everyone always talks about it, right? And I mean, I’ve even just spent so much time with growers and it’s always like, oh, we just crossed these two plants. I’m like, do you want what I mean, save that or no?

[00:11:58] What do you mean? I think we could keep that [00:12:00] right? Like I’m canceling you canceling

[00:12:07]Breeder Steve: So Steve, yeah, no, I miss

[00:12:08]Kellan Finney: No, no, I was just teasing Kellen. So Steve, those techniques that you learned, was that trial and error over time or was that something that someone taught you? This is, this is the way to do it? You

[00:12:20] know

[00:12:20]Breeder Steve: what, I think I got that out of marijuana. Bought me from Robert Connell clerk, but, and that was really one of the first books that really inspired me.

[00:12:30] You know, the first grow book I had was Mel. The Mel Franken Rosenthal Grower’s Guide and the second book I had, I might have even ordered them at the same time. I had the Marijuana Botany by Robert Connell Clark. And uh, yeah, when I, I was reading that like, oh, this is the world’s greatest hobby if you’re a pot lover.

[00:12:50] You know, collecting genetics and trying them out from all over and trying to craft something new and distinctive, you know, having fun with it. So it’s just a [00:13:00] great hobby, you know, if you love pot, you know, you, it’s really taken it to the extreme to start breeding your own. And you know, you, if you start out a necessity, it didn’t seem like, you know, if you start out a necessity, it just seemed like a normal course of action.

[00:13:17] Whereas today, you kind of have to make a conscious choice to start breeding because it’s so easy to just go pick up some cuttings at your local grocery store, you know, whereas that just wasn’t an option back then. Yeah. You know?

[00:13:29]Kellan Finney: So take us back in time. You were in Canada. How did we get to Switzerland?

[00:13:34]Breeder Steve: Well, I’d had, I’d moved to PC in 94, and then maybe 97, 98 I opened a grow store that made Aquaponic systems and my super soil, which is all bio of course. And then, uh, uh, American consultant slash experts that, uh, is up from California visiting PC regularly Rosenthal. He lined up a consulting gig and [00:14:00] invited me to go in on it with him as a partner.

[00:14:03] And that was for three brothers that had probably the biggest operation in Switzerland. So that was, that was, uh, early May of. Of, uh, 99. So I went over with him on this two week consulting gig and said, you know, was, and I said, man, I’d always said if I could just breed wide openly and pay the taxes and treat it like a normal business, I’m there.

[00:14:27] You know? Yeah. So when I saw that that was the case, and it wasn’t just get a license and start working, you didn’t need one. It was never illegal. So there was no license. It was just legal like tomatoes, which was perfect. It was absolutely boring. Nobody give a shit about it. You could go to the mainstream supermarkets, like really mainstream supermarkets in the in May and where they had all the flowers and vegetables and fruits for sale and trays out [00:15:00] front.

[00:15:00] All the little starter plants. They had a hemp section and they had a cannabis section and they had a great white shark with plant tags. It’s a picture of the bud or a picture of the plant. And they had ulti, hemp, you know, with a picture of it beside a Shelly, like 30 feet tall and all this, you know, and it’s a plant in full sun, good drainage, heavy feeder harvest mid-October, like it was just normal, you know?

[00:15:24] It was just like any other plant in the garden center. So this was so refreshing coming from where we didn’t, nobody even had met at that time, you know, like it was in Canada at least. So it was, uh, It was like, oh, well hopefully in 10 years the whole world will be like this. It’s just normal dreaming, right?

[00:15:42] Yeah. So the instead the Swiss went backwards, the, but at the time it was great because Swiss botanicals and plant research in that is really big in Switzerland for pharmaceuticals and cosmetics and you name it. So they said, you know, when the neighbors say, why isn’t cannabis growing illegal there?

[00:15:59] They say, oh, [00:16:00] we’re not going to start making plants illegal. The uses can be illegal. There’s no hash bars. This is not Amsterdam. You know, it’s illegal to sell hash. It’s not illegal to sell a kilo of flour because you like the way it makes your sweaters smell in your closet. You know? So that’s how they did it.

[00:16:14] It is just he really. Because look at Italy, Austria, Germany, all their neighbors, it was highly illegal. France is highly illegal and expensive, but they let all their kids go plant 10 hectares every summer. And they knew their friends from Italy or their friends from France, or their friends from Germany would come to Switzerland and buy it.

[00:16:36] The, the Swiss aren’t risking anything, you know, they, they know just let it, let it happen and the money will come. The Swiss are, they’re open to business. They always have been. They, they have no qualms about where the money’s coming from. You know, not that there’s anything wrong with cannabis business, it’s just, uh, they just, they’re equal opportunity that way.

[00:16:55] Wherever the money’s coming from doesn’t matter as long as the money’s coming.[00:17:00]

[00:17:01]Kellan Finney: So how, how long were you doing that? And I know you have an interesting story of, of what ended, what ended that ?

[00:17:07]Breeder Steve: Yeah. I was, I was there about three and a half years and. I left for Spain at the end of it because it started to get weird. And what happened was it had grown, the industry had sort of grown so much with all these informal, the shops that were set up selling it on the border of Como and Kiso, which is where Italy and Switzerland meet me.

[00:17:31] Italian side are one of the areas they meet the um, if. Borders in the middle of what appears to be one town like Quiso. If you look from space, it’d look like one town, right? But in the middle of Main Street there’s a border. Mm-hmm. . So people would finish school or work walk over to the Swiss side. As soon as they walked across on both sides of the street, the sidewalks had sandwich boards of pot leafs and pot stores like the both sides of the street for the next block.[00:18:00]

[00:18:00] So it was right within sight of the Italian border guards. And the Italians actually had to change their law cuz they had to charge anybody caught with anything. They had to drop it to five grams or less. They can take it without doing paperwork. Because so many people, and they just started, you know, they give up because everybody come and buy five grams.

[00:18:17] Five grams was the smallest package in the shops. But what they had, uh, the thing that really threw a wrench into the local industry for us was one of the shop owners. Whose name I’ll leave out of it. But he had, uh, investigative journalist showed up in his shop from Rome with a hidden camera and a microphone, and he’s looking at this shop, there’s hundreds of kilos of pod around the shop, and he’s going, man, the sh this read is so good and frosty and so cheap, like back then wholesale by that last summer, frosty, you know, white rhino or whatever was going around at the time, [00:19:00] that would be 1500 a kilo Franks, which was like Canadian at the time.

[00:19:05] So that would be almost a doll, a little over a dollar a gram US buck 20 year gram us if you were buying a kilo, right? Which is thousand grams, of course. So they, the, the journalist says, oh, it’s so sad. This stuff’s worth of fortune in Rome. It’s so sad we can’t get this in Italy. And the shop owner says, Hey, don’t worry, we do 24 hours free delivery anywhere in Italy.

[00:19:26] So that went on the Roman News the next night and the Pope was on the phone. or the Pope’s people got on the phone to the Catholic prosecutor for the area and said, if you’re a good

[00:19:38] Catholic,

[00:19:38]Breeder Steve: you’re gonna shut this down. So even though they had, uh, there was no reason for them to shut us down, but they wanted put you in investigation.

[00:19:46] And we said, well, you can have a look Buck. If you’re gonna make this a pain in the ass, we’ll just close up anyway, you know? So they like, they came in, it was the end of the summer and we had, uh, just cleaned up. We were [00:20:00] taken down. We had different locations. So at the Warehouse, which was the head office and warehouse, where I did most of the seed work in the winter and had all the veg area and whatnot, that would also be a trimming area.

[00:20:11] Light depth for the summer or the, or the field crops and that. And we had literally just finished sweeping up from cleaning out one greenhouse. And I was in the rental truck about to take another greenhouse over there, and they’re, don’t bring it, don’t bring it. So they called ahead and said, we wanna come and visit your place.

[00:20:29] And they, they came with a video camera and everything, and they’re like, well, if all you do is make seeds, where’s all, you know, what happens to all the weed? And truthfully, you know, we said, Compost it, you know, and they’re like, let’s see this. And sure enough, we went out, we had like a 10 pod, like we were dropping it from our upstairs window, all the T seeded weed, and there was like a 10 foot mound of bud with seeds sprouting out of it.

[00:20:54] It was like, you know, Moss, cuz there was still so many leftover seeds in the, the bud, right? [00:21:00] So they, they were like, oh you really are throwing out CD weed. Yeah. It was like, yeah, after we, you know, skim most of the seeds, we compost it all the weed. And they’re like, okay. So they really, they never had anything to charge us with.

[00:21:11] We just said, if you’re gonna make it a hassle and we just stockpiled a whack of seeds that summer. So we said, let’s shut down and, you know, go to the beach . So I went to the south of Spain and I sold my facility to uh, shanty Baba, who was a friend, other expat breeder in town at the time. Was interesting is we used to, we didn’t get together a lot, but a couple times we didn’t.

[00:21:37] Uh, he’s a super nice guy and I felt bad for him because he’d jumped through all the hoops to do the paperwork to be there legally and whatnot. And I was like, company, apartment, company car. I’m a tourist, you know? And he’s like, oh, they’re just gonna scare off you cowboys. He says, I got paperwork, I’m gonna stay here.

[00:21:56] And he want, he was, uh, having problems with his [00:22:00] partner and he loved, you know, I had a, a better seed place really. So he said, I’d love to buy your place if you’re, if you’re scared off. I said, it’s like you buy it then. So I sold at my place and I went south and then like a month or two later, he was the only guy that got locked up in this whole situation.

[00:22:16] And they put him in a Amnesty International condemned Dungeon, who was like 400 years old or something in Mendrisio And, uh, He that none of the Swiss people, they, they did a roundup in an investigation of like the hundred local companies and they hadn’t even heard of my company because we didn’t have a shop and we weren’t doing any retail or anything.

[00:22:40] Right. So the only reason they heard of us was because I’d caught this guy breaking in a few times and my lawyer said, oh, let me call the prosecutor and I’ll get the guy locked up because you caught this thief. And I’m like, caught him red-handed. I even beat him down a couple times. I’m like, I dunno what I’m gonna do with him this time.

[00:22:56] Like I, this is like the third time I’ve caught the guy red handed. [00:23:00] And he is like, he’s like, oh, I’ll get him, I’ll, I’ll talk to the prosecutor. And she’s like, oh, thanks for telling me I’ve ever heard of this company and I’m about to do a big investigation of all the cannabis companies. It was like, oh great.

[00:23:11] So we literally just shot ourselves in the foot with, so that was. We could have stayed on and, you know, pushed it. But at that point we were kind of just getting fed up with the scene and just said, you know what, whatever, we just stockpiled the seeds. We’ll close up shop for now. And, you know, sold the facility.

[00:23:30] So it wasn’t a loss to walk away from it or anything. So it was, uh, Just good timing, but I felt really bad for Scotty there. His what a drag. He was the only guy even in that damn prison, but he was also the only person arrested. And it was only because he was a foreigner. None of the Swiss people, like they got hauled in for interviews or whatever, but, and they, they didn’t come in like throw cuffs on anybody they you up and say, come in for an interview.

[00:23:56] So it wasn’t like they rated places. They ju they’re very, it was [00:24:00] very civilized, way they went about it. But I just said, well, you know, I don’t need the, the headache. I, I was here because we’re able to do it wide open and legal. We were getting refunds on our employee taxes because we were, uh, classified as a export manufacturer, which it means if you ac manufacture something and export over 70%, they give you big tax refunds there.

[00:24:22] And we had like 97% of our sales were export. Very few people actually bought them in the Switzerland. So, Went to. Go ahead Brian. No, you go. I was gonna say,

[00:24:33]Kellan Finney: so I have two questions. How long did, uh, the individual have to, to spend in that, uh, medieval dungeon?

[00:24:39]Breeder Steve: Got he still there? I think he’s, no, he’s not . Oh.

[00:24:43] I think he, but I think he did about eight months, I think. Oh yeah. I, I remember sending him a letter from Spain because I felt, you know, just so bad for him because, you know, he hadn’t hurt anybody. He hadn’t done anything wrong. We’re, none of us are in favor of these, [00:25:00] you know, prohibition tactics. It’s just a nightmare.

[00:25:03] But I felt so bad for him and, um, I just felt like I’d gone away with something. Cause I was sitting on the beach in the south of Spain and he’s sitting in a dungeon getting bread and water and, and I just felt so bad for him cuz we were doing the same thing and what we were doing was legal. But because you’re a foreigner, you don’t get treated the same there.

[00:25:21] So you, you know, , I, I was glad I. Picked up steaks when I did for sure. So you dodged the, the bullet

[00:25:30]Kellan Finney: and then you’re hanging out in the south of Spain. What made you think be like, okay, you know, I’m gonna give this, I’m jumping back in.

[00:25:37]Breeder Steve: What, what was that thought process like? , I, I didn’t jump back in. What I did actually was, uh, my, I had my first child born in Switzerland and my second one conceived in Spain.

[00:25:47] But the Spanish moms were, or the British moms were scaring my wife about the Spanish hospitals since he’s like, I don’t wanna give birth in Spain, I wanna go back to Canada. And we really loved bc We had most of our friends out [00:26:00] in BC and uh, she said, well, you got to pick The last time we moved, she, I’d really like to move back to BC.

[00:26:05] And I said, well, I’m fed up with cannabis for now anyway, so, and we got into drinking wine when we were in Europe. So he said, let’s go back to bc I’ll take the course on winemaking. If I try some local wines that I liked, then we’ll stay and make a winery. So for 15 years I made wine and, and just was a hobbyist again, you know?

[00:26:25] That’s awesome. So, so then, but it’s a parallel universe and part of it was, you know, it’s a, I always thought I said it’s a parallel universe of growing and crafting flavorful intoxicants with some health benefits, . So, so I thought, yeah, this is so fun and I love being outside. I love drinking good wine.

[00:26:47] And I was, went over to. Europe, more of a beer and whiskey guy, or beer and rum guy. But I got into drinking wine over there cause there were so many good lunches and dinners where my European friends or [00:27:00] partners or customers were really into good wine and they take me wine touring at Burgundy and stuff like that.

[00:27:05] So I got really juiced in it and I was like, oh, this is fun. And I said, I could do this until cannabis lightens up again elsewhere. And then I can come back to cannabis and it’ll be a good little sabbatical because you’re still growing something for the flavor, you know? So there’s just a world of parallels and it’s really.

[00:27:26] An eyeopener. I felt like I gained, like, I felt like my cannabis experience gave me a huge leg up in wine, but my wine experience coming back also gave me a big leg up in cannabis. And even studying sensory evaluation classes and things like that, like, you know, the wine industry’s a little more evolved that way than cannabis had been because you couldn’t have, you know, fu Maiers or Ganjiers Right. You had sommeliers but you didn’t have these other ones. Right. So I think, um, you know, cannabis is playing catch-up in that [00:28:00] regard and it’s a good, uh, so much of it’s applicable either way, you know, to as far as tasting goes and blind tasting and all that. So, and obviously with cannabis there’s a lot more.

[00:28:14] To the buzz how, how the buzz is affected because of the entourage effect. And I think to a lesser degree, there’s that in alcoholic beverages. Like some people go crazy when they drink tequila, you know what I mean? Some people are like, I can drink anything except tequila, but that just makes me go fighting or whatever.

[00:28:30] So I think there’s a lesser degree of that in, in the alcohol world, but in cannabis it’s really integral to the experience. And I really thought, um, It can’t hurt, you know, and do something non-controversial while the kids were young. By the time my kids are teenagers and they’re puffing their own in high school and they’re like, dad used, you know, they, then they realized Dad used to grow a fields of weed.

[00:28:58] And I says, well, why [00:29:00] don’t you go back to, so the kids were very supportive by the time they were teens. They’re like, why don’t you keep doing that? And I was like, well, because it was a hassle, but now that it’s starting to open up, I’m going to keep my eyes open at the opportunities. And there was various incarnations of that in Canada and none of the.

[00:29:17] Programs really appealed to me. There was a M M A R, then there was the mm p r, then there’s the AC M P R, and then there was the Cannabis Act, and MMA R was about personal medical growth or designated grower. Then the mm p r was about commercializing medical cannabis, and they were even trying to get rid of the M M A AR growers, but that, you know, they ended up staying.

[00:29:45] And then the A C M P R kind of reflected that there was gonna be both. And then the Cannabis Act came out when it was about, uh, adult use, you know, so, The evolution of it’s been, you know, interesting to watch over the last 20 years. But at, [00:30:00] you know, even with the M M A R, it was kind of like the best case scenario.

[00:30:03] You’re gonna, they might give you a 300 plant license or something great, you know, and people were taking advantage of that, of course. And, and I don’t blame them for it, but it still was like, I wasn’t gonna contract it. I was just gonna plant 300 plants because as a breeder, you know, I’d wanna plant 10,000 of each line and I want to plant 20 lines.

[00:30:22] So if I, I might not finish 300 plants out of those, you know, cuz I call them constantly, you know, each transplanting, I probably kill 75, 80%. So if I start with 10,000. After I’ve done three transplanting to go put ’em in the field and look at ’em, I’ve already reduced the numbers drastically, you know?

[00:30:41] Yeah. So with breed breeding’s, a numbers game, and if you can’t use high populations, it’s just not as much fun and not as efficient, you know? And you can do good work on a small scale. And I always think of, you know, there’s exceptions to every rule, right? So you have, you know, Sam, the scout man, he would do 10,000 [00:31:00] seeds of each line and do a bigger scale, whereas DJ short making blueberry and that he’s working most of the years, he was doing it in a closet, you know, with one light.

[00:31:13] He had like a thousand watta flour in a 400 for veg, and it was just highly illegal. So I don’t, you can’t blame people that don’t want to get busted for having a bunch of weed and getting life in prison, right? Yeah. So, but he still was able to come up with distinctive work. on a small scale. So it can be done, you know, anybody can do it on as a hobby on any scale, but, but if you want to, you know, make the most of your time, you wanna do the, the biggest scale you can because you’re gonna have a better chance of finding the most impressive individuals.

[00:31:46] Right.

[00:31:47]Kellan Finney: So for our listeners at home that are interested in kind of learning like the very basics of breeding, can you kind of walk us through like the, the, the first step and like a, a small macro level of the steps that people would take, just as an example, so they can be familiar with, [00:32:00] with how it would.

[00:32:01]Breeder Steve: Sure. So you, you start all starts with seeds. You may collect cuttings as well, but you know, cuttings alone isn’t really a breeding program, let’s say, but you know, with feminizing you can do it, but it’s, let’s say DiUS plants, male and female, that’s what you need to use to breed real plants, you know, real females, if you just want hermis on hers after a while, just do feminized.

[00:32:26] You know, I’m not opposed to feminized, although I never released any at this point, you know, I still will probably, but I never released any feminized because I was al, I’ve just always been so against hermaphrodite. So anyways, the point, its, let’s say you have 10 packs of seeds and there’s 10 seeds in each pack, and you say, I’m gonna plant these out and pick my favorites, and maybe.

[00:32:52] Maybe there’s only two packs that you think, oh, these ones I really like, but the other ones, they weren’t my favorite. So don’t use them. You know, you really just have to [00:33:00] be exclusive, you know, and, and narrow it down to what excites you the most and, and what you’re going for in the plant. So if you’re looking for a certain flavor, then you wanna find that in both parents, you know, in the male and the female.

[00:33:14] And if you say you’re looking for a lemony plant, if you rub the stalks of that male, you’re gonna get a scent even before they’re flowering. And you might be able to say, okay, this male is easily the most lemony of the line. You know? So that’s probably your best pick. If, if lemon pot is what you’re after, if you want one with more color, take the one with more color.

[00:33:37] You know, it’s totally what you’re after. So, but an essential point is you’re gonna take a male and a female minimum. And the best thing is if you can take more than one female. or more than one male because if you just have, say, one brother and sister, that’s gonna start getting inbred. So with line [00:34:00] breeding, so you’d have the first filial generation is your f1.

[00:34:04] So you’d have a male plant and a female plant, and that F1 could be an F1 hybrid. If they came from different genotypes, you know, the um, F two, you’re gonna see lots of different recombination. But by the F three, assuming the parents were anywhere close to stable to begin with, which is a big stretch these days, you can start to see some, uh, stability in the F three.

[00:34:29] Now, if you’ve been keeping two lines, say you had two sisters and one male, then you’ve kept them two lines going like this. Every third generation, you cross those back and that is how the basis of line breeding, you know, so if you’re. Maintaining some vigor in it because if you just keep doing that 4, 5, 6, 7, 8, you know they’re gonna start getting inbred.

[00:34:55] You’re gonna lose vigor. Um, [00:35:00] You know, some plants that might take you more generations than three to stabilize ’em because they’re poly hybrids of poly hybrids. And it, it takes a while to sort that out. Another strategy, which I believe I was the first using in cannabis, I don’t recall seeing it on anybody else’s catalog, was back crossing.

[00:35:17] So I would do, for example, with that, uh, grapefruit because it was a clone only, I wanted to make a stable version of seed of it. So I wanted to cross it with something that was very different as a backboard. So I used the blueberry mail, that was a fantastic mail I founded in 90, summer of 96. And that mail was, so, the stock was solid purple.

[00:35:41] Right? It was absolutely solid purple on the stock in, in branches. Whereas the grapefruit is more green and striated, you know, you get the red lines on it. Yeah, the candy canes. Those are striations. So, . Um, when I’m growing them out, if I find a male that’s purple, it’s not the one to use for the back [00:36:00] cross.

[00:36:00] If I find a male with the striations and it smells like grapefruit, that’s the male I want to use for the back cross. So that’s taking the sun back to the mother and you do that once. It’s a back cross. You do that twice, you’ve squared it. The third time you’ve done that, you’ve cubed it. That was a sweet two, three was a cubed grapefruit.

[00:36:20] So it’s the third back cross to grapefruit. Now those seeds, they were amongst, if not the most homozygous cannabis seeds out there. Cuz before that skunk number one was the only one that was noted as being homozygous and. There was even some debate about that, but I think it, I, I mean, I felt skunk was, you know, if you had the real thing, it was a very recognizable thing.

[00:36:46] Anything can fall apart a few generations in somebody else’s hands. It may not be the same, but I think when skunk number one came out, it was very distinct and recognizable and. And there was not like you were pheno hunting through it, they were pretty damn stable. Right. [00:37:00] And the Suite two three was like that.

[00:37:01] They were, I saw lots of times people walk into a room from seed or a greenhouse from seed and say, oh, which cutting is this? I say, it’s all from seed, man. What? No, they’re, there’s, they’re cutting. I know that they’re all from seed. You know, they just couldn’t believe it. Right? But it takes time to do that.

[00:37:17] And most people are just about crossing this and that as fast as they can and getting out that new, new, nobody takes any time to stabilize something. And people say, well, why would you do that? It’s so easy to, to make knockoffs and rip you off. I say, yeah, but everybody is making poly hybrids or poly hybrids.

[00:37:33] Somebody’s gotta put out a stable mail that people can use cuz they’ve all got a nice clone. Only that they would like to do the same process and stabilize seed it for their home use and whatnot. Give, you know, we gotta have some stable genetics in the world. So I just felt it was crucial to put out something knowing, yeah, I can get ripped off for it, whatever.

[00:37:55] You know, and you couldn’t protect your genetics back then. You had no plant breeder’s rights or anything. [00:38:00] Right. But in the other hand, we all want better grass in the world, and to help the home breeders by giving ’em something stable, they can, they don’t have to, you know, keep whatever they’re breeding, 50 50 sweet two, three, they can breed the sweet two, three out of it.

[00:38:14] It’s just having a stable backboard to use. Right. So anyway, that process was, uh, a lot of fun. And then later I see, you know, now there’s a lot more seed companies doing back crossing, which at the time there was, it was the only back cross stuff out there, you know? Yeah.

[00:38:33]Kellan Finney: For, for commercial operations, what is your opinion on like balancing, uh, like growing from seed versus

[00:38:40]Breeder Steve: tissue culture?

[00:38:43] Well, it depends on your, uh, technique. You know, what paradigm you’re growing in. If you’re in a horticultural paradigm for a lot of people, I think the tissue culture and, you know, asexual propagation is the current standard, right? That is the way to go. [00:39:00] But that is because the seed is not stable. So you can’t expect somebody to go plant a green, go back, that stability’s not stable, right?

[00:39:07] If you had stable fam seeds, then you might have, uh, you know, a possibility of doing your commercial production without mothers in cuttings because, and just like with seeds, and you have to remember, or planting hemp, the real hemp farming to me isn’t transplanting clones into a field, you know, it’s taken a seed drill and laying down a blanket of hemp, you know, and.

[00:39:35] And that’s how, you know corn is produced. And a lot of these commercial crops like cannabis is a grain crop. You know, when you think about it, you, you can grow it just like a grain crop. And people think, oh, but cannabis is too branchy. And that’s simply the spacing. You know, if you do high density planting, it doesn’t have any branches, it just grows single coals, right?

[00:39:56] Because you’ve got a hundred seeds in a square meter, so there’s no [00:40:00] room to grow branches. And I do love that high density planting style that is common in use for hemp. And because it’s, but obviously if people are paying $2 a femme seed, they can’t afford to blanket, you know, a field with a ton of seeds.

[00:40:16] You need to have silos of seeds. If you wanna plant it like corn and harvest it like corn and make it for the price of corn oil, you have to be in the. Agricultural paradigm where it’s mechanized agriculture. And you think about it, you could, you know, maybe you wanna modify the combines, not to trash the herb too much, but if you’re making extracts you can

[00:40:40] As long as it is more a factor of time than careful handling. If you can get soil to oil in under an hour, you know you’re ahead of the game. That’s, you know, for live resin or live rosin, it’s really a question of how fast can you get that stuff outta the plant, you know? [00:41:00] So I think there’s a lot to be said, and I think we’re gonna see more mechanized agriculture because hemp is cannabis.

[00:41:08] You know, cannabis is hemp, and if you want to knock out, you know, vats of diamonds and sauce, or vats of rosin, the chances are you’re not gonna need everybody out there cutting it by hand. And, you know, hanging them up and putting them in. I don’t know. It’s just, uh, thinking about it more at industrial scale, cuz industrial cannabis could be a thing.

[00:41:33] Like if there wasn’t the THC phobia in the regs right? Then you could get hash from a hempfield, you could still, you know what I mean? There’s. There’s so much potential for the plant to be, you know, tri cropped even. You could use it for three different things in the same crop. So you could have, even if I’m making a seed crop, let’s say I’ve got a successful cross that I’ve tested out.

[00:41:55] I like it for my local area, and I think, okay, I wanna start producing a [00:42:00] thousand hectares a month of this seed. I need to start making 10 hectares a month, or one hector a month of fem seed to be able to plant that many, right, right. So you’ve got, first you’ve gotta acclimatize to where you’re growing and have the chemo type you want.

[00:42:16] Maybe I want a high th hcv, which is really common to tropical equatorial types. You know, you don’t get t h CV in the auto so much, right? Because they’re high latitude. They’re just a different plant type. So, If, um, you want to go to town and really produce, even with G M P meds, and this is something my company in Columbia lobbied for, uh, against control union or two control union.

[00:42:45] They’re the ones that control whether something’s GMP or not. Right? So, I mean, it took us three years to get G A C P, which is good agricultural collection practices, and your crop needs that before it can go into a [00:43:00] GMP or E U G MP processing facility. So the first stage is that the crop passed that well in the cannabis medicinal cannabis regs in G M P they originally said, No outdoor, it has to come from a facility because you can’t have bird fly over and poop on the flowers or something.

[00:43:18] Right. Okay. I get that for flower, but I wouldn’t accept that for extracts. And I told the lawyers to repeat three words. Poppies, poppies, poppies, you know, and they had the cave because there’s E U G M P, poppy production, right? That they make all these, all the pharmaceutical opioids come from fields of poppies, not greenhouses, not warehouses, fields.

[00:43:46] They say, yeah, if you can do fields of. Poppies that are EU GMP meds, then we can do fields of cannabis extracts that are EU G MP meds. So I’m trying, you know, I’ve worked really hard. I don’t know if we’ll be the first, [00:44:00] but I’m trying to be the first one, crossing that paradigm into industrial cannabis with the certifications and be able to crash the price of meds.

[00:44:09] Cuz right now, if you look at live rosin or live resin, these are treats for rich people. You know, if I give a cart with some diamonds and sauce in a cart to a street person, you should see the smile on their face. You know, and , I’ve done this in, you know, developing worlds and you and you, and they’re like, yes, Hollywood weed, Hollywood weed.

[00:44:30] Like, they can’t believe it. They’ve never seen it. And they, and you think the, it’s good meds for everybody. You know, it shouldn’t be a hundred bucks a gram if, if you can make it cheap and have this stuff going out for the price of peanut butter. that’s doing a service. You know, like, yes. I feel like the meds for the masses have kind of been my theme with that.

[00:44:49] That I wanna make affordable meds that are meds for the masses, and I want to give them that high grade experience for the price of aspirin so that, you know, anybody can experience it. [00:45:00] And not to say that people won’t keep making great stuff on port, a cultural scale, that’s absolutely fine. You know, not every, not the best winery is necessarily the biggest winery.

[00:45:10] Right? Great. So that’s fine. But you can still do quality at scale and it’s just a constant striving, right, where you’re trying to keep raising the bart. It’s very easy. For me, it’s, it’s too easy to say, oh, I can make, you know, six star, you know, ice wax from my indoor, okay, yeah, I can do that. Anybody can do that.

[00:45:32] It’s easy, especially if you can sell at a first world pricing, you know? But let’s see how, how close to that you can get and s and get it made for the poorest people in the world, you know? Because 99% of the people are never gonna get that ice wax from your indoor, you know? That’s great. It’s a treat for rich people.

[00:45:50] That’s beautiful. But let’s see how good we can get it for the poor people,

[00:45:54]Kellan Finney: you know? Yeah. I think that’s really well said. So I want to kind of take it back to the genetics. Obviously you’ve seen your hand, your, your [00:46:00] handful of genetics. Is that what inspired the living library of genetics?

[00:46:04]Breeder Steve: Well, the living library is, uh, uh, uh, a long-term project at this point where I started with a million seed search and I invited, you know, supporters to contribute seeds in the, in my.

[00:46:19] Thing was you want to contribute seeds for me getting back, going again. Let’s look at everything together. So anybody that contributes welcome to come and join in. Also have, uh, other academics or journalists or aficionados are welcome to join. So I’m doing them in different locations. The next one happening is January.

[00:46:43] In the Plains of Columbia, Los Janos, and that’s with a company I co-founded down there called Medcan. And we started that a little over six years ago. So in the next round in Medcan, there’s 375 different sessions [00:47:00] and some of those will be aligned. That’s just a clone, but most of them have been planted from thousands of seeds.

[00:47:06] So you can do some pheno hunting within each of those 375 sessions. So you’re really looking at plants from very high populations. I have 60 acres fenced for seed wear down there, right, with two armed guards, 24 7. So I think it’s a great opportunity for people that are really into it to come and see.

[00:47:31] And select themselves any plants they want because we do formal registration of the genetics and then we export them with phytosanitary certificates to legal countries. So we license genetics to Spain and Canada right now, and that’ll expand the, and then those are for royalties, typically. But the, uh, the, think of the beauty of walking into a field that’s on the equator.

[00:47:55] So you can have equatorial stuff, but it’s in the height of the dry season [00:48:00] when everything finishes in the rainy season, most of the Afghani stuff won’t finish right. But in the dry season, everything finishes rock hard to its potential. It’s super fun to see. And you can go through the blocks and say, okay, I’m gonna spend the morning walking up and down African lines.

[00:48:18] Then I’m gonna spend the afternoon walking up and down Asian lines. Then I’m gonna go to the Indian section. So we’ve got. Land, race and heirloom stuff from all over the world. We’ve got all the new, new stuff that you can think of, and then we’ve got hybrids between them, you know, so you’ve got Santa Marta gold crossed with slime cookies and you know, all these fun things.

[00:48:42] So, you know, it’s just a real, to me that’s the absolute joy of it, is to walk in the fields and make the selections. And as far as having the assistance of Mother Nature in external pressures, like you said, the natural selection’s a pitch, right? So , I like, I like, I [00:49:00] like doing these, um, selection runs, not just in the dry season.

[00:49:03] I do them in, in ending in the rainy season as well because under a research license that I’m doing, the selection runs under, I can’t use any of that for medical production. It’s all gotta be destroyed. So I might have, you know, 10 acres of selections and then, you know, promising plants. We’ll get tagged.

[00:49:25] They’ll get sampled for the lab cuz we have onsite, we have really nice lab and um, so we’ll go through and study all our favorites, but at the end of the day it just comes down to cutting them, weighing them and wet drying them. And we don’t even dry them. Like with cold we just, you can hang ’em in the sun cuz it’s only about the weight for the government to show them that we’ve taken all the weed that we grew, that we’ve taken this much off for a few for samples and then they come out and watch us burn it all in a big, beautiful bonfire.[00:50:00]

[00:50:00] So you think you’re crying out loud, you know there’s just such a waste to have to burn all that cannabis. But cuz you sometimes it’s this really like, incredible stuff, , but you gotta just pile it all up. It’s, it’s a bit painful. Cause originally we had hoped to donate it to the university and then we could do some, you know, extraction.

[00:50:22] Run trials and partly to train the people, the technicians working on the extractions. Cuz I want to train them in the different types of extractions, right? Yep. So I wanna use that stuff and then say, at the end of the day, even if it’s just reduced to a basic distillate for the university to set up, you know, uh, trials with, they do clinical trials and preclinical trials and that they just need the raw material.

[00:50:45] You know, if they’re making a topical and they just want some THC distillate to work on their arthritis topical or whatever, why can’t we just give it to them, you know? But no, the way it is, it’s very strict, the regs, there’s not an adult use scenario at the [00:51:00] moment in Columbia, and there hadn’t been a huge push for a long time because since I think the nineties, maybe even the eighties they had, uh, in their constitution, everybody’s allowed 20.

[00:51:12] So that’s pretty sweet. You know, not too many countries are letting everybody have 20 plants for the last several decades, you know? So I, that was something that made me feel good. Cause I never wanted to go and operate somewhere. It was a captive market situation where the people aren’t allowed to grow their own.

[00:51:26] They have to buy it from the big company, you know? And me, I want them to buy it because they want it, not because they have to, you know? You know, I want to compete with themselves. You know, you could grow your own, but you’d rather buy mine. So, you know. Right. That’s either way I’m happy, you know, I’m happy if they grow their own.

[00:51:43] I’m happy if they wanna buy ours. But, uh, there’s a very complicated system in Columbia of quotas called Copos in Spanish Los Matos cups. So you have to apply for quota to plant anything that’s gonna have over 1% T H C [00:52:00] C B N combined. So they, you know, you don’t need a cooper for growing hemp, but most hemp isn’t acclimatized to the equator.

[00:52:07] So it’s kind of . You gotta hybridize it with native stuff so that it works in those conditions. But you need a quota every generation, and sometimes they, you have to wait a few months up to six months between generations. I mean, as a breeder, that’s just, you know, I’ve beaten my head against the wall.

[00:52:28] Like I can’t wait six months to plant the next generation because some bureaucrat hasn’t signed some, you know, gimme a break, you know? So, and this brings me to where I’m happiest working right now is a project I have in Thailand, which is unrelated to med can, but it’s, uh, Thailand has come a long way.

[00:52:45] And I’ve started there with a hemp license about two and a half years ago. And then this June, they basically descheduled. So they didn’t, it wasn’t like they imposed a bunch of eggs on it, they just descheduled basically for the flower. So [00:53:00] extracts, you’d still have to be a license processor and the extracts could only be sold with a prescription through a pharmacy.

[00:53:08] Whereas if you’re breeding, you don’t need a quota. You don’t even need to destroy the flowers because you. because there’s no law against selling flowers, you know, so it’s just, they might as well be tomatoes. It’s just great. It’s so, it’s so workable and we’re not even selling flowers. I don’t care. It’s just that I don’t need the quota to keep planting more seeds every generation.

[00:53:31] Cause if you’re losing half your time to waiting for permission, you know, it’s too expensive, you know, to, to deal like that. So I’m really, really a lot happier working in Thailand than Columbia at the moment. But to be fair, um, they’ve passed, I think four readings now, and I think they have to do eight, but they’re, they’re overwhelmingly passing for an adult use regime in Columbia.

[00:53:54] So there will be wide open dispensaries where any adult can walk in and [00:54:00] buy any form of cannabis they want. Theoretically, you know, that’s not officially yet, but it’s by March, that should be in play. And Columbia is a fantastic place to visit and tour as a tourist. It’s got, uh, It’s reputation as an unsafe place is really outdated.

[00:54:18] It’s not the safest place in the world, but there’s really different regions within Columbia and the safest parts of Columbia. If you look on like the, I think US Department of , foreign Affairs, or I don’t know what the hell they call it, but I was looking on some website and they give like Santa Marta in certain tourist areas like that.

[00:54:41] The same rating is Belgium for safety. Yeah. So if you’re not afraid to go to Belgium, don’t be afraid to go to Santa Marta. You know, it’s, it’s really fine. There’s other parts of the country that you are an idiot to go. If you’re a tourist, you’re just asking for trouble, you know, and there’s places in between.

[00:54:59] So [00:55:00] you’ve basically got Red Zones, yellow zones, and green zones. And if you stay in those green zones, You’re probably not gonna have any trouble, you know, if you’re stumbling around really drunk at night, flashing some wads or something, you’re gonna get jacked. You know, like, but that could happen to you in LA or anywhere else.

[00:55:19] Right? You know, you just, if you’re asking for trouble, you’ll find it . If you, if you just there to have fun and, you know, go out and see the beaches or go fishing or go for a hike, you’re gonna have a great time. And it’s really fantastic. The people are overall super friendly and, I wouldn’t hesitate to tell anybody to go there for an amazing holiday.

[00:55:41] And for me, the natural world is the, the nicest thing traveling and, and Columbia’s got so much packed into such a small area coming from Canada, you know, you’re like, there’s 11 climactic zones in this one little country and they drastically vary from mountaintop [00:56:00] glaciers to ocean front deserts. And they’ve got the Amazon and they’ve got the cloud for us.

[00:56:05] So, you know, they’ve got the planes where, you know, they’ve got all these different zones where you see different plants, different animals, different birds. There’s amazing amount of birds and orchids and fruit. Even I’ve been going six and a half years, I still find fruit on every trip that I haven’t tried before.

[00:56:21] Wow, that’s incredible. It’s amazing. It is amazing just to go around these old farms and see. Like Indi, there’s a lot of indigenous fruits, you know, that don’t grow anywhere else. You know, it’s amazing to go try these things because they’re flavors you don’t know. And for me, it’s all about loading up the organoleptic memory so that you have that recall.

[00:56:44] So if. If somebody says, oh, that bud smells like grape, what does it smell like? Concord grapes? Or does it smell like Thompson seedless? Like if you don’t know grapes, what is the grape smelling? You just say, okay, it smells like grape. But if you could differentiate, same with cherries. Does it, [00:57:00] is it have a bit of sourness, like a morelo cherry, or is it a bean cherry?

[00:57:03] You know, you know, cherries are different. Apples are different. You could say, oh, this smells like red apples. This smells like yellow apples. This smells like green apples. That’s a start. But you know, there’s levels to this shit, right? So the, your organoleptic memory is where you store this information and everybody has one, but not everybody has it developed to the same level.

[00:57:23] And it’s really about recall. Like you might say, I know exactly what a raspberry smells like and tastes like, but you don’t notice it in things always. Whereas some of us, you know, you take, oh, that’s totally raspberry. You know, you notice it right away. But other people are like, oh, that, you know, I see it lots of times and.

[00:57:42] It’s a blessing and a curse to have a good sense of smell and a good palate because stuff that doesn’t smell good or tastes good, , it’s very aggravating. You know, , if you’ve got a heightened sense of smell, it’s, you know, when you’re smelling great stuff, it’s glorious. And when you’re smelling bad stuff, it’s wretched, you [00:58:00] know?

[00:58:00] So I find myself occasionally cursing the good nose. I was born with , but it’s, I have a lot of fun with it overall and you know, it’s been not just a, a pleasure in my life, but I always said my life would’ve been so much simpler if I was happy drinking box wine and smoking brick weed, you know? Yeah. But if I liked drinking fine wine and eating fine food and smoking proper, you know, good cannabis, you know, that’s drives you to try harder to.

[00:58:30] Either acquire these things or produce them, you know? Yeah. And at some level, when you’re saying, Hey, this $500 wine’s delicious, but can I make one for 10 or 20 ? You know, surely these don’t have to be 500 bucks. You know? So there’s people that aren’t happy. If they’re not spending 500 bucks on a bottle of screaming Eagle Cabernet from Napa or something, that’s fine.

[00:58:54] I would rather pursue the art of crafting it than, [00:59:00] you know, just have fun tickets to keep buying it. It’s okay. There’s nothing wrong with having money to buy these treats, , but it’s, to me, there’s a greater satisfaction in producing them yourself, you know? Yeah,

[00:59:11]Kellan Finney: absolutely. Steve, I wanna take you on a quick rapid fire.

[00:59:15] All right. The seed you are most

[00:59:17]Breeder Steve: known for. Ooh, I would have to say ishka. I think

[00:59:23]Kellan Finney: your all time personal favorite seed.

[00:59:28]Breeder Steve: Hmm.

[00:59:31] Honestly, it was probably the parent of my tropical treat, which later became Tropicana, and that is pure Santa Margold. I think Pure Santa Margold is really my favorite. If I had to pick one to take to the desert island, hands down the, the best version I had of Santa Marta Gold was in the nineties. And I’ve strive to restore it from the Degradated versions I find of it now.

[00:59:58] But to me the, [01:00:00] that’s kind of my holy grail strain is the, that’s strain. We can’t say strain anymore, guys. That’s only for viruses, right? Only virus. There’s only strains of viruses. There’s not strains of cannabis. There’s cultivars and the sessions and hybrids, but there’s no strains of cannabis. And I think, uh, Cannabis is a funny plant.

[01:00:19] This way. We’ve had the, it developed our own lingo and often it’s not always that accurate and sometimes it’s very understandable. If you think of when you see the pollinator machine, right? Was the pollinator machine was to make hash, right? But hash is illegal. So it’s for collecting Poland. You can collect Poland in these things, right?

[01:00:42] And then in the coffee shops, they would call it pollen or P O L M in, in Dutch, but that’s Poland. It’s because of the equipment was sold for pollen making, not because hashes pollen, you know, but it just became known as that it is just we this, and then everybody’s [01:01:00] calling drye keefe. Whereas you know, if you’re in Morocco, Keith is um, a pouch that’s got a mixture of hash tobacco and weed chopped up in a pouch and they dipped their little pipe in.

[01:01:14] It’s called a subsea. And that’s a kef pipe is the subsea. And they smoke their kef through that. It’s not, it’s not straight hash, you know, that’s, but anyways, the, the world thinks of keif as streif and I, I always like, okay, whatever. Sorry I interrupted your rapid fire though.

[01:01:31]Kellan Finney: It’s alright. What’s your most knocked off

[01:01:33]Breeder Steve: seed?

[01:01:35] I would easily sweet tooth or shuka berry easily.

[01:01:41]Kellan Finney: Has there been a, a seed or a cross breeding of two seeds that have evaded you throughout your lifetime? ?

[01:01:49]Breeder Steve: Well, there’s lots I haven’t done, but there’s, uh, there are definitely ones that got away that I regret not, uh, either not seeding or not passing around, cutting stuff.

[01:01:59][01:02:00] I’ve had, you know, the things that I didn’t share, I lost the things that I shared. I can always get back. And I learned that a long time ago where I said, oh, like the first time I found sterile females, these are plants with no pistols, so you can cover them in pollen and they won’t make seed. You can grow, you know, 10 acres of sensimilla in the middle of a thousand acres of ham, and there won’t be a seed in it, you know?

[01:02:22] But I didn’t share those cuttings and I lost them. I’ve learned to recreate them, and now I’m applying that to other lines. But for the cross that I haven’t done, I don’t know what that would be. There’s, you know, there’s certainly endless permutations of what that could be, but I could, I can’t answer that.

[01:02:40] I’m sorry. . That’s fine.

[01:02:42]Kellan Finney: Uh, what is one fact you have learned about breeding that would shock or surprise others?

[01:02:54] I wish I

[01:02:55]Breeder Steve: had a clever, clever response, but I cannot think of one. What’s the first

[01:02:59]Kellan Finney: thing that came to [01:03:00] mind? .

[01:03:02]Breeder Steve: I was still stoked. , nothing gave me, I thought the

[01:03:04]Kellan Finney: shoebox thing was pretty clever. I thought That’s awesome. Oh, okay. If I wanted to start growing at home, what is the number one mistake you think people make?

[01:03:15]Breeder Steve: Overwater. I think that, I think that’s the first mistake I’ve seen most people make is overwatering.

[01:03:22]Kellan Finney: That’s the first mistake I made when I bought a house plant in college. I was like, call my mom. I was like, she’s just drowned. Yeah, she’s just dying. And she’s like, how much are you water? I was like, every day

[01:03:30] She was like,

[01:03:32]Breeder Steve: I helped a lot of people grow their first plants and even where I live now, most of my neighbors are retired and uh, I’ve got quite a few of them growing up and down my street and it’s their first plants, but they’ve done really good cuz it’s mostly ladies that are really into gardening, you know?

[01:03:48] Yeah. So they haven’t had any issues, but I’ve seen it a lot of times where I tell people, they say what’s wrong with my plant? They send me pictures and it’s just drowning. You know? They say Stop watering it. . That’s usually [01:04:00] the first mistake.

[01:04:01]Kellan Finney: I’m gonna take a step, I’m gonna take a stab at it this summer off to reach out.

[01:04:05] Yeah,

[01:04:05]Breeder Steve: go for it man. Happy to help you along. I’m gonna

[01:04:08]Kellan Finney: get Peter, Steve to get my back. I think I’ll be successful.

[01:04:10]Breeder Steve: You’ll, you’ll be fine. You’ll be fine. I, I mean, I’ve been so stoked to see first timers around my neighborhood that are retired ladies that are just killing it, I’m sure. And they’re growing like their first plants on grandpa’s breath or some, you know, modern genetics and they’re like, ever, it probably is the best weed you ever had.

[01:04:29] But yeah, you can’t go back once you, once you, you know, get a taste for growing your own, it’s pretty hard to stop because you don’t really have the same level of satisfaction outta something that just came from a store as something that came off your back porch or something, you know? Yeah, that’s a good point.

[01:04:45]Kellan Finney: That’s perfect. When you started your journey in the cannabis space, what did you get? Right, and most importantly, what did you get wrong?

[01:04:53]Breeder Steve: Well, I, it’s a good question. I think the thing I got right was, [01:05:00] Just, just doing it, you know, where it didn’t have any shame about it. I knew I could get in trouble for it, but I felt like I just had the conviction that I was willing to stand up and do what was right. I mean, I had C N N come to my garden where I had 1500 plants in my backyard in Vancouver before medical or anything, right?

[01:05:23] So I mean, I was going out on a limb with no shame, and part of that was, What really stood me in good stead was I had no shame about doing it. I just had the conviction that I felt, you know, indignant about being prevented from doing it. So it was really the mindset that you could do it, you know? So that was what I got right, was the mindset to just go ahead and do it.

[01:05:47] What I got wrong was probably being too trusting and often I, you know, in, in any kind of business that can be a setback for you if you’re, you know, you have faith in people to [01:06:00] treat you the way you wanna treat them. You know that you wanna be treated the same way you’d like to treat others, and that world’s just not like that.

[01:06:06] So, , it’s not specific to cannabis, but I always say my biggest mistake if you ask my wife, is that I’m too trusty . I know that one.

[01:06:14]Kellan Finney: Yeah, they’re always right. I hope she’s listening and she heard that so, so Steve, for our listeners, they wanna get in touch and they wanna buy some of your seeds. Can they still do that?

[01:06:25]Breeder Steve: At the moment, no, but they, well, they can, uh, get in touch and when I have seeds ready for my new release, I’ve been working on stuff the last few years. I expect over the next year I’ll be doing my first releases in close to 20 years. So that’ll be, that’ll be exciting. But go breeder steve.com and if you’re signed up for the newsletter there, you’ll be sure to hear about it.

[01:06:49] I’ve, I’ve had that site up now for maybe four years or something and I’ve never sent out a newsletter. So , you’re not gonna get spa I promise. But if you do wanna know what happens [01:07:00] with new releases or any new projects, that’s where I’ll be putting it out there.

[01:07:04]Kellan Finney: Awesome. We’ll link those up in the show notes.

[01:07:06] Thanks for taking the time.

[01:07:07]Breeder Steve: Hey, thanks for having me guys. You have a beautiful weekend. You as.

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Editors’ Note: This is the transcript version of the podcast. Please note that due to time and audio constraints, transcription may not be perfect. We encourage you to listen to the podcast, embedded below if you need any clarification. We hope you enjoy!

This week we are joined by Olivier Blechner  EVP of Jushi Holdings   to discuss: 

  • Early Jushi Holding Strategy 
  • How Jushi thinks about Buying vs. Building
  • M&A Opportunities and Obstacles 
  • Going Deeper vs. Wider in State

About Jushi Holding:

In 2018, Jim Cacioppo collaborated with fellow cannabis and finance experts Erich Mauff and Jon Barack and realized that by combining their shared industry know-how, they could make a lasting impact on the lives of individuals across the globe. They quickly gathered an impressive team of experts to create Jushi Holdings Inc., with the ambition to be a leading multi-state owner and operator of cannabis licenses. Today, Jushi’s operations have grown rapidly with new cultivation, manufacturing and retail licenses across the United States. Our team has grown to ~1,550 members and counting.

About Olivier: Olivier brings over 20 years of principal investing and corporate finance experience to his role as Executive Vice President of Business Development. Prior to Jushi, Olivier worked with Jim Cacioppo as the Senior Portfolio Manager at One East Capital Advisors. Olivier has previously held several senior roles at hedge funds including Chief Investment Officer of the Polygon Distressed Opportunities Fund, Research Director at Alden Global Capital, Partner at TPG Credit Management. Initially, Olivier worked for Jim Cacioppo as Head of European Credit Opportunities at Sandell Asset Management. Prior to those positions, Olivier concentrated on leveraged finance and rescue financing transactions at Houlihan Lokey and Credit Suisse First Boston / DLJ. Olivier received a B.S. in Economics from the Wharton School of the University of Pennsylvania in 1998.

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https://www.linkedin.com/company/jushi-inc/
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#JushiHolding #Cannabis #CannabisM&A

At Eighth Revolution (8th Rev), we provide services from capital to cannabinoid and everything in between in the cannabinoid industry.

8th Revolution Cannabinoid Playbook is an Industry-leading report covering the entire cannabis supply chain 

The Dime is a top  5% most shared  global podcast 

The Dime is a top 50 Cannabis Podcast 

 Contact us directly at [email protected] Bryan Fields: @bryanfields24 Kellan Finney: @Kellan_Finney 


[00:00:00]Bryan Fields: What’s up guys? Welcome back to the episode of The Dime. I’m Brian Fields and with me as always, as Ke Vinny. And this week we’ve got a very special guest, Oliver Beckner, EVP of Juicy Holdings. Oliver, thanks for taking the time. How you doing today?

[00:00:15]Olivier Blechner: Hey, thanks Brian. Thanks, Tim. Great to see you guys. Good to

[00:00:18]Bryan Fields: see you Ke.

[00:00:18] How are you doing? I’m doing really well, really

[00:00:21]Kellan Finney: excited to talk to Oliver. Really excited to kind of dive into, uh, the inner workings

[00:00:25] of Juicy. How are you, Brian?

[00:00:26]Bryan Fields: I’m excited to dive in. Obviously, m and a is a big part of the cannabis industry and getting Oliver’s perspective is gonna be really exciting.

[00:00:32] But for the record, Oliver, we have a little East coast, west Coast battle. So, uh, your location

[00:00:37]Olivier Blechner: please. Uh, I’m in. I’m in Boca Raton, Florida. I’m not entering that battle. Loved East Coast and love the West coast too. So love here. That’s fair.

[00:00:47]Bryan Fields: We’ll, we’ll put you right. We’ll put you right in the middle with a slight nod to the right

[00:00:54] So Oliver, for our listeners, can you give a little background about yourself?

[00:00:58]Olivier Blechner: Yeah, sure. So, [00:01:00] yeah, my name’s Oliver Blacker. I grew up in Switzerland. Always wanted to live in the States, and finally managed to do so for, for college. Went to, uh, went to school in Philadelphia and then managed to

[00:01:10] live

[00:01:10]Olivier Blechner: in New York for a while in London.

[00:01:13] And now here I spent most of my, I spent most of, really wanted to live in LA too, but I had a, I had a girlfriend in New York, so I didn’t. I spent most of my career as an investor. I did, I did kind of my initial tour of duty, five years at investment banking. Um, learned pretty quickly that I really was much more interested in being part of making decisions and, and, and creating things rather than, uh, rather than just advising on that.

[00:01:41] And then spent most of my career until this in the, in the head fund industry, particularly in distressed debt. So I invested in companies and countries that were in trouble. Really with a, you know, when everyone’s running away, I was running towards it. And really did that with a view, with a view to rebuilding [00:02:00] companies and, uh, and make money that way.

[00:02:03] By the way, there’s a little bit of a view out there that you make money by liquidating companies and tearing them to pieces. That’s not how you make money. You rebuilt them and, you know, did a, did a few, was privileged enough to, to do a big, a few big restructurings that, uh, We restructured Caesars, I was part of the official core committee for, for doing that.

[00:02:21] That was, that was great fun. And I’d actually, beginning of my, my career on the buy side, I worked for the guides. Now the CEO of Jui, Jim Caspo, which stayed in touch over the years. And, you know, by, say beginning of 2018, I’ve been doing the hedge fund thing for a. Distress debt. We were sort of in the middle of a bull market right after a while, financial crisis and after you get some pretty interesting things to work on, then as the bull market continues, the opportunities get worse and worse, and you’re sort of stretching what you’re, what you’re, what you’re doing in order to stay in business.

[00:02:55] And then Jim called said, Hey, been investing in cannabis for a while. [00:03:00] Very successfully. So in, in Canada, I wanna start something in the US or have to start at something in the us You’re not doing anything useful, , why don’t you come and why don’t you come and, and do this. So, you know, after 17 years, stint in London, moved myself, my family here to uh, to South Florida, beautiful South Florida.

[00:03:20] And uh, we got going with. We got going with, with jui and was there any number five or six? Something like that. So yeah, that’s my background. I’ve been an investor all my life and in many ways what I do now is, is similar and in some ways it’s, it’s dissimilar. So the similar part is, you know, Um, what are we here to do?

[00:03:42] We’re, we’re here to try and figure out really good opportunities, um, that we’re buying at the right value. We’re, we’re, we’re doing in depth due diligence to make sure we’re not buying something that turns out to be a huge problem later on for the company, right? You’re, you’re trying to avoid liabilities.

[00:03:56] You’re trying to avoid tax issues, compliance issues you really don’t [00:04:00] wanna deal with, with, uh, with any compliance issues, for example. Um, but I do. What we do here, it’s, it’s a much wider spectrum of people that I get to, to deal with. This is everything from, you know, social equity applicant in LA or Illinois that won one license that represents his or her entire net worth.

[00:04:20] Um, maybe doesn’t have, most likely doesn’t have deal experience. You gotta be able to, to, uh, really, I don’t know if it’s bonding, but you, you, you gotta be able to, to talk on that level, um, in a way that that makes. To them, right? We’re not here to uh, we’re not here to treat anybody. We wanna do good deals and we want people to feel good about the deals they do with us, all the way to kind of big companies, which is probably more what I, what I was used to.

[00:04:45] So that’s, uh, that’s kind of the background. Was there any hesitancy jumping into cannabis? Um, you know, I’m not really, that probably should have been with, with [00:05:00] hindsight. Not really. I’m, I’m one of those, I don’t know. I’ve, I’ve been lucky in my career. I’ve worked for, I’ve worked for good people. I have great mentors and one of the things that I notice is that the, the, the trades or the decisions that I made that turned out to be the best were those that were really.

[00:05:16] Obvious to me very, very quickly. This one, I don’t know, Jim called me in sort of beginning of 2018. I took a look at the, the, the PitchBook they had for Juy. I think maybe two or three weeks later I was on a plane going out to Colorado meeting, meeting the partners, taking a look. Um, a week later I’m calling my ex-wife saying, Hey, I know you like London.

[00:05:41] But let’s move and I wanna bring the kids and I wanna bring you and let’s do it. I, I think the whole thing, you know, I, I kind of totally changed my life within, within two months. And the way I thought about it is, look, this is probably one of the, this probably is the only opportunity I’m gonna get in my lifetime to be part of shaping what is a [00:06:00] huge industry.

[00:06:01] In, in the US and one that I think is already doing will continue to provide great benefits to, to, to people across the country and maybe, maybe globally. I think the fact that it’s, um, now federally legal or was illegal anywhere is, is, is and motivated by a lot of things that just, I. Just silly and so no, I was, investment thesis was very, very clear to me.

[00:06:26] I didn’t hesitate at all. Just jumped in. Now, five years later, okay, one learns a few things. I’m still very excited about it, but one of the things to highlight is, you guys know this as well, nothing is as easy as it looks. Adding cannabis. It’s probably twice as hard as it should be, and that’s because we’re dealing.

[00:06:47] A at a complex web of regulations across every state that’s different. We’re dealing with the federal legal, we’re dealing with two a, d e, we’re dealing with two, two, you know, at some point people are gonna write books about the sort of things [00:07:00] that, uh, we and other state in the industry during this time.

[00:07:02] But at the same time, you know, it’s, I think we’re doing something that really contributes to making, making the world. And if we do it right, we’re gonna make some money doing it, which if you do both at the same time, that sounds pretty good to me. So, yeah, I, I didn’t really hesitate, but it’s, it’s, it’s much harder than I initially thought it would

[00:07:25]Bryan Fields: be.

[00:07:26] I like to usually say that cannabis is full of challenges. And I think for people inside the industry that really resonates. But people outside the industry kind of ask like, what does that really mean? And I think once you kind of step inside the industry, you recognize cannabis is just absolutely full of challenges.

[00:07:39] So I wanna stay with that kind of early days. Uh, jumping in, obviously having the relationship with Jim is massive in making that leap and probably leads to an easier transition from outside industry into in. So talk to us about those early days were like, what was juy like early on? And then what was your early mission when kind of joining?

[00:07:57]Olivier Blechner: Yeah. So, you know, I was in the same role that, that, that I [00:08:00] was in now. Um, you know, Tru had just been formed. It had gone to its initial cap rates. I forget what that was, 28 to 30 million. It was some money around it had it had a couple of, it had a couple of small investments. I mean, it was just a, it was a tiny startup to fit into a very small office space or five, six people.

[00:08:19] And, you know, It start, it actually started when I moved here. We had a, we had a meeting at, at the, at Jim’s home. The entire company could actually fit around the dining table. And we had sessions where we basically discussed, Hey,

[00:08:34] which

[00:08:35] states do we wanna be in? Where do we, where do we wanna focus? Um, what should the strategy be?

[00:08:41] And you know, some of the initial kind of reads were, by the way you make decisions. Then you kind of go along and then you adjust. I think that’s, that’s just the nature of entrepreneurship. It’s, it’s the nature of decision making and you learn more and you adjust, and stuff happens and stuff changes. So one of the things that [00:09:00] we, I think quickly decided early on was that we were gonna try and be retail only, um, in limited license markets because, You know, when you’re, when you’re running a hedge fund, you’re always looking at, you’re looking at the portfolio as a, as a, as a whole.

[00:09:15] So let’s say you have a portfolio that’s pretty concentrated. You have 20 positions. Some are, you express so many percent of your, of your net asset value. So you have like 1% positions, 5% positions, maybe 10% positions. If you fuck up the 10, if you mess up a 10% position, , sorry. Then, uh, yeah. That’s not so good.

[00:09:34] So I’m talking about the benefit of diversification. Um, having a diversified set of retail stores in limited license locations that made sense to us. Ah, limited license. That’s good. Um, diversified. That’s good. It probably costs, I don’t know, somewhere around a million, million and a half to, to build out the store.

[00:09:56] So some of you know. In a world where you have [00:10:00] a portfolio, you’re gonna make some decisions, hopefully that turn out to be really great, in fact, better than you thought they were going to be. Then you have hopefully a lot of stuff that’s kinda in the middle is good as you thought. You’ll have a few things that didn’t work out the way you thought.

[00:10:12] Okay, so if you mess up a store, you so a million, million and a half into it. Not to be gli about that kind of money, but the company survives and you can probably move to store. Um, we did. For a while, um, until we, we had licenses to operate many stores in, in Pennsylvania. We were bringing those online, so we had licenses and then we’re opening, by the way, now we have 18 stores in Pennsylvania.

[00:10:37] I think when we got to five or six, we discovered that’s actually kind at the time, it was tough to get really great products on our shelves, so the producers were putting the great product on their own. So that’s when we started vertically integrating. That happened two years ago or so about, you know, two and a half years into, into Jewish’s existence.

[00:10:54] The other thing we thought in the beginning, um, we really raised money. Thinking we’re [00:11:00] gonna go into New York and Florida and we actually had a, had a, had a 20% stake in a license in, in New York. They found another buyer. We could either match or not match. We actually decided to sell at the time we made four x our money.

[00:11:14] Um, and then we had a, when, an argument with somebody over, over, over Florida. We didn’t have to go into the detail on that. But today we are not in New York, we are not in Florida. Um, we need the corner companies, Pennsylvania. Um, I think we’re tied to sec largest retailer, 18 stores. We bought, um, goodness growth.

[00:11:36] Grower processor during, during, uh, during Covid, I think we closed in July or August of 2020. We’ve put another 50 million of CapEx into that facility. We’ve totally redone it. It’s, it’s, I mean, it’s, I just saw it three weeks ago again. Have been not seen it since we first acquired it, and it is 50 million.

[00:11:57] We’ll do a lot when you know what to do with it. We, it’s an [00:12:00] amazing facility and it is ready for expansion when adult use comes in Pennsylvania as well. Um, second key to the company is Virginia. We own the license. Um, for HSA two, which is basically Northern Virginia, Alexandria, Arlington, Tyson’s Corner, Amazon HQ two, it’s suburb of dc.

[00:12:18] Um, we think of that, that’s probably the best license in the us. It’s two and a half million people that we serve. Um, only us at the moment. It’s going out to use in January 1st, 2024. And then we have four monster stores in, in Illinois. They’re talking about 80 million plus of revenue. Um, none of that was in the original business plan.

[00:12:35] You know, we have other businesses that we acquired in Massachusetts, Nevada, Ohio, California. So things, things, uh, things are very different than, uh, than, than we initially thought they were going to be. But that’s not a surprise. I think that’s just, that’s just the nature of, of, of building business. You, you kind of, you bob and weave and you adjust as you learn and you take advantage of opportunities, which I think is a company we’ve done.

[00:12:59] I think we’ve [00:13:00] done, I’m, I’m really proud of the job that we. When you were, uh, when you guys decided to go vertical, um, how was the, the conversation based on buying versus building? Did you guys determine that there were certain sectors of the, the supply chain that you wanted to, to buy and then there was other sectors that you wanted to build?

[00:13:17] Or was it kind of just,

[00:13:18]Bryan Fields: you just crossed the bridge when you

[00:13:19]Olivier Blechner: guys got there? Yeah, I think a lot of that’s driven by, by regulation, so really that was driven for us. If you look at it, when we started, we had no business. First we had no business, and we had no people, and we had no money. Then we had no business, no people, and we had some money, not that much, and we had to figure out what to do with it.

[00:13:37] Then all of a sudden we had a bunch of licenses. Um, in Pennsylvania we had, we had stores in Illinois that we could operationalize. So put yourself back in like March 20th, 2020. April, 2020. Covid starts. Um, our stores thankfully stay open. We’re considered a central business everywhere that we, that we operate, you know, by, by May, June, we are confidence back.[00:14:00]

[00:14:00] In, in our ability to, to continue running the stores. But we knew we needed to get vertically integrated, specifically in Penn, specifically in Pennsylvania. That was gonna be important to us. It’s a limited license market. I mean, even if you’re building, you gotta buy a license. You gotta buy a license.

[00:14:15] That’s valid. There weren’t any spare. Licenses. And so what you’re looking for is, I mean, we basically talked to everyone that wasn’t connected with an, with an mso. Um, all the independents and kind of, you know, this one was owned by, by vio. Now, goodness, growth, they had some pressure to, to generate cash.

[00:14:34] We actually didn’t have the money to buy it, so we, we had to raise money during that period as well to try and get that done. We’re proud that we were able to, uh, to, to, to get it done. I will say we’ve, When it comes to gps buy versus build, we’ve done it all right? We, we, we bought in Pennsylvania, but I can tell you we have, it’s un.

[00:14:57] Compared to what we bought, I mean, what we did with it, [00:15:00] we didn’t just expand. We, we, the fundamentals of this building are, are, are totally changed. When we bought it, it wasn’t designed to produce high quality flour. It had been built by the original owner to basically produce trim for extract. Um, they didn’t believe in smoking, so that’s what they wanted to do.

[00:15:21] We wanna have a full suite of products for our patients and our consumers. That includes having the ability to put out this beautiful ab bod, um, for, for, for our customers. So we have to change everything. Um, you have to change hvac, you have to change, um, it just, all of it. And, and we did that. Um, we also acquired facilities.

[00:15:43] We’ve acquired in Massachusetts, we’ve acquired in Ohio, we’ve acquired in, uh, in Nevada, and then in Virginia we built from the ground up. So in Virginia, we’ve now invested over 70 million into, into, into the facility. [00:16:00] I can tell you this, it’s actually, it is way easier to buy, to build something from scratch and do it the right way.

[00:16:07] I mean, easier. Took two plus years, took 70 million. There’s nothing, there’s, there’s nothing, there’s nothing easy about that. You know, internally we’re calling us the big bets. That is our, that is our, you know, Virginia’s our big bet. Um, And, but you know, what you’re getting, buying an existing facility is, it’s almost like buying kind of a, a big house.

[00:16:30] You, you do all the work, you do all the due diligence, you look everywhere. You get the experts to go through the checklist. But when you’re starting renovations, two years after you own it, you’re gonna discover stuff you didn’t know about before. There’s always. Um, so it’s, it’s, it’s, it’s, it’s, uh, I think we’re back to that theme of it’s not easy, um, but I think we’ve shown that we can do it and we can build, we can buy almost like everything that we look at almost.

[00:16:59] Um, [00:17:00] I think we want to be intellectually flexible and just be open to, we’re not religious in the sense that we say we will only buy or we will only build. I think you’re. Be commonsensical about it. And in any given situation, let’s look at all the options. What are the pros, what are the cons? And then make the right decisions.

[00:17:21] So,

[00:17:22]Bryan Fields: When, when you were building out that facility and investing the 50 million, was that part of the initial understanding when you purchased the facility, was that this was gonna be a complete tear down and build out and then forecasting it out? How do you see an ROI standpoint of understanding that it’s worth investing X amount of money?

[00:17:37] Obviously it needs to be arranged, like you were saying, with the house standpoint. Unfortunately, in my experience, when you’re doing home renovation projects, you’re always going over budgets because the contractors are always finding more problems. So is that something that came about similar to your, to your.

[00:17:50] Yeah.

[00:17:50]Olivier Blechner: And, but by the way, you sort of know that, you know, when you’re looking at your initial estimates, this is probably gonna take longer. It’s gonna cost me more money. So you, you, you sort of built that into, into your [00:18:00] calculation when you’re thinking about it? Absolutely. I mean, we hadn’t, by the time we bought it, we hadn’t yet, yet made, we knew we were gonna put more money in, and I wouldn’t call it a tear that it’s just kind of a massive, massive improvement.

[00:18:11] And in addition that we did, um, you know, we actually went out and we. Most of the real estate around our financing, like a series of additional deals after that, because we didn’t wanna be landlocked. So one of the things you want with a GP is you want flexibility. So if one day you decide it makes sense to expand, you wanna have the ability to to do that.

[00:18:31] That was a big consideration for us and we looked at a number of different, um, sort of CapEx options. As part of the analysis we did, um, when we decided whether to buy it or not, but we hadn’t yet fully committed to, to one or the other. Then over time, Pennsylvania, um, you know, you’re getting closer and closer to to, to adult use.

[00:18:51] So yes, we knew we were gonna spend substantial amounts of money doing it. Um, Same thing with, with, [00:19:00] uh, you know, Virginia, when we bought the license, I mean, we knew we had to put a lot of money into, into the building. Um, maybe not that amount, maybe not that timing, but over, over time, decisions kind of rise to that result.

[00:19:12]Bryan Fields: I think one of the things that are most fascinating in this experience is like you were saying, that each state is kind of independent and different. So investing 50 million in Pennsylvania might limit your opportunities for an acquisition in another state. So from a decision making standpoint, are those variables also considered saying like, Hey, we need to have funds available for acquisition in in Territory X.

[00:19:32] It’s a really good

[00:19:33]Olivier Blechner: question. Absolutely. So one of the things that’s so fascinating about cannabis now fascinating and and difficult about it is we are in a capital intensive and capital consuming industry. That’s because we’re building the infrastructure, right? And when I say we, I mean the industry as a whole.

[00:19:51] CapEx CapEx caps, you’ve got to build these facilities. They’re going to get bigger, they’re going to get more efficient, they’re going to put better product out over over time. So, you know, [00:20:00] we’re kind of recreating, um, a whole infrastructure. But on the other side, we’re, we’re in, in an industry where capital is either.

[00:20:10] Kind of available or it’s totally not there at all. Uh, I sort of joke with my friends and you know, when they call like, Hey, how are you doing? I’m like, uh, I don’t know Fifth year in cannabis, fifth bear market, it’s maybe off to fifth, but certainly to third or, or the fourth. And we’ve been in a bear market, in this bear market now for, it’s going to be like a year, a year and a half, right?

[00:20:29] Um, before that you could raise equity capital. then, you know, you could raise, that’s after that. And I’d say, I mean, we fortunate, we, we just, we just announced the refinancing of a, of a big debt piece, so we were still able to do that. But capital is hard to combine. So when you’re looking at projects, what you have to do is, um, the projects compete with each other for, for, for, for capital, and that’s, You know, it, things like that’s a bad thing, but that’s actually a really good thing to have.

[00:20:58] You want projects to compete [00:21:00] with each other because that’s also one of the things that keeps you intellectually honest. Um, in, in internally, Hey, you wanna, you know, here’s a proposal you want to go buy, I don’t know, making it up. You wanna go buy licensing Maryland? Great. How much cash is that going to take?

[00:21:14] Great. How does that compare to what we’re doing when we’re putting CapEx into Virginia or Pennsylvania? So one of the things that we looked at is we think when we’re investing a dollar of CapEx into expansions in Virginia and Pennsylvania, we think we’re doing that at a two times eha multiple. Um, it’s another way of saying that’s really, really, really attractive, really cheap.

[00:21:39] It’s hard to buy companies like that. Now, we’ve done some pretty good acquisitions. Um, Along, along the way as well. Super proud of our acquisition track record. But yeah, things compete and we have to make decisions constantly about, does it make sense, you

[00:21:56] know,

[00:21:56]Olivier Blechner: buy versus build new markets versus existing [00:22:00] market.

[00:22:00] And that that informs strategy. So if you ask me today, what are, what are the focus areas? Well, focus areas are when Illinois, we have four stores are open. We want a license in Peor. We’re opening that up to the fifth store. You’re allowed to own 10. Okay, well five licenses and building those out in great locations.

[00:22:20] That makes sense. So that’s strengthening an in-market position. Um, we’re clearly gonna open up right now we’re at four stores in Virginia. Fifth one is opening, um, probably in January. It’s pretty close to being done in Arlington. Great store. Really beautiful location just by Whole Foods sort of thing.

[00:22:38] You know, in cannabis you usually don’t get those kind of locations. It’s just amazing. And, uh, six stores gonna. Um, and then we’re in Ohio. We’re opening in Cincinnati or in the Cincinnati area. In Ohio, you’re allowed to own five. We bought a gp, we have a small gp. We have a small growing, we have a small processor.

[00:22:57] It makes sense to be vertically integrated. [00:23:00] We’d love to have five stores. Ohio had new licenses come out last year, so I’m in market to, to try and buy four Right location, right price. That makes sense to enter like a new state. Particularly if it’s on the GP side, you gotta be able to follow that with, um, there’s typically CapX that happens after, I’d say it would have to be, and we’re looking at a lot of things.

[00:23:24] It has to be just an extraordinarily great opportunity for us to want to do that. So the, the enterprise has to be very attractive. Um, we think salaries, for example, Everyone always wants cash. seems to be the, the the thing to do. There’s any cash in the industry, okay? Like the cash you have, you want for your operations, you want for CapEx, you don’t wanna pay for acquisitions with cash.

[00:23:51] So the next thing you’re looking at is we’re a public company. We think we’re a very attractive stock. The right seller for us is somebody who understands that you’re not really just selling your [00:24:00] company, you’re effectively exchanging your private company stock for publicly traded stock. So it has to be priced very.

[00:24:06] Because we think our stock is priced very cheaply, right? So the exchange has got to make sense for, for, for both. It can’t add any leverage. We don’t want any more debt. Um, it can’t be, uh, these days we wouldn’t do like a distressed asset turnaround where we have to put 30, 40, 50 million to fix it. Don’t wanna do that.

[00:24:26] I wanna. Easy, cheap deals with great people in great locations, and of course life doesn’t work quite work that way. So, you know, we’re working very, very hard. We’ll, we’ll find something that we’ll find things that make sense I can already see on our horizon. Companies are running outta money. There’s opportunities, um, for us to make both our lives and their lives better.

[00:24:45] But the conditions have to be, the conditions have to be

[00:24:47]Bryan Fields: great. Just to clarify, what is

[00:24:49]Olivier Blechner: gp grower processor grow processor? No,

[00:24:53]Bryan Fields: it’s fine. I just wanted to make sure that we were on the same page with that.

[00:24:57]Olivier Blechner: Yeah, sorry about that. It’s the, it’s [00:25:00] the, the cultivation business and the processing business. I just call it a gp.

[00:25:04] It’s, of course it has a different name in every state because every regulator has a different name for it than I just say gp.

[00:25:09]Bryan Fields: So I guess expanding on that, I mean, is there, is there a deal flow that comes through? Do you have to do the outbound to start reaching out to people in Maryland and Florida and California?

[00:25:18] Like, obviously there’s a small industry, but the people that are. Or doing these sort of negotiations, how, how does that information kind of consume and how are you kind of being privy to the information that says like, this person might be interested in selling their business at a later time? Yeah, there’s, there’s,

[00:25:34]Olivier Blechner: there’s a bit of false and it’s changed over time.

[00:25:36] So when we started it, nobody was talking to us because nobody knew anything about us and we didn’t have anything. And, you know, we kind of had to do. You get on the phone, you get on the plane, you, you sort of decide, these are the markets I wanna look at. And you do, you do what I used to do in distress debt.

[00:25:54] So one of the things that’s interesting about distress is you never know what you’re gonna look at any given year, right? You don’t know which [00:26:00] country is gonna have issues. You don’t know which industry is gonna have issues. One year it’s telcos in the US the next year it’s merchant energy plants in the uk.

[00:26:08] Then it’s, I don’t know, banks in Greece and Portugal. Then it’s, I don’t know, Dubai real estate companies. It’s like new. You don’t know anybody and you don’t know really what to do, but what you do know is, huh, I probably just need to get in there and talk to everyone and meet everyone. People like to talk.

[00:26:24] You can pretty, you know, you can figure out who you can do a deal with, right? You can figure out the conversation. Reasonable, not reasonable. Interesting asset, difficult to own.

[00:26:36] I

[00:26:36]Olivier Blechner: mean, you can kind of, you can kind of piece it together and after you spend enough time in a state talking, I think if you talked to like the four, five top players in every state and you talk enough and you go back, you kind of figure out what’s going on.

[00:26:50] Um, so that’s, that’s what we did and that’s what we continue doing by now. It’s a. The sourcing side is maybe a little bit easier because we have a track record, [00:27:00] right? I can, I can show any, anyone that’s not sure about doing business with us or with anyone in the industry, we can show is our track record.

[00:27:07] They can talk to sellers. That’ve done deals with us. They’re very satisfied with, with the transactions they, they did with us. Um, bank. The bankers know that we’re reliable, but we say something, we’re gonna, we’re gonna, we’re gonna do it. Um, they know they can probably get a feed out of us. We’re real. So yeah, we have bankers calling us, we’ve got brokers calling us.

[00:27:26] Um, but a lot of it is, It’s just outreach, right? Um, Illinois licenses. There isn’t an investment banker that wants to sell those. You gotta just get on the phone and call everyone and see which calls you get returned. You gotta go on location. So it’s, it’s just, it’s, it’s old school origination work. So, with the industry consolidating, which you say this is a, a buyer’s.

[00:27:52] It’s actually a buyer’s market because there’s a lot of salaries and not, not a lot of, not a lot of buyers. I’d say that’s true in, in every state that I, [00:28:00] that I look at. Um, yeah, I mean look at, look at Illinois. They gave out 190 licenses. We think for all the MSOs, if they wanted to get to their maximum, it was maybe demand for 20 or 30 of them.

[00:28:13] You know, the others, you’re either building ’em yourself or reselling, but there’s not a lot of. Um, when we were looking at Massachusetts, by the time we started looking four years ago, um, maybe by now it’s like four and a half years ago. For years, we thought that people’s sellers price expectations just stood in no relation to, to, to reality.

[00:28:33] I’m saying this in a, in an undated way, just didn’t make any sense at all. And then almost every MSO over time acquired a position in Massachusetts. And so by the time we kept looking, by the time we actually found an asset that we, that we, that we liked, um, I mean, I don’t wanna say we’re the only game in town.

[00:28:52] You, you’re hardly ever the only game in town, but one of the only, one of the only games. Games in town. So [00:29:00] definitively a buyer market, but also one where. You know, buying sellers market, it’s tough when there’s a lot of pricing uncertainty and things have gone down. Um, particularly when you’re dealing with, um, inexperienced sellers that are private individuals, you know, it’s, it’s, it’s tough to adjust, right?

[00:29:17] They, they look at it and say, yeah, but hold on. Chicago license traded for 5 million. You know, that may have been a year ago. There hasn’t been a single deal since, and that value doesn’t make any sense whatsoever. And all the stocks in the index are down 70%, but they still think 5 million. Because one of the last things you want to do is, let’s say turn around and sell yours for three.

[00:29:39] And then some other sales, some other guys sell it for five. And it was the only asset you had at life. I mean, I, I understand the uncertainty, but prices are sticky. Um, I think what we’re seeing now is. Um, now more time is passing. I’m seeing this in Illinois. I’m seeing this in Ohio. I’m seeing this in other markets.

[00:29:54] Um, people are coming to the table, they get it, right. 18 months of a bear market is enough to convince somebody, [00:30:00] um, that, uh, that, that things aren’t, aren’t, aren’t as good. But on the other hand, If you’re getting stock, you’re getting my stock at today’s value. Not at, I mean, we traded as high as almost nine bucks.

[00:30:11] So it’s, it’s, it’s off. It’s awful lot. So I get this question a lot. What would you do if you were me? I get this from sellers, and I always say, well, don’t concentrate on the headline number. Like, you know the number that’s gonna be in the press release. Focus on how you’re getting it. If you’re getting it in stock and that stock can go, you know, two times, three times, four times, five x over the next few years, right?

[00:30:35] Think five, six years. That’s how you get really, I mean, that’s

[00:30:38]Bryan Fields: how you make money. Yeah. Also, uh, kind of getting outta the industry for those people who are fatigued, I mean, it, it makes sense for an alignment with a bigger partner like yourself, especially if you’re looking to exit. Unfortunately, uh, during turbulent times, uh, the prices have changed pretty drastically.

[00:30:52] So the valuation you thought you were gonna get three years ago is likely very different. So kind of continuing on that path. Are you taking it, are you

[00:30:58]Olivier Blechner: taking it in stock? That’s [00:31:00] a logic. Makes sense. You’re doing, you’re changing it and you wanna do it with a group, a company that you believe in, where. I think focus on management team and the quality management team is very important.

[00:31:11] What track records do they have of making good decisions and building things and, and, and exiting things and then seeing, and then I think you really have to think about, you know, keeping your money. You don’t wanna take your chips off the table now, there’s a horrible time to be doing it. Right. Keep them in there.

[00:31:26] Have other people, you know, have us doing the hard work. Take the stock, we’ll do the work and. You know, we’re, we’re certainly

[00:31:34] all

[00:31:34]Olivier Blechner: extremely incentivized to, uh, to, to, to find good things to do with this over, over the next few years.

[00:31:41]Bryan Fields: So kind of continue on the strategy standpoint, like in states like Arizona, where there was kind of like a land grab to pick up some of those assets, do those decisions of what your competitors do influence kind of accelerating positions in certain areas?

[00:31:52] If you wanna get, let’s say, into a certain region, but your competitors are hopping in, does that make your team feel more comfortable with overspending or kind of [00:32:00] competition? Doesn’t lead to, you know, irrational emotional.

[00:32:04]Olivier Blechner: Never comfortable with overspending. Okay. That’s, that’s, that’s, that’s one thing. I don’t know.

[00:32:11] I. Not really. I’d say the most wonderful thing is when you’re the first to do something and then you see your competitors come in and do the same thing and maybe at higher prices. That was our experience in Pennsylvania, for example. So we put our, our store portfolio together for, for, for much less. Than any of our competitors then have to buy them.

[00:32:31] We bought our GP for a much lower price than our competitors did after us. That feels pretty good. Um, you know, it’s nice to have other smart companies in the space validate your, validate your, your, your thesis when it came to Arizona. So maybe this is a distress thing. You know, Jim has that, Jim has that John Barrack, our president, came, came out of that industry.

[00:32:54] You sort of, you pay attention to what the crowd. does Because you have [00:33:00] to, and you could be wrong with your thoughts. You have to be open to, to that idea, but you don’t do something just because everybody else is, is doing it. You, you analyze things on, on their own merit. Arizona’s actually really good example, so for years I was getting calls about Arizona.

[00:33:16] And every time an Arizona business was shown to us, it was, I don’t know. I’m making it up. I’m gonna be directly correct. Let’s say the industry deals were getting done at five and a half, six times. This is like before the spare market. Arizona was eight and that’s it. Quite Arizona assets, so, so, uh, so, so expensive.

[00:33:35] I remember one specific conversation with a broker up that I, that I really like. He said, cause it’s Arizona and I’m thinking, You know, deals for banks in Portugal and real estate companies in Dubai and I dunno, telco companies in Argentina. Things really are that different. Just cause it’s Arizona. I dunno why, why would be, why it would be any different.

[00:33:55] I think if you looked at it, it’s okay. You had a couple of MSOs that were really determined to get [00:34:00] big in that market and you know, Can you pay up a multiple for your marginal sixth or seventh dispensary to build out your position and finish it up? Of course you can. It makes sense for them. Does it make sense for me to buy my first one at a, at a, at a, at a, at a huge price?

[00:34:17] No. And by the way, we look at Arizona, it’s a, I’d say it’s a, it’s a blood bath. Everyone, everyone came in. I think everyone paid a lot of money, and that’s super, super competitive. So almost like everyone doing it is, is maybe. Anything. It’s, it’s more of a turnoff than it is a, a turn on. We’re just, we’re very data driven.

[00:34:38] We’re very analysis driven. We do not want to overpay. Um, we do not want to take on risk that are, you know, where the payoff just doesn’t make sense by comparison to the risk. I think that’s why shareholders and debtholders have entrusted us with, with capital in the first place. So, yeah, you luck, but you don’t let it inform your strategy and, uh, [00:35:00] I’ve never once lost even 30 seconds of sleep over not being in Arizona, no daylight savings.

[00:35:09] Nothing against Arizona or Arizona. By the way, if a, if a great thing came along in Arizona, would totally look at it.

[00:35:16]Bryan Fields: I feel like the headline, tomorrow’s gonna be Juy, Juy acquires a company in Arizona, . This is just like piece out. So Oliver, one of the things that fascinates me most about m and a is that people get so excited about bringing two organizations together.

[00:35:30] And sure, from a behind the scenes standpoint, that’s one of the biggest challenges. But the real work seems to happen after developing the synergies of the organizations and letting the organizations kind of blend together, and then kind of having that true roi. Do you think sometimes, let’s say retail investors or our everyday individuals kind of forget that the real synergy takes time post acquisition?

[00:35:52]Olivier Blechner: Yeah. I, I don’t know if they forget or not. Maybe it’s not as appreciated. Um, but it’s part, it’s part of what we do. We have, you know, we have, [00:36:00] we actually have a whole team that’s dedicated to working on. There’s always beautiful corporate speak for these sort of things. Post-integration or post-loss integration, I think is the, is is the way to put that.

[00:36:14] But what it means is, okay, how do we all work together now? You know, what can we learn from you? What can you learn from us? And it’s really about bringing best practices to bear. And it’s also about finding more efficient ways of, of, of working. So over time, let’s say, you know, you acquire business. Um, in a, in a new state, and it’s got retail and it’s got a, it’s got a gp.

[00:36:38] I can tell you, for example, Nevada, you wanna, when, when we’re quite, you wanna integrate your POS systems, you wanna integrate the accounting systems. So they, they, they, they talked to each other. Um, there were some things they were doing on a growing side that actually was very interesting and we managed to learn from that and do it in some of our other locations.

[00:36:57] You want to bring people onto [00:37:00] your benefit scale, for example, right? You can’t have, um, worse or better benefits in one part of your organization versus versus, versus another. And when you acquire business, But by the way, we’ve done it all. We’ve acquired licenses. That’s very easy. You don’t have to deal with anybody.

[00:37:17] You have zero employees and you know, you build an app and you hire everyone. Um, but we’ve done two acquisitions, um, that had, you know, Massachusetts had over a hundred people and I forget what the number was in New Leafs in Nevada, but somewhere around that. And you have to do the work up front. Firstly, you know, we identify kind of the key people that we want to.

[00:37:38] So typically there’s a seller group and then there’s, you know, some of them are just, bye bye made my money. I’m gonna go off and do something else. They may actually have kind of checked that for a year or two that were part of the founding story, but maybe not their day to day. Then there’s key people are kind of there every day and they’re part of the fabric of the company.

[00:37:55] You wanna retain them. So part of the deal making is you do a deal with them to retain them, [00:38:00] um, and. We will send way before closing, we will send HR team and kind of senior leaders from, from each one of our teams for what I will call, it’s like town halls and q and a sessions, right? There’s a, particularly for the company that’s getting sold, there’s a lot of uncertainty for, for the employees.

[00:38:20] Am I still gonna have a job? Who am I reporting to? Um, what will my benefits be? I mean, there’s question upon question upon question. I think a lot of, a lot of the. It’s predicated not just on picking the right assets, but you gotta get the soft side, the people side of it. Right. So we were, we’re actually really proud our, our, our now Chief Talent officer, our chief people officer and Nicole Upshaw, uh, recently got promoted to that role.

[00:38:47] Before that she was our EVP of human resources. We made HR an executive VP position very early on here. Cause it really is a people business and we recognize that. So yeah, a [00:39:00] lot of the. Closing planning actually revolves around people and revolves around, you know, some improvements that we typically make to the facility.

[00:39:09] So, um, we like auto cures, we like wet, we’ll bring that, but we’ll also learn from others. So it’s, uh, there’s a tremendous lift that happens once you actually, once you close something. Have you guys made any acquisitions where the strongest asset for the business was

[00:39:25]Bryan Fields: the people?

[00:39:28]Olivier Blechner: No. But it was part of, but it was part of, you know, if you had to No, because in in chemistry you still, when we’re making acquisition, we’re still, but Massachusetts was to enter the Massachusetts market.

[00:39:41] We got a GP and we got two great stores. Um, one really fantastic store and one good store. Um, in, in New Leaf, we. Um, two stores in Vegas, a store in Tahoe and a and a and a and a and a gp. Um, [00:40:00] you don’t do those. Hmm. I gotta think about how I say this. The people are, because the people are very important.

[00:40:09] You don’t do it just because of the people. Okay. But you wouldn’t wanna have done either one of these deals if you stopped the leadership sock or the people socked, or you’d have to make a, it’s just, it’s just too much. It’s just too much change, um, to, to wanna do that. Right? You wanna basically come into something that is well run, unless it’s totally run down and the asset is great and you’re just buying it for, for that run down.

[00:40:34] Kind of, kind of price, but um, I’d say if there’s somebody that’s so great, you’d probably just want to try and hire them. . Yeah. It’s, it’s,

[00:40:42]Bryan Fields: it’s probably way more affordable to buy an individual than it is to buy multiple stores in a limited license state. I mean,

[00:40:48]Olivier Blechner: in 10, it’s one of the first deals we did was, uh, was basically a consulting business.

[00:40:53] Um, And, you know, we didn’t pay a lot for the, for the consulting part of it. Yeah, we paid some, but [00:41:00] really what we wanted is that became the core of our, of our operations group early on. So yes, we have paid money effectively to, to, to get great people. Um, that was, that was very, very early on. And there’s still, you know, that core team is still with us.

[00:41:16] Um, they’re like the, uh, they’re like the Navy Seals. We deploy them in every facility. Whenever we make an acquisition, they bring best, best practices from, um, they really are kind of our chief competency center and chief knowledge of, of anything cannabis. We have to do that right in the beginning. We’re a bunch of, when we started, I mean, we’re, we’re entrepreneurs, we’re investors, um, but we weren’t cannabis people.

[00:41:42] We had to get that, but not since.

[00:41:45]Bryan Fields: What’s the most misunderstood thing about JU holidays? I don’t know.

[00:41:54]Olivier Blechner: Good question. Hold on. What’s the most misunderstood thing? I [00:42:00] think the thing to keep in mind with us is a lot of what we’ve done is we’re very, very medium and long term focused. So Virginia, we’ve been, we’ve been investing for two years.

[00:42:14] And if you’re looking for kinda, if this year you were looking for immediate um, kind of results, we didn’t put that kind of money into Virginia because it’s just a medical market that’s very, very small. We did that cause we’re looking at January 1st, 2024. Um, we’re gonna be the only operator in an area of two and a half million people.

[00:42:35] By the way, great median household income skew, millennials, skews, can’t afford the product. It, it’s kind, it’s almost your ideal kind of customer, customer base. We did that in anticipation of that. So I’d say it’s, it’s understanding how much investment we’ve made into our core businesses, Virginia and Pennsylvania, into the gps and at 20.

[00:42:57] Is a huge transformative [00:43:00] year for us where, um, those investments should, should pay off. That comes in a number of ways. One is, um, when we didn’t have any gps, we weren’t selling any of our own products in our stores cause we didn’t have any of our own products. I think now we’re somewhere around 20% of retail sales are from our own brand of product.

[00:43:18] And that number has huge upside, right? I mean, there’s, there’s no reason why, why shouldn’t be, you know, 50% of what we sell. In, in our Pennsylvania and Virginia store, it shouldn’t be our own product. Maybe even. Maybe even more. When you do that, the margins get so much better, right? Growing it. It should be much better.

[00:43:36] We’ve put that much CapEx into it. Otherwise, if you could just buy it as cheap as you could grow it, you would just buy it. You wouldn’t put the CapEx into it. So it’s really understanding how much investment we’ve made in that 23, 24 goes out to big years for us. So I’d say a lot of investors isn’t just isn’t.

[00:43:52] Specifically a comment about TRU investors or cannabis investors? I think that’s true overall for markets. Um, investors are very, very short term focus. And you [00:44:00] look at the quarterly number and it’s, you know, you read a report that says, well, expectation was 7.9 million revenue. It’s got 7.7, it’s ais. And I’d say, you know, 7.9, 7.7, the same thing.

[00:44:13] But really what matters is, is a 40 in three years time. I’m making up these numbers, but you, you understand the point. I’m, I’m, I’m, I’m, I’m trying to make, it’s, it’s trying to get away. We understand it’s important for investors to get quarterly updates and of course we, we do it and we have to do it.

[00:44:27] We’re a public company. We chose to, to, to do so. Um, but it’s, you know, don’t look at 22, don’t look at 23. Look at 24. Look at what 25 could be. I think that. That’s really what’s important. That’s why we’re all in this. That’s when

[00:44:43]Bryan Fields: you start to see the ROI on those investments that you made. Long term.

[00:44:49]Olivier Blechner: That’s exactly right. Pennsylvania. Here’s what you need to look for. Virginia, opening up adult use, Pennsylvania, opening up adult use. That’s gonna be, that’s the [00:45:00] trigger for us.

[00:45:03]Bryan Fields: When you started your journey into cannabis space, what did you get? Right, and most importantly, what did you get? Oh,

[00:45:10]Olivier Blechner: um, well, me personally or ju either , I knew you’d say that. Um, so I’d say . Um, what did we get right or what did I get right? I mean, being in the space in the first place, I’d say that’s a decision that was right.

[00:45:30] Okay. Being there, being part of the game, being, being, being part of the group of people that gets to build both this company and the industry. I think that was, it’s a big decision to make for all of us when we, when we made it and feel really, really great about, about that decision. Um, I’d say, you know, one of the things that, that I, that I learned from Jim when I started in the hedge fund space is you wanna arrange your kind of investments in such a way.

[00:45:59] Hopefully you [00:46:00] have, like, you make a whole bunch of bats and then hopefully a few of those turn out to be way better than you thought. And you kind of let those, you let those ride, that’s what gives you the upside. And then when you, when you, wh. With small, recognize it quickly. You know, by the way, speed and agility and raising your hand saying, oops, there’s a problem.

[00:46:21] Very, very important. That’s how you avoid turning something small into, into a catastrophe. So we have a few investments that we’ve made that. That aren’t great. We, we want him processing license in New York. We did a couple, we bought some biomass. We tested it out to see if that would work. Okay. We probably sunk i’ll a.

[00:46:46] We didn’t build a facility that would’ve cost us 40 or 50 million to do so. We’ve made mistakes. Everyone makes mistakes. It just has to be part of your, of your, of your thinking. In the hedge fund days, I used to track that and [00:47:00] like a really good year, really good year was the year in which I’d get maybe two thirds of my decisions, right?

[00:47:05] That’s a really good year. So you have to arrange your life in, in a, in a way where you just know about a third of what I do, or 25% of what I do is wrong. But you don’t turn it into catastrophe. So yeah, we have a, we have a, we have a list of decisions where you’d look at it. Now, would you do it again? No, you wouldn’t?

[00:47:23] Did it make a difference to the company? Nah, not really. So I’d say we’ve gotten a few big things really, right. Our Illinois stores, our Pennsylvania positioning, our Virginia license, um, our, our acquisitions. And then, yeah, we’ve, you know, we pooped a few times, relatively small. So moon shots

[00:47:43]Bryan Fields: co. Shots. So before we do predictions, we ask all of our guests, if you could sum up your experience in a main takeaway or lesson, learn to pass onto the next generation, what would it

[00:47:52]Olivier Blechner: be?

[00:47:55] Spend more time listening than talking.[00:48:00]

[00:48:00] All right. Prediction. I say as I’m talking for 45 minutes. Hey, hey. That’s what we’re

[00:48:05]Bryan Fields: looking for, Oliver. Prediction time. With endless variables and challenges in cannabis, are we moving towards a major consolidation in the cannabis industry? If so, where? If not why?

[00:48:20]Olivier Blechner: I think it’s a question of of of what period, period in time. I think consolidation in, in the industry is unavoidable and, and makes a lot of sense, you know. Ask yourself this question, how many public companies does this one industry really need? Um, there’s a lot of duplication that comes with that, particularly in our industry.

[00:48:41] So, do you know, um, director and officer insurance Man, that’s expensive being public. It costs millions every year just to be public. Um, every company has compliance departments, accounting, um, legal BD teams. You know, how many of these do you [00:49:00] need duplicated across, across, across the industry. I think there’s a lot of smaller players that have, where the underly, the underlying assets in many cases, have a reason to exist, but the corporate.

[00:49:13] But why do you need like a single state operator? Why does that need to be, you know, it’s like the number 28 cannabis company in, in, in, in the us. Why does that need to be public with a stock that nobody looks at and, and it’s not, um, and it’s, it, it doesn’t trade in the first place. So yeah, consolidation I think makes a lot of sense.

[00:49:33] You need size, um, in order to be able to pay for all these extra costs. We look at two 80. You need to be able to raise money to, to afford that. I mean, what smaller players do is they just don’t pay it. I mean, guess how many, guess how many dispensaries I come across, particularly in California where we start looking at the balance sheet and we ask the question, have you paid your taxes?

[00:49:54] And then it’s like, well, what’s that? We don’t wanna , we don’t want, we don’t, we don’t wanna tell you. And it’s like, okay, [00:50:00] thank you. That’s, you know, that’s the, that’s the end of that conversation. Um, Consolidation has to happen. Um, I don’t know how many players are gonna be left. Um, it’s more than two or 3, 5, 6, 7 maybe, maybe something, something like that.

[00:50:17] I think that’s probably the amount that makes sense. There’s al there’s also gonna be continuing kind of ecosystem of, of private players. Um, but over time I, I think it massively consolidates. Um, was there was, it was a two part question. There was something about if I said yes, then you had a follow up.

[00:50:33] What was the follow up?

[00:50:36]Bryan Fields: Like, um, everywhere,

[00:50:37]Olivier Blechner: which, which, yeah. I mean, where, as in which state? All of it. Yeah. I’d, I’d say I’d, I’d, I’d say, I’d say all of it. He’s gonna get fairly consolidated, by the way, but there’s, there’s always gonna be opportunity for, for innovation and change. I mean, look at alcohol.

[00:50:55] People are starting alcohol brands now. There’s new tequilas every year. I mean, how many [00:51:00] tequilas do we need? I have no idea. But people are starting successful businesses, so, you know, consolidation happening. That doesn’t mean the world becomes corporate and it’s all corporate weed and you can’t have innovation.

[00:51:12] You know, if you come up with a great idea for a product or form factor or brand, there’s always gonna be, there’s, there’s gonna be space for that. But, you know, how many big companies or medium sized companies do we need? Maybe not as many as we have now. Um, I’m, I’m pretty sure about that. Callen.

[00:51:28]Bryan Fields: I just wanna quickly just

[00:51:30]Olivier Blechner: highlight the industry we’re working in, where you are

[00:51:33]Bryan Fields: looking for acquisitions and one of the questions.

[00:51:36] Did you pay your taxes? Right, ? Like what other industry is like

[00:51:41]Olivier Blechner: part of your checklist? Like, okay, do you pay your taxes? Like what? Well, it’s, it’s always part of the checklist by the way. But rarely, if the answer is openly, I don’t Right. ? Um, as far as consolidation goes, I think it

[00:51:58]Bryan Fields: has to happen. I [00:52:00] think that it’s the only way you’re gonna

[00:52:01]Olivier Blechner: create operational efficiencies.

[00:52:03]Bryan Fields: Allow

[00:52:04]Olivier Blechner: for the ROI from the massive amount of capital that’s been invested into infrastructure. Um, I think that’ll probably be

[00:52:12]Bryan Fields: five to 10 players globally,

[00:52:14]Olivier Blechner: most likely would be my guess. I would, I would, I would bet maybe three to four just in the US and then you’ll probably see three or four large international conglomerates right OUTTA Canada and um, south America.

[00:52:27] But I think it’s the only way the

[00:52:29]Bryan Fields: industry. If you look at like

[00:52:31]Olivier Blechner: tobacco and, and alcohol, yes, there’s micro breweries, but for the longest time in the alcohol industry it was just a couple players building massive facilities in order to supply the entire country. Right? It, it wasn’t until recently where we had all these micro breweries and other, like smaller companies coming onto the scene.

[00:52:49] So I

[00:52:50]Bryan Fields: think it, it has to happen in order to create a healthy industry. What do you think? I think people get up in arms when they hear [00:53:00] the word consolidation, right? Like we’re talking about large MSOs who are vertically integrated in multiple states. Like that’s ridiculous, right? People should specialize in what they do best and allow the the strong to survive because small players can still thrive when industry has specialists.

[00:53:15] And I think as we move towards more specialists in certain regions, I think you’ll see smaller players still doing really well. Do they need to be public? That’s outside my wheelhouse and understanding how those things work out. But I think there’ll be opportunities for everyone across the map to really lock in on what they do best and allow for the bigger players to hone in on their skill sets as well.

[00:53:34] And I think at the end of the day, the people that benefit most are not only the internal people, but also the end, end customer who gets a better product at probably a more affordable price. Yeah, yeah.

[00:53:44]Olivier Blechner: Yeah, that’s, I think that, that I can really appreciate what you, what you both are saying and that focus on the customer.

[00:53:51] That’s really what, what drives a lot of these things, right? Or really should agreed.

[00:53:57]Bryan Fields: So Oliver, for our listeners, they wanna get in [00:54:00] touch and they wanna buy juicy products. Where can they find ya?

[00:54:04]Olivier Blechner: Well, you have to be a medical patient in Pennsylvania or Virginia or Ohio at this point, and you’re very welcome.

[00:54:12] At our Beyond Hello Stores, um, in Illinois, we’re in NA area and the Bloomington normal area with four fantastic stores called Beyond. Hello. You’re very welcome, Massachusetts. We’re called Nature’s Remedy. We’re in Millbury and in Kingsboro. Please come. Mention my name, nobody will know me, no . Um, you’re very welcome to, you’re very welcome to come.

[00:54:37] And in Nevada, um, we’re still operating under the new Leaf name, so three stores in the, uh, in the, in the Vegas area, one in Tahoe. And then we’ve got stores in California under the Beyond. Hello name in Palm Springs, Santa Barbara, and in and in Grove Beach. 36 stores in, in total and growing. [00:55:00] Awesome.

[00:55:00]Bryan Fields: Awesome. We’ll link those all up in the show notes, uh, especially the one where we should name Drop Oliver, when you go to the stores.

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Editors’ Note: This is the transcript version of the podcast. Please note that due to time and audio constraints, transcription may not be perfect. We encourage you to listen to the podcast, embedded below if you need any clarification. We hope you enjoy!

This week we are joined by Coleman Beale, CEO of Bastcore   to discuss:  

  • Sustainability
  • Sequestering Carbon
  • Industrial Hemps Opportunities
  • Textiles & US Manufacturing

About Bastcore The company has been consistently innovating, tailoring and perfecting the creation of premier hemp products from the bast and hurd (wood) and expanding the use-cases for the full hemp plant – sustainable use cases that benefit producers and manufacturers in construction, as well as textile (woven, and non-woven) industries.

Located in Alabama, BastCore is a leader in the natural fiber supply chain and the creator of the patented hemp technology that is helping to spur more efficient and broader use capabilities for the original fabric of America: HEMP.

At the farm, facility and warehouse are bales of hemp that the BastCore team harvest for use by textile brands, energy producers, green building companies, and more.

BastCore, an innovator in the technological advancements of hemp, invites you to experience what American HEMP can do for you.

https://www.linkedin.com/company/bastcore-llc/

#IndustrialHemp #Hemp #Hempuses

At Eighth Revolution (8th Rev), we provide services from capital to cannabinoid and everything in between in the cannabinoid industry.

8th Revolution Cannabinoid Playbook is an Industry-leading report covering the entire cannabis supply chain 

The Dime is a top  5% most shared  global podcast 

The Dime is a top 50 Cannabis Podcast 

 Contact us directly at [email protected] Bryan Fields: @bryanfields24 Kellan Finney: @Kellan_Finney 


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Winter has come, and the cold brought tighter capital markets, lower cash flow, and long cold months to follow. When looking at both the cannabis and hemp industries, the average price per pound continues to be stagnant across the country, and minor cannabinoid prices continue to drop across the board. Both trends signal an oversupply which has led to a challenging business environment. Over the last few months, several of our highly skilled and dear friends have chosen to leave the industry due to job volatility. Companies need to last more than a couple of years due to the startup nature of each organization, the challenging regulatory environment, and poorly run business operations. Over the next 18 months, we will see the most significant industry consolidation in the post-prohibition era of cannabis. The companies that are left standing will have generational wealth opportunities.

Kellen Finney, Eighth Revolution

Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.

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