1 00:00:03,120 --> 00:00:07,440 Speaker 1: Broadcasting live to New York Bloomberg eleventh, Rio to Washington, 2 00:00:07,520 --> 00:00:11,639 Speaker 1: d C. Bloomberg to Boston, Bloomberg twelve, under It to 3 00:00:11,760 --> 00:00:16,200 Speaker 1: San Francisco, Bloomberg nine, to the Country series Exam Channel 4 00:00:16,280 --> 00:00:19,720 Speaker 1: one nineteen, and around the globe the Bloomberg Radio Plus 5 00:00:19,760 --> 00:00:25,240 Speaker 1: Appen Bloomberg dot Com. This is taking Stock. I'm Kathleen Hayes. 6 00:00:25,320 --> 00:00:29,320 Speaker 1: My co host Pim Fox is on assignment this afternoon. 7 00:00:29,720 --> 00:00:33,080 Speaker 1: You know, in the private equity people start getting involved 8 00:00:33,120 --> 00:00:36,720 Speaker 1: in an industry, it's got to be big and getting bigger. 9 00:00:36,880 --> 00:00:39,440 Speaker 1: We're gonna be speaking to Adam Bierman. He's co founder 10 00:00:39,440 --> 00:00:42,040 Speaker 1: and CEO of Medmen, and private equity firm that is 11 00:00:42,120 --> 00:00:48,080 Speaker 1: investing in the cannabis industry and advising and consulting potential 12 00:00:48,120 --> 00:00:51,720 Speaker 1: investors in that industry as well. Now let's go to 13 00:00:51,800 --> 00:00:54,320 Speaker 1: Charlie Pett He is in the newsroom with a Bloomberg 14 00:00:54,360 --> 00:00:56,960 Speaker 1: Business flash, and I thank you very much, Kathleen Hayes. 15 00:00:57,120 --> 00:00:59,320 Speaker 1: I'm looking at Green on the screen and the SMP 16 00:00:59,520 --> 00:01:02,280 Speaker 1: five how at index that is on track for a 17 00:01:02,560 --> 00:01:06,679 Speaker 1: ten month high. Stocks are rallying as Federal Reserve Chair 18 00:01:06,800 --> 00:01:10,480 Speaker 1: Janet Yellen signals the economy is still strengthening enough to 19 00:01:10,560 --> 00:01:15,280 Speaker 1: withstand gradual increases in borrowing costs, despite recent signs of 20 00:01:15,360 --> 00:01:19,280 Speaker 1: slower job growth. For speech in Philadelphia carried live right 21 00:01:19,280 --> 00:01:22,919 Speaker 1: here on Bloomberg Radio, well, the economy has made Greek 22 00:01:23,040 --> 00:01:28,280 Speaker 1: stride towards the AFORMC subjective of maximum employment, somewhat list 23 00:01:28,360 --> 00:01:33,760 Speaker 1: progresses made toward our inflation objective. Inflation is whoren persistently 24 00:01:33,880 --> 00:01:38,240 Speaker 1: below the FIDS goal of two over the past several years, 25 00:01:38,959 --> 00:01:42,280 Speaker 1: even as the labor market strength and significantly, and the 26 00:01:42,319 --> 00:01:45,880 Speaker 1: Fed chair said positive forces supporting jaw growth and higher 27 00:01:45,880 --> 00:01:51,560 Speaker 1: inflation will still probably outweigh negative developments, calling additional gradual 28 00:01:51,640 --> 00:01:56,520 Speaker 1: rate increases appropriate, without specifying their precise timing. SMP five 29 00:01:56,600 --> 00:02:01,080 Speaker 1: hundred index up thirteen points at twelve pine of seven 30 00:02:01,120 --> 00:02:04,560 Speaker 1: tenths of one percent. Nav stack is up thirty six points, 31 00:02:04,600 --> 00:02:07,280 Speaker 1: also a gain of seven tenths of one percent down 32 00:02:07,280 --> 00:02:10,320 Speaker 1: Industrials up one thirty eight points, a gain of eight 33 00:02:10,480 --> 00:02:14,839 Speaker 1: tenths of one percent. Brexit is back investors from Australia 34 00:02:14,919 --> 00:02:18,480 Speaker 1: to Thailand ducking for cover. The pound tumbled. Currency volatility 35 00:02:18,600 --> 00:02:22,280 Speaker 1: surged after two poles showed more Britain's favor of vote 36 00:02:22,320 --> 00:02:25,440 Speaker 1: to leave the EU at a June twenty three referendum 37 00:02:25,520 --> 00:02:28,919 Speaker 1: than those who want to stay. Tenure down seven thirty 38 00:02:28,919 --> 00:02:32,200 Speaker 1: second zeal there one point seven two percent, Gold up 39 00:02:32,200 --> 00:02:34,679 Speaker 1: four fifty pounds to twelve forty seven, a gain of 40 00:02:34,760 --> 00:02:37,720 Speaker 1: four tenths of one percent. Crude now up two point 41 00:02:37,720 --> 00:02:41,160 Speaker 1: two percent, forty nine sixty seven of barrel to thirty 42 00:02:41,160 --> 00:02:43,079 Speaker 1: two on Wall Street Now will look at other news 43 00:02:43,160 --> 00:02:46,320 Speaker 1: from around the world. Thank you Charlie from the Bloomberg 44 00:02:46,320 --> 00:02:49,120 Speaker 1: News Room. I'm Raimi in Essencio. This news update is 45 00:02:49,120 --> 00:02:51,640 Speaker 1: brought to you by Elbow Beach Bermuda in ocean front 46 00:02:51,720 --> 00:02:55,960 Speaker 1: enclave of classic style and contemporary luxury, fifty acres of 47 00:02:56,040 --> 00:02:58,720 Speaker 1: lush gardens and a private ribbon of pink sand beach. 48 00:02:58,960 --> 00:03:00,800 Speaker 1: Go to Elbow Beach burm You to dot com for 49 00:03:01,000 --> 00:03:05,160 Speaker 1: more details. Forecasters say threatening rains could cause serious flooding 50 00:03:05,160 --> 00:03:08,440 Speaker 1: across the coast of Florida. Here's Governor Rick Scott. I 51 00:03:08,560 --> 00:03:11,560 Speaker 1: just declared a state of emergency in thirty four counties 52 00:03:12,040 --> 00:03:14,799 Speaker 1: that are looks like they'll get the brunt of tropical 53 00:03:14,840 --> 00:03:18,040 Speaker 1: Storm Colin. This storm is just the latest in a 54 00:03:18,120 --> 00:03:21,280 Speaker 1: series of severe weather events across the country. From record 55 00:03:21,320 --> 00:03:24,480 Speaker 1: breaking heat in the West and historic flooding in Texas. 56 00:03:25,480 --> 00:03:28,760 Speaker 1: Fifteen was a violent year in Milwaukee. Authorities say there 57 00:03:28,800 --> 00:03:31,960 Speaker 1: were one hundred forty five homicides in the city last 58 00:03:32,000 --> 00:03:34,840 Speaker 1: year alone. That's up from eighty six the year before. 59 00:03:35,120 --> 00:03:38,160 Speaker 1: Speaking in Milwaukee, Police Chief Ed Flynn blames a spike 60 00:03:38,240 --> 00:03:41,600 Speaker 1: on more lenient gun laws. Since it's been significant easier 61 00:03:41,680 --> 00:03:45,440 Speaker 1: to procure firearms and sell them without background checks, we've 62 00:03:45,440 --> 00:03:49,240 Speaker 1: had increases in gun related homicides, increases of non fatal shootings, 63 00:03:49,360 --> 00:03:52,680 Speaker 1: increases in gun seizures, and increases in the percentage of 64 00:03:52,720 --> 00:03:55,840 Speaker 1: gun seas that are our crime. Guns officials say there 65 00:03:55,840 --> 00:03:59,280 Speaker 1: were six hundred thirty five non fatal shootings and there's 66 00:03:59,320 --> 00:04:03,360 Speaker 1: an increasing probability of stolen cars ending up in California. 67 00:04:03,640 --> 00:04:06,720 Speaker 1: That's according to a report by the National Insurance Crime Bureau. 68 00:04:06,840 --> 00:04:09,800 Speaker 1: A new report which analyzed the number of thefts per population, 69 00:04:10,000 --> 00:04:12,240 Speaker 1: says the Golden State is home to eight of the 70 00:04:12,280 --> 00:04:15,720 Speaker 1: top ten u S hotspots for stolen vehicles in the country. 71 00:04:16,040 --> 00:04:18,720 Speaker 1: That's higher than the New York and Washington regions, where 72 00:04:18,720 --> 00:04:22,280 Speaker 1: people rely more on mass transit. Global News twenty four 73 00:04:22,279 --> 00:04:25,040 Speaker 1: hours a day, powered by our journalists in more than 74 00:04:25,080 --> 00:04:27,920 Speaker 1: one fifty news bureaus around the world. From the Bloomberg 75 00:04:27,960 --> 00:04:31,120 Speaker 1: News Room, I'm Rainey in essentio Charlie, and we thank you, 76 00:04:31,160 --> 00:04:34,840 Speaker 1: and again recapping SMP five index heading for a ten 77 00:04:35,160 --> 00:04:39,080 Speaker 1: month high and now at a gain of six tenths 78 00:04:39,120 --> 00:04:42,520 Speaker 1: of one percent. I'm Charlie Public and that's a Bloomberg 79 00:04:42,600 --> 00:04:49,080 Speaker 1: Business Flash June listening to taking Stock with pin Box 80 00:04:49,120 --> 00:04:53,720 Speaker 1: and Katholene Hays on Bloomberg Radio. As voters in more 81 00:04:53,760 --> 00:04:59,159 Speaker 1: and more states embrace legalized marijuana sales, this industry is 82 00:04:59,200 --> 00:05:03,880 Speaker 1: going from a small sort of curiosity to something that 83 00:05:03,960 --> 00:05:06,599 Speaker 1: looks like a booming market that is here to stay. 84 00:05:07,200 --> 00:05:10,080 Speaker 1: In fact, a study put out earlier this year suggests 85 00:05:10,120 --> 00:05:13,679 Speaker 1: that the industry could grow to something like six point 86 00:05:13,839 --> 00:05:18,599 Speaker 1: seven billion dollars this year in total sales. Someone who's 87 00:05:18,640 --> 00:05:20,920 Speaker 1: not waiting to find out if it's here to stay 88 00:05:21,000 --> 00:05:23,120 Speaker 1: or not, someone who's been in this business now since 89 00:05:23,160 --> 00:05:25,719 Speaker 1: two thousand seven, is Adam Bierman. He's co founder and 90 00:05:25,839 --> 00:05:29,920 Speaker 1: CEO of med Men, and he joins us in Los Angeles. Adam, 91 00:05:29,920 --> 00:05:32,279 Speaker 1: welcome to the show. Hi, thanks for having me so. 92 00:05:32,400 --> 00:05:36,039 Speaker 1: First of all, tell us about med Men private equity 93 00:05:36,360 --> 00:05:42,039 Speaker 1: in cannabis sounds sounds bizarre, isn't it. It's been, Uh, 94 00:05:42,080 --> 00:05:43,920 Speaker 1: it's been. It's been quite a road to get here. 95 00:05:43,920 --> 00:05:46,440 Speaker 1: But um, that that is where we are. So met 96 00:05:46,440 --> 00:05:48,760 Speaker 1: men actually started off as a management company, so we 97 00:05:48,800 --> 00:05:51,560 Speaker 1: provide management services, not unlike those that are provided in 98 00:05:51,640 --> 00:05:55,360 Speaker 1: hospitality or gaming. Um. And then as of the beginning 99 00:05:55,360 --> 00:05:58,640 Speaker 1: of this year, Uh, we started our private equity fund, 100 00:05:58,720 --> 00:06:02,800 Speaker 1: so very algast hospitality. The fund makes investments in the 101 00:06:02,880 --> 00:06:07,440 Speaker 1: space and the management company then operates those investments. So 102 00:06:08,440 --> 00:06:14,520 Speaker 1: how did you get into this industry? Fell into it? Uh? 103 00:06:14,560 --> 00:06:17,560 Speaker 1: You know, we live in Los Angeles. Los Angeles is 104 00:06:17,600 --> 00:06:21,800 Speaker 1: the epicenter for you know, the commercial legal commercialization of 105 00:06:22,279 --> 00:06:25,080 Speaker 1: cannabis in the US and North America for that matter. 106 00:06:25,520 --> 00:06:30,600 Speaker 1: And um, we've had uh legal marijuana here sin And 107 00:06:31,080 --> 00:06:33,840 Speaker 1: I was running a branding, design and construction company in 108 00:06:33,880 --> 00:06:36,440 Speaker 1: the late two thousand's and I got a phone call 109 00:06:36,520 --> 00:06:39,920 Speaker 1: from a lady who ran a was running a medical 110 00:06:39,960 --> 00:06:43,840 Speaker 1: marijuana dispensary UM in Hollywood, and she wanted to hire 111 00:06:43,880 --> 00:06:45,680 Speaker 1: that company to do work for her. And by the 112 00:06:45,720 --> 00:06:48,200 Speaker 1: time I was done with that meeting, I knew that 113 00:06:48,240 --> 00:06:50,120 Speaker 1: I had to figure out how to enter this space. 114 00:06:50,240 --> 00:06:53,040 Speaker 1: So that's actually how I got introduced to the space. 115 00:06:53,080 --> 00:06:56,400 Speaker 1: And um, back then, there was really there. Most certainly 116 00:06:56,480 --> 00:07:00,240 Speaker 1: was nobody on Bloomberg Radio talking about the the industy three. 117 00:07:00,520 --> 00:07:03,440 Speaker 1: But there was really a really little little to no activity, 118 00:07:03,720 --> 00:07:07,200 Speaker 1: most certainly no institutional involvement. Um. But you know, we 119 00:07:07,279 --> 00:07:09,720 Speaker 1: we we saw that we we had an understanding that 120 00:07:09,760 --> 00:07:11,880 Speaker 1: there was a lot of momentum that was building and 121 00:07:11,880 --> 00:07:14,480 Speaker 1: that this would be you know what it is now becoming, 122 00:07:14,520 --> 00:07:16,480 Speaker 1: and the way that we would take advantage of that 123 00:07:16,560 --> 00:07:19,240 Speaker 1: was to be first movers and really getting an understanding. 124 00:07:19,280 --> 00:07:20,680 Speaker 1: And so we do so. I think a lot of 125 00:07:20,680 --> 00:07:24,600 Speaker 1: people it's it's a it's a complicated world because states 126 00:07:24,640 --> 00:07:28,000 Speaker 1: can legalize you know, the the recreational use um, you know, 127 00:07:28,280 --> 00:07:32,320 Speaker 1: medical use. Federal laws though still have not don't seem 128 00:07:32,320 --> 00:07:34,280 Speaker 1: to be quite in sync. And that makes it a problem, 129 00:07:34,320 --> 00:07:37,680 Speaker 1: does it for companies that want to scale up, you know, 130 00:07:37,760 --> 00:07:41,200 Speaker 1: they really do want to invest in big production of marijuana, 131 00:07:41,240 --> 00:07:46,320 Speaker 1: shipping of marijuana, storage of marijuana. Yes, And I think 132 00:07:46,360 --> 00:07:50,200 Speaker 1: you know, for US, problems and roadblocks are opportunities. But 133 00:07:50,560 --> 00:07:53,680 Speaker 1: nonetheless those those do exist. I mean, the biggest thing 134 00:07:53,720 --> 00:07:57,200 Speaker 1: that exists is you know, each state is its own island. UM. 135 00:07:57,240 --> 00:07:59,440 Speaker 1: And because of the fact that this is still scheduled 136 00:07:59,440 --> 00:08:01,400 Speaker 1: the way it is, and because of all the UM 137 00:08:01,520 --> 00:08:05,320 Speaker 1: federal illegality, there is no crossing state lines. And because 138 00:08:05,360 --> 00:08:08,040 Speaker 1: of that, UM, you know, you talk about scaling up, 139 00:08:08,080 --> 00:08:10,680 Speaker 1: you can't scale up in that traditional sense and gain 140 00:08:10,760 --> 00:08:14,200 Speaker 1: those economies of scale, most specifically as an operator. UM. 141 00:08:14,240 --> 00:08:17,320 Speaker 1: If you have a license in New York, for example, UM, 142 00:08:17,360 --> 00:08:19,760 Speaker 1: you can't go ahead and produce you know, medical marijuan 143 00:08:19,840 --> 00:08:22,720 Speaker 1: and ship at the Pennsylvania So UM. You know that 144 00:08:22,880 --> 00:08:26,120 Speaker 1: is I guess on one hand, and impediment on another hand, 145 00:08:26,160 --> 00:08:29,000 Speaker 1: it's an opportunity. Right. There's we are a very very 146 00:08:29,040 --> 00:08:32,640 Speaker 1: quickly evolving industry. The laws, the regulations, everything is evolving 147 00:08:32,679 --> 00:08:36,720 Speaker 1: alongside you know, the UM, the industry itself. So everything 148 00:08:36,800 --> 00:08:39,040 Speaker 1: is evolving all at once, from regulatory all the way 149 00:08:39,080 --> 00:08:43,640 Speaker 1: to access to institutional finance and you know and capital UM. 150 00:08:43,679 --> 00:08:48,280 Speaker 1: All that's evolving kind of contemporaneously UM. And as that happens, 151 00:08:48,400 --> 00:08:50,360 Speaker 1: you know, there's a there is some confusion. There's a 152 00:08:50,760 --> 00:08:54,160 Speaker 1: serious learning curve UM. And we we actually we use 153 00:08:54,200 --> 00:08:57,680 Speaker 1: a more positive spin. We call it informational arbitract so 154 00:08:57,920 --> 00:09:00,600 Speaker 1: that's how we like to look at it. The uh 155 00:09:00,679 --> 00:09:03,920 Speaker 1: your fund, right, the first nine figure fund that directly 156 00:09:03,920 --> 00:09:06,640 Speaker 1: invest in the cannabis industry. This is very interesting because 157 00:09:06,840 --> 00:09:09,520 Speaker 1: as the industry gets bigger, and if it's growing, there's 158 00:09:10,080 --> 00:09:11,960 Speaker 1: a lot of institutional investors. I would think at some 159 00:09:12,000 --> 00:09:13,640 Speaker 1: point when the industry is large and I would like 160 00:09:13,679 --> 00:09:14,920 Speaker 1: to put some money in, and then of course the 161 00:09:14,920 --> 00:09:17,319 Speaker 1: people think, hey, this is a great business opportunity. How 162 00:09:17,320 --> 00:09:20,520 Speaker 1: does this fund work? Would tell us about it? Well, so, yeah, 163 00:09:20,520 --> 00:09:24,319 Speaker 1: I mean you are right, the institutional players they want 164 00:09:24,320 --> 00:09:26,000 Speaker 1: to be in this industry. I mean I've been taking 165 00:09:26,080 --> 00:09:28,520 Speaker 1: those meetings on my trips to New York now for 166 00:09:28,520 --> 00:09:30,800 Speaker 1: the last couple of years and then the last you know, 167 00:09:30,800 --> 00:09:33,559 Speaker 1: a couple of months. Um. The speed at which the 168 00:09:33,640 --> 00:09:36,520 Speaker 1: velocity at which that that interest is growing is just 169 00:09:36,679 --> 00:09:39,560 Speaker 1: you know, tremendous and significant. There are very large you 170 00:09:39,600 --> 00:09:43,200 Speaker 1: know a u M funds dollar a u M funds 171 00:09:43,200 --> 00:09:45,080 Speaker 1: that I know because I've been having the meetings that 172 00:09:45,160 --> 00:09:47,120 Speaker 1: have had you know, LP say hey, we want you 173 00:09:47,160 --> 00:09:49,040 Speaker 1: to go ahead and figure out how to invest into 174 00:09:49,720 --> 00:09:52,080 Speaker 1: this industry. You know, they're working on carve outs, are 175 00:09:52,120 --> 00:09:54,200 Speaker 1: working on bites funds they're working on that. They don't 176 00:09:54,440 --> 00:09:57,000 Speaker 1: move as swiftly as for example, family offices can move 177 00:09:57,040 --> 00:09:59,800 Speaker 1: when they're investing their own dollars um And so there 178 00:09:59,880 --> 00:10:02,760 Speaker 1: is that that information, you know, we taught we have 179 00:10:02,840 --> 00:10:05,200 Speaker 1: the information arbitrage. They're trying to get smart on it, 180 00:10:05,240 --> 00:10:07,280 Speaker 1: they're trying to figure it out, and then they're trying 181 00:10:07,320 --> 00:10:09,040 Speaker 1: to be able to put themselves in a position to 182 00:10:09,120 --> 00:10:11,640 Speaker 1: be able to invest in the space. And so for us, 183 00:10:11,679 --> 00:10:13,800 Speaker 1: we've been in this industry for a while, we understand 184 00:10:13,800 --> 00:10:17,439 Speaker 1: the nuances from a regulatory perspective. From an operational perspective, 185 00:10:17,440 --> 00:10:20,760 Speaker 1: we actually believe that the biggest risk in investing in 186 00:10:20,760 --> 00:10:23,400 Speaker 1: the spaces operational risk at this point in time. Then, 187 00:10:23,440 --> 00:10:25,440 Speaker 1: because that is our background and we have a commanding 188 00:10:25,520 --> 00:10:28,520 Speaker 1: understanding of that, we have the management company were uniquely 189 00:10:28,520 --> 00:10:31,800 Speaker 1: positioned to really take capital, deploy capital directly into the space, 190 00:10:32,080 --> 00:10:36,160 Speaker 1: you know, be able to get tech likes upside. Uh 191 00:10:36,679 --> 00:10:40,280 Speaker 1: all right, Avan Bierman, thank you so very much. Co 192 00:10:40,440 --> 00:10:44,760 Speaker 1: founder and CEO of med Men. They are a cannabis 193 00:10:44,840 --> 00:10:48,200 Speaker 1: private equity firm based in Los Angeles. Just a quick 194 00:10:48,280 --> 00:10:53,160 Speaker 1: programming note Tomorrow Wednesday, taking stock broadcasting live at Pershing's 195 00:10:53,200 --> 00:11:01,600 Speaker 1: Insight Conference in Orlando. This is when they're Radio Bloombergtaking 196 00:11:01,640 --> 00:11:04,920 Speaker 1: Stock is brought to by Benzelbusch Motorcar in Anglewood, New Jersey, 197 00:11:04,920 --> 00:11:07,920 Speaker 1: offering commitment to service, luxury and value with total transparency 198 00:11:08,080 --> 00:11:11,040 Speaker 1: from America's premiere automotive dealership. Define the Way You Drive 199 00:11:11,080 --> 00:11:15,200 Speaker 1: at Benzelbush dot com