You're listening to the Cannabis investing Network before we begin a short disclaimer the full disclaimer follows at the end of this episode. This podcast is a general communication and is being provided for entertainment and information purposes only. It is educational in nature and is not designed to be a recommendation for any specific investment strategy plan feature or other purpose. Please enjoy responsibly.Hello and welcome back to the Cannabis investing Network market update for September 25th, 2019 and guys, we have a packed market update. We've been off for a little bit and we are back at a very interesting time and there is a ton of stuff happening in the market that we need to discuss today. My name is Manish. I'm here with my co-host Abby. How you doing? Abbi? Magic Manish. I'm doing very well there. We go magic Manish. I like it. All right, so Abby, have you been I know we haven't done an update and thinking two weeks and a lot has happened in those two weeks at the markets of just been they've been insane. They've been absolutely brutal the broader markets have recovered but the Cannabis Market somehow has gotten even worse and that's some of what we're going to talk about today. We have some really really good news today and then we have some not so Good news, and we're going to alternate back and forth between good news and bad news and we have four different news items. So let's just jump right into it. So the overview for today guys is number one the safe Banking Act passes the house, which is huge news. Number two. We're going to discuss the vaping Health crisis and I put a little question mark there because is it really a crisis? You know, and what's really going on and you know, how bad is it really number three? Three some very positive news out of Pennsylvania as well as what that means for New York, New Jersey and Connecticut and number for CIBC analysts have put out throwing a little bit of cold water on some of the other analysts estimates for the Canadian some of these hot stocks. There you go through a little bit of hot a little bit of cold water on some already. I don't know about all the pot anymore. I mean some already beaten down stock and CIBC is kicking them. They're down do we agree with it? Do we not agree with it? We will get into that so. First of all the safe Banking Act passes the house. Absolutely historic guys you can you go into what the safe Banking Act is absolutely. So first of all, I'll just touch on passing the house. They passed the house with 75 percent of the votes in the house. And that is an extremely impressive number because it means they got a lot of Republicans to vote in favor of it. This was truly a bipartisan effort and one of the first You know really consequential pieces of legislation. We've seen that's cannabis-related and and I mean we should just stop and take that end. I mean that is a huge development that I would never have thought possible, you know a year or two years ago. I agree. I'm just letting people pause to take that in. Oh, okay. I was wondering you looking at me like - yeah, I like there was no there's no question. You're not married, right? Okay, so they passed it using a special process which speeds up the process and limits debate. However, it requires two-thirds of the vote. So it shows that they were very confident that they had the votes to pass this thing and and just strong bipartisan when you know reflects very well on you know, I would say the the other the sentiment. Yeah, they have towards cannabis would be a fair assessment. Right and I think that it's really encouraging to see this many Republicans voting for something broadly cannabis-related for sure. And you know what? I'm pretty sure it's next on your agenda is roll dough will ask you can you talk about why it's important absolutely implications are and what the safe like what the Safe Act is. Yeah, absolutely. So first of all, just just as a caveat although Today was fantastic news. It's important to note here that in the state's things have to pass the house and the Senate and then be signed into law. So today it passed the house. That's awesome. But it still has to pass the Senate so, you know, there's still a lengthy road ahead the sentence looking to be more challenging than the house was and it could still get vetoed potentially by the president. So these are all things that have to be overcome and this is just a good first step. Okay. Now why is it important? Why is this something? That is such good news for the industry? The Safe Act is really a Banking Act. Okay, and in very simple terms what it does is it allows Banks to take on cannabis related businesses as clients without having to worry about Federal legislators or federal Regulators coming after them? Okay. So right now the way you know, let's remember cannabis is a schedule one drug in the same class as you know, heroin and cocaine so So any company even at the state level, you know, if you're in California and at the state level it's completely legal doesn't matter in the by the letter of the law. Federally you are scared. You are trafficking in a schedule one drug like a cocaine dealer which means that you're actually funding terrorism as well. So just to really put it into perspective of how severe it is. Yeah, I mean terrorism in the states, which is not what you had. I mean, I don't know. Yeah. Well that's that's how it can be perceived from a legal perspective exact right? So why that's important. And is that you know, I've talked to I've invested in a company that was a software company and they actually got kicked out of their bank. So their bank took them on as a client and then release them because their clients were going to be cannabis companies and they were going to be basically taking deposits from cannabis companies and this software company was not even allowed to bank with a big bank. So that's how cautious big banks are when it comes to cannabis because of the schedule 1 status. What the Safe Act would do is basically take all of that uncertainty and illegality and and risk away from the banks. So now the banks can you know with open arms except cannabis and related businesses. They can Bank them so they can have bank accounts with them. They can offer Financial Services to them. They can begin to accept credit card payments, which is a huge deal. You know, when you go to a dispensary right now, you can't pay by credit card. So just think about you know, think about What a big impact that makes and the number one thing is once you Bank the client once you have a banking relationship with them, you can start loaning the money. Okay, and why is this so important? It's because it's all about the cost of capital. So right now if you're a cannabis company and you need money the first option and the easiest option is you got to raise Equity. So you have to issue new shares have to dilute yourself. And you have to keep doing that every time you need money and these companies need to keep doing it because it's Capital intensive and they're burning cash is they grow? Right? So that's a big problem. The second step is you can raise private debt. So you can go and raise money from private individuals as debt. A lot of times it takes, you know, it has some kind of Warrant kicker attached to it, which means that there's there's a potential for Equity dilution and the debt is very expensive because it's private debt right so it can be Like 10 12 14 percent debt, we're talking about here. Okay, when you pass the safe act now, you can start dealing with the big Banks and your cost of capital goes from being 12 14 18 percent to now being maybe six seven eight percent and when we look at the large cannabis companies in Canada, that is exactly how that's exactly the cost of capital. We're seeing it's something in around the six percent now still you have to be a good company and one of the one of the bigger companies to attract that kind. Kind of Bank financing, but it's out there and it's you know to be able to take on debt at six percent is much better than having to raise Equity or you don't get private debt, which is going to cost you a lot more right and one of the big challenges. I keep telling people to think about is that as you know, it's when the markets soft it's hard to raise money, right? So if you can go to the bank and get debt now that is a huge huge plus. Okay. So this is what the Safe Act means that's why it's so Important and this was a huge first step in getting it passed now, they'll be some pressure on the Senate but with anything government-related guys, you never know. What's going to happen. It's always going to take longer than you think. It's always going to take longer than it should and we're going into an election year. So is that a good thing bad thing? Who knows? I certainly don't it just means I always find that with election years. You just get weird issues that just get over Amplified. Right people get fixated on one thing if it's a no this party members saying ABC then another party member will kind of come in and kind of go explain why they are for or against it and it just kind of amplifies anything. So if there's like a little bit of fire, it's like throwing gasoline to the fire. So the markets are going down because of whatever issue. I think it just sort of amplifies that result sure and I would say that I hate to pontificate on politics. So it you know, it just does so many better places for you to get that kind of information but I would just say that it is funny that the first thing to get past cannabis-related is something that helps the big Banks right? Like, you know what I'll take it but I'm just saying it is funny that like, you know, the you know Congress is acting and it's in favor of something that will help banking. Right but the industry the industry desperately needs it. So I'm not too. Yeah and take anything away from that. Yeah, so Who is this a positive for all of the US companies all of the bank's too but it's definitely a much bigger impact for the Cannabis space than it is for the banking space. Yeah, and I'm also a firm believer that you know, once the bank's get involved and they start making money on this. They're going to be a big proponent to push for further legalization and federal legalization. Right? Once they see how much money there is to be made. They're going to help drive this thing forward, right and let's not forget how powerful the u.s. Banks are. So that's the that is the first piece of news wrapped up the safe Banking Act big positive for the US absolutely nothing to do with Canada and fingers crossed. You know, when that Senate version passes if when that would be a major major Catalyst for the space and absolutely huge and just a great benefit for the businesses. So stay tuned and we'll see what happens number two. So, like I said, it's going to go good bad. This is probably one of Of the worst news items we've had in a long time and that is The Vaping Health epidemic and this has been absolutely brutal to the space and I want to be clear. You know, I'm a little bit tongue-in-cheek here saying epidemic. We don't really know how bad this is by the numbers so far. It's about 350 cases of people particularly young people having, you know, some kind of lung or pulmonary illness about 350. Two cases and about eight deaths and they all seem to have happened relatively, you know quickly in a short period of time. Yeah, so I'll keep that in mind that this is mostly in the states right mostly in the States. But you know, there's at least one case in Canada. It's also you know, it's also important that they have so many more people right? So, you know sort of makes sense. I'll give you a quick anecdote a b which you might find interesting there is a daughter and son in my office and They were talking about how you know, they both used to smoke and in the past couple of years, they've flipped and they've turned to vaping and they don't smoke anymore. They exclusively vape and it just in the last two weeks with this news that came out. They said you know what? We don't know what's going on. They switch back to smoking cigarettes. So, okay. Look I'm not a doctor by any means but what I would say is I don't know. I think I think vaping is a little bit healthier. Sure. That's what I've seen them smoking. I if you don't if you don't smoke don't fade if you smoke then, you know vaping might be a good way for you to get off cigarettes. Yeah, and I mean look when it comes to health when it comes to long-term health effects. I mean, who knows right? I certainly wouldn't assume vaping is good for you. But this is a very real problem and a lot of the online stuff. I've read a lot of people in the forums are sort of saying I really upset at the media for how much the media has run with this and how big it's become and I sort of have this like litmus test where if my dad tells me something about about cannabis. It means it's made it to the mainstream. It's made it to the news. The average person has learned about it. And you know what? First of all I just want to say like I don't You can just sweep this under the rug and say oh, it's nothing. We don't know how bad it is. We really don't I don't I think it's overblown. I mean 350 cases out of the number of people vaping doesn't seem like that much and at it seems at least people have come out and said that vitamin E acetate seems to be one of the culprits but we're not really not sure like we actually read more into it. There's not a lot of clarity and the black market is being blamed for a lot of it. Yeah and what I've heard mostly about this and I and you're right it is the vitamin E acetate and it's like the black market that predominantly gets blamed for it. I'm hearing a lot more about the carrier oils that are being put into it which contain vitamin E a state and as well one of the cases that I heard about was the flavored pods. Okay, right. This individual was I think taking a one-and-a-half pod today. That's a lot of PODS. Yeah, if you really think about each pot has about 200 hits. Oh, yeah, like don't get me wrong. It's These people are very heavy users it appears. But again, one of the problems is we don't have good data. And especially when you're dealing with things in the black market the problem is now you can't even track them. Right so we can't find what the what the Common Thread is between these things because there's no track and Trace there's no supplied. You know, there's no regulated supply chain, right? So if anything hopefully this pushes Regulators to say, wow, we really need to you know, shut out the black market and move to the regulated market, but I just have to keep it real with you guys. Like I'm not a I'm not a cheerleader or a soldier who's just going to say, you know, don't worry. It's all good. This is a huge piece of bad news. I just have to be really honest about that because the negative information spread so quickly, right and it spreads very far and it's a very simple message right the simple messages watch out vaping can be really bad it can kill you. Right right. The more complex message is well, there's certain ingredients in vaping and it was made by the black market. It takes a lot longer to lot harder to get that message out there. Yeah, right. It's a lot harder for the media doesn't need to run that story. They want to run the they want to run the you know, the oh my God kids are dying every day from this. Yeah, exactly. And I mean, like look, the other thing that I want to kind of touch on is that you know, you see all these anti-smoking campaigns. You see kind of What Not I mean, obviously you're gonna start seeing the vaping and even the candidates campaign, sir. Come out, but I really really really really think that education and just educating the broader public on what vaping is it. Obviously they have to do a lot more research into a lot more studies. Like does it make sense to just kind of ban all like do a blanket ban on all the Apes? Who knows maybe at this time? It does because they don't know what it is. Maybe it's time. It doesn't well, okay, you make a good point here because as an investor and we're going to do a whole episode on this which is, you know, once you start investing in something I got to be honest you get sucked in and you Without realizing it you become biased and you become a cheerleader. So anything good that happens. You're like, yeah and anything bad that happens. You have a tendency to sort of sweep it under the rug and say oh whatever. This is being overblown. It's not that big of a deal. Right? And that's a problem because we don't want to be irrational we want to be really rational as investors, right? So what I'm getting to your point a b is that you know, when this first came out I kind of went. Oh whatever it's mostly just nicotine products. It's it's fine. So why I said, this is a really bad piece of news. Massachusetts came out and said we are putting a four-month ban on all Vape products th see Anon THC. Okay vaping makes up about up to 50 percent of a company sales and they are the most high margin sales and then the most defensible sales because you can brand them. Right? So let's not mince words this this if vaping takes a hit the industry takes a hit and my problem is I think even in the consumers mind you just put a huge red flag on Oops, right and I think that's really really unfortunate and I think it's going to take time and maybe Vapes may never come back to where they were where people were just you know, sucking them back all the time people might be a lot more concerned now about Vapes. Well, I mean rightfully so they should I think it's kind of a catch-22 because as an investor in cannabis and as an investor with Vape company not they've companies but extraction companies I can see the benefit and the potential for it and I think I can see Big Market coming up, but at the same time, you know what to do at the expense of Public Health, right? And look. I mean, I don't think what Massachusetts did was was the right move because at the end of the day people who want Vape is still going to get them and you're pushing them to the black market. Yeah. Exactly. It's a terrible way to especially if you're trying to elicit like a stray if you're trying to grow a legal Market, it's a terrible thing to do to just bend it all the way especially when it's available gree when it's available everywhere completely agree. But also what you just said earlier, it's an election year so they got a Look like they're doing something they got to be aggressive. You know, they want to show that no, we're taking this seriously and even though I think it's the wrong policy now, we're in the politics territory which you know as an investor is a dangerous place to be right. Another thing is guys Health can't like so Massachusetts did it they're a relatively small market right now, they're scaling rapidly, but you know, four months of lost sales and that markets not that big of a deal guys who's next right? What if what if you know, California it puts Hold on it what if Health Canada has been so cautious and so careful. What if they decide to delay Vape products? It was supposed to start hitting the shelves in January of next year. What if it takes another 6-12 months, right? What does that mean for the extraction companies? What does that mean for the LPS? It could mean a lot more pain ahead and I would hate to see that happen, but it's a reality that we have to face right now in the long term. Hopefully this will get sorted out but you know, a realistic long-term impact could be that we just don't don't see the same level of vaping that we did before. Yeah. Now some people have been reading say okay. This just means people will switch to Edibles or they'll switch to dried flower. I disagree. I don't be so sure. Yeah, I disagree and I think that for Vape it wasn't necessarily just to get people who already smoked like cannabis of dry flour even a totally it was a way for new people to sort of enter the industry because 100% you don't roll it, you know smell you just kind you can take one hit and then leave, you know, it's so Like that's going to that that will hinder the market a little bit going forward. But however, though I mean for Canada, I think this is I hate to say it. I think it's kind of good news. And the reason I say that is Health Canada's giving guidance for people who don't know Health Canada is given guidance in October 17th, 20 19 of this year that legalization 2.0 is going to come around the corner and that includes everything from extract products which includes Vapes. I think that's going to be a great like they haven't written it out yet, but Think they're gonna put some standards in place. Let's do a little bit more research and the things that they do put in place. Maybe they're going to say hey, look no carrier oils. It's got to be full spectrum cannabis or it's got to be this type of extraction method. I can't be this type if it's got to be like that and I think given that a lot of these companies want to comply with these rules have to comply. Yeah, sorry that but they want to they willingly like and and and legally they have to comply I'm not going to be great. Right? It's going to make the legal Market really work for to get the customers. I mean look at it. I just don't know right like they could very easily Health Canada has taken such a cautious approach every step of the way. They could very easily say alright, October 17th. We're doing Edibles and we're going to wait another year for Vapes because we want to study this closer and and I hope that does not listen I'm with you. I really hope that doesn't happen. All I'm saying is it could happen like I don't want it to happen. But realistically it could happen and honestly, it would be hard to fault them right because And I didn't they push ahead with Vapes and then a bunch more people get sick, right because we thought it was vitamin E vitamin E acetate but there was something else right? So that would look horrible on them and they might feel they have to delay it right and I can tell you for sure. They're going to be much more cautious approving the rollout of Apes now than they would have a month ago and look it is what it is. It's really unfortunate. But it's a this is a real negative. I want everyone to be aware of it when there's something that's really good news. We're going to come here and we're going to tell you when there's something that's bad news. We're going to come here. We're going to tell you right we're not going to try to sugarcoat it. So it is what it is. You know, we'll keep our eye on this topic again. I really hope it gets resolved sooner rather than later, but you know, definitely not definitely not a good piece of news and probably the most negative news that I can think about us discussing on this podcast. Yeah, I agree and I think like you just to further your point over there. Yeah. I hope it does get resolved sooner and later. But if it doesn't I hope some just some more concrete evidence or concrete information comes to light where Don't have people over reacting for the sake of overreacting for sure. Okay. Now on to the last two points are a little bit quicker. So again, this is that was the bad news. We're gonna go back to some good news. So Pennsylvania's Governor said today that he is ready to call for recreational legalization of cannabis and that is excellent news Pennsylvania is currently a medicinal only state Abby. I didn't even know this but Pennsylvania's population. 21 million people that's you just like what 2/3 Canada that's a little less than that, but it is the same size as Florida. It's one of the top 5 largest states in the u.s. I mean absolutely massive 21 million people now again, like anything government, you know, it's got it potentially has a long road ahead maybe not but what I mean what an opportunity right and there's already a bunch of companies up and operating in Pennsylvania under the medical program. A lot of them are the top msos. So another piece of related news is the governor of New York said today also that he was going to meet with the governors of New Jersey and Connecticut. So New York, New Jersey Connecticut is referred to as the tri-state area because they're all such in close proximity of each other and basically his point was that when they go recreationally legal they want to have some symmetry in the laws between the three states. So what that means is for example, you know, if okay. This is not a not a good or not a not a scenario I want but let's say New York decides to ban vaping products. For example, then they want the bordering Stacy the same they want ever they want the tri-state area. Basically to have the same kind of rules. Do you think that's going to actually happen though in terms of what the same type of rules? Yeah in some cases. Yeah. I mean the governor of New York has been really strict. He's talked about banning Vapes. Smokable flower. Yeah, but I feel like New York liens very to that one side. Right? Like I don't want to say right or left because obviously it's not right or left. I feel like you're cleans a lot more than you Jersey does because New Jersey, for example, you can gamble there, right? Yeah. Sure great Point. Whereas in you like New Jersey's tends to be kind of like, we're more fun stuff happens. There you go. I'm using air quotes. Here you go, Abby. I come here. I love New York. I'm sure I love New York, but you have more fun in New Jersey. You know what actually I don't have never I've been in New Jersey a couple times but Sopranos one too many. Yeah, exactly exactly I've ever even been to Atlantic City at so I mean, I don't know but but but New Jersey has Atlantic City, so it's I don't see why they would have the same rules. I guess we're going but I just personally think it'll be very it'll just depend on who's in charge. That's my that's my thought right? I think New York actually the governor just the most strict of the three and I think he's trying to rope people into being a strict as him, right? I think that's His philosophy now will the others follow who knows because you know, what at the end of the day. It's like you've talked about before Game Theory, right? If your New Jersey and New York is going to be really strict and you're not so strict. You probably get a lot of you know, cross-border tourism, right? Yeah, that's pretty good. But why that why I think this is an important piece of news it when I combine it with the previous piece of news on Pennsylvania. Who's got the biggest border with New York state, Pennsylvania, right? So Pennsylvania sitting here saying we're Going to go full wreck 21 million people right New York 19 and a half million people. So if Pennsylvania is going full wreck, right? It's going to push the others to go full wreck faster. So all of these states are probably going to go full wreck. But as soon as one does it, I think it speeds up the process now, right? So now we're in a bit of a you could be in a bit of a foot race ya know and you told me something interesting prior to the podcast or prior to this episode. You mentioned the population of those four states combined. Yeah. This is absolutely massive. So the tri-state area New York, New Jersey Connecticut 32 million people. Okay, Pennsylvania, 21 million people together 53 million people that's one and a half candidates as well. That's insane. And it's almost one-and-a-half California's as well. Yeah. Well, I don't have an in a much smaller area right then Canada or probably even California. Yeah, but so so but think of it this way right California is the fifth largest economy in the world, and if you look at that population bright a perspective you add these This whatever the quad state area whatever you want to call it that's got to be very meaningful and very impactful. Well, this is why I you know, I've said it once and I'll say it again. I'm so u.s. Focused is because as the state's come online, you're just going to see massive massive ramp up in sales and earnings. The problem is we don't know when it's going to come online. Right? Well, they come online, you know in the next six months. Will it take a year? Will it take two years while they get delayed? Who knows right? That's the uncertainty Factor, right, but we can see there's huge huge potential. So that is very positive news out of Pennsylvania. Now, let's throw some cold water and on on Canada and go to CIBC put out a report I believe today and what they basically said is that they disagree with a lot of the analysts who are covering companies in Canada, and they say that the sales estimates are way too aggressive and they need to be scaled back. How far back. Well, they say that people are people are estimating in 2020. So next year they'll be about Six and a half billion dollars of sales and CIBC saying no, it's going to be about a third of that 2.2 billion. Okay, and they're saying 2021 the seven and a half billion dollars of projected sales. Well that's going to get cut back to to about 3.3 billion. Okay, so there and and just to be clear these numbers don't include the exports. Okay, because I think those are very hard to predict and very hard to Value but they're essentially saying other analysts are being way too aggressive. You're going to see just over 2 billion of sales next year and just over three billion of sales that year after that. What are your thoughts on that? Well, you know, what going again and this is another episode like this episode we're going to do about you know, overcoming your biases. I just see online especially on the weed socks Forum which you know, I read all the time people are pissed like this thing. No, but you know, everyone's saying I'm not going to bank with CIBC anymore. What do they know? You know, like people in getting rid of my Aventura card, seriously, though. People are like how dare they write. Like I saw this this piece that this I guess like I don't even know what to call them. But their website dedicated to cannabis investing type stuff and they wrote this basically hit piece on CIBC. Like here's all the way CIBC is a terrible Bank, you know, and it was just such like Kimberly called confirmation bias, like wanting to not believe something because of you know your Position guys, I'm here to tell you. I read the numbers. I think CIBC is bang-on. Like I think these numbers I think these numbers are actually going to be very very accurate Really Gonna See roughly 2 billion of sales next year. You're going to see roughly 3 billion of sales a year after and you know, what if the Vapes get pushed back these numbers would be even aggressive it would be even worse than this and why are people freaking out because you know, if you're only getting their long and No, but if you're only going to do two and a half billion, like less than two and a half billion of sales next year, you know, these the companies are not worth what they're worth today even after getting cut in half and that's a problem. Yeah, but the thing with the Cannabis industry is this never traded off of fundamentals and never traded off of its to nascent to do that, right? It trades. It's a growth play. Yeah, Abby agreed. But 2020 2021 is supposed to be the Year ramped. This is like agreed. It was it was never treated a fundamentals because there were no fundamentals. Yes. It was an it was a boot like it was Prohibition coming off. Right but the companies have to scale at some point right at some point. They have to start making money. Right and if they're only doing these numbers you're kind of being like what's going on here. So again guys, this is why I'm not investing in Canada. So I'm investing in the u.s. It could also be the the the illicit Market is still thriving what absolutely it is like it I'm not saying there's not six and a half billion dollars of sales to be had. Yeah there are but just the rollout has been very slow, right? I've actually got the stats for one of the next episodes we're doing which is we're actually going to break down the real numbers of the sales in Canada and compare them to what we're seeing in the US, okay and use a little bit of metrics and math to discuss the size of the market and the potential opportunities, right? So, let me just pull this up here. So I've got the sales for July 2019. All of Canada did a hundred and four million dollars of sales. Al's okay, so that's if you know, if you multiply that by 12 you get one and a quarter billion dollars Canadian of sales right now, if you assume that's going to you know, keep growing and then that's also maybe going to double once you have new product formats, you get two maybe three billion dollars, right? And let's be honest like 2020 still going to be a pretty slow year. Like you're just going to start to see the 2.0 products roll out in 2020. They're going to take time to scale. So I think the S, you know, I think This year you're probably going to see just over a billion dollars of sales right next to you're probably going to see just over 2 billion the year after that. You're probably going to see just over three billion, right? And that's pretty good growth. Like let's not knock that. Those are good growth numbers. It's just that the market has priced in a lot more growth than that right a lot more aggressive growth than that. So that's something we're gonna have to deal with And I think just to be clear you're not going to you're not going to see the same thing in the u.s. You're going to start to see the Us sales. Well, actually here. I'll tell you right now in California. The they are expected to sell one. Wait. Where is it? 3.1 billion dollars of cannabis us they'll be about 4 billion of cannabis Canadian in California alone this year 3.1 billion. U.s. Let's for Billet for billion Canadian. Right? So 4 billion Canadian will be sold in California this year. One and one in maybe a quarter billion will be sold in Canada this year. That's crazy. Okay, dear watch the movie awesome powers. Of course, that's four times the amount of money that dr. Evil wanted for ransom. There you go. I guess you know what actually probably wanted USDA. Did he want a billion? I remember the originally wanted 1 million they laugh and then he wanted to billion study asked for a hundred billion, but he has 400 billion. I don't know we'll have to we'll have to check that after the very important step for the people. Okay, so guys That's it. Oh, sorry, just just some final thoughts. You know what? I mean? One thing I was just thinking about recently is. You know the importance of having a long-term focus on the very first episode we did here we talked about, you know from my perspective being a commercial real estate person buying property and not thinking about selling it buying property and holding it for the long term. I think myself included we've become just to short-term focused tracking the ups and downs and you know, we're getting to euphoric when things are going up and we're going to negative when things are going down right and I've certainly been subject to that and this has been a very good Up call to say no. No, like I'm investing in this for a three to five-year Horizon right now. I think things will start happening faster, but I shouldn't be expecting things to go up every day week month. Yeah. You're right. You're right. You're right. And I think you said in one of the episodes It's that when you invest in real estate, you know, you hold it for long term because the the navs are not getting struck per second, you know, seeing the prices so you don't get that that roller coaster ride with it. Right? And so that's why a lot of people to be able to make a lot of profit soft real estate and Absolutely that mentality and invest in cannabis as well as well. And I did double check on awesome powers. Dr. Evil. It's a hundred billion dollars a hundred billion dollars. There you go, really glad we've got that disclaimer before and after a hundred billion dollars anybody who was going to invest on the 1 billion Austin Powers number now, you know the correct information. Yeah. It wasn't four times as much as us and that as much as Doctor Doctor. I just want to point out that the only time we've ever fact-checked anything live on the podcast and that was that was the one did that un for? Yeah. Okay guys, the email is cin podcast at gmail.com. We would love to hear your thoughts. Thanks for listening and we'll be back to you very soon. This podcast is a general communication and entertainment being provided for informational purposes only. It is educational in nature and not designed to be a recommendation for any specific investment product strategy planned feature or other purposes and examples used in this broadcaster generic hypothetical and for entertainment purposes only none of cannabis investing Network or its Affiliates or suggesting that the listener or any other person take a specific course of action or any action and oral communication such as this are not impartial. and are provided in connection with advertising and marketing of products and services prior to making any investment or financial decisions and investors should seek individualize advice from from a personal financial legal tax and other professional adviser that take into account all of the particular facts and circumstances for investors own situation by listening this communication you agree with the intended purpose described earlier opinions and statements of financial market trends that are based on current market conditions constitute our judgment and our subject to Without notice we believe the information provided here is reliable, but should not be assumed to be accurate or completely the views and strategies described may not be suitable for all investors.
We are back with a PACKED Market Update: 1) Breaking down the HISTORIC passage of the SAFE Banking Act (by the House) - How it happened and Why it matters - The road ahead (goes through the Senate) - Benefits of the SAFE Banking Act - Why Traditional Bank Financing would be a huge positive for US Cannabis companies 2) Exploring the Vaping Health Epidemic (is it really an epidemic?) - 350 cases with 8 deaths so  - How bad is this? How aware is the general public? - What's the cause? Vitamin E Acetate? The Black Market? - How much should investors care? Is this just a blip? - How simple and negative news can spread far and wide - Why Vaping is so important to Cannabis Companies - Massachusetts' 4 month ban on ALL vaping products (who's next?) 3) Pennsylvania and the Tri-State Area (NY/NJ/CT) Going Full Rec - 4 neighboring states all looking to go rec in short order - Why New York wants the other states to share the same rules - PA = 21M people; NY = 19.5M - All 4 States = 53M people (1.5x Canada!!) 4) CIBC says Canada Sales Estimates are WAY too High - $6.5B of 2020 Sales reduced to $2.2B (1/3rd of original) - $7.5B of 2021 Sales reduced to $3.3B (44% of original) - People online bashing CIBC over this. Are they right? - Are these numbers accurate? Let's compare to real numbers - What this means for the Canadian market - US sales vs Canadian sales Closing Thought: Long-term focus and being patient - This is a 3-5 year investment play! - Don't get caught focusing on the ups and downs 