New Music And Quick Roll Call

SPEAKER_03 0:11

We have new and slightly less cool intro music now, but this is this week in Cannabis Live. I am Jay Rosenthal. That is Jeremy Burke. I don't know which way to point. Mark Hauser, Anna Ray Grabstein. Welcome back, everybody.

Midterms Without Legalization Ballot Measures

SPEAKER_03 0:26

Well, we are one week. We're going to start where I think everybody's mind is, and we are one week closer and three days away or four days away from the midterm elections. This is a non-uh standard question, but what is everybody thinking? What is top of your mind as the election comes to bear and array? Start with you.

AnnaRae Grabstein 0:47

I mean, voting first, most importantly, everyone should vote. But it's it's a different kind of election. You know, the this um midterms or presidential election is the first election in 16 years that doesn't have a legalization um initiative on the ballot. And um I just find that to be this interesting moment of realizing how far we've come. And um there are some statewide cannabis measures on the ballot, but as opposed to opening up markets, they're about closing them. So we're talking about Massachusetts and um Idaho. So yeah, I'm I'm watching it all. And then there's lots of individual elections that are more like the governor's seat and how they're talking about cannabis or local elections that are thinking about changing tax um tax rates and things like that. So there's cannabis is certainly on the ballot, just not in the same way that it has been in past elections.

SPEAKER_01 1:44

I I will I will add it's actually the opposite because cannabis is on the ballot in Massachusetts, but uh to repeal it. So um Anne Ray, your point is well taken, but um, you know, it's it's the first time we actually have uh the opposite issue. So so that's so that's what I'm watching very, very, very closely. Um, you know, just to see, not that I believe it's gonna pass, but just to see, you know, if it hits, you know, a 40% threshold in Massachusetts, which uh is is unlikely but possible, you know, this could be a pattern that we see repeated across a lot of states. So that's um the one thing I'm closely watching. Uh Jay, to sort of answer your question more succinctly, you know, I think it's not a shock to our readers that I'm a Democrat. I live in Brooklyn, so you know, I've already voted in the primaries. My vote doesn't count very much right now. Um, but uh I'm really watching Massachusetts closely.

SPEAKER_03 2:34

Your vote counts more than me. I I am actually a uh San Francisco voter because when you wherever you register to vote, that's where you vote forever. If you become a well, in my case, a uh Democrat abroad type of thing. Uh, but I vote in uh Noe Valley in San Francisco. If you think your vote doesn't count in in um in Brooklyn, yeah. Yeah.

SPEAKER_01 2:52

I I would say it's it's you know, in my district, it's it's you know, do I vote for the center left Jew or the far left Jew? And that's uh, you know, that's the decision I'm trying to make right now.

SPEAKER_03 3:01

So have fun with that. Uh have fun with that. Mark, what's on your mind? Yeah, let's not clip that one sentence. What about you, Mark? What are you thinking about?

SPEAKER_02 3:15

Yeah, I I mean, I I I I I agree with every, you know, I don't know if there's much to add. I mean, it's you know, cannabis is rarely on the ballot except when it's direct. Um, to me, you know, I it's it's definitely one of those things where I've always heard, you know, folks in the industry say, oh, you know, it matters, it doesn't matter. You know, it's like the it's like the 80th problem, like on the list of things that people care, like the in the the the sort of random voter cares about. Um but yeah, but I mean certainly in Massachusetts, you know, that that's where the focus is. It was definitely a lot more on the ballot, what was that, two years ago with in Florida. Um but uh but yeah, you know, it's uh and I you know I don't even if we see you know a shift into with the Democrats controlling both the House and the Senate, I still don't know that that changes much. Uh you know, it didn't change anything when the when the Democrats controlled you know both houses and the White House in 2020, uh you know, to 2022, because they didn't blow up the the the filibuster. So, you know, I I mean it's sure it's unfortunate.

AnnaRae Grabstein 4:33

One thing that has changed, and and I I don't believe that there's a a one-issue cannabis voter out there generally. There's one guy. There's there's a couple guys, sure, yes. Yeah, but I I do think that we are seeing a shift of candidates talking about cannabis as part of their agenda in a different way. And I've I've talked about this a bunch, but certainly pointing to Texas. I think that the um the elections in Texas, both for Senate, Lieutenant Governor, uh, and Lieutenant Governor have have talked about cannabis in a way that is using the issue to galvanize voters behind a candidate to support them based on what they're gonna fight for as it relates to cannabis for the people of Texas. And um that is a is a unique is a unique narrative for us to be seeing unfolding. And it's happening in other places as well. And these are these are yeah, so yeah, and and these are these are uh elections that have an enormous amount of money coming into them too. Um a lot this this election is going to be the most expensive election of all time. I I think that Elon Musk himself has put in something like $400 million into the election for his candidates. But um I am watching if candidates if cannabis is something that can sway voters to get behind certain candidates.

SPEAKER_03 5:56

I I think especially if Jeremy keeps um taking shots at Elon Musk on Twitter, it's gonna be uh it's gonna be even more expensive. Um I'll tell you what two things. One, I it is I was gonna mention uh Texas as well, but also Michigan, the Republican guy, you don't even know his name, running for governor, wants to repeal the new tax that went into effect recently. So like it's not just on the Democratic side pushing for reform. There's also Republicans pushing for reform and not in a repeal kind of way, but in a taxation kind of way. The thing that I think will be interesting for our conversations and the hemp conversation is what happens on November 4th and the lame duck session of Congress, if anything, because I think there will be an interesting conversation to have in a lame duck session around hemp now that some a whole hopefully like 40 Republicans won't be coming back next year. Like, what do they say about this issue? Does someone take it on as like their cause celeb? Uh are there banking issues that get addressed? We have this conversation every lame duck session. I would, I would, I would almost always bet on state stasis slash nothing. Uh, but there's some pretty topical things happening. They also have to keep the government open in the context of this. Um, so it will be interesting. And I mean, hey, I'll say it. If Republicans do win both the House and the Senate, and everybody gets a $5,000 check in the mail in January from the president, that will be great for the cannabis industry, to be quite honest. Last time there was government money heading out the door, it was very, very good for the industry during COVID. I just want to might as well say that. I don't think it's gonna happen, but might as well put that out there.

SPEAKER_02 7:26

Yeah, you know, and and people might start really believing that I look like George Clooney. So sure. I think you do. Yeah. Anyway, I want to, I want to um, I, you know, I want to just highlight. I mean, you make a great point, is that uh about about just the fact that even though it's not on the ballot, you know, the the fact that that there's more and more conversation about this stuff, both at the federal level and the state level amongst politicians is in my mind, you know, it I mean, it's it's palpable and it's it's in my mind, it's a it's a good thing. Because the, you know, five, ten years ago, you, you know, we were not, they were not having these conversations so broadly across the country. And you know, it's just it's just part, Marcel, of how this is just such a you know, changing policy on a national level is just takes so long. And um, and that's exact this kind of conversation is exactly what's needed. As painful as it is to wait for it. Yeah.

AnnaRae Grabstein 8:31

So yeah, we uh last week we had uh Steve Hilton, who's the Republican um gubernatorial candidate to for California on uh the High Spirits podcast. And and he is specifically talking about how he wants to fix and improve the cannabis industry for Californians as part of his campaign. And the fact that he wanted to come on a cannabis business podcast, I thought was a bit of a surprise. We reached out to the the other candidate, Becerra's uh campaign, wasn't quite as interested to talk to us. They said, well, why don't why don't we have him talk to you after he becomes governor, which I appreciated and saw that as a sign of confidence. Uh, you know, the the the local newspaper here recently published um that Steve Hilton is basically unelectable. And and I think in California today, it is it is gonna be a tough slog for a candidate like Steve Hilton um to win. But uh the fact that the fact that they're engaging with our industry is something that brings me some optimism and and you know makes me feel more seen.

New York And California Regulators Onstage

SPEAKER_03 9:36

I wanna I want to pick up on that because I think it's a good segue, Anna Ray. We didn't we didn't have this show last Friday because Jeremy and I were coming off of our event on Thursday night last week in Soho, which was the high rise, and it was Soho. What's that? Soho New York. New York. Yeah. Okay. Sorry, yes, not like the Soho House in downtown Toronto. That'll be cool too, but like Soho Soho. Um Soho or any of the Soho. Any of the Soho houses. But um what I what I what is in particular, and I want Jeremy to pick it up, is that I think for the first time, well, first time for us, but first time ever, uh, we had on the head of the OCM in New York and Clint Kellum, the head of the DCC in California, uh together on stage, taking questions from Jeremy and taking questions from the audience. And it was, I thought, a really good conversation. Jeremy, I want you to pick it up. One for the uniqueness of having them both on stage, but also sort of what we learned and heard.

SPEAKER_01 10:29

Yeah, we we we did, Jay. I think I think it was a really good conversation, too. Uh, you know, we could have gone for for three hours with them on stage, at least, you know, for for us who are cannabis policy nerds and our audience of cannabis policy nerds. Um there were two things that struck me about the conversation. I think one um was that both Clint and John, you know, are not the first regulators in their state. Um Clint came, he's almost, I think, nine years into California, and and uh John in New York is about four years into it. So they are sort of taking these agencies uh with some baked-in problems, but trying to sort of push them forward. And I think what I mean by that is their willingness to show up in a room that was not not hostile, but uh, you know, had a lot of good questions for them. I think uh, you know, was a sign of their willingness to engage and their willingness to help and try and fix the industry. So um kudos to them for doing that, and kudos to them for for answering our questions. And uh I think Jay, you can uh also agree answering some tough audience questions too. Um so I think that was number one. And number two, I think, you know, these two people and the agencies they lead oversee, you know, billions of dollars of legal cannabis transactions per year, right? These are massive, massive markets. There are a lot of stakeholders, whether those be consumers, cultivators, processors, real retailers, anywhere you're on the supply chain. And I think understanding their thinking about what they see as the purpose of regulation, what they see uh what what their goals for the cannabis market are and how they see it evolving is really, really important. Um, and then the third piece I would say is uh, you know, which we sort of got to at the end of the discussion, was that they're not getting a lot of information from the federal government while the federal government is making large-scale changes to both their day-to-day jobs and the industry writ large, those billions of dollars of usually transactions I discussed. And so um we're in this sort of area where you know we finally do have, not finally, but I will say we have sort of real professional regulatory agencies who are trying to improve and deal with the hand they're dealt and make sure that they're working with the industry. At the same time, they are hamstrung by federal regulations. And so, you know, I told them on stage those might be the two hardest jobs in cannabis, and you know, every decision they're gonna make is gonna disappoint someone, and and that's part of being in government and part of being a regulator at the same time. Uh, you know, I think, you know, the industry needs to still get in front of them, get in those rooms, and tell them how they feel and what they what they want to do and the things they want to see out of the regulations too. And so uh, you know, I thought it was a very worthwhile conversation. Um, you know, I I'm really excited that that Clinton John agreed and and uh you know had good feedback for the for the room too.

SPEAKER_03 13:10

Yeah. I I would also say that um, and Jeremy, you referenced sort of stakeholders and industry stakeholders, which are sure are part of their stakeholder group. But I also thought it was interesting, I think it was John mentioned, not in passing, but like their constituencies are not just the industry. Like they have a legislature they have to work with, they have a governor they have to sort of answer to and rope in. And like this is part of the conversation, like the policy goals of our jurisdiction, the needs and wants of an industry, what consumers and patients need and want, like it's a mix, and then taxation on top of that and the federal stuff, like it it is a very complicated job, which I thought they weren't their job was not to, they didn't talk to us about how complicated their job was. But when you start to think about all the things they think about in decision making and implementation, like and and that even though John is four years in and Clint is what, nine years into an industry in in California, like that's relatively new relative to like alcohol, tobacco, agriculture. Like it's they are so new, even if it seems like they've been around forever.

SPEAKER_01 14:10

It's yeah, it's interesting. I mean, it they sort of moved to like, you know, if you want to take take a venture analogy here, it's like they've gone from the seed stage to like the series B stage, right? So they're still new, there's still things working out, work things to work through and processes to implement, but uh, you know, these are these are real organizations with real teeth behind them, and now it's about maturation. Um, and Jay, to your point, thinking about you know, philosophically what cannabis regulation means to these folks, you know, John made an interesting point, right? He said, look, like, you know, he he answered my question directly and refuted it when I when I said that, you know, in New York, cannabis is regulated like plutonium. Like I'm a I'm a 34-year-old man, and my idea is to get checked twice. Like, I can't smell the cannabis. I am an adult, I know what I'm buying, but you know, John did defend that in a way. He said, look, like this is a new, this is a relatively new substance that we are allowing consumers to have relatively newly legally, I should say. And he said, look, like we should control that at first. And I thought, I was like, huh, you know, I I I might not agree with that in in my politics and my viewpoint, but um, that's the way regulators think. And and I think there's uh good reasoning for that too, right? Because they want to protect the markets they're setting up. They're looking at blowback and where it's coming from and figuring that out. So I thought that was revelatory and very interesting, even if I don't agree.

SPEAKER_03 15:29

And Mark, it's because drugs are scary.

SPEAKER_02 15:32

It is that's exactly right. I it's it all comes down to that.

SPEAKER_03 15:39

I don't know.

SPEAKER_02 15:39

You say that flippantly, but it's but it's no, no, I don't.

SPEAKER_03 15:42

I don't. I I say it as the way a regulator, but especially uh governors and uh legislatures do. But but this is also the point because and this this was this week, and I want to sort of uh the governor actually, I don't know if she had a press conference or press announcement, uh, Kathy Hokel in in New York was sort of promoting the fact that four billion dollars worth of cannabis has been sold since legalization. So, like it is this funny balance where they're touting the amount sold, but also want to regulate it like plutonium. Like they are in this weird space now where I think it speaks to both consumers and the industry that this is something that you could be quasi proud of having reached a milestone like four billion dollars, which California reached a long time ago, but it is interesting, and and certainly Steve Hilton is talking about it.

SPEAKER_02 16:29

Yeah, yeah, yeah, yeah. The the the issue about the DEA, um, you know, we've heard that now from we also heard that a couple weeks ago from um oh Gillian, uh who's um forgetting her last name, who's head of Canberra of Shower, Julian. Thank you. Yeah, um, saying the same thing, you know, the head of the Cannabis Regulators Association, but there's just no, you know, they everybody's been reaching out, there's no guidance from the DEA. And you know, it's and the DA really has little um incentive to move this along. I mean, and it's not just it's not just working with the states. I mean, it's it's issuing these regulations that will underlie how you know their level of regulation of licensed uh DEA licensed schedule three medical cannabis will work. Um, you know, so it's it's disheartening, but also not surprising to hear that, you know, that from that what you heard from the state regulators from New York and California.

SPEAKER_03 17:38

Yeah.

New York Market Maturity And Price Compression

SPEAKER_03 17:39

I think actually one of the other things, Anna Ray, I was thinking about you while I was sitting there watching uh another panel, which was um with a data anal uh data analytics person, our guy, um uh Rick Bashkoff, um uh and two brands, one ripped, like a new brand in New York, ripped, uh, and one sort of really sort of uh what was the other Ruby Ruby Farms, yeah. Ruby Farms, like huge in every dispensary, like talking about price compression was actually quite interesting. Um it came after the regulator conversation, so I was like, oh, the wind is out of the sales, but it actually ended up being really compelling about how markets evolve. And and you talk about it a lot, Anna Ray. I think your quote was like, everybody better get used to operating with Ace at like $23. Like, I think it was something like that. Like it it was a bit of a sounds like something I might say. It was definitely something we turned it into a clip. But it was it was interesting. I think it was a good, even more so than our January event, which was the similar format. It was much more of a where is the market today in New York? It reached a real level, different level of maturity from January, frankly, to October. Um, so it was really a good time to uh connect with folks in New York for sure. And it was right on the the day that Hall of Flowers ended. So people had sort of been in the realm for two or three days and then sort of came for a really deep dive conversation, which that was really interesting.

AnnaRae Grabstein 18:54

Well, I'd like to come in the future, so I'm I'm uh not only you're gonna come, you're gonna have enough notice. Yeah, you're gonna have a role.

SPEAKER_03 19:02

You're gonna have a role. You're gonna you're gonna be the sage, uh the sage from from California to talk about what where the market is headed in New York.

AnnaRae Grabstein 19:09

That sounds great. I will be that.

SPEAKER_01 19:12

I want to um I I want to get I want to before we move on, I want to make one more point, not about the high-rise, but about the midterms. Um and

Lame Duck Politics And Federal Hemp Bets

SPEAKER_01 19:19

I I you know, an array, I think I was thinking about this when I was watching the clips of Steve Hilton on your podcast, and we've been sort of ruminating uh a column about this. You know, if Democrats do get the sleep of of both chambers, you know, there's not going to be a lot of appetite for any sort of cannabis rollback, right? And so what we're seeing now, I think is super interesting. Where, you know, we have Republicans in Michigan, uh, John James, who, you know, is talking about reducing cannabis taxes, cutting red tape. Steve Hilton in California is doing the same. Uh, even Zach Lan in Iowa, he said, look, I, you know, I'm supportive of medical marijuana. I'm not supportive of recreational, but I want to cut red tape for our medical marijuana industry. And so we're starting to see, you know, Republicans treat the cannabis industry as just another small business, right? Which should be taxed less, uh, you know, have less red tape. And look, that's not the entire Republican Party, but um, there's there's, I think, a real shift underway. And I think if Democrats control the House, they're gonna want their voice on this issue, and that's gonna be the way to get it. And so I think we'll start to see that uh bubble up from the states into the federal level. Maybe that's that's my prediction.

SPEAKER_03 20:34

Jeremy, they're gonna kick you out of Brooklyn and you keep talking like that.

AnnaRae Grabstein 20:37

Um I don't know if if you guys uh follow Ian Dominguez from Delta Emerald. He's an investor, but he yeah, he puts out a pretty good substack. And yesterday he published a piece which I think is really worth uh reading, all about how uh the the prediction that the Democrats take the House and that the Senate stays Republican is the is the best possible outcome if some of these open hemp bills were to try to get put into the reconciliation bill due to Republicans that would be leaving, trying to basically make their mark on the policy before it got diluted by somebody else and a bunch of people are carrying it. And I thought it was a a a very thoughtful and well-conceived perspective on um on how how the way that the that the House or Senate might change or or stay the same could um could change the lame duck session as it relates to hemp and cannabis. I I will say this.

SPEAKER_03 21:40

Lame duck sessions where Congress is about to shift dramatically are not a particularly good time to get anything done. Um and that I mean I we've had lame duck sessions previously during the cannabis sort of conversation, but it's generally not massive sweeping uh people moving out of offices, people moving into offices. I I I if I had to predict anything of I would predict if we see a Republican Senate and a Democratic House coming in, or both houses are gonna, you know, the Senate and the House are gonna become Democratic, I would expect very, very little over the next two months. And sorry, the hemp friends that are waiting for something to happen out of out of uh DC, but I would expect it's a very challenging political time to do anything. Um I don't expect the president will all of a sudden shift gears and be like all bipartisan and shit. Um I want to get to uh winners and losers of the week.

Winners And Losers Start Rolling

SPEAKER_03 22:30

Um let me I already screwed up the intro. Ready? Hold on. I just love those booze. Mark, we're going to you first winners, losers, what do you got?

SPEAKER_02 22:43

Uh um uh give me a second. Okay, because I had it in my mind and then I forgot. So it just gave me a remember in array, of course.

AnnaRae Grabstein 22:54

Um so I'm gonna I'm gonna call out something that you guys covered this morning and cultivated, which um is the LPA agreement in New York being um rolled back, repealed as a requirement for um recreational licensees by Governor Hochel. Um, I think that's a big win for operators. Um, and it sets a very unique precedent because so many states have required LPAs, and so many operators who I have spoken with over the years have felt that it was a major overstep, um, especially for small businesses, sometimes with 10, 12 employees of a dispensary to have to be negotiating with unions to get labor peace agreements in place. And it's just been a very challenging requirement that I think is strange and has shown the way that the unions have gotten involved in legalization in a way that um has created some challenges for many small businesses. So I think it's a really big win. Um, and I will call out specifically Gotham, um, who you guys partnered with on the high-rise, who chose to actually take this to federal court, um, which is something that for years I heard operators say in backrooms, gosh, I would love to go sue the government over this, but I just don't have the cojones to do it. Um, and I don't want to take on the regulators. So for someone to have done that and then to see this outcome just shows that um when something isn't working, that using those processes that are in place um to push back is something that you can actually win at. So um kudos to Gotham and kudos to all the operators that don't need to operate under this labor peace agreement uh going forward.

SPEAKER_03 24:40

Joanne is not short on Cahonas, um at Gotham, that is for sure. Um she's she's uh one of one and uh she's she's amazing. So uh are you ready, Mark? Thank you.

SPEAKER_02 24:53

I'm ready now, thank you. Anna Ray's mentioning of your newsletter this morning reminded me the other the the winners this week are um the the the lovers of cannabis beverages who are able to now buy you know are are able to buy THC hemp beverages at steep discounts uh with with retailers and you know producers uh basically fire selling them. Um so the losers are you know are obviously the producers of those products, uh but you know, but right now is the time to stock up because you can get some some a nice deal.

SPEAKER_03 25:32

It's like having an uncle in the cabin. You know, beverage business. Well, Chris Kesaki wrote the story, actually at prices per, I think quarter pallet, half pallet, and full pallet in there. That's pretty that's something. It's a whole it was in there.

SPEAKER_01 25:44

It was a great story, it was great reporting. Um yeah, yeah.

SPEAKER_03 25:48

If you have a loading dock, now's the time to order. Jeremy, how's your loading dock? Is it stocked up?

SPEAKER_01 25:55

Uh it's it's not. Uh my my two-bedroom won't fit a pallet, but uh, if anyone wants to send me stuff, my fridge has some space. Um my uh yeah, Anna Ray, I I actually had the same winner uh as as you this week. Uh it was Gotham for uh winning their case. And actually, I think, you know, I think the New York cannabis market is a winner here, and and I want to make that distinction careful. Uh, you know, that I think everyone from the regulators to the businesses were looking for some certainty in the situation, and now they have it. Uh, you know, the wage board isn't fully eliminated, that will come the next legislative session. Uh, but you know, I do think that getting these issues wrapped up, uh, having the governor sign, seal, and deliver a bill that removes the LPA, I think is a positive for the cannabis industry, and it's a testament to uh Joanne Wilson and Gotham for uh actually, you know, bringing it up into court and and getting this done.

Social Equity Goals Meet Business Reality

SPEAKER_02 26:54

Can I can I interject something uh on this? Is that well, I'm gonna do it anyway, even if you object, is that um, you know, to me the LPAs and just sort of and then the pullback on this, you know, I think part of it is sort of a more of a you know is part of probably a macro trend uh nationally. But also I think it's also one of those things where it shows that that that social the concept of social equity in cannabis just hasn't worked. And you know, and and in part because there were all these ideas thrown at the wall, and you know, but because cannabis hasn't worked out, the b the business of cannabis hasn't worked out like anybody expected. This is just one of the many ways that it just, you know, that these these agreements didn't work for the industry because the industry didn't grow as a retail business in the way that regulators and uns and retailers all thought it would. And so what might have made sense is a you know, a reasonable idea five, 10 years ago, it just you know, it was trying to it was trying to marry two ideas together that just didn't work.

AnnaRae Grabstein 28:02

Well, you're opening a can of worms here. Jeremy, take it then. I'm I'm on the sack. No, no, no.

SPEAKER_01 28:06

I just I know we're coming on time here, but I will I will say, I mean, I I I had um uh I went on the hybrid podcast with with uh two regulators, um former regulators, one in Massachusetts and one in Maine, who who started early. Um and I made this point at the high rise to both John and Clint. And they said, look, like, you know, it was 2018 in Massachusetts, we're trying to figure out what the Wi-Fi password is and to figure out how to build you know IKEA furniture. Meanwhile, we have to get licenses up and running, we have to get capital into the newly legal cannabis sector, and we also have to solve the whole war on drugs, right? And I think you know that was that was the line that really stood out to me. Like, wow, I think you know, there's a lot of idealism in the early days that uh you know fell against the realities of economics. And, you know, I know I might get criticism for saying this, but I think you know, regulators now understand that and realize that. And that's not to say those weren't worthwhile efforts or those ideas were bad, but the execution uh was predicated on businesses that were cash flow positive and performing well. And when that wasn't the case, the whole edifice of social equity kind of fell away, as you spoke to, Mark. And so um I think we're sort of reeling with that and understanding that now that look, like we can't uh, you know, we can't make cannabis businesses solve the war on drugs. We should just make them businesses in the first place, and then we can talk about uh, you know, those broader social equity goals.

AnnaRae Grabstein 29:31

Yeah, I sorry. I I will say that I I I take issue with the idea of the LPA agreement being a way to also point out that social equity didn't work. I think that the LPA requirement and and trying to get a social equity operator at a table to negotiate with a union is an example of one of the reasons why social equity was a failure as well. I was like, these are the types of requirements that are completely inappropriate if you're trying to foster small businesses, foster innovation, and bring entrepreneurs into a new role and a new position, because sitting across the table from a union is a big eff and deal for anybody. And they come with an entourage and a power and thousands of people. And if you are an independent person that's starting your own business for the first time and has never even had an employee, and now you're required to figure out how to navigate that, um, it can get very sticky. And I think it's a perfect example of how the intent of social equity, um, while it might have been good, the amount of regulations that were put on all cannabis businesses, including social equity businesses, created obstacles that were just too big to overcome.

SPEAKER_03 30:49

Yeah. Um, I agree. I agree with that. Um and Dermy, you're still gonna kick kicked out of Brooklyn. Um, and you guys both might get kicked out of Northern California. I'm not 100% sure. Um uh uh with your centrist views. Oh my goodness, raging moderates all of

Canada Makes Cannabis Boring On Purpose

SPEAKER_03 31:04

a sudden. Um, I'm gonna give uh we weren't here last week, so we missed the anniversary of uh Canada's legalization. So eight years in, this is my winner of the week. Um, and uh we wrote about Jeremy wrote about it. Um Canada made cannabis boring and it worked, uh, or worked more or less. Um so I want to celebrate eight years of legalization here in Canada. It is um, I say this, I know what there's a double entendre, but um, it is on every high street in Canada. Cannabis is very much part of almost every neighborhood, excluding ones right next to schools. It is not a big deal. People certainly smoke it everywhere, but also um is sort of part of the fact the fabric of our lives. Nobody's repealing it, nobody's talking about doing that really. Um, and it's very normal and boring. I will say this though, and and I was at a cannabis event here in Toronto last night. Um, apparently, and we're gonna write about this more. Um, there is a brain drain from Canada in uh facilities that are EU GMP. People want those people that built those cultivation facilities and worked in them and grew in them and processed and manufactured in them all over the world, these people being poked from all over the world to leave Canada and go somewhere else. So it is interesting that there is a quasi-brain drain of cannabis sort of experts here. Um uh we'll do a little bit more on this, but uh that was one of the takeaways from this event. Um loser of the week as sort of these gross that need still people to work them and they're getting uh all over

Election Postmortem Tease And Signoff

SPEAKER_03 32:35

the world. But I want to thank you, Mark. Thank you, NRA, thank you, Jeremy. For this week, we'll be back next week. We will have a, I guess, a post-mortem on Tuesday's election. Hopefully, uh we'll be playing some cheerful music and then sort of unpack what it means for the cannabis industry as well, not only for democracy, but for the cannabis industry as well. So thank you all for being here. Have a good weekend, happy Halloween.