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Speaker 1: Cura and welcome to this episode of Shed Lunch where

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Speaker 1: we delve into the world of medicinal cannabis. It's a

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Speaker 1: market that's said to have lots of promise, but it's

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Speaker 1: proving quite tough for New Zealand companies. I'm Helen Madison

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Speaker 1: and I'll be talking about this topic. We see you are

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Speaker 1: rue of Bioscience, Paul Neasky.

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Speaker 2: Investing involves risk you might lose the money you start with.

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Speaker 2: We recommend talking to a licensed financial advisor. We also

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Speaker 2: recommend reading product disclosure documents before deciding to invest. Everything

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Speaker 2: you're about to see and hear is current at the

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Speaker 2: time of recording.

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Speaker 1: Welcome Paul. How are things in the Escape today?

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Speaker 3: Ellen?

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Speaker 4: A little bit wet and overcast, but we're boxing on.

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Speaker 4: We've had our fair share of RAINO the last few weeks.

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Speaker 1: So Paul, before we jump into finding out what Ruer

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Speaker 1: Bioscience does, tell us about your background and how you

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Speaker 1: came to be in this position.

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Speaker 3: Yeah, good question.

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Speaker 4: I think my mother asks me that quite a bit. Actually,

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Speaker 4: how did you end up being CEO of a cannabis company? Yeah,

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Speaker 4: so I've lived in Tarrafti for ni on eighteen years.

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Speaker 4: In that time, I've got to know a few people

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Speaker 4: and done a bit of business here. And as Marnham

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Speaker 4: and Parnaper, who were the co founders of the company,

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Speaker 4: started the company, they reached out to me in the

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Speaker 4: early days and sort of said can you help? And

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Speaker 4: I thought that what they were doing was excellent and

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Speaker 4: brilliant and I'd been watching what they'd been doing and

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Speaker 4: it was super exciting.

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Speaker 1: So your background is it forestry and what else would

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Speaker 1: you say that you've done? What's your skill set?

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Speaker 4: So yeah, I did a forestry degree in Australia many

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Speaker 4: many moons ago and came over as a young graduate

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Speaker 4: in my early twenties with Fletcher Forests, and I started

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Speaker 4: off in forestry, but I moved into sales and marketing roles,

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Speaker 4: business development roles, then Fletcher Paper and then Fletcher Building

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Speaker 4: corporate roles, management roles, and so in tai Arfiti, I

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Speaker 4: moved to Tyrafiti work for an agribusiness corn company and

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Speaker 4: from there did a little bit of other consulting work

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Speaker 4: and then landed myself.

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Speaker 3: In medicinal cannabis.

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Speaker 4: So I've got a well rounded set of skills in

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Speaker 4: terms of business. So I've done a bunch of different things.

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Speaker 1: There's a number of companies in New Zealand in the

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Speaker 1: medicinal cannabis market, as it were, all there supplying that market.

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Speaker 1: At least three of them are listed. Your model is

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Speaker 1: slightly different and it's changed recently, so can you tell

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Speaker 1: us about that model? But also how are you different

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Speaker 1: from your competitors?

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Speaker 3: Yeah, a good question.

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Speaker 4: Well, oll, we have changed and we listed in twenty

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Speaker 4: the end of twenty twenty, and we started off like

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Speaker 4: a this is a new industry and no one really

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Speaker 4: knew how it was going to go. But we started

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Speaker 4: off with a sense that we wanted to test manufacturing

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Speaker 4: and test cultivation, and so we set up small cultivation

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Speaker 4: and small manufacturing facilities in our region. And we've subsequently,

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Speaker 4: as we learn more about the market and you delve

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Speaker 4: into the nuances of the market and how it's all going,

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Speaker 4: you soon realize that actually we've taken a view that

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Speaker 4: New Zealand is not going to or we won't be

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Speaker 4: able to get a great return on capital if we

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Speaker 4: manufacture products here in New Zealand.

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Speaker 3: You've heard it ad nauseum.

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Speaker 4: The regulatory environment in New Zealand doesn't lend itself well

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Speaker 4: towards export, and yes, there has been some changes recently,

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Speaker 4: but as you sort of work into the big wide

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Speaker 4: world of cannabis, that's a very competitive world out there,

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Speaker 4: and New Zealand is going to be a minnow in

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Speaker 4: the scheme of things. So we've taken a view that

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Speaker 4: we can't really get a return on capital for manufacturing

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Speaker 4: products here in New Zealand, and we looked at our

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Speaker 4: strengths and we've got sort of our home and heart

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Speaker 4: is in real Tortia. As you know, the founding story

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Speaker 4: of the company is about the dream of creating jobs

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Speaker 4: for the people of the East Coast, particularly Rhuatoria, and

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Speaker 4: building on the strengths of the community as it relates

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Speaker 4: to cannabis. And so we looked at what we were

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Speaker 4: good at relative to others and we've landed on a

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Speaker 4: business model which, yeah, it is different, and the way

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Speaker 4: it's different is we've we've if you think about the

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Speaker 4: value chain of like normal agribusiness, like if you took apples,

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Speaker 4: for examples, you'd have apple seeds and then you'd sort

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Speaker 4: of grow apple trees and then you'd create apples.

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Speaker 3: Which would go into apple products.

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Speaker 4: What we've done is we've sort of said like that

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Speaker 4: that middle part of commercial cultivation and commercial manufacture, we're

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Speaker 4: not going to do that.

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Speaker 3: We're going to outsource that to others. But what we're

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Speaker 3: really good at is we've got some.

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Speaker 4: Links with good apple seeds or good cannabis genetics, and

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Speaker 4: we've got distribution agreements with partners in the market, so

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Speaker 4: we know sort of what distribution agreements distribution companies look

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Speaker 4: like in overseas jurisdictions. And so we're going to outsource

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Speaker 4: the capital intensive heavy bit in the middle, which is

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Speaker 4: cultivating the apples or manufacturing the apples into apple pies

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Speaker 4: if you like. But we're going to link our apple

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Speaker 4: seeds cannabis genetics with apple pies or cannabis products in

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Speaker 4: different markets around the world. Now that means we reduce

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Speaker 4: the amount of money it takes. And so we've got

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Speaker 4: a small team which works with cultivation partners to take

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Speaker 4: our genetics and turn them into crops and products for

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Speaker 4: overseas markets.

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Speaker 1: What do you define as cannabis genetics just for listeners,

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Speaker 1: so we understand.

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Speaker 4: Yeah, well, cannabis genetics is either like a cannabis seed

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Speaker 4: or a small cannabis plant, like if it was an apple,

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Speaker 4: an apple seed or a small sort of apple plant

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Speaker 4: ready to go. Cannabis is easily cloned, so you can

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Speaker 4: sort of take clones and tissue cuttings off the plant

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Speaker 4: and export that, or you can sort of go to

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Speaker 4: other people and so to say take this plant and

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Speaker 4: propagate it into a commercial crop, please.

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Speaker 3: So that's what we're doing.

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Speaker 1: So are the hundreds of varieties of cannabis in that

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Speaker 1: you could be finding unique strains and you're discovering and

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Speaker 1: breeding those. That is that a fear summation of what

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Speaker 1: you're doing?

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Speaker 4: Hundreds probably thousands, like yeah, and it's really it's it's

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Speaker 4: fascinating because you know, like apple's there's like standard breeds

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Speaker 4: and Cawi fruits have got certain varieties, and but like

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Speaker 4: cannabis is is it's really exciting because it's been in

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Speaker 4: the black market for nine on seventy years all around

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Speaker 4: the world, and like you've got this whole industry which

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Speaker 4: is essentially coming out of a black market. So how

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Speaker 4: do you define a cannabis variety is a real curious question.

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Speaker 4: So there's lots of people who've been growing cannabis, as

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Speaker 4: we know, in the community for like all those years,

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Speaker 4: and in the black market, and so it's they've got

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Speaker 4: varieties and cannabis genetics that they've been breeding for a

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Speaker 4: long period of time. So we're using some of those

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Speaker 4: and taking them into the market. And New Zealand's really

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Speaker 4: quite unique New Zealand. One of the good things about

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Speaker 4: the New Zealand regulations that they put.

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Speaker 3: In place that.

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Speaker 4: Was the fact that you're allowed to under the regulations

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Speaker 4: bring illicit genetics from the black market into the legal

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Speaker 4: framework and all of a sudden, it's legal now Canada,

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Speaker 4: but Canada had a similar amnesty situation, but that lasted

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Speaker 4: for six months. But what we've done, we in New

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Speaker 4: Zealand have a permanent amnesty if you're like so with

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Speaker 4: links to the black market and links to some illicit growers,

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Speaker 4: we can bring varieties into the legal framework that aren't

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Speaker 4: necessarily available to other consumers around the world or patients

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Speaker 4: around the world.

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Speaker 1: Now, there's also a couple of aspects to your model.

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Speaker 1: There's a breeding and development which you've just explained, but

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Speaker 1: there's also you on sell products from other manufacturers. Can

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Speaker 1: you tell us a bit about that?

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Speaker 3: Yes, so part of our strategy.

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Speaker 4: So what I just outlined is our is our absolute

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Speaker 4: commitment is to take strains from our community, varieties from

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Speaker 4: our community.

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Speaker 3: Outsource the cultivation.

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Speaker 4: And manufacturing, and deliver those products into the markets that

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Speaker 4: we choose, which is UK, Germany, Australia and New Zealand.

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Speaker 3: But of course that actually takes time.

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Speaker 4: Now, the thing with cannabis, it falls under a medicinal

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Speaker 4: or a pharmaceutical regime that the process of doing that

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Speaker 4: takes time. But in the meantime, heck, we need money.

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Speaker 4: We're absolutely focused on sales and revenue and getting a

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Speaker 4: return for our shareholders in the very short term. What

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Speaker 4: we do is we call it we set up the pipelines,

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Speaker 4: and that's basically ensuring that within each of the key

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Speaker 4: jurisdictions that we operate in. In the first instance, we

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Speaker 4: might have to buy someone else's genetics if you like,

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Speaker 4: the apple seeds, if you like. So we use someone

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Speaker 4: else's to get the pipeline going, and then we are

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Speaker 4: filling those pipelines over the next one two, three years

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Speaker 4: with genetics from our community. So that's quite that's quite different.

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Speaker 4: We're sort of not sort of saying we're going to

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Speaker 4: manufacture everything ourselves. We're saying we're going to work with

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Speaker 4: other manufacturers and cultivators to create products using our genetics.

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Speaker 1: So we think about those markets, then whats of relationships

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Speaker 1: you have in those markets with new distributors. I mean,

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Speaker 1: how does that work, because that's pretty key obviously if

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Speaker 1: you're wanting to generate revenue and also what would be

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Speaker 1: the revenue split. I mean, as you say the cultivation

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Speaker 1: or the breeding sorry and the like does take time

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Speaker 1: at the moment, would be the revenue that's coming more

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Speaker 1: from those cultivars and the light that you're sourcing from

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Speaker 1: other companies.

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Speaker 3: Well, look, if he questions about like.

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Speaker 4: Where do we think the relative profitability and sales are

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Speaker 4: going to come from in the future, just walking through it,

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Speaker 4: we've got four key markets that we're focused on Germany, UK,

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Speaker 4: Australia and New Zealand, and we think fundamentally in the

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Speaker 4: short medium term Germany and Australia are going to be

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Speaker 4: the key key drivers of revenue and therefore associated profit margin. Germany,

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Speaker 4: we launched our first product there last year. We're launching

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Speaker 4: our second product there in Germany next week, and that's

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Speaker 4: a really exciting market at the moment. As of the

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Speaker 4: first of April, the regulations changed in Germany which allowed cannabis. Like,

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Speaker 4: there's a lot of detail, but fundamentally, what it's meant

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Speaker 4: is that cannabis is now more widely prescribed than it

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Speaker 4: was before the first of April.

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Speaker 3: There is very.

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Speaker 4: Strong demand in Germany and launching product.

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Speaker 1: Can we just be clear the reason that is in

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Speaker 1: demand is for what mainly pain relief?

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Speaker 3: Yeah yeah, yeah, pain relief.

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Speaker 4: It's all through a medicinal framework, so you have to

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Speaker 4: have a doctor's prescription no matter what. So what's happened

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Speaker 4: is because, like I said, it's a little bit in the.

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Speaker 3: Detail, but it's it's rigid.

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Speaker 4: It's come down the schedule of controlled drugs, which has

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Speaker 4: made it easier for prescribers in Germany to prescribe cannabis.

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Speaker 3: And what that's done is.

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Speaker 4: It's opened up opened up more patients and more avenues

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Speaker 4: for doctors to prescribe.

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Speaker 3: It's a little bit easier.

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Speaker 4: So what's that You've got an increase in demand since

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Speaker 4: the first of April for patients predominantly, seventy percent of

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Speaker 4: the prescriptions are for pain relief, typically chronic pain. You've

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Speaker 4: got a next twenty or thirty percent is for anxiety

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Speaker 4: stress PTSD, those sorts of conditions. So Germany is a

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Speaker 4: very strong market at the moment and we're really excited

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Speaker 4: to be actually putting a product in there next week.

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Speaker 3: We think that that's going to go really well.

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Speaker 4: Nimbus Health where are distributors over there, really supportive, extremely professional,

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Speaker 4: and we've got a really good relationship with them, so

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Speaker 4: that'll go well.

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Speaker 3: Australia is.

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Speaker 4: A very big, strong, growing market. It's got lower regulatory hurdles,

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Speaker 4: easier to get into the market, so it's actually a

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Speaker 4: lot more competitive. And we've got a guy on the

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Speaker 4: ground over there who is our business development manager and

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Speaker 4: he's got a number of distribution channels that we work

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Speaker 4: with and the sales are growing over that over in Australia,

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Speaker 4: but it's a slightly different environment insofar as the regulations

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Speaker 4: that are in place. So because of the size of it,

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Speaker 4: we think it's just going to be a bit of

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Speaker 4: a cornerstone of our revenue and profit margin going forward.

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Speaker 4: And those are the two, like Germany and Australia are

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Speaker 4: the big ones, and then you've got UK, which is

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Speaker 4: in general terms, i'd sort of say two or three

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Speaker 4: years behind Australia and Germany in terms of its growth.

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Speaker 4: It's got a different environment so far as the specialists

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Speaker 4: have to prescribe the product. But what that means is

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Speaker 4: is that as they build up the systems, that's only

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Speaker 4: going to yield growth in so far as it's a

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Speaker 4: very big market. You've got a population of sixty sixty

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Speaker 4: odd million people and we know that there's demand and

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Speaker 4: the graphs are all going up in the.

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Speaker 1: UK that BIG's a question too about New Zealand is

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Speaker 1: if those are the three markets, with Germany and Australia

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Speaker 1: being the top ones, is there any potential here or

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Speaker 1: is it more that you're focused on the export well.

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Speaker 4: From an early early stage in our development, we've always

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Speaker 4: realized that we have to focus on export markets to

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Speaker 4: get a return on capital. I love New Zealander bits,

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Speaker 4: it's awesome, and we will be bringing product to the

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Speaker 4: New Zealand market, but we're never going to be able

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Speaker 4: to get a return on capital that we need we

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Speaker 4: focus on export markets and so yes we will be

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Speaker 4: we will be bringing product to the New Zealand market.

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Speaker 4: In fact, we've got to approved recently by the New

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Speaker 4: Zealand Ministry of Health or Medicinal Cannabis Agency, and those

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Speaker 4: products come in to market very soon, but we do

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Speaker 4: know in our spreadsheets and our graphs it's always going

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Speaker 4: to be a lot smaller. It's the population, of course,

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Speaker 4: but it's our home market and we have a compassionate

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Speaker 4: access program here which we certainly want to support local

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Speaker 4: members of our community. So yeah, and in terms of

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Speaker 4: profit margin, it's number four, but it's necessary.

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Speaker 1: And we're talking cannabis oil, are we and the flowers?

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Speaker 1: The dried flowers. Is that what a patient might use

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Speaker 1: or a doctor might prescribe.

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Speaker 4: Yeah, So the product formats in all four key markets,

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Speaker 4: you pretty much have two main product formats. Dried flour

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Speaker 4: as a herbal medicine which you would vaporize, and oil

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Speaker 4: which you would put under your tongue oral oil basically,

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Speaker 4: and those two formats are the dominant ones. You're seeing

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Speaker 4: a lot of growth in Germany and dried flower formats

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Speaker 4: and that's where our genetics from the community sort of

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Speaker 4: play into that sort of format more so than the oils.

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Speaker 1: Okay, So in New Zealand, particularly with the listed companies,

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Speaker 1: it has been pretty tough. As I said at the beginning,

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Speaker 1: you've got a number of companies and we've had quite

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Speaker 1: a tough time in terms of raising capital for those companies.

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Speaker 1: Sheer prices have been in the dul drums. Let's get real,

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Speaker 1: there's been nothing too great there for retail investors. You're

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Speaker 1: pretty confident that you can turn things around. We've obviously

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Speaker 1: had recently with cheeses investors. A lot of them are

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Speaker 1: in Canna South and they have obviously in bonduntary administration.

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Speaker 1: So the environment is quite tough and particularly for retail

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Speaker 1: investors trying to figure the out. But you you seem

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Speaker 1: to think that right, okay, we've changed our model, we

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Speaker 1: can actually go of a different path, and you're pretty

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Speaker 1: confident that you can, you know, reap some rewards.

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Speaker 4: Oh look, I'm extremely confident because we took a really

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Speaker 4: hard decision as a company eighteen months two years ago.

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Speaker 4: You know, there's a tough decision to shut down our

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Speaker 4: manufacturing because you know, I mean I myself basically designed it,

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Speaker 4: planned it.

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Speaker 3: We've been working.

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Speaker 4: For years on what we're going to do in manufacture

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Speaker 4: in New Zealand and that was the hope and the dream.

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Speaker 3: But is that the real plant?

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Speaker 5: Paul Letson Realtoria, is that the no, this one's in Gismon,

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Speaker 5: So just a Yeah, we've got two facilities a cultivation

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Speaker 5: and realtorting and manufacturing which looks like extraction and bottling

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Speaker 5: an aspect like that in Gisbon.

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Speaker 4: So we had to shut the Gismond one down. I mean,

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Speaker 4: the reality is costs a lot of money. So we

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Speaker 4: made the decision about eighteen months two years ago. And

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Speaker 4: we've been talking with this tub is in Germany and

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Speaker 4: Australia for a number of years, so we're sort of

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Speaker 4: we understand where we think we can add value. So

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Speaker 4: so yeah, I'm confident because A we've got a low

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Speaker 4: cost base and b we're in three markets now and

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Speaker 4: by October we'll be in the.

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Speaker 3: UK with a portfolio of products. So in three to.

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Speaker 4: Four months time we'll be in four markets with four

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Speaker 4: revenue streams. Now the challenge will be like growing those

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Speaker 4: sales and telling the rule story. And we've got some

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Speaker 4: we've got something different. We're actually different to many other

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Speaker 4: cannabis companies in New Zealand and around the world insofar

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Speaker 4: as we've got genetics on the front end of the

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Speaker 4: value chain and we've got distribution channels out the other

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Speaker 4: with a strong grounded brand in our values basically and

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Speaker 4: we're linking the two of those up. There's lots of

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Speaker 4: companies who do distribution, lots of companies have got brands,

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Speaker 4: lots of company are telling a unique story, and lots

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Speaker 4: of companies are doing genetics on their own. But there's

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Speaker 4: no one doing genetics on the one hand and putting

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Speaker 4: that through a value chain and branding it out the

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Speaker 4: other end with a strong New Zealand centric brand focused

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Speaker 4: on sort of our founding community and telling that story proudly.

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Speaker 4: So yeah, I do think we're extremely different, and I

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Speaker 4: do think we've got a bright future for sure.

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Speaker 3: No one's saying it's tough, not tough.

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Speaker 4: It's definitely tough, and I honestly we've been at this

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Speaker 4: for five years and look at where we are now.

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Speaker 4: We're still like some of the markets where we're just

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Speaker 4: getting into the UK. So it's long and tough and arduous,

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Speaker 4: and that's necessarily it's the face of this industry because

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Speaker 4: of the fact it comes under a pharmaceutical medicinal regime.

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Speaker 4: I mean, there's no I mean, I can't change the

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Speaker 4: regulations as much i'd love to, but we're playing within

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Speaker 4: the sandpit that we've got, and within this sandpit We've

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Speaker 4: got some fence posts and some guardrails which are governed

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Speaker 4: by governments and regulator around the world, and we've just

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Speaker 4: got to play with that, which means, yes, it does

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Speaker 4: take time. And I'm really sorry to investors for that,

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Speaker 4: but that's the reality.

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Speaker 3: These things just do take time.

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Speaker 1: I suppose there will be some proof in the pudding,

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Speaker 1: and maybe it's too soon come into August when you

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Speaker 1: announce your full year results. I see that you don't

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Speaker 1: give forecasts. That's quite tough for retail investors. I mean,

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Speaker 1: how do they become informed and how do they know

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Speaker 1: that what they're backing, you know, has some substance if.

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Speaker 4: You like, Yeah, that's a good question. We're loath and

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Speaker 4: reluctant to put out forecast. This is like, I mean,

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Speaker 4: I still think this industry is a very new and

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Speaker 4: early industry. We're starting to bed down some of the

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Speaker 4: pipelines and bed down the processes and it's.

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Speaker 3: Becoming a little bit more systematic and formulae.

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Speaker 1: Just wondering though about your model you talk about in

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Speaker 1: your commentary being capital like, can you kind of explain

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Speaker 1: what you mean by that?

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Speaker 3: Well, we've got very low overheads, we've.

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Speaker 4: Very small number of employees relative to our potential. I

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Speaker 4: mean we've got I think thirteen people, not all full time.

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Speaker 4: We as I said, we've closed down our manufacturing facility

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Speaker 4: and we're looking to sort of capitalize on that and

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Speaker 4: sell that and turn that into cash.

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Speaker 3: We've got our Rualtoria facility. When we built the Rualtoria facility, we're.

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Speaker 4: Well conscious of sort of saying let's let's let's not

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Speaker 4: over capitalize, which build a small, minimum viable sort of

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Speaker 4: operation sort of to prove, to prove what's possible, because

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Speaker 4: we didn't really know how the regulations we're going to go.

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Speaker 4: No one knows how the market's going to evolve. So

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Speaker 4: that's what we mean by capital We've spent small amounts

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Speaker 4: in Rutoria and we've got a small team. We don't

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Speaker 4: have a large manufacturing environment, so that's what we mean.

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Speaker 1: What about cash, Boon and Kesh, if you don't give forecasts,

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Speaker 1: can you tell us a bit about those?

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Speaker 3: Yeah, So I mean I can answer that sort of.

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Speaker 3: You know, over the last eighteen months.

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Speaker 4: To two years, we've reduced our cash bean by about

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Speaker 4: fifty percent were we were consuming about you know, three

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Speaker 4: point eight million in cash in a six month period.

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Speaker 3: Two years ago.

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Speaker 4: Now we're down to less than half that, at sort

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Speaker 4: of about one point six million in a six month period.

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Speaker 4: So yeah, we've taken the view that we cannot keep

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Speaker 4: spending the amount of money.

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Speaker 1: That we were inevitably leads me to think that you

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Speaker 1: probably need to capital raise. I know that you are

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Speaker 1: looking at various options. Can you shed any light on

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Speaker 1: that for us?

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Speaker 4: Well, no, I can't really go into a lot of details,

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Speaker 4: suffice to say that yet we are looking at options.

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Speaker 4: I mean I look at all the options for our

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Speaker 4: cash in and our cash out, and as we increase sales,

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Speaker 4: obviously we need less cash and we're on the cusp

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Speaker 4: of increasing sales as sort of in Germany in the UK.

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Speaker 4: So yeah, at this stage, nothing much to add apart

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Speaker 4: from we're in conversations with larger shareholders of course looking

403
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Speaker 4: at options. But yeah, nothing more to add than that.

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Speaker 1: Just one thing too that might be or might not

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Speaker 1: be material, is that I know you've got a bit

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Speaker 1: of a court case happening in Victoria and Australia with

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Speaker 1: a supply agreement. Can you give us any update on that.

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Speaker 4: It's with the lawyers, we're going through the process. We

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Speaker 4: feel like we've got a very strong case, but yeah,

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Speaker 4: we will inevitably end up in mediation and they're not

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Speaker 4: too distant future, and I suppose after that mediation we'll

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Speaker 4: have an update for the market.

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Speaker 3: Then what I can.

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Speaker 4: Say is we've basically it's a disagreement over the territory.

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Speaker 4: We feel we've got rights to the Australian market, and yeah,

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Speaker 4: we're we believe we've lost out because of that.

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Speaker 1: If we look at the Australian market, though, you do

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Speaker 1: think there's promise there in terms of both supplying the

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Speaker 1: genetics and also selling hot act.

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Speaker 4: Look, and I'd say, like for all markets, that there's

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Speaker 4: one there's one fundamental thing about all the cannabis markets

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Speaker 4: that we operate in and probably all the cannabis markets

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Speaker 4: that we don't operate in that you know, across Australia

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Speaker 4: and New Zealand, Germany, in the UK, A lot of

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Speaker 4: the data that I've seen is that the current medicinal

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Speaker 4: cannabis market is approximately ten percent of the illegal black market.

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Speaker 4: So there is what's fundamentally driving it is that the

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Speaker 4: legal framework is in almost every jurisdiction in the world

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Speaker 4: is opening up the pie for legal cannabis is only

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Speaker 4: going to get bigger from this point on, and you

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Speaker 4: were seeing that in Germany and what that is having

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Speaker 4: a flow on effect to other markets in Europe, for

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Speaker 4: example France's and January twenty twenty five loosening its grip

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Speaker 4: insofar as it's now allowing specialist doctors to prescribe medicinal cannabis.

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Speaker 1: Just to finish pool, I want to talk about what

436
00:24:04,880 --> 00:24:08,919
Speaker 1: you're bringing to the community, particularly Rebatoria, the use cape

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Speaker 1: and also I think we talked about the sponsorship of

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Speaker 1: patients for those who need medicinal cannabis but perhaps can't

439
00:24:16,800 --> 00:24:20,919
Speaker 1: afford it because I imagine it isn't subsidized in this country.

440
00:24:20,920 --> 00:24:22,000
Speaker 1: Can you enlighten me there.

441
00:24:23,280 --> 00:24:25,800
Speaker 4: Most medicines have lots of clinical trials, lots of data,

442
00:24:26,200 --> 00:24:28,720
Speaker 4: lots of evidence backed up by years and years of research.

443
00:24:29,359 --> 00:24:31,399
Speaker 4: Medicinal cannabis by virtue of the fact that it's been

444
00:24:31,440 --> 00:24:32,760
Speaker 4: in the black market and there's not a lot of

445
00:24:32,800 --> 00:24:34,920
Speaker 4: research being done on it, it falls in an area

446
00:24:34,960 --> 00:24:38,080
Speaker 4: called Section twenty nine or an unapproved medicine, so it

447
00:24:38,160 --> 00:24:41,440
Speaker 4: falls within an area of medicine that basically means that patients.

448
00:24:41,119 --> 00:24:43,400
Speaker 3: Have to pay for it. It's private pay.

449
00:24:43,960 --> 00:24:45,960
Speaker 4: And that's the same in the UK, same in Australia,

450
00:24:46,119 --> 00:24:50,359
Speaker 4: same in New Zealand. So so, but we know it

451
00:24:50,359 --> 00:24:53,240
Speaker 4: does have benefit for a number of a number of patients.

452
00:24:54,560 --> 00:24:57,000
Speaker 4: And when the company was started, when we got our

453
00:24:57,040 --> 00:25:00,600
Speaker 4: first products into the market through our own manufacturing, Yeah,

454
00:25:00,600 --> 00:25:04,399
Speaker 4: the company started a compassionate access program responsor thirty patients

455
00:25:04,400 --> 00:25:06,000
Speaker 4: in our community that can't afford it.

456
00:25:06,040 --> 00:25:07,280
Speaker 3: So it's all driven by doctors.

457
00:25:07,520 --> 00:25:10,200
Speaker 4: If a doctor sort of says that this patient can't

458
00:25:10,200 --> 00:25:12,879
Speaker 4: afford it and I think they would benefit from medicinal cannabis,

459
00:25:13,160 --> 00:25:15,480
Speaker 4: they apply to it, apply to the scheme to get

460
00:25:15,520 --> 00:25:18,600
Speaker 4: the patient approved and that patients on the list. It's

461
00:25:18,600 --> 00:25:20,320
Speaker 4: a small cost of the business, but we think it's

462
00:25:20,720 --> 00:25:22,359
Speaker 4: worth it for our community. I think we're going to

463
00:25:22,400 --> 00:25:25,480
Speaker 4: fifty two patients with another supplier that's actually come on board,

464
00:25:26,040 --> 00:25:28,920
Speaker 4: so it's a sort of it's a small give back

465
00:25:28,960 --> 00:25:33,480
Speaker 4: to the community, but we passionately believe that this medicine

466
00:25:33,480 --> 00:25:35,040
Speaker 4: makes a difference to people's lives.

467
00:25:35,160 --> 00:25:37,520
Speaker 1: So, Paul, there has been some changes to the regulations

468
00:25:37,520 --> 00:25:40,120
Speaker 1: in terms of medicinal cannabis and New Zealand just recently.

469
00:25:40,160 --> 00:25:42,560
Speaker 1: Can you tell me what sort of fit that is

470
00:25:42,600 --> 00:25:43,240
Speaker 1: going to have.

471
00:25:43,359 --> 00:25:48,359
Speaker 4: The big overarching change if I was to summarize it fundamentally,

472
00:25:49,520 --> 00:25:54,479
Speaker 4: the regulations are tweaked such that it's easier for New

473
00:25:54,560 --> 00:25:59,240
Speaker 4: Zealand manufacturers to export products to the world, much much easier.

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Speaker 1: Thanks Poor for your insights today. It's been great to

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00:26:02,080 --> 00:26:05,199
Speaker 1: have you on no worries, and thanks everyone for tuning in.

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Speaker 1: You can watch shed Lunch on YouTube or follow the

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00:26:08,080 --> 00:26:11,240
Speaker 1: podcast on your favorite podcast app. Leave us a rating

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00:26:11,320 --> 00:26:13,800
Speaker 1: and a comment about what you'd like to hear about next.

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Speaker 1: See you next time.