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Speaker 1: Broadcasting live to New York, Bloomberg eleven Glo to Washington,

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Speaker 1: d C, Bloomberg to Boston, BLUEMBERG twelve hundreds to San Francisco,

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Speaker 1: Bloomberg nine to the country. See when he set jam

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Speaker 1: General one nine team and around the globe the Bloomberg

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Speaker 1: Radio plus Zapp and Bloomberg got gone. This is taking stock.

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Speaker 1: Coming up on taking stock. We're going to take stock

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Speaker 1: of the legal marijuana industry, estimated to be worth about

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Speaker 1: seven billion dollars, growing between twenty and twenty five percent

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Speaker 1: a year. We're gonna be speaking with the co founder

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Speaker 1: managing director of Cannabase. This is an online whostsale marijuana marketplace.

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Speaker 1: We've got details right now. Let's get details about business

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Speaker 1: news from Catherine Cowdery in the Bloomberg newsroom. Thank you, Pam.

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Speaker 1: The stock market retreating from an all time highs as

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Speaker 1: a new report showed weak retail spending and producer prices.

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Speaker 1: That report showed sales at US retailers were little change

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Speaker 1: in July's Americans flock to auto dealers at the expense

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Speaker 1: of other merchants. Ken Perkins, president of Retail Metrics, calls

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Speaker 1: the report disappointing. Especially for brick and mortar stores, as

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Speaker 1: more sales go online, and there's clearly a structural shift

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Speaker 1: in the way people shop, how they're shopping, when they're shopping,

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Speaker 1: and I think that's gonna unfold here and more so

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Speaker 1: than ever in the back to school shopping season. You know,

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Speaker 1: there isn't gonna be this rush that we've seen in

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Speaker 1: previous years and decades as a built up you know,

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Speaker 1: I think you can shop mobile on your phone at

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Speaker 1: any time, any place and have it delivered same day,

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Speaker 1: within an hour in some instances. I think there's a

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Speaker 1: lot more by now where now hype purchases. We check

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Speaker 1: the markets every fifteen minutes throughout the trading day. Dow

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Speaker 1: Industrial leverage is currently down fifty five points at third

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Speaker 1: over percent trading at eighteen thousand, five hundred fifty eight.

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Speaker 1: Smp F I foundered down four points to tents of

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Speaker 1: a percent one then AzaC is down three points at

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Speaker 1: tenth of a percent at fifty two twenty four. West

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Speaker 1: Texas Intermedy accrude oil of ninety four cents of barrel

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Speaker 1: to point two percent to forty four forty two speckled

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Speaker 1: down seven dollar sixty cents announced to thirteen four D

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Speaker 1: two forty tenure treasury of fifteen thirty seconds with the

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Speaker 1: yield of one point five zero percent. Among today's top

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Speaker 1: business stories, Fox News is unveiling a new senior leadership

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Speaker 1: team and management structure. It's name Fox Television Station CEO

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Speaker 1: Jack Abernathy and Senior Executive Vice president Bill Shrine to

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Speaker 1: serve as co president's effective immediately. In addition, Chief financial

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Speaker 1: Officer Mark Rans will be retiring. Well, Steve Win got

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Speaker 1: fewer tables than he wanted for his Macau casino. He'll

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Speaker 1: be getting one hundred fifty gaming tables for his new

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Speaker 1: four point to billion dollar resort in Macau. It's another

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Speaker 1: signal that Macau is serious about limiting gambling growth. It's

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Speaker 1: two thirty two on Wall Street. Let's get an update

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Speaker 1: of some of the other stories were following today on

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Speaker 1: Bloomberg Radio. Thank you Catherine from the Bloomberg Newsroom. I

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Speaker 1: Nancy lyons the Seka virus continues to spread in Miami.

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Speaker 1: The Florida Department of Health says it has confirmed three

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Speaker 1: more locally acquired cases. Governor Rick Scott says the state

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Speaker 1: is still though a big tourist destination despite Zica. We're

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Speaker 1: gonna announce record tourism members for the second quarter of

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Speaker 1: this afternoon, so um have to keep that up there.

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Speaker 1: We have over one point two main jobs tours. Meanwhile,

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Speaker 1: Puerto Rico says there have been more than nineteen hundred

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Speaker 1: new cases there over the past week and more than

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Speaker 1: ten thousand, six hundred today. Donald Trump's presidential campaign is

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Speaker 1: apparently pulling out of New Jersey. Nathan Hagar reports from

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Speaker 1: our Bloomberg newsroom in Washington. The Republican nominee has reportedly

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Speaker 1: closed his campaign headquarters in New Jersey, home to Governor

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Speaker 1: Chris Christie. Federal election filing show he last paid rent

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Speaker 1: there only about a week after the office opened in May.

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Speaker 1: Several staffers reportedly haven't been paid since June. A New

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Speaker 1: Jersey state senator who supports Trump tells Politico it was

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Speaker 1: the campaign's plan all along to close after New Jersey's

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Speaker 1: June seventh primary, but the office opened after Trump's eventual

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Speaker 1: nomination was a foregone conclusion. Nathan Hagar Bloomberg Radio, Washington,

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Speaker 1: and the New York Army National Guard unit known as

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Speaker 1: the Harlem Hell Fighters, has started two weeks of training

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Speaker 1: ahead of its deployment to Kuwait. About two hundred and

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Speaker 1: fifty soldiers left Westchester County to head to a training

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Speaker 1: facility in Pennsylvania. They'll be deployed to the Persian Gulf

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Speaker 1: this fall after more training in Texas. Global News twenty

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Speaker 1: four hours a day, powered by more than twenty six

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Speaker 1: hundred journalists and analysts and more than a hundred and

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Speaker 1: twenty countries. Nancy Lions, this is Bloomberg. Back to you, Catherine,

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Speaker 1: Thank you. Now, let's get a quick check at the

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Speaker 1: benchmark Stowe Industrial leverage down fifty four points at eighteen thousand,

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Speaker 1: five hundred fifty eight SMP five fundered down four points one,

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Speaker 1: then has to act down three points at fifty two five.

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Speaker 1: And that's a Bloomberg business flash the whole pat and

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Speaker 1: I guess he brings his own music with him wherever

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Speaker 1: he goes. Matt Miller, my co host, filling in for

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Speaker 1: Kathleen Hayes. This is taking stock. I'm pim Fox. The

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Speaker 1: legal marijuana industry is estimated to be worth about seven

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Speaker 1: billion dollars, growing between twenty five percent a year. This

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Speaker 1: despite the current action by the Drug Enforcement Administration rejecting

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Speaker 1: petitions to remove marijuana from its most highly restricted classification

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Speaker 1: of drugs. Here to tell us more about the marijuana

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Speaker 1: industry is Jennifer Beck, the co founder and the managing

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Speaker 1: director of Cannabase. Jennifer, thanks for being with us. Thank

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Speaker 1: you so much for having me. What is Cannabase? How

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Speaker 1: do you describe it to people that are not familiar

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Speaker 1: with the industry? Great, So, Cannabase is the largest and

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Speaker 1: oldest online exchange platform for licensed cannabis businesses. So we're

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Speaker 1: the oldest and largest wholesale platform. UM. The core is

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Speaker 1: our wholesale market where we represent sevent of marijuana licenses

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Speaker 1: in Colorado, and we're a one stop shop for retailers

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Speaker 1: to stock their shelves and allow cultivators to flower or

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Speaker 1: trim to either retailers or extractors. So I can understand.

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Speaker 1: We all know where you can get cannabis legally now,

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Speaker 1: but I wonder where you can grow it. Can you

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Speaker 1: grow it in all the same states that it's legal

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Speaker 1: to buy it? Absolutely so, because interstate commerce actually isn't allowed.

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Speaker 1: You have to grow it in the state that you're

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Speaker 1: going to sell it. Um, and then it's a matter

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Speaker 1: of whether or not that state is vertically integrated. So

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Speaker 1: Colorado's market, our medical market is still vertically integrated, which

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Speaker 1: means that if you have a retail center, you actually

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Speaker 1: have to grow sev of your own products. But hang on,

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Speaker 1: you can't get Does that mean if I go to

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Speaker 1: Colorado to buy marijuana, I can't get anything from Humble County. No?

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Speaker 1: Absolutely not. All of the product has to be grown

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Speaker 1: within Colorado. So our wholesale exchange is a state by

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Speaker 1: state exchange. Now the state by state exchange, tell us

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Speaker 1: how it would actually work. Give us an example. So

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Speaker 1: how it would work is you that either have a

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Speaker 1: cultivation license, a retail license, or an infused product manufacturer

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Speaker 1: license which would allow you make edibles. And then some

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Speaker 1: people have both, um, you know, a combination of the

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Speaker 1: two or the three. Um. Then you go on Cannabase

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Speaker 1: as a cultivator retailer and you would list the product

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Speaker 1: you have available flower trim, extract, oil, candy bars, whatever

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Speaker 1: you're looking to sell. Or as a retailer, you can

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Speaker 1: log on and you can shop products and you can

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Speaker 1: buy it. Help me figure out the margins at these dispensaries. Um.

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Speaker 1: When I was a kid, I mean, we always thought

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Speaker 1: about an eighth as like a thirty dollar purchase. Uh,

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Speaker 1: I guess fifty dollars if you're in New York City.

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Speaker 1: What are we looking at as far as wholesale levels.

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Speaker 1: Wholesale wise, UM, we're seeing that we have two types

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Speaker 1: of markets, medical and recreational. The medical market has actually

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Speaker 1: helped steady. The medical market is still vertically integrated, so

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Speaker 1: you have to have both licenses UM, and you have

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Speaker 1: to be a Red card holder to buy Red card

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Speaker 1: holders buying metal product are going to see around those

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Speaker 1: prices like you're saying thirty bucks, UM, taxes are going

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Speaker 1: to be a bit lower. On the medical side. Recreational

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Speaker 1: vertical integration expired, so now we have stand alone cultivations

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Speaker 1: and stand alone retail centers, which means there's been a

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Speaker 1: real supply gut. We've had a lot of products coming

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Speaker 1: into the market from large standalone grows. So on the

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Speaker 1: recreational side, product has actually become way cheaper. Where says

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Speaker 1: we were seeing about two thousand dollars a pound since

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Speaker 1: recreational came into the market, now it's selling about thousand

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Speaker 1: dollars a pound, So those prices are beginning to impact

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Speaker 1: the consumer. It's becoming cheaper for consumers to buy recreational product.

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Speaker 1: Since taxes on recreational product is slightly higher than medical,

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Speaker 1: that two are starting to even out on the consumer side, Jennifer,

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Speaker 1: how does cannabase make money? So, because we are really

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Speaker 1: not allowed to be too involved and we aren't allowed

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Speaker 1: to buy the product and market up and sell it

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Speaker 1: because it isn't a three cheered system here in Colorado.

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Speaker 1: So Cannabase utilizes an online marketing model where we fell

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Speaker 1: gus on bringing in the most clients, the most engagement,

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Speaker 1: and then we make money off the data that we're

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Speaker 1: aggregating from those users and from marketing tools. We have

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Speaker 1: the most targeted platform for ancillary businesses to come in

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Speaker 1: and actually reach cannabis business decision makers, and we have

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Speaker 1: a full suite of online marketing tools available for them

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Speaker 1: to do so. So, how is the banking end of

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Speaker 1: this working out? I know that for a long time

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Speaker 1: it was very difficult for cannas cannabis businesses um to

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Speaker 1: do banking because banks, even in legal states weren't willing

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Speaker 1: to form those relationships. Has that changed a little bit, Um,

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Speaker 1: It's still very very difficult to get traditional banking. I'd

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Speaker 1: say most dispensaries, UM and cultivators at this point are

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Speaker 1: able to get a checking account, but mostly it's because

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Speaker 1: they'll use an LLC name that isn't related to their

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Speaker 1: cannabis name that they're doing business as UM, so that

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Speaker 1: allow them to get a basic checking account and you

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Speaker 1: have checks, but getting credit cards, loans, traditional financing is

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Speaker 1: still completely out of the question. Now. Can of As

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Speaker 1: was acquired by Helix TCS in July. What is Helix TCS.

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Speaker 1: Helix TCS is a provider of integrated operating environment solutions

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Speaker 1: for cannabis businesses, So the TCS stands for Technology, Compliance

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Speaker 1: and Security. Helix came into the market as a security

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Speaker 1: provider and has grown into the largest security provider in

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Speaker 1: the state UM in the last year, so absolutely explosive growth.

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Speaker 1: And Cannabase has come on board to not only use

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Speaker 1: Helix logistical infrastructure to make our marketplace more powerful, but

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Speaker 1: also to accelerate our own growth. So since we've been

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Speaker 1: here with Helix, we've solidified major partnerships with see the deal,

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Speaker 1: tracking companies and data companies. All right, Jennifer, thanks very much.

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Speaker 1: Jennifer Beck There, co founder and managing director of Cannabase

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Speaker 1: fought by Helix uh In earlier in the summer. You

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Speaker 1: can find out h l i X on the Bloomberg.

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