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 and welcome everybody to 2020. My name is Manish and I'm here with the one and only the men of the new year a be. How you doing a be new year new money. All right. Magic Manish. How are you? I'm pretty good. I'm pretty good. Well since we've been in the studio, it's been quite some time. It's been probably three weeks now two weeks three weeks something like that. Yeah. Happy New Year. Yeah you as well and I'm excited to be able to do this episode because it's been a while since we've been able to sit down and a lot has been happening in the interim. And I think also 2020 is going to be a very interesting year for the Cannabis industry in cannabis investors. So let's just get into it because we've got a lot to cover here. So the theme of this market update today which by the way is Tuesday, January. Seventh the theme is really that 2020 is the year of the boom and the bust and what that means is that 2020 will really be a year that will have a lot of mixed things happening some good some bad and it will be a year of catalysts and results but also a year of headwinds and challenges and we're going to go through today just sort of some examples of what we're already seeing. And you know how that's looking going forward. So some things will cover our we just had on January 1st legalization in Illinois comparing that to what's happening in Canada and Ontario and then looking at the overall General market with regards to Capital deals as well as just what's happening in the rest of the market. So kick head so to kick it off on January 1st of this year. We had full recreational legalization in Illinois. So Illinois is really interesting because it's about the same size as Ontario. It's just a little bit smaller, but the rollout was extremely smooth. It happened by ballots are not by ballot but by legislation and it sort of came out of nowhere, so it happened mid last year sort of out of the blue and the first of January was the first day of Sales, and it was an we've been saying for a while a couple months. Now that we thought Illinois was going to be one of the best markets and it certainly looks that way so far. So the very first day of sales 3.3 million dollars u.s. Of cannabis was sold and that is that is a huge number that is massive huge number for the first day second day 2.2 million dollars of sales. We've got 5.5 in your first two days and then the report just came out now that the first five days 11 million dollars u.s. Was sold total. Holy and in Illinois, they've legalised all products. Yeah. So I chose this flower exactly exactly. So great point so that funny enough cannabis 2.0 products are hitting retail shelves supposedly this week in Ontario. So people were able to buy Vapes or 2.0 products in Illinois. Before they were able to in Ontario, you know only by a couple of days right? But that's pretty funny. When you consider that, you know, we've been legal for you know, one and change years and and they were just legalized on the first. Yeah. Yeah, so Also another another fun fact I have you might like is that people are paying in Illinois twenty dollars u.s. A gram. You're kidding me twenty dollars u.s. Are you out of your mind? That's about 20. Wow Canadian. Wow. Yeah. Yeah. Yeah. Wow, and and I mean some of the box I grab some of these videos the lineups that they had on day one. Mind-boggling seriously mind-boggling one of the companies I've invested in which is a private company. They put out an email after the first day the first day they did for with to dispensaries. They did 450,000 dollars of sales u.s. In one day and I think they served 1,200 customers through to dispensaries and one day so I mean absolutely mind-boggling and by the way, they limited the amount people could buy. Why because they don't want to run out of product, right? So everybody was limited to buying like three grams maximum or something plus you could buy, you know an edible and The Vape card or whatever. It was. Yeah, and on top of that they have to pay in cash to the see these numbers. It depends actually so so states you have to pay cash for it depends what I've been to places before where you're able to pay with debit because you can be serviced by like a local credit union or something. Okay? Okay, and I've and there's other some of them like Planet 13th. Went to them they had a system that you could use your credit card somehow. So there's there's other I'm not sure about that one. Okay, but you're right cash is definitely a big one and I think a lot of people actually want to pay with cash because of the federal illegality. They're worried about sort of having a record of purchasing this product. So you're right there definitely is a lot of cash in the system and some bad news to you know today it was reported that one of the dispensaries was robbed and it's not the one that I'm talking about, but just different one I think which was in Chicago. Yeah, and I think there was actually some some violence Associated because there was some heavy security there. So so, you know, that's a problem that will probably continue until they figure out that solution to the cash problem. Yeah, but why this is is so interesting and is Illinois is going to be a huge market for cannabis. And I think that will we're going to do another episode on this but what makes a good Market, you know, what makes a great Market when you look at Illinois you've got Very permissive government. You've got a culture. I think which promotes the legal market and that, you know, the black market a lot of people are saying they don't they don't want to go to because of legal ramifications because a lot of drug dealers who Supply the product in the state's, they're not just doing cannabis. They're also doing harder drugs and that sketches people out. They don't want to go to those people. Okay, and that's what you what you realize about places like Canada in California the In the black market is so strong. It's so well-established right people have you know a friendly neighborhood person? They don't mind buying off of right right. In other states where you had the War on Drugs, which you know, I would for sure say is a bad thing. One of the effects that has is that when legalization happens people are willing to pay a premium to get the legal product, right? Which is good, which is good for investors, right? Yeah. Well, that's good for the overall economy. Yeah. Yeah for sure. I mean, I don't want to see the War on Drugs is good, but the resulting Fact that it had is good for certain States, right? And that's why I'm more bullish on the US than Canada one of the reasons at least and the other thing too is Illinois is going to be very limited license, which is sort of the Holy Grail. There's a very limited number of cultivation licenses. I think it's like 21 and there's a limit very limited number of dispensaries was about I think 43 right now for give or take and there's going to be, you know, another wave coming online, but it's still going to be very limited license and where do they stand in terms of vertical integration? Versus specialization like do you have to sell your own products? Yeah, not at all. There's no my okay. So I'm not a hundred percent sure. But what I know is that definitely the dispensaries are selling. Sorry. The cultivators are selling into the dispensaries of all kinds. Okay, if you'll see GTI green lime Industries and Cresco both have products in sort of, you know, every dispensary, right? So they're wholesaling, but then also they do own the retail locations now there is a cap on how many retail locations Can have and it looks like you could have five recreational and five medicinal. So there is a you know, there is really a tight cap on how much retail you can control right? So we're Cresco and GTI and these guys will make the majority of their money. I think will be on the wholesale side Gaucho although initially. Absolutely. They will make a lot of money on retail as more retail licenses rollout that will become a more competitive game, but wholesale they will really have a huge Advantage because some sorry I should also point out that one of the reasons it was such a smooth roll out is because they had an existing Medical Market. So they already had these dispensaries that we're doing medical sales. They already had cultivation for the medical side, right? Obviously, there's a huge ramp up that has to happen, right because you have way more demand now, but at least your systems are already in place gotcha, right. It makes it a smoother roll out. Yeah. So Cresco, for example, I think they can have up to six hundred thousand feet of cultivation where all the new players will have maximum 200,000. Okay, right and even then too. Without a significant grow takes so much capital. I don't think it will be easy for anybody else to come in and challenge them unless it's another large MSO. That's really well Capital. Right? Right and especially in this market to rights always it's getting harder right very difficult very difficult to call back layers for cannabis companies that alone cultivators. Yeah raising Capital. So yeah, I mean, that's something very compelling Market. Yeah, and I mean that's real fundamentals were talking about their I think when we when we finish this year, we will see very strong. First year sales in Illinois, and I think we will see it ramp over the next two years as well. Right? So 2020 in a lot of ways is going to be a year of ramping sales and that is probably the biggest positive I can think of for the yeah. Yeah. So let's compare that to Canada and Ontario and actually there are some more good news. I think so in the next quarter, you know, let's say three to six months first half of this year for sure. We will see about 45 new dispensaries open and Cheerio, so, these are the dispensaries that were already granted licenses last year, and they're just in the process of scaling out now, and then additionally, I think just today the the website tool to become a retail dispensary operator was opened up to the public. So anybody can apply now to become an operator? Okay, so that's not that doesn't mean that you can apply for a for a location yet or for a dispensary. You're just you're just applying. To be approved as an operator who can then apply for locations? Okay, right. So that's the difference but what that you know as we've discussed already, we will start seeing new licenses being granted starting in April at 20 a month. Right? So we'll have 45 new stores come online, which is basically going to Triple the store account right that we already have so that's going to be a very immediate effect in the first half of the year and then throughout the year and Beyond we will have more storms popping up. We should have forty five stores in the first half and then another hundred and sixty licenses granted throughout the year, but those will also take time for those people to open up and scale up and etcetera etcetera God but that is positive news. Did they say how many dispensers are going to capita? There's no cap mentioned yet. But if you just take 20 a month, right that would be theoretically about 250 a year that you're cut you're getting right? So this year you'll get a hundred sixty. We already had will already have about board we have about 70 right so you get Up to about 230 by the end of the year and another 250 but next year. So by the end of next year, we should have 500 licenses in Ontario. Wow, people estimate that the number we need is about a thousand but I also think hey, you know what like 20 a month is a really solid number, right? That's a good ramp up. Seeing it the first year. You got 25 25 the first year, right? So yeah. Also I have to you hop, we have to appreciate that. There's you know, if it goes too fast you can get pushed back in opposition as well for sure. You need a little bit of a measured rollout. I do think this A good solution and this this actually adds a lot of light at the end of the tunnel and actually report for another day is that they stats Canada released a really cool report on the first year of cannabis sales and they talked about online versus retail and I think the conclusion was something like only 10 to 15 percent of sales are being done online now, they don't break it out by province. But if you sort of extrapolate that to Ontario that means there's a lot of money being left on the The table and the retail is going to be the so the answer to unlocking a lot of that, right? Yeah, so we'll see that play out. Now what I'm very excited for us. This is even more good news. There's more of it rolling out here. So the 2.0 roll out in Canada. Technically, it was legalized October of the of 2019, but that was just the sort of opening window that you could apply for your product. We were hoping to see something on shelves in December. It did not happen. We will be seeing Things on shelves in January there was a interesting sort of collection of what's being presented. It's mostly vaporized product so far. It will be some edibles. It will be beverages. There's a couple of T lines which look interesting. But so far it will be a very limited role out and they will probably be sold out almost immediately. The interesting to see well, but again, this is a big Catalyst for the producers because this is the high margin extracted product. We've been talking about forever and I think I read a the best comment I read about this online with somebody said it will probably be very similar to the flour roll out, which is that initially it will be under supplied. The prices will be high. It will be, you know, very hard to get your hands on. Yeah, and then somewhere along the line the switch will flip and it will be over Supply. And we'll see. Yeah, I agree. I wholeheartedly agree with that and I don't think I think you and I were chatting about that before that. It is a shorter term window 18-24 months. That's just my guesstimation of when we think that's going to happen because we saw that happen with flour think very similar role that's going to happen with with the extraction to but nonetheless, I mean, it's still an opportunity and it's the not Patrol for sure has me excited for it for sure. And and this is what we need. Right? We need people going out to stores and buying stuff. Yeah excited and spending money and that's what I Think is going to happen and a lot of you know, the success of 2020 Canada sales are dependent on how many stores we get open, Ontario. And what kind of how much how how well do these 2.0 products sell right and what's going to constrain them in the beginning? That's just Supply and also I think a lot of companies very prudently are taking a slow approach to the 2.0 products. Yeah, because you want to be there you want to be there in the Days, you want people to be excited about your products also a new market, right? So there's going to be a lot you're not going to get that little anymore back. Yeah percent. You know, you say you like, I'm sorry. I'm not as a feedback. But yeah feedback but also you don't have the research of what's going to sell and let's not you have thousand percent theories because so this is why employee unchartered Waters exact. Well, we can't say completely uncharted waters. It is on the legal side. But you know remember there was a Black Market at one point where all this did happen. Yeah good point and so and of other legal markets like California or whatever, right? And so but yeah, and so I think you can you can kind of take to that and sort of add to it. But I think that's where some of the advantages could kind of go to some of these the the black market guys that are going late Market. They had that I guess I don't a cop 360 feedback or whatever. They had that touch point with their client or the customer and they knew what sold in what did in right. So with with this it'll be interesting to see what actually sells and what doesn't actually sell. Yeah absolutely great point and I think that one of the things that we've talked about a couple of times And I've read some interesting articles on is the beverage category. And you know, I think first of all a lot of the points are very correct, which is that beverages in the states have not taken off at all. They've been a remained a very small category, especially in relation to Edibles which have you know performed exceptionally well but to your point a be about unchartered Waters or sort of, you know, not having feedback yet. Nobody has been has had the capital and the The sort of professionalism to put into Rd of new products more so than exciting companies right canopies been spending I think over a hundred million dollars building out all of their new product lines, right? So this is really a make-or-break for them. And if they can come out with an awesome cannabis infused beverage which by the way, I am super excited for I think people are really discounting how cool these beverages have the potential to be and I'm a Believer because when I In California, you know, I had a cannabis beverage I thought was just exceptional. Right right. So I think that if these things I think that no one's ever really given this a fair Shake because it hasn't been done in the right way. So the question is can people revolutionize this right? Can we see a really good cannabis beverage come out. Can we see, you know some kind of product Innovation. We haven't seen yet. Right and how will consumers react to it? And I think that some companies will sort of take a back seat and And let other people go first. Yeah, see how see how it sells see how it does see how you know, let the Kings get worked out first so then come in. Yeah, and you know what, I agree with you. I think that is the way that it's going to kind of roll out one thing that I've I'm a big fan of beverages, you know that right? Like I've always said that cannabis beverages are going to be the end-all be-all eventually, maybe not the end obviously wrong strong statement. Yeah, they're gonna be they're gonna be a lot more prevalent than they are right now. Yeah, and I wholeheartedly believe that but the one Thing that I whenever I say this a lot of people I always get the pushback or asterisk that I always put it all depends on what marketing restrictions the Kenyan government is going to have for these beverages because if you look at other Industries, so for example, soft drinks even harder anything it all boils down to the marketing, right? The marketing is very crucial on these beverages absolutely look at the Coca-Cola and if a Christmas polar bears, they've got people who are high-fiving it was having a great time and I'm not saying that's why you bike. Coca-Cola, but it holds its mindshare right? You're right heating for people's dollars. Yeah, right and and you're absolutely right. I mean, this is why I'm saying it annoys such a good Market is because it's limited license. So it's there's a limited amount of supply and who can supply the market so we know the demand is there for cannabis, but the problem in Canada is you have too many companies too much money and not enough distribution and Retail right? But you also have marketing restrictions, right? That's okay dear mark That's what I'm getting to ready that you Have to like people designed the system in such a way that it's like oh, this is like free money. It's like shooting fish in a barrel. You can't not sell your product right but to your point. No, it's not like that. There actually is a lot of competition whether it's with the black market or just disposable income in general or whatever. So you do need you know, you do need to be able to get the word out somehow and that has been very very challenging and the Hope like beverages by the way to answer your question are under all the same restrictions as everything else, right? So, So there's not that's not really an answer. However, the hope is that maybe there will be some easing of the guidelines. You know, whether it's Health Canada, whether it's having consumption lounges something like that that allows you to get two people. I would say as investors. We certainly shouldn't assume that that's going to be you know, relaxing of the rules. No, I mean, I don't think I don't think we should I think I think the cannabis companies have to step up and get creative in their marketing, right? They know the restrictions they've seen on the drive Flower we saw with I think this Terrible examples and remember the name but Drake's company with like growth more life growth. He walks around gave everyone a torontonian of flour or whatever whoever they ran into right and they just had more life grow. So w goes exclusively pretty girls. But yeah, I think so I got one but also when you walk into a store and you see more life brother like, oh, that's a brand I know right? So that that's a very creative way to Market. I'm in circumventing the rule the whole premise of partnering with Drake and giving him the facility to your point. That is a creative form of marketing right rather than just having a mother. Well, no, no other celebrities have put their name on cannabis products before but just the way that they did it. It was so hush-hush. Nobody knew about it. They gave out these flowers to everyone. No one knew what more like growth wasn't some Instagram page are blowing up and it was like it was like Grassroots viral marketing that Instagram page, by the way, I followed it like the day it came out has like we wonder like why you think it a flower I angry message. At 20,000 followers still hasn't followed me back or still hasn't he doesn't sorry accepted my follow but I still can't because that is a great point that I didn't even think about which is that the more life growth brand has been really quiet since they made their first announcement. Right and my theory on this is that Drake is sort of the ultimate marketing tool for a canopy. So if I I was them what I would do is is really just wait not push anything out to more life growth until I have that feedback loop, right? So I know what my best products are and then I would say okay, you know Drake you have to promote this or you know, you have to but look this is the product that is the best one and this is like best represents you yeah, let's put this to your channel because this is the product that if we can get people to try it will blow up. Right right because you know to your point marketing is so hard. I don't want to like you have a limited amount of Firepower with Like I don't want to waste that on something until I know it's going to be a hit right and they can't go around giving out flowers again, you know, I mean, yeah that only work so many times exactly exactly. So anyways, I think to know we kind of beat this this point a little bit further than we're hoping to but I think Canada's companies have to step up with the marketing restrictions and just be very creative like canopy did yeah, I think another caveat to that is I'd say one thing that we saw which was which was very successful was the the formation of the cannabis. Well, as I sort of call it and that was the the LPS getting together and really lobbying the government with one voice to say look. This is what we need and it was extraordinarily effective because what happened was they got their message out in a controlled way it permeated through the media and it put a lot of pressure on the Ford government to change their retail policy, which they did right. So I think that the next phase will have to be them lobbying Health Canada in that fashion. So I think that I think ultimately there's only so much they can do when they're handcuffed. You're right. They do have to get more creative. But ultimately I think the big change will happen when they can get through to health Canada and say look like you got to help us out somehow you got a right we gotta we gotta ease some of the restrictions here, right? So I think when I think that will take time, but I think that's the ultimate move for right exactly will prepare for the worst and hope for the best right? There you go. Okay, so then flipping the coin around to the the and some of the challenges, you know, the 2.0 rollout has not has not been as not all been been so Rosy so Quebec for example, raising the minimum age of cannabis to 21, which is unheard of because they're drinking age is 18 and you never go out without that. I literally I mean nobody has 21 for anything in Canada. Yeah, nothing not for cannabis or drinking or smoking, right? So Quebec going way over the top with that and then Quebec also. Banning Vapes completely outright Banning cannabis Vapes which look like they're going to be probably the number one seller in the market, you know, probably neck-and-neck with Edibles. So everyone who's complaining about how you know, Ontario is the worst. You know, I'd like you have to acknowledge that the Ontario and the end although ensure a rollout was completely botched. It's going to be a much better Market than Quebec right and if you think about opportunity for sure you think about this logically like, you know so many open he's you know, whether it's the big LPS or whether it's extractors or whatever are relying on Vape sales. So we just lost Quebec that's like a quarter of the country to a third of the probably 30% of the country. We just lost right there right for all Vapes, right that is a huge blow and then on top of that Alberta, which has been the best province in terms of rollout has put a hold on any vaping products until they come out with a review in the spring now again, we can be hopeful that that will be Of but really as investors, we shouldn't assume that right so you've lost about half the country now for vaping and that will be probably one of the best and biggest money makers and that's a big problem. That's a really big dragon negative that I think people are sort of overlooking or not really paying attention to hmm. Yeah, and it's true. So like I said, you know, there's good and bad, right? So Ontario's going the right way. We're start but unfortunately, you know, Alberta and Quebec not so much right Albert has more of a delay Quebec is kind of yeah, that's it. Drawn the line. Yeah. Quebec is totally worse than Alberta by far for writer and then and a little fun prediction for you. Is that In I remember when I was in university many moons ago. And when I was 18, the big thing was we would go over to Montreal or Quebec to be able to drink right because you're 18, you can't drink in Ontario, but you can drink in Quebec. So a lot of the you know, there's a lot of nightlife basically in the Border towns, right? So I predict you'll have the opposite now the reverse so they raised to the Cannabis age to 21. Yeah. Well, I bet you that up and down that the head Ontario Quebec border will be a fun. Nominal place to spica cystic cannabis dispensary. Yeah because also actually Quebec has a worse cannabis distribution system. They use a centralized provincial system like the LCBO. So it's all government-run stores. So if you stick a Tokyo smoke, you know across from Gatineau or you know, wherever along the border a lot of people drive over people values are from Montreal to get it. I bet you I bet you're gonna get a ton of traffic from the local communities who come over to get better product selection. You know come over because they're only 19 and not 21. I just I think you're going to see that as a trend going into the next year two years three years, you know, unless Quebec reverses their stance, which who knows right? So moving on to the us just to wrap it up some good news from the US actually a couple of big debt deals were done in the last 30 days. Really? So cure Leaf 275 million dollar 275 million u.s. Debt raised purely debt, no warrants attached and that is a phenomenal sign. It seems to be the deal at a lot of people are doing on the street though. I've seen a lot of debt deals as opposed to equity deals right now. Well, so so yes, I hear what you're saying. I would say that especially in the u.s. Those debt deals are far and few between because it's Hard to find somebody who can cut a check for 275 million. Yeah, this is an Institutional lender who lent them money, right? So that's really impressive. And the other thing too is I think in Canada, it's the other way around where they're taking debt because the equity is not there right with cure relief. I think the equity would be there because they're one of the top players. This is more a positive sign that look we can we can actually go raise debt in this tough environment. We have an Institutional lender who believes in us, right right and to In 75 million u.s. That's a ton of money at that's the kind of dough. You need to build out the kind of footprint that they absolutely and cure Leaf is why like one of three msos that are over a billion dollars. Well, Carol Leaf is the largest MSL by any other leaders like Marshall Eve and Noah's the biggest ones right now would be here early early Cresco meant relief. Yeah, maybe Jack. No, I think GT I would be a g and then truly would be fourth. Yeah. Okay. Yeah, but Carol Leaf is one of the reasons I've always been cautious on. Pure leaf is a market cap is so large. Yeah, they do have a huge footprint. So it's kind of I guess you could say it's Justified but that's always been a point of concern for me. Yeah. This is definitely a good sign. Yeah, you know because I think this debt rolls over not for another like four years or something. So they've got some time now and some Runway to build out their footprint. Yeah, right and then along with that Harvest did a 90 million dollar US deal Harvest. I've been cautious on, you know, since things started hitting the fan just because financing was a concern Yeah, this definitely helps. I think they're going to need more money. So I'm still pretty cautious on harvest but this was a mix of debt and Equity. So this was you know, some debt some straight debt some convertible debt, and I think I think they would have preferred to do a straight debt deal. But you know, the appetite wasn't there for them the way it was for cure relief, right? So I end this also finished off one of their debt deals that they or sorry convertible Equity deals. So again, it's a big positive for all these companies because capital is so scarce right now the number one. Concern is running out of money. So that this was a really good sign across the board. Yeah, you know the numbers vary on all these deals, but it was not cheap money by any regards. So it does tell you that there is still risk here is uncertainty you got to get paid for it, but it's a very positive sign that the best operators are getting Capital, right? And as this is a note I'd say, you know, I end this in Harvest them a little cautious on just because again, they will need a lot more money to keep going. Certainly. This makes me feel better about those two operators and then lastly a piece of negative news and really unfortunate for myself because of how much you know, how much I love Florida and how invested I am in Florida. Oh, actually sorry I should just do a quick note that when we were off a short report came out on true leaf, and this was a you know, it was unclear at the time, but it was really written kind of in the style of very reminiscent of the Bria short report a year earlier and it was it was very negative and I went through it and I felt it was quite misleading in many ways. But basically what it said is that you know truly it has a lot of issues the issue that I actually agree with and that I think that people should be the most aware of is that Kim Rivers husband is on trial and is going to be is on trial in Florida and his trial date just got set for April. Okay, why that's important, you know to CEOs. Has-been who cares it's because he was a he's an Insider in the company. He his construction company did a lot of the build-out for the company not without getting into too many details. It's a real issue and I think that you know, he has a good chance getting convicted and I think that will weigh on the stock they have him on tape, there's a bunch of stuff but when you get it's a whole nother episode, but basically it's not looking good for him and you know the bet the flip side is I still I'm a big believer in true leave and the financial performance. Speaks for itself and I believe the company will get past all of this. Even if he goes down even on the off chance that Kim Rivers was to go down which I don't think will happen. But if that was to happen, I think the company would still go forward. So I am comfortable holding and I did buy a bunch actually when this report hit but I wrote sort of a point-by-point rebuttal breaking down the report and I'll put a link in there, but basically just something to be aware of I do think it will be a choppy Road. True Leaf. Yeah it like it has recovered nicely. It's gone up and down though. And I think there will be more up and down for that company, but I think the financial performance is really going to set it apart from everybody else in 2020 and 2021 right now you're into the so the last point is that one of the things we're really looking forward to in Florida was the potential for going fully wreck for it to be on the ballot adult use in November some bad news. Is that the the Initiative called make it legal Florida or or MILF for short as people are referring to it is that they have just sued the Florida government asking for more time. So without getting too much into it a new rule came into effect earlier last year which basically made it harder for measures to qualify and their argument is look that is a punitive measure. It's literally just there to stop people from qualifying ballot ballot measures. And we have enough signatures, but we can't get them validated because of the wacky system. You guys have put into place, right? So whenever somebody has to sue to try to you know, make the rules work. I always consider it like okay it's done and this is now a long shot. Mmm. That being said flower was only legalized in Florida because they sued for it so floor to the different place, who knows, but I would now look at Recreation getting the Anal vote in Florida as more of a long shot unfortunately, but we will see what happens right? So that that remains to be seen right and just to add to your point. And if anybody who just are listening on truly like focuses mostly on medical, right? So well Florida's medical only right? So that's the yeah. That's the flip side or in true leave is 95% of their business is Florida, right? So that's what they're not. I what I'm trying to say is you're not relying on wreck coming online for True Leaf to get a pop. Yeah, and others are already. Absolutely. Absolutely. That's my whole thesis on if you go back and some of the Florida episode which I you know encourage you to do that's a thesis on true leaf and Florida and general that market is phenomenal it grew about 50% and maybe even more last year and should grow by probably another 35 percent this year. They're gonna have Edibles finally launching early this year. So I think you're going to see really really good growth in that market. It's just recreational would be sort of the Holy Grail right? If we got that would probably just be a A huge pop so, you know fingers crossed but again, I wouldn't I wouldn't bet on that, right? Okay guys, that's it. That's your market update certainly a lot more stuff to come from us. We've got a episode about some predictions for 2020. We've got a episode were working on for sort of my top picks for 2020. We've got a few other things coming out. So please we'd love to hear your feedback and thoughts cin podcast at gmail.com. 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Happy New Year! In this market update we cover the good and bad for the start of 2020! - 2020 will be a year of Strong Catalysts driven by Fundamental Growth - There will also be significant headwinds to navigate Illinois Goes Full Rec: - Banner first day with $3.3M USD sales + $2.2M on 2nd day - $11M USD of sales in 5 days (with customers paying $20 USD/gram of flower) - Illinois will be a great market in 2020 and 2021, with a strong sales ramp and limited licenses Ontario Retail: - 45 dispensaries to open in Ontario Q1-Q2 (licenses were granted last year) - 160 new retail licenses in 2020 in Ontario (~225 granted by end of 2020 and ~475 by end of 2021) - This will greatly help ramp Canadian sales in 2020 and 2021 Cannabis 2.0 Launches in Canada: - 2.0 products shipping this week to retail and online next week (in Ontario) - These High Margin products will greatly drive sales for the entire industry - Very limited supply of products initially with many more to roll out over next 6 months - Will be similar to flower – under supply then over supply - We debate the strict marketing rules and how fast companies should be moving Vaping Bans: Quebec banning vapes and raising age to 21 Alberta delaying vapes until spring (at least) US News: - Debt Deals for Curaleaf ($275M USD) + Harvest ($73M USD) Curaleaf - $275M USD debt deals // Harvest - $90M USD debt deal - Trulieve Short Report Florida – Rec vote not looking good, suing for more time (flower got approved by lawsuit) See full Florida point-by-point rebuttal here: https://www.reddit.com/r/weedstocks/comments/ebztnd/my_analysis_of_the_trul_trulieve_short_report/?utm_source=share&utm_medium=web2x 