1 00:00:10,320 --> 00:00:13,600 Speaker 1: Hello, and welcome to another episode of the All Thoughts podcast. 2 00:00:13,680 --> 00:00:15,120 Speaker 1: I'm Tracy Alloway. 3 00:00:14,800 --> 00:00:15,920 Speaker 2: And I'm Joe Wisenthal. 4 00:00:16,200 --> 00:00:18,680 Speaker 1: Joe, do you remember five months ago? 5 00:00:21,000 --> 00:00:23,680 Speaker 2: No, it's all, it's all what neither did I? 6 00:00:23,680 --> 00:00:26,360 Speaker 1: I actually had to look this up. You remember? On 7 00:00:27,000 --> 00:00:31,200 Speaker 1: four twenty so April twentieth of this year, we released 8 00:00:31,240 --> 00:00:36,640 Speaker 1: our first ever narrative All Thoughts series, all about the 9 00:00:36,760 --> 00:00:38,840 Speaker 1: legal marijuana market in New York. 10 00:00:39,400 --> 00:00:43,320 Speaker 2: Yes, and obviously that was a fun experiment and I 11 00:00:43,360 --> 00:00:46,720 Speaker 2: hope we do something like that again. My big takeaway 12 00:00:46,760 --> 00:00:50,080 Speaker 2: from that, I learned a lot about market structure. I 13 00:00:50,159 --> 00:00:52,800 Speaker 2: learned a lot about the industry. But my big takeaway 14 00:00:52,880 --> 00:00:56,400 Speaker 2: really from talking to everyone involved, are lots of people 15 00:00:56,440 --> 00:01:00,160 Speaker 2: involved in the New York attempt to legalize marijuana. Is that, 16 00:01:00,440 --> 00:01:04,280 Speaker 2: however complicated you thought it was and difficult it was 17 00:01:04,319 --> 00:01:07,200 Speaker 2: to sort of bring in this new market, it's like 18 00:01:07,360 --> 00:01:09,039 Speaker 2: infinitely more complicated than that. 19 00:01:09,200 --> 00:01:11,560 Speaker 1: Yeah, it can always get worse kind. 20 00:01:11,319 --> 00:01:12,720 Speaker 2: Of and that's another way to put it in. 21 00:01:12,880 --> 00:01:15,720 Speaker 1: Yeah, well it is true. You know, there was so 22 00:01:15,800 --> 00:01:19,160 Speaker 1: much excitement about this last year and then even into 23 00:01:19,280 --> 00:01:22,840 Speaker 1: early this year, and fast forward to now. I have 24 00:01:22,920 --> 00:01:25,840 Speaker 1: the sort of latest figures in front of me. So 25 00:01:26,319 --> 00:01:30,160 Speaker 1: New York signed the law that legalized cannabis possession back 26 00:01:30,200 --> 00:01:33,199 Speaker 1: in March of twenty twenty one. So it's been more 27 00:01:33,280 --> 00:01:36,119 Speaker 1: than two years and we only have like I think 28 00:01:36,120 --> 00:01:40,240 Speaker 1: it's about two dozen legal weed dispensaries, which I think 29 00:01:40,680 --> 00:01:43,600 Speaker 1: is one of the lowest, if not the lowest number 30 00:01:43,840 --> 00:01:48,040 Speaker 1: among all the states that have so far legalized marijuana. 31 00:01:48,080 --> 00:01:52,920 Speaker 1: And meanwhile, we have like more than a thousand unlicensed dealers, 32 00:01:52,920 --> 00:01:56,080 Speaker 1: which is pretty much the outcome that New York was 33 00:01:56,160 --> 00:01:57,240 Speaker 1: trying to avoid. 34 00:01:57,880 --> 00:02:00,640 Speaker 2: I mean, there's probably more than two dozen and within 35 00:02:00,680 --> 00:02:04,800 Speaker 2: a five block radius from my house in the East Village, right, Yeah. 36 00:02:05,040 --> 00:02:06,840 Speaker 2: And so I remember, you know, about a year ago, 37 00:02:06,880 --> 00:02:08,679 Speaker 2: I think the first one opened up, and it was 38 00:02:08,680 --> 00:02:11,959 Speaker 2: like there was a ten minute walk from me, and 39 00:02:12,120 --> 00:02:14,760 Speaker 2: you had to show some card to buy there, and 40 00:02:14,800 --> 00:02:16,960 Speaker 2: I don't know, And then they just kept getting more. 41 00:02:17,080 --> 00:02:19,519 Speaker 2: They're closer and closer, and they're all in all of 42 00:02:19,560 --> 00:02:23,000 Speaker 2: the bodegas now. And now basically, even though there's supposedly 43 00:02:23,000 --> 00:02:25,080 Speaker 2: all these issues with payments at the legal one, at 44 00:02:25,080 --> 00:02:27,760 Speaker 2: the illegal ones, you can buy them buy product with 45 00:02:27,919 --> 00:02:30,679 Speaker 2: credit cards. It really is crazy, but it stems from 46 00:02:30,680 --> 00:02:34,800 Speaker 2: two things, right, there was an attempt to rectify sort 47 00:02:34,800 --> 00:02:37,840 Speaker 2: of past injustices of the War on drugs by giving 48 00:02:37,960 --> 00:02:41,520 Speaker 2: priority to people who had been negatively impacted by the 49 00:02:41,600 --> 00:02:45,840 Speaker 2: drug war when marijuana was still straight up illegal in 50 00:02:46,000 --> 00:02:49,400 Speaker 2: New York State. And then in the meantime, this tension 51 00:02:49,440 --> 00:02:52,120 Speaker 2: now is like, okay, you had you have the people 52 00:02:52,160 --> 00:02:55,880 Speaker 2: who wanted to take the regulated, legal route, and that's complicated, 53 00:02:56,400 --> 00:02:58,640 Speaker 2: and then the people who just open up a shop 54 00:02:58,680 --> 00:03:01,960 Speaker 2: and there's been very little enforcement the absolutely. 55 00:03:01,400 --> 00:03:03,799 Speaker 1: And along the way. You know, again, it's only been 56 00:03:03,840 --> 00:03:05,920 Speaker 1: five months since we released this series, but there have 57 00:03:05,919 --> 00:03:10,359 Speaker 1: been all these different legal developments which we are about 58 00:03:10,360 --> 00:03:12,680 Speaker 1: to get into because I'm very pleased to say that 59 00:03:12,720 --> 00:03:15,000 Speaker 1: we really do have the perfect guests to discuss this. 60 00:03:15,560 --> 00:03:19,799 Speaker 1: We're bringing back cos Marte and Alfredo Angera. They are 61 00:03:19,880 --> 00:03:24,200 Speaker 1: the CEO of Kanbud and the chief compliance officer of Kanbud. 62 00:03:24,240 --> 00:03:28,280 Speaker 1: You might remember them from this series. They are aiming 63 00:03:28,360 --> 00:03:32,400 Speaker 1: to open up their own legal weed shops, but of 64 00:03:32,440 --> 00:03:35,040 Speaker 1: course it's been far more complicated and taken a lot 65 00:03:35,080 --> 00:03:38,840 Speaker 1: longer than perhaps they anticipated. So Caause and Alfredo, thank 66 00:03:38,880 --> 00:03:40,520 Speaker 1: you so much for coming back on all thoughts. 67 00:03:40,760 --> 00:03:43,440 Speaker 3: Thank you for having us. Thank you for welcoming us back. 68 00:03:44,080 --> 00:03:46,920 Speaker 1: Why don't we start with the basics. You know, I 69 00:03:47,040 --> 00:03:50,920 Speaker 1: mentioned some of the legal issues that have taken place 70 00:03:50,960 --> 00:03:53,360 Speaker 1: over the summer. Why don't you just give us the 71 00:03:53,400 --> 00:03:56,800 Speaker 1: state of affairs as it exists right now in relation 72 00:03:56,920 --> 00:03:58,880 Speaker 1: to New York's legal weed industry. 73 00:04:00,040 --> 00:04:03,440 Speaker 4: Have you ever seen that meme with the dog in 74 00:04:04,800 --> 00:04:07,440 Speaker 4: the room it's fine, Yeah, it's fine and everything is 75 00:04:07,480 --> 00:04:11,440 Speaker 4: on fire. That is literally the state of the industry 76 00:04:11,520 --> 00:04:15,520 Speaker 4: right now. And I don't mean that in any kind 77 00:04:15,520 --> 00:04:17,040 Speaker 4: of you know, funny contexts. 78 00:04:17,120 --> 00:04:19,479 Speaker 2: We just got the title of this episode, New York 79 00:04:19,520 --> 00:04:22,360 Speaker 2: City Cannabis. It's fine and everything is on fire. 80 00:04:22,560 --> 00:04:23,640 Speaker 3: If it's on fire. 81 00:04:24,760 --> 00:04:26,800 Speaker 4: So there's been to say, it's been a lot of 82 00:04:26,839 --> 00:04:30,320 Speaker 4: flux as a as a grand understatement. Last time we 83 00:04:30,320 --> 00:04:33,640 Speaker 4: were here, we had a lot of faith that the state, 84 00:04:33,760 --> 00:04:37,240 Speaker 4: because of their vested interest in getting the tax dollars 85 00:04:37,320 --> 00:04:40,000 Speaker 4: and in their vested interest and kind to trying to 86 00:04:40,040 --> 00:04:43,720 Speaker 4: fix the social justice and equities, we're really going to 87 00:04:43,760 --> 00:04:46,440 Speaker 4: get it right. And had the opportunity to look to 88 00:04:46,520 --> 00:04:48,920 Speaker 4: other states and say, well, what is it that they 89 00:04:48,920 --> 00:04:50,680 Speaker 4: did wrong and what is it that they did right? 90 00:04:50,720 --> 00:04:53,320 Speaker 4: And we have we can make the perfect model. We 91 00:04:53,480 --> 00:04:58,760 Speaker 4: have since learned that despite those best efforts, corporate interests 92 00:04:58,760 --> 00:05:03,480 Speaker 4: will always rule. Right when you're talking about the country's 93 00:05:03,680 --> 00:05:07,560 Speaker 4: largest cannabis market, and by way of that, the world's 94 00:05:07,600 --> 00:05:10,440 Speaker 4: largest cannabis market in terms of consumption, we're talking about 95 00:05:10,640 --> 00:05:14,320 Speaker 4: billions and billions of dollars, and the entities that are 96 00:05:14,440 --> 00:05:17,560 Speaker 4: MSOs and the entities that are ros aren't going to 97 00:05:17,600 --> 00:05:20,760 Speaker 4: sit by the wayside, essentially, and they have been throwing 98 00:05:20,800 --> 00:05:23,799 Speaker 4: every monkey wrench you can possibly imagine into the gears. 99 00:05:25,120 --> 00:05:27,200 Speaker 4: So that's currently where we stand. 100 00:05:27,480 --> 00:05:30,600 Speaker 1: So you mentioned corporate interests. Can you expand on that 101 00:05:30,680 --> 00:05:33,919 Speaker 1: a little bit more, because I remember, again from speaking 102 00:05:33,920 --> 00:05:36,039 Speaker 1: to you and lots of other people for the series, 103 00:05:36,440 --> 00:05:39,560 Speaker 1: New York's ambition was to do it a little bit 104 00:05:39,600 --> 00:05:43,080 Speaker 1: differently to other states. They wanted to create this sort 105 00:05:43,120 --> 00:05:49,040 Speaker 1: of vibrant, almost like craft beer market for the weed industry, 106 00:05:49,040 --> 00:05:53,200 Speaker 1: where you would have all these local growers and sellers 107 00:05:53,320 --> 00:05:56,200 Speaker 1: and the money would kind of be kept circulating within 108 00:05:56,240 --> 00:05:59,760 Speaker 1: the state. And that seems to maybe be up in 109 00:05:59,800 --> 00:06:02,240 Speaker 1: the era now or being challenged in some way. 110 00:06:03,720 --> 00:06:07,800 Speaker 3: Yeah. No, it's very difficult to compete with the corporate 111 00:06:08,880 --> 00:06:12,080 Speaker 3: greed and and I think that's the reality is. So 112 00:06:12,120 --> 00:06:16,479 Speaker 3: we were the injunction happened, We were sued. The state 113 00:06:16,560 --> 00:06:21,960 Speaker 3: was sued because they wanted the veterans to move forward first. 114 00:06:22,000 --> 00:06:24,320 Speaker 3: That that was the veterans argument that they should have 115 00:06:24,320 --> 00:06:27,680 Speaker 3: been prioritized and it was just for veterans, not all veterans, 116 00:06:27,680 --> 00:06:32,160 Speaker 3: but it's this service disabled veterans. Now in the case, 117 00:06:32,240 --> 00:06:39,160 Speaker 3: we were intervened by these corporations specific coalition for multi 118 00:06:39,160 --> 00:06:43,279 Speaker 3: state operators that intervened into the case to basically state 119 00:06:43,360 --> 00:06:46,720 Speaker 3: that we shouldn't be able to move forward, and they're 120 00:06:46,760 --> 00:06:51,640 Speaker 3: stopping the whole pathway of us opening up, you know, 121 00:06:51,720 --> 00:06:54,720 Speaker 3: because they they they want to capture as much market 122 00:06:54,720 --> 00:06:58,159 Speaker 3: share as possible in the beginning. And so that's that's 123 00:06:58,160 --> 00:06:58,720 Speaker 3: what we're in. 124 00:06:58,800 --> 00:07:01,120 Speaker 4: Yeah, if we look at this not as cannabis, right, 125 00:07:01,200 --> 00:07:04,719 Speaker 4: let's look at it as any industry, whether it would 126 00:07:04,760 --> 00:07:07,200 Speaker 4: be alcohol or whether it be a food product and 127 00:07:07,240 --> 00:07:10,360 Speaker 4: agricultural product. And you tell Anheuser Busch that they can't 128 00:07:10,400 --> 00:07:13,200 Speaker 4: come into the market, you tell hormale foods that they 129 00:07:13,280 --> 00:07:15,960 Speaker 4: can't come into the market, You tell big tobacco that 130 00:07:16,000 --> 00:07:17,640 Speaker 4: they can't come in the market, because you plan on 131 00:07:17,680 --> 00:07:19,840 Speaker 4: doing it craft wise, you already know you're going to 132 00:07:19,880 --> 00:07:22,840 Speaker 4: be setting yourself up for a variety of legal challenges, 133 00:07:23,080 --> 00:07:25,560 Speaker 4: which is where we're at. I think Costs touched upon 134 00:07:25,880 --> 00:07:29,520 Speaker 4: some of the cases which we are currently involved in, 135 00:07:29,720 --> 00:07:33,200 Speaker 4: which were submitted to the court. The first case was 136 00:07:33,280 --> 00:07:37,040 Speaker 4: an Article seventy eight proceeding that was led by the ROS. 137 00:07:37,080 --> 00:07:40,120 Speaker 4: And Article seventy eight proceeding is a proceeding by which 138 00:07:40,160 --> 00:07:44,560 Speaker 4: that you challenge an agencies authority. You question an agency's 139 00:07:44,560 --> 00:07:46,840 Speaker 4: authority if it was like the DMV or something like that, 140 00:07:46,880 --> 00:07:49,440 Speaker 4: and you want to challenge that, you file an Article 141 00:07:49,480 --> 00:07:53,320 Speaker 4: seventy eight. That was what the ROS had filed initially. 142 00:07:53,520 --> 00:07:56,560 Speaker 3: Sorry ROS Sansori Registered organization. 143 00:07:56,640 --> 00:07:57,600 Speaker 2: Okay, yeah, I'm sorry. 144 00:07:57,640 --> 00:08:00,640 Speaker 3: No, no, no, those medical operators. 145 00:08:00,760 --> 00:08:03,280 Speaker 2: So if I could just just to step back and 146 00:08:03,320 --> 00:08:07,160 Speaker 2: clarify a couple quick things. You're opening this store or 147 00:08:07,160 --> 00:08:11,040 Speaker 2: attempting to open up this location, Conbud, you were granted 148 00:08:11,280 --> 00:08:14,600 Speaker 2: the license in part because out of the social justice 149 00:08:14,680 --> 00:08:17,840 Speaker 2: or social equity efforts of the law cost you had 150 00:08:17,920 --> 00:08:21,600 Speaker 2: served time in prison and so you were, you know, 151 00:08:21,640 --> 00:08:24,520 Speaker 2: in this attempt to sort of reverse some of the 152 00:08:24,560 --> 00:08:26,560 Speaker 2: effects of the War on drugs. You were, I guess 153 00:08:26,600 --> 00:08:30,560 Speaker 2: granted one of the early license licenses to open this 154 00:08:31,240 --> 00:08:34,439 Speaker 2: just real quickly, when was that a very initial grant made? 155 00:08:34,720 --> 00:08:37,840 Speaker 3: So they gave us our license early April? Okay? 156 00:08:38,160 --> 00:08:40,079 Speaker 2: And then real quickly, when were you hoping to have 157 00:08:40,160 --> 00:08:41,040 Speaker 2: the store away? 158 00:08:41,120 --> 00:08:43,120 Speaker 3: We were looking to open up on Labor Day? 159 00:08:43,679 --> 00:08:49,080 Speaker 2: Okay. Now talk specifically about the Article seventy eight proceedings. 160 00:08:49,120 --> 00:08:51,560 Speaker 2: So there's two separate ones. There was one from a 161 00:08:51,679 --> 00:08:54,800 Speaker 2: veterans group and one from the MSOs. Can you just 162 00:08:54,840 --> 00:08:59,040 Speaker 2: talk about specifically what these new legal roadblocks are such 163 00:08:59,080 --> 00:09:01,920 Speaker 2: that we're here in Octoe and the store hasn't opened up. 164 00:09:02,559 --> 00:09:04,920 Speaker 3: Oh fraid? Oh yeah. 165 00:09:04,960 --> 00:09:07,840 Speaker 4: So the ROS filed the Article seventy eight to basically 166 00:09:07,840 --> 00:09:11,000 Speaker 4: stay that they wanted the market opened so that the 167 00:09:11,600 --> 00:09:15,760 Speaker 4: registered organizations, who are these medical entities who are allowed 168 00:09:15,760 --> 00:09:20,160 Speaker 4: to open up bigger places and more places than other licensees, 169 00:09:20,440 --> 00:09:23,680 Speaker 4: that they should be allowed to open up immediately. And 170 00:09:23,720 --> 00:09:26,920 Speaker 4: they're challenging OCM. So that was an Article seventy eight 171 00:09:26,920 --> 00:09:30,280 Speaker 4: that was going through Cannabis Manager, yes, Office of Cannabis 172 00:09:30,280 --> 00:09:33,760 Speaker 4: Management that so they challenged that in the courts, and 173 00:09:34,120 --> 00:09:39,640 Speaker 4: they challenged OCM. Then shortly after that, plaintiffs in the 174 00:09:39,679 --> 00:09:42,760 Speaker 4: case uh and we're involved in litigation, so I would 175 00:09:42,800 --> 00:09:44,480 Speaker 4: just like to prefer to just refer to them as 176 00:09:44,480 --> 00:09:46,400 Speaker 4: plaintiff and not individually. 177 00:09:46,160 --> 00:09:50,680 Speaker 3: But to cut not to cut you off. Originally, the 178 00:09:50,760 --> 00:09:54,120 Speaker 3: law was written for justice involved individuals to be the 179 00:09:54,160 --> 00:09:57,800 Speaker 3: first ones in the game, and so the medical operators 180 00:09:57,840 --> 00:09:59,800 Speaker 3: they were pushed back for three years. 181 00:10:00,120 --> 00:10:00,280 Speaker 4: Now. 182 00:10:00,720 --> 00:10:03,400 Speaker 3: When they put this article seventy eight, the OCM, the 183 00:10:03,440 --> 00:10:07,079 Speaker 3: Office of Cannabis Management responded and said, all right, we're 184 00:10:07,120 --> 00:10:10,360 Speaker 3: going to allow you to move forward by a year now, 185 00:10:10,520 --> 00:10:14,560 Speaker 3: which means December thirtieth. They were allowed to open up now. 186 00:10:14,800 --> 00:10:16,600 Speaker 3: All they had to wait was a couple more months. 187 00:10:16,960 --> 00:10:21,760 Speaker 3: And you know, due to wanting to capture the market 188 00:10:21,880 --> 00:10:25,600 Speaker 3: as much as they can, they're pushing everything back and 189 00:10:25,640 --> 00:10:28,360 Speaker 3: they're saying it's not fair, we want to open up now. 190 00:10:29,320 --> 00:10:34,000 Speaker 4: And plaintiff's argument who's involved in the case. The attorneys 191 00:10:34,040 --> 00:10:38,640 Speaker 4: represent some service disabled veterans. Their argument is that the MRTA, 192 00:10:38,960 --> 00:10:41,560 Speaker 4: which is the law that passed cannabis in New York, 193 00:10:41,600 --> 00:10:45,080 Speaker 4: that the MRTA states that all applicants will be allowed 194 00:10:45,120 --> 00:10:47,640 Speaker 4: to open at the same time, with certain preferences given 195 00:10:47,679 --> 00:10:51,400 Speaker 4: to subgroups. So their challenge is that the entire card 196 00:10:51,440 --> 00:10:56,480 Speaker 4: program which is the conditional adult recreational dispensary licenses that 197 00:10:56,559 --> 00:11:00,480 Speaker 4: were given to social justice equity individuals. That entire licensed 198 00:11:00,520 --> 00:11:05,160 Speaker 4: subcategory is unconstitutional and therefore they should all be pulled. 199 00:11:05,280 --> 00:11:08,000 Speaker 4: And that's why they requested an injunction, and it froze 200 00:11:08,040 --> 00:11:11,160 Speaker 4: all the card applicants, got it. Now, that puts that 201 00:11:11,160 --> 00:11:14,959 Speaker 4: creates a variety of issues. Right one, there are certain 202 00:11:15,000 --> 00:11:17,880 Speaker 4: applicants who've already received their license and who are already 203 00:11:17,960 --> 00:11:21,600 Speaker 4: opened in operational. Now we're talking about me taking away 204 00:11:22,559 --> 00:11:26,480 Speaker 4: a property of yours. You have something, and the removal 205 00:11:26,520 --> 00:11:30,440 Speaker 4: of that is a totally different legal procedure. Right That's 206 00:11:30,480 --> 00:11:33,760 Speaker 4: like a Fourteenth Amendment kind of thing. Right now, absent that, 207 00:11:34,360 --> 00:11:37,520 Speaker 4: there are also other individuals who are within that bucket 208 00:11:37,720 --> 00:11:41,400 Speaker 4: who maybe haven't opened up and maybe haven't been processing 209 00:11:41,480 --> 00:11:45,320 Speaker 4: sales yet, but have an irreparable harm. And what do 210 00:11:45,360 --> 00:11:48,480 Speaker 4: I mean by that is they detrimentally relied upon the 211 00:11:48,480 --> 00:11:51,600 Speaker 4: state saying, hey, you're good, you can continue to move forward. 212 00:11:51,840 --> 00:11:55,240 Speaker 4: Enter into these contractual agreements, enter into this lease agreement, 213 00:11:55,400 --> 00:11:58,360 Speaker 4: enter into this purchasing agreement, enter into the staffing agreement. 214 00:11:58,720 --> 00:12:01,679 Speaker 4: And then now it's hey, wait, everybody has a freeze well, 215 00:12:01,800 --> 00:12:05,600 Speaker 4: where we have debts of mounting over five million dollars 216 00:12:05,720 --> 00:12:07,960 Speaker 4: or you know, two hundred and fifty thousand dollars or 217 00:12:07,960 --> 00:12:11,040 Speaker 4: whatever it is. Now there's this entire other group of 218 00:12:11,080 --> 00:12:14,320 Speaker 4: individuals who find themselves behind the eight ball. And it's 219 00:12:14,440 --> 00:12:19,520 Speaker 4: really weird because that particular group, the social justice impacted individuals, 220 00:12:19,880 --> 00:12:23,600 Speaker 4: the individuals who were over policed, over targeted, and came 221 00:12:23,640 --> 00:12:27,640 Speaker 4: from these disproportional areas now beg barrowed and stealed and 222 00:12:27,720 --> 00:12:29,640 Speaker 4: took all that money that they could from their family, 223 00:12:29,720 --> 00:12:32,400 Speaker 4: their friend, their fur one k scraped everything together to 224 00:12:32,520 --> 00:12:35,280 Speaker 4: open up this business, did the application, follow the guidelines, 225 00:12:35,480 --> 00:12:38,400 Speaker 4: did everything that you told them to do, and now 226 00:12:38,400 --> 00:12:41,760 Speaker 4: they're left holding the bag. It's it's almost like insult 227 00:12:41,800 --> 00:12:46,640 Speaker 4: to injury, and it's there. It's like almost all over again. 228 00:12:46,920 --> 00:12:50,760 Speaker 4: This whole thing is happening and they're being further impacted, 229 00:12:50,880 --> 00:12:53,360 Speaker 4: and it's like this kind of a second war on 230 00:12:53,440 --> 00:12:55,640 Speaker 4: drugs that is just going through a legal proceeding as 231 00:12:55,679 --> 00:12:58,199 Speaker 4: opposed to on the streets. 232 00:13:12,840 --> 00:13:15,120 Speaker 1: So you have the injunction from the veterans group who 233 00:13:15,120 --> 00:13:18,280 Speaker 1: think that they should also receive priority. You have the 234 00:13:18,440 --> 00:13:21,720 Speaker 1: multi state operators who also want to get into the market. 235 00:13:21,760 --> 00:13:24,040 Speaker 1: Can I ask a really simple question, which is how 236 00:13:24,120 --> 00:13:26,920 Speaker 1: much money have you guys spent so far on a 237 00:13:26,960 --> 00:13:28,720 Speaker 1: business which isn't yet open. 238 00:13:29,480 --> 00:13:32,400 Speaker 3: We've spent definitely over a million dollars. 239 00:13:33,040 --> 00:13:33,400 Speaker 1: Wow. 240 00:13:33,640 --> 00:13:38,000 Speaker 4: Ye, And that that was all self funded and came 241 00:13:38,080 --> 00:13:42,199 Speaker 4: from our personal businesses. I know that, you know, most 242 00:13:42,200 --> 00:13:45,040 Speaker 4: card applicants don't even have those resources. We are blessed 243 00:13:45,120 --> 00:13:48,320 Speaker 4: enough that my business partner, Junior, and I own and 244 00:13:48,360 --> 00:13:52,760 Speaker 4: operate several restaurants, costs, owns and operates a very successful 245 00:13:52,800 --> 00:13:56,360 Speaker 4: gym business. You know, the money that we put into 246 00:13:56,440 --> 00:14:00,960 Speaker 4: this particular venture came at the sacrifice of our other businesses. 247 00:14:01,840 --> 00:14:04,440 Speaker 4: You know, so we've we've given all that we could 248 00:14:04,440 --> 00:14:04,679 Speaker 4: to this. 249 00:14:04,960 --> 00:14:07,840 Speaker 2: Are you currently paying rent month to month on a 250 00:14:07,880 --> 00:14:10,200 Speaker 2: location that's just sitting there unused? 251 00:14:10,320 --> 00:14:14,800 Speaker 3: October first rent was just paid and that was for 252 00:14:15,040 --> 00:14:16,640 Speaker 3: thirty eight thousand dollars. 253 00:14:16,520 --> 00:14:19,240 Speaker 2: So every month you're just it's thirty eight thousand out 254 00:14:19,280 --> 00:14:19,640 Speaker 2: the door. 255 00:14:20,880 --> 00:14:22,960 Speaker 1: How tempted are you at this point to just go 256 00:14:23,120 --> 00:14:25,960 Speaker 1: rent a van and like park it in Washington Square 257 00:14:26,000 --> 00:14:27,240 Speaker 1: Park like everyone else seems to. 258 00:14:27,320 --> 00:14:30,280 Speaker 3: Yeah, I mean, you know, I contemplated that, and it's 259 00:14:30,320 --> 00:14:34,040 Speaker 3: like I'd rather still state work instead of block work, 260 00:14:35,400 --> 00:14:37,880 Speaker 3: just because I've waited for so long, you know, I mean, 261 00:14:38,040 --> 00:14:41,920 Speaker 3: I've been advocating for legalization of cannabis since twenty sixteen 262 00:14:42,200 --> 00:14:46,160 Speaker 3: and still wait, you know, still waiting and going and 263 00:14:46,200 --> 00:14:49,760 Speaker 3: feeling like every milestone we've reached was a success. I 264 00:14:49,800 --> 00:14:53,480 Speaker 3: think we celebrated alf Raido and I probably about five 265 00:14:54,160 --> 00:14:57,280 Speaker 3: celebrations every time we went to court, yeah, or even 266 00:14:57,360 --> 00:14:59,680 Speaker 3: got a license or even got into the next step 267 00:14:59,720 --> 00:15:03,920 Speaker 3: so far, application being graded, is submitted and everything. So 268 00:15:04,680 --> 00:15:09,360 Speaker 3: it's been dreams of nightmares for real, Okay. 269 00:15:09,360 --> 00:15:12,720 Speaker 1: And how much responsibility do you think the State of 270 00:15:12,760 --> 00:15:16,080 Speaker 1: New York bears in all of this, because on the 271 00:15:16,080 --> 00:15:18,720 Speaker 1: one hand, you know, they made promises saying that this 272 00:15:18,880 --> 00:15:24,400 Speaker 1: was going to be a social restitution exercise compensation for 273 00:15:24,440 --> 00:15:26,520 Speaker 1: the War on drugs and things like that. But on 274 00:15:26,560 --> 00:15:29,560 Speaker 1: the other hand, you know, if the veterans want to 275 00:15:29,640 --> 00:15:33,160 Speaker 1: challenge the legality of that, it seems like maybe that's 276 00:15:33,240 --> 00:15:36,960 Speaker 1: outside of New York's control. I guess another way of 277 00:15:36,960 --> 00:15:39,080 Speaker 1: asking this is what could they be doing better? 278 00:15:39,640 --> 00:15:43,720 Speaker 3: They could They could have codified card so the conditional 279 00:15:43,760 --> 00:15:48,240 Speaker 3: adult use Retail dispensary license could have been codified into law. 280 00:15:48,960 --> 00:15:52,400 Speaker 3: I actually went up and spoke to legislators months ago 281 00:15:52,600 --> 00:15:55,480 Speaker 3: about codifying Card and they were like, no, the law 282 00:15:55,840 --> 00:15:58,800 Speaker 3: is fine. We don't need to rectify anything. And so 283 00:15:59,440 --> 00:16:03,920 Speaker 3: you know, come today. You know, in August the injunction 284 00:16:04,320 --> 00:16:08,360 Speaker 3: was placed, and you know, now we're like, oh, we 285 00:16:08,360 --> 00:16:12,200 Speaker 3: should have codified Card and this would never happen, and 286 00:16:12,240 --> 00:16:14,520 Speaker 3: we'reritten this into law. But it didn't. 287 00:16:14,800 --> 00:16:18,960 Speaker 4: And here were the state could I mean, the state 288 00:16:19,040 --> 00:16:21,320 Speaker 4: is dealing with a lot right now. Right where does 289 00:16:21,360 --> 00:16:25,320 Speaker 4: this fall on their hierarchy of issues? We have asylum 290 00:16:25,360 --> 00:16:29,280 Speaker 4: seekers sleeping in the streets. The city is inundated by 291 00:16:29,520 --> 00:16:32,280 Speaker 4: hundreds of thousands of individuals looking to get their slice 292 00:16:32,320 --> 00:16:35,680 Speaker 4: of the American dream, housing costs or through the roof 293 00:16:35,880 --> 00:16:37,080 Speaker 4: for certain individuals. 294 00:16:37,160 --> 00:16:37,720 Speaker 3: You know, we. 295 00:16:38,560 --> 00:16:40,920 Speaker 4: Still have a budget that is busted still as a 296 00:16:40,920 --> 00:16:43,440 Speaker 4: result of COVID. We can you know, on my way 297 00:16:43,480 --> 00:16:45,320 Speaker 4: here to the studio, we can see the streets in 298 00:16:45,360 --> 00:16:47,400 Speaker 4: New York are nowhere near what they used to be 299 00:16:47,440 --> 00:16:50,680 Speaker 4: four years ago. We have really mounting problems here. So 300 00:16:50,680 --> 00:16:52,680 Speaker 4: where does this fall on the hierarchy of the state. 301 00:16:53,160 --> 00:16:57,680 Speaker 4: Sure Card applicants who faced a large hill of social 302 00:16:57,680 --> 00:17:02,160 Speaker 4: injustice are involved. Sure, farmers upstate are involved. Sure there's 303 00:17:02,160 --> 00:17:06,040 Speaker 4: an illicit market running rampant, but the state, like that 304 00:17:06,080 --> 00:17:09,880 Speaker 4: meme has fires all over the house. Right, So where 305 00:17:10,040 --> 00:17:12,359 Speaker 4: what could they have done? Yes, Coss is a million 306 00:17:12,400 --> 00:17:15,040 Speaker 4: percent correct. They could have codified it, and they didn't. 307 00:17:15,080 --> 00:17:17,320 Speaker 4: So that would have required a special session. And to 308 00:17:17,400 --> 00:17:19,960 Speaker 4: call a special session to come in to do this 309 00:17:20,240 --> 00:17:22,399 Speaker 4: is not going to happen, right, So it would have 310 00:17:22,440 --> 00:17:25,040 Speaker 4: had to be a multiple things tied into that bill. 311 00:17:25,720 --> 00:17:28,000 Speaker 4: Why didn't they codify it in the first place? Right, 312 00:17:28,080 --> 00:17:30,640 Speaker 4: you didn't ask it, But that's a great question. It's 313 00:17:30,760 --> 00:17:35,040 Speaker 4: because there wasn't an appetite for it initially, and then 314 00:17:35,320 --> 00:17:37,560 Speaker 4: they didn't feel like it needed to be because they 315 00:17:37,560 --> 00:17:40,480 Speaker 4: felt the bill covered it. What do I mean by that? 316 00:17:40,600 --> 00:17:43,920 Speaker 4: I mean, if Congress passes a tax law and says, okay, 317 00:17:43,960 --> 00:17:46,080 Speaker 4: this is going to be the corporate tax rate. They 318 00:17:46,080 --> 00:17:48,560 Speaker 4: don't go to the irs and say, okay, bring us 319 00:17:48,680 --> 00:17:51,080 Speaker 4: all the tax codes. We're going to go over this 320 00:17:51,160 --> 00:17:53,720 Speaker 4: line by line with you. Congress gives kind of this 321 00:17:53,840 --> 00:17:56,440 Speaker 4: broad mandate to these agencies, the same way it would 322 00:17:56,440 --> 00:17:59,640 Speaker 4: be to the EPA or to a variety of other agencies. 323 00:17:59,680 --> 00:18:01,439 Speaker 4: They say this is the goal we want you to 324 00:18:01,440 --> 00:18:03,840 Speaker 4: get to. How you decide to get to that goal 325 00:18:03,920 --> 00:18:06,960 Speaker 4: is upon the agency's discretion. We don't need to know 326 00:18:07,119 --> 00:18:10,159 Speaker 4: the parts per milli leter of something in water that 327 00:18:10,200 --> 00:18:12,800 Speaker 4: you find safe, or we don't need to know you know, 328 00:18:13,040 --> 00:18:15,440 Speaker 4: what the exact deductions are. We're not going to vote 329 00:18:15,480 --> 00:18:17,639 Speaker 4: on every single item. We're just going to give you 330 00:18:17,680 --> 00:18:20,359 Speaker 4: the mandate. And the mandate was given to the Office 331 00:18:20,400 --> 00:18:25,520 Speaker 4: of Cannabis Management to fulfill this social justice equity component. 332 00:18:25,880 --> 00:18:29,240 Speaker 4: And how the Office of Cannabis Management found the best 333 00:18:29,240 --> 00:18:32,119 Speaker 4: way to do that was through this card program. 334 00:18:32,960 --> 00:18:35,240 Speaker 2: So you know, let me ask you the other element. 335 00:18:35,320 --> 00:18:38,480 Speaker 2: You're paying all this money, you're dealing with these legal 336 00:18:38,480 --> 00:18:41,320 Speaker 2: headaches that you didn't anticipate. The other thing that we 337 00:18:41,320 --> 00:18:43,760 Speaker 2: were talking about a lot when we had our conversation 338 00:18:43,880 --> 00:18:46,800 Speaker 2: in April was the existence of all these sort of 339 00:18:47,200 --> 00:18:51,720 Speaker 2: gray market, non licensed operators. And you know, we're sort 340 00:18:51,720 --> 00:18:53,800 Speaker 2: of premised on this idea that maybe there would be 341 00:18:53,800 --> 00:18:55,960 Speaker 2: a crackdown. Not only does there not seem to have 342 00:18:56,000 --> 00:18:58,200 Speaker 2: been a crackdown, it seems like there are way more 343 00:18:58,280 --> 00:19:01,240 Speaker 2: than there were in April, and nicer ones. 344 00:19:01,320 --> 00:19:04,000 Speaker 1: So it's not just wait, wait, wait a lot of 345 00:19:04,040 --> 00:19:05,000 Speaker 1: the trucks are gone. 346 00:19:05,080 --> 00:19:05,480 Speaker 2: The truck. 347 00:19:05,560 --> 00:19:08,280 Speaker 1: You have to admit that there are more stores. It 348 00:19:08,280 --> 00:19:10,160 Speaker 1: feels like more like brick and mortar shops. 349 00:19:10,200 --> 00:19:12,440 Speaker 2: Yeah, I see fewer trucks. I see way more brick 350 00:19:12,480 --> 00:19:16,080 Speaker 2: and mortar shops. I see nice brick and mortar shops. 351 00:19:16,080 --> 00:19:18,360 Speaker 2: So like actually ones that were clearly not just sort 352 00:19:18,400 --> 00:19:21,400 Speaker 2: of a bodega type environment, but like something that really 353 00:19:21,440 --> 00:19:24,360 Speaker 2: looks like an Apple store or a Nike store. All 354 00:19:24,400 --> 00:19:27,840 Speaker 2: these entities somehow allow you to pay with a credit 355 00:19:27,880 --> 00:19:31,560 Speaker 2: card or some sort What is your confidence at this 356 00:19:31,760 --> 00:19:35,240 Speaker 2: point that, whether it's the city or the state, has 357 00:19:35,320 --> 00:19:39,080 Speaker 2: some sort of way to I guess make sure that 358 00:19:39,119 --> 00:19:41,720 Speaker 2: people who are not going down the licensed route won't 359 00:19:41,720 --> 00:19:42,520 Speaker 2: be your competitors. 360 00:19:43,240 --> 00:19:46,000 Speaker 3: I think we need to educate the public, you know, 361 00:19:46,160 --> 00:19:49,040 Speaker 3: more more forms like this, more forms that you know, 362 00:19:49,400 --> 00:19:52,359 Speaker 3: the media puts out in terms of what is a 363 00:19:52,480 --> 00:19:56,920 Speaker 3: legal store, that there is a lot of issues with 364 00:19:57,080 --> 00:20:00,320 Speaker 3: these nice stores being popped up everywhere and you walk 365 00:20:00,320 --> 00:20:02,120 Speaker 3: in and you're like, oh wow, these people got their 366 00:20:02,160 --> 00:20:06,240 Speaker 3: licenses beautiful in here. So the general public doesn't even know, 367 00:20:06,560 --> 00:20:09,560 Speaker 3: you know. And I think the more we put out there, 368 00:20:09,680 --> 00:20:12,480 Speaker 3: the more ads, the more marketing that the state could do. 369 00:20:13,320 --> 00:20:15,680 Speaker 3: You know, we could educate the audience. But right now 370 00:20:15,800 --> 00:20:18,879 Speaker 3: it's going to be difficult. You know, I have in 371 00:20:18,920 --> 00:20:22,639 Speaker 3: a thousand foot radius, there's you know, probably fifty to 372 00:20:22,720 --> 00:20:27,480 Speaker 3: sixty shops around me, and there's not supposed to be one. 373 00:20:27,640 --> 00:20:30,000 Speaker 3: We're supposed to be the only one, you know, and 374 00:20:30,440 --> 00:20:33,480 Speaker 3: so it's it's going to be difficult. But I think 375 00:20:34,480 --> 00:20:37,680 Speaker 3: we planted ourselves in the right neighborhood. I'm born and 376 00:20:37,760 --> 00:20:40,320 Speaker 3: raised in the Lower East Side and I'm a local 377 00:20:41,200 --> 00:20:43,520 Speaker 3: business owner there and a lot a lot of people 378 00:20:43,560 --> 00:20:46,440 Speaker 3: know me. A lot of people are anticipating our opening. 379 00:20:46,920 --> 00:20:50,040 Speaker 3: We've been able to really educate it through word of mouth, 380 00:20:50,640 --> 00:20:55,240 Speaker 3: at which the state hasn't really done successfully. But we'll see. 381 00:20:55,640 --> 00:20:58,280 Speaker 3: I'd rather spend a million dollars on a legal store 382 00:20:58,320 --> 00:21:01,560 Speaker 3: than an illegal store and then be shut down right 383 00:21:01,720 --> 00:21:04,080 Speaker 3: and have that, you know, open air. 384 00:21:04,359 --> 00:21:06,639 Speaker 1: I remember talking to someone from the state and they 385 00:21:06,680 --> 00:21:09,280 Speaker 1: were making a similar argument, like, if you build the 386 00:21:09,359 --> 00:21:12,440 Speaker 1: legal wed bodega, they will come, like the public will 387 00:21:12,440 --> 00:21:15,879 Speaker 1: eventually have a preference for legal shops. But I guess 388 00:21:16,680 --> 00:21:21,159 Speaker 1: Devil's advocate question here. The longer this uncertainty goes on, 389 00:21:21,520 --> 00:21:24,840 Speaker 1: and the longer that you have these illegal or gray 390 00:21:24,920 --> 00:21:30,080 Speaker 1: market stores, does do people get used to that option? Because, 391 00:21:30,119 --> 00:21:33,120 Speaker 1: like I can tell you, up until very recently, there 392 00:21:33,200 --> 00:21:35,800 Speaker 1: was a truck parked relatively close to me, and it 393 00:21:35,920 --> 00:21:39,119 Speaker 1: was fairly easy to go there, and they had stuff 394 00:21:39,119 --> 00:21:43,160 Speaker 1: from California that theoretically I might enjoy. If my dad 395 00:21:43,240 --> 00:21:45,240 Speaker 1: is listening to this, I never went to the weed truck, 396 00:21:46,440 --> 00:21:48,480 Speaker 1: but you know, like I got used to it being there. 397 00:21:48,680 --> 00:21:51,879 Speaker 1: It had the same offerings every day. It seemed pretty professional. 398 00:21:51,920 --> 00:21:54,920 Speaker 1: It took credit cards. That was a pretty good option. 399 00:21:55,040 --> 00:21:58,800 Speaker 3: But we got to re educate on what you're using. 400 00:21:59,080 --> 00:22:02,320 Speaker 3: You know, you don't know what this is. They found 401 00:22:02,359 --> 00:22:04,040 Speaker 3: a whole bunch of metals, they found a whole bunch 402 00:22:04,040 --> 00:22:08,440 Speaker 3: of you know, insane substances. In this substance that's supposed 403 00:22:08,440 --> 00:22:12,960 Speaker 3: to be organic and clean and safe, you don't know 404 00:22:12,960 --> 00:22:16,919 Speaker 3: what you're consuming. It's like it's like I don't know 405 00:22:16,960 --> 00:22:22,280 Speaker 3: buying buying a uh on FDA, children in the in 406 00:22:22,320 --> 00:22:25,600 Speaker 3: the subway train. You know, like you could do you 407 00:22:25,680 --> 00:22:27,560 Speaker 3: do it, but you might you might have the you 408 00:22:27,640 --> 00:22:29,840 Speaker 3: might have the runs later, right, you know, so you 409 00:22:29,960 --> 00:22:32,240 Speaker 3: just never know. And now with this whole fatinal scare. 410 00:22:32,680 --> 00:22:36,840 Speaker 3: I mean that's a bigger that's a bigger, like, you know, 411 00:22:37,240 --> 00:22:41,600 Speaker 3: solution to like educate the audience, like, hey, we found 412 00:22:42,040 --> 00:22:45,040 Speaker 3: fetanyl in weed. You know, there's been a whole bunch 413 00:22:45,080 --> 00:22:45,800 Speaker 3: of stories on that. 414 00:22:46,400 --> 00:22:49,320 Speaker 4: Cost is right. Education is crucial, But that puts the 415 00:22:49,359 --> 00:22:52,760 Speaker 4: onus on the consumer. And New York City is if 416 00:22:52,800 --> 00:22:55,480 Speaker 4: the population hasn't decreased post COVID, right, it's about eight 417 00:22:55,520 --> 00:22:58,119 Speaker 4: million people in the Greater New York region. That puts 418 00:22:58,280 --> 00:23:01,320 Speaker 4: the onus on eight million in different people. And that's 419 00:23:01,440 --> 00:23:03,879 Speaker 4: a lot to ask of them. 420 00:23:03,240 --> 00:23:03,439 Speaker 3: You know. 421 00:23:04,200 --> 00:23:06,040 Speaker 4: And what calls is right. You know, you eat the 422 00:23:06,040 --> 00:23:08,080 Speaker 4: Trudeau from the subway station. You may get the runs, 423 00:23:08,119 --> 00:23:11,840 Speaker 4: but they're there for a reason because people purchase it. Yeah, 424 00:23:11,880 --> 00:23:12,400 Speaker 4: the people are. 425 00:23:12,320 --> 00:23:14,280 Speaker 3: Buying it, and it's worth it. 426 00:23:14,359 --> 00:23:17,119 Speaker 4: Yeah, it's worth the runs later where people are becoming 427 00:23:17,119 --> 00:23:19,199 Speaker 4: creatures of habit to your point, right, And if I 428 00:23:19,240 --> 00:23:21,000 Speaker 4: see it there every day and it may be illicted, 429 00:23:21,000 --> 00:23:23,399 Speaker 4: I'm still going to go in. It puts the onus 430 00:23:23,440 --> 00:23:26,080 Speaker 4: on you. Where you go into a bar, and if 431 00:23:26,119 --> 00:23:27,600 Speaker 4: a bar is open and you walk in and you 432 00:23:27,680 --> 00:23:30,439 Speaker 4: order a drink, you automatically assume that they are a 433 00:23:30,520 --> 00:23:33,600 Speaker 4: licensed to have a liquor license. You don't say, hey, 434 00:23:33,760 --> 00:23:35,960 Speaker 4: where's your liquor license number? Are you licensed by the 435 00:23:36,000 --> 00:23:38,439 Speaker 4: State of New York because you make that exsumption, because 436 00:23:38,480 --> 00:23:41,560 Speaker 4: we've come accustomed to that. So I think the next 437 00:23:41,600 --> 00:23:46,880 Speaker 4: prong besides educating the consumer is enforcement. If I couldn't, 438 00:23:47,000 --> 00:23:49,919 Speaker 4: I couldn't open up next to your studio and just 439 00:23:50,000 --> 00:23:52,000 Speaker 4: open up next to McDonald's without a license and start 440 00:23:52,040 --> 00:23:55,119 Speaker 4: selling hamburgers, or start selling wine, or start selling anything 441 00:23:55,440 --> 00:23:57,879 Speaker 4: without somebody eventually coming and saying, hey, we got to 442 00:23:57,920 --> 00:24:01,119 Speaker 4: shut you down. This doesn't meet how Department requirements, This 443 00:24:01,200 --> 00:24:04,400 Speaker 4: doesn't meet state liquor authority requirements, This doesn't meant construction requirements, 444 00:24:04,440 --> 00:24:08,160 Speaker 4: this doesn't meet you know, requirements that you're basically trying 445 00:24:08,160 --> 00:24:10,760 Speaker 4: to market to children. You don't meet any of these things. 446 00:24:10,800 --> 00:24:12,760 Speaker 4: We have to close you down. And in New York 447 00:24:12,840 --> 00:24:16,000 Speaker 4: City that has some of the most stringent building codes 448 00:24:16,320 --> 00:24:18,600 Speaker 4: and has some of the most stringent laws in relation 449 00:24:18,680 --> 00:24:23,560 Speaker 4: to opening up businesses, enforcement is key. And these places 450 00:24:23,600 --> 00:24:26,280 Speaker 4: that are illicit, that are putting you know, that are 451 00:24:26,320 --> 00:24:29,000 Speaker 4: selling products that aren't tested, that may have a variety 452 00:24:29,040 --> 00:24:30,720 Speaker 4: of heavy metals and fence it all in a variety 453 00:24:30,760 --> 00:24:34,240 Speaker 4: of other things. Enforcement is key, education and enforcement. 454 00:24:49,880 --> 00:24:52,040 Speaker 2: You know, you mentioned the alcohol analogy, and I think 455 00:24:52,080 --> 00:24:54,280 Speaker 2: about that all the time because I walk home from 456 00:24:54,320 --> 00:24:57,359 Speaker 2: the subway on Saint Mark's most days and there are 457 00:24:57,440 --> 00:25:00,199 Speaker 2: literally people you know, outside selling on a table and 458 00:25:00,240 --> 00:25:02,879 Speaker 2: I would never you would never see in this day 459 00:25:02,920 --> 00:25:05,280 Speaker 2: and age, like you know, someone selling shots of liquor 460 00:25:05,640 --> 00:25:06,760 Speaker 2: out of this Excuse me? 461 00:25:06,800 --> 00:25:09,080 Speaker 1: Are you the guy that buys nutcrackers on the beach 462 00:25:09,119 --> 00:25:10,760 Speaker 1: in the summer? What do you think those are? 463 00:25:11,200 --> 00:25:13,080 Speaker 3: You? I have? 464 00:25:13,280 --> 00:25:17,240 Speaker 2: Yeah, you know you're out there. I'm just you wouldn't 465 00:25:17,240 --> 00:25:19,359 Speaker 2: expect to see. I'm not saying you would never buy it, 466 00:25:19,480 --> 00:25:20,919 Speaker 2: And we don't want to. 467 00:25:21,000 --> 00:25:23,200 Speaker 3: We don't want to take those individuals that are are 468 00:25:23,400 --> 00:25:26,160 Speaker 3: hustling in the streets and making them their money, because 469 00:25:26,359 --> 00:25:27,760 Speaker 3: that's it, that's a livelihood. 470 00:25:27,880 --> 00:25:29,639 Speaker 2: No, no, I get it. I'm just saying, it's just 471 00:25:29,680 --> 00:25:32,320 Speaker 2: extraordinary that here was this drug that people were going 472 00:25:32,320 --> 00:25:35,879 Speaker 2: to prison for and not many years ago, and now 473 00:25:36,000 --> 00:25:40,160 Speaker 2: there's much less enforcement, it would seem than even alcohol. 474 00:25:40,200 --> 00:25:43,200 Speaker 2: It was literally literally the only point I was trying 475 00:25:43,200 --> 00:25:47,440 Speaker 2: to make, just from an operational standpoint, if say tomorrow, 476 00:25:48,720 --> 00:25:50,399 Speaker 2: it's like all the legal issues go away. It's like 477 00:25:50,440 --> 00:25:52,639 Speaker 2: Conbud is Kanbud ready to go? Can you turn on 478 00:25:52,680 --> 00:25:53,640 Speaker 2: the lights and open the door? 479 00:25:53,680 --> 00:25:56,800 Speaker 3: Like the lights are on, the doors are closed, Okay, 480 00:25:57,720 --> 00:26:00,400 Speaker 3: like we were. All we're missing is product, so we 481 00:26:00,400 --> 00:26:03,160 Speaker 3: were not allowed to get product. But you know, basically 482 00:26:03,240 --> 00:26:04,160 Speaker 3: we're turnkey. 483 00:26:04,720 --> 00:26:06,840 Speaker 4: We would need a couple of days just to make 484 00:26:06,880 --> 00:26:09,720 Speaker 4: sure we dusted everything and yeah, got the staff in 485 00:26:09,800 --> 00:26:11,119 Speaker 4: and did a couple of dry runs. 486 00:26:11,160 --> 00:26:12,560 Speaker 3: But yeah, we're ready to go. 487 00:26:12,880 --> 00:26:16,600 Speaker 1: How long can you sort of wait in stasis? 488 00:26:17,040 --> 00:26:18,200 Speaker 3: That is a very good question. 489 00:26:18,720 --> 00:26:21,040 Speaker 4: Again, we're in pending litigation, so certain things we don't 490 00:26:21,040 --> 00:26:23,680 Speaker 4: sure disclose, but we've done our math. We know how 491 00:26:23,720 --> 00:26:27,560 Speaker 4: long we can hold out and we can continue to 492 00:26:27,640 --> 00:26:30,280 Speaker 4: be in this run asset at a deficit until things 493 00:26:30,320 --> 00:26:34,240 Speaker 4: turn around. And I'll say it is not very long. 494 00:26:34,400 --> 00:26:36,200 Speaker 3: We don't have a long run, right, yeah, we do 495 00:26:36,320 --> 00:26:37,080 Speaker 3: not have very long. 496 00:26:37,280 --> 00:26:40,879 Speaker 2: Just sounds like I'm incredibly frustrating both the month to 497 00:26:40,920 --> 00:26:45,840 Speaker 2: month clause, seeing the seeing these stores open up and operate. 498 00:26:46,040 --> 00:26:48,000 Speaker 2: How many did you say, fifty or sixty within a 499 00:26:48,080 --> 00:26:50,760 Speaker 2: ten thousand foot radius from where you are? 500 00:26:50,880 --> 00:26:52,960 Speaker 3: A thousand for radios thousands? Right? 501 00:26:53,160 --> 00:26:53,520 Speaker 2: Crazy? 502 00:26:53,880 --> 00:26:56,480 Speaker 1: Also the broken promises, broken promises. 503 00:26:56,560 --> 00:27:01,199 Speaker 3: Yeah, well, speaking optimistically, if we do have a great 504 00:27:01,480 --> 00:27:05,400 Speaker 3: day at court and things move forward, you know, we're 505 00:27:05,440 --> 00:27:08,920 Speaker 3: looking to open up October twentieth. That's what we want 506 00:27:09,280 --> 00:27:10,440 Speaker 3: our goal to be. The court. 507 00:27:10,520 --> 00:27:12,960 Speaker 4: Yeah, the court this Friday is hearing the case of twelve. 508 00:27:13,440 --> 00:27:15,959 Speaker 4: Are you familiar with the court process of what's happening 509 00:27:16,040 --> 00:27:16,400 Speaker 4: right now? 510 00:27:17,000 --> 00:27:18,840 Speaker 2: Why don't you fill us in exactly what we're. 511 00:27:18,680 --> 00:27:19,320 Speaker 3: Looking all right? 512 00:27:19,359 --> 00:27:23,680 Speaker 2: So this Friday, just so people know, we were recording 513 00:27:23,680 --> 00:27:26,520 Speaker 2: this October fifth. So when you say this Friday, October 514 00:27:26,680 --> 00:27:29,320 Speaker 2: just so people understand the day, yes, October six. 515 00:27:29,200 --> 00:27:32,240 Speaker 4: So October sixth, emotion will be heard. When the plaintiffs 516 00:27:32,240 --> 00:27:36,560 Speaker 4: filed their lawsuit, we impled, meaning we said, listen, you 517 00:27:36,920 --> 00:27:40,040 Speaker 4: are suing the state and you're suing OCM, but we 518 00:27:40,119 --> 00:27:42,720 Speaker 4: have a vested interest. This affects us, so we want 519 00:27:42,760 --> 00:27:46,560 Speaker 4: to impleade into this case. Okay, So it is combad 520 00:27:46,680 --> 00:27:50,119 Speaker 4: and three other dispensaries that joined us and we inpled 521 00:27:50,160 --> 00:27:53,280 Speaker 4: into the case. We are the only actual card applicants 522 00:27:53,320 --> 00:27:55,680 Speaker 4: that are involved besides the State of New York itself. 523 00:27:56,600 --> 00:27:59,080 Speaker 4: So the judge asked for a variety of things for 524 00:27:59,119 --> 00:28:02,520 Speaker 4: the injunction. We requested that the injunction be lifted because 525 00:28:02,560 --> 00:28:05,520 Speaker 4: it was doing irreparable harm to us. We were bleeding money. 526 00:28:05,680 --> 00:28:08,360 Speaker 4: You know, we had staff, we had contracts, and this 527 00:28:08,520 --> 00:28:10,800 Speaker 4: was putting us in a position where you know, we 528 00:28:10,840 --> 00:28:12,919 Speaker 4: couldn't recover from and in very short order we were 529 00:28:12,920 --> 00:28:16,320 Speaker 4: gonna have to file bankruptcy. So that we put that 530 00:28:16,359 --> 00:28:19,760 Speaker 4: request before the court, and basically the judge at one 531 00:28:19,800 --> 00:28:22,560 Speaker 4: point basically said, Okay, listen, here's what we're going to do. 532 00:28:22,640 --> 00:28:24,560 Speaker 4: We're going to free x amount of people from this 533 00:28:24,640 --> 00:28:27,800 Speaker 4: injunction as so long as the Office of Cannabis Management 534 00:28:28,000 --> 00:28:31,399 Speaker 4: says that they have met these following requirements. The Office 535 00:28:31,400 --> 00:28:34,600 Speaker 4: of Cannabis Management supplied a list to the court. The 536 00:28:34,640 --> 00:28:39,560 Speaker 4: plaintiffs contested that list. That initial list was thirty card applicants, 537 00:28:40,040 --> 00:28:43,920 Speaker 4: of which we were one. Then the plaintiffs contested several 538 00:28:43,920 --> 00:28:46,320 Speaker 4: of them and that list was whittled down to twelve. 539 00:28:46,720 --> 00:28:50,240 Speaker 4: OCM supplied that list of twelve to the court, and 540 00:28:50,320 --> 00:28:53,080 Speaker 4: that list of twelve is going to be heard this Friday. 541 00:28:53,360 --> 00:28:55,800 Speaker 4: Because we were not on that list of twelve, but 542 00:28:56,160 --> 00:28:58,360 Speaker 4: because we are inpled into the case and we have 543 00:28:58,440 --> 00:29:00,680 Speaker 4: our own counsel on it, we don't have to wait 544 00:29:00,680 --> 00:29:04,480 Speaker 4: for OCM. We will be circumvating OCM, and this Friday, 545 00:29:04,560 --> 00:29:07,200 Speaker 4: our own motion as well will be heard to lift 546 00:29:07,200 --> 00:29:09,800 Speaker 4: the injunction from those twelve as well as us. 547 00:29:10,440 --> 00:29:13,120 Speaker 1: All right, well, since we're recording this a day before 548 00:29:13,200 --> 00:29:15,440 Speaker 1: a very important court date, it sounds like we're gonna 549 00:29:15,440 --> 00:29:18,160 Speaker 1: have to get an update from you, maybe before we 550 00:29:18,240 --> 00:29:20,680 Speaker 1: release the episode and just see which way things have gone. 551 00:29:20,840 --> 00:29:23,480 Speaker 4: Or we could send you a photo of us celebrating. 552 00:29:23,040 --> 00:29:28,320 Speaker 3: A celebrating for the sixth time, and by the way, 553 00:29:28,320 --> 00:29:30,160 Speaker 3: for the sixth time. And by the way, the market 554 00:29:30,280 --> 00:29:34,920 Speaker 3: has already opened October. Actually yesterday the market opened to 555 00:29:34,960 --> 00:29:38,720 Speaker 3: the general public, so anyone could apply. We actually submitted 556 00:29:38,720 --> 00:29:40,920 Speaker 3: our application yesterday as well, so we. 557 00:29:41,080 --> 00:29:42,360 Speaker 4: For a general application up there. 558 00:29:42,400 --> 00:29:44,840 Speaker 1: All right, all right, well, Costin Alfredo, thank you so 559 00:29:44,920 --> 00:29:47,400 Speaker 1: much for coming back on and providing us an update, 560 00:29:47,480 --> 00:29:48,960 Speaker 1: and we'll see what happens. 561 00:29:49,640 --> 00:30:05,120 Speaker 3: Yeah, thank you. I appreciate it. Joe. 562 00:30:05,200 --> 00:30:07,200 Speaker 1: I think you summed it up perfectly in the intro. 563 00:30:07,440 --> 00:30:10,720 Speaker 1: No matter how complicated you thought, the legal weed market 564 00:30:10,760 --> 00:30:13,240 Speaker 1: already lives in New York. It seems like it's just 565 00:30:13,320 --> 00:30:16,520 Speaker 1: grown even more complex. The other thing I was thinking 566 00:30:16,520 --> 00:30:21,200 Speaker 1: about was Alfredo's point about you know, you can't place 567 00:30:21,520 --> 00:30:24,680 Speaker 1: the onus for the entire industry on the consumer. 568 00:30:24,960 --> 00:30:25,080 Speaker 2: Uh. 569 00:30:25,880 --> 00:30:29,240 Speaker 1: You know, I myself am not the best consumer of 570 00:30:29,480 --> 00:30:31,440 Speaker 1: certain things, and so I really think you have to 571 00:30:31,440 --> 00:30:34,160 Speaker 1: twin it with enforcement. And of course the difficulty so 572 00:30:34,320 --> 00:30:37,200 Speaker 1: far has been what does that enforcement actually look like. 573 00:30:37,400 --> 00:30:39,600 Speaker 1: No one wants to go back to the days of 574 00:30:40,000 --> 00:30:43,280 Speaker 1: the War on drugs. But at the same time, you 575 00:30:43,360 --> 00:30:47,479 Speaker 1: cannot have a thriving illegal market with you know, a 576 00:30:47,520 --> 00:30:50,720 Speaker 1: lower cost overhead that's competing with the thing that is 577 00:30:50,760 --> 00:30:53,000 Speaker 1: supposed to be funneling money into the state. 578 00:30:53,240 --> 00:30:55,600 Speaker 2: Yeah, this is I mean, this is the key thing, 579 00:30:55,840 --> 00:30:58,640 Speaker 2: which is that you know, the the idea is that 580 00:30:58,680 --> 00:31:02,520 Speaker 2: the licenses were designed to you know, hopefully encourage people 581 00:31:02,640 --> 00:31:06,560 Speaker 2: to go that route. And yet you know, in theory, 582 00:31:06,800 --> 00:31:10,840 Speaker 2: even when conbud opened, at least as of right now, 583 00:31:11,000 --> 00:31:13,760 Speaker 2: there are going to be numerous competitors who, in theory 584 00:31:14,280 --> 00:31:18,320 Speaker 2: have potentially lower taxes, lower cost bases, are able to 585 00:31:18,680 --> 00:31:22,280 Speaker 2: potentially bring in product from out of state, which the 586 00:31:22,360 --> 00:31:25,720 Speaker 2: New York State operators aren't able to do. Payments are 587 00:31:25,880 --> 00:31:29,280 Speaker 2: challenged still for the legal operators. Meanwhile, like I said, 588 00:31:29,400 --> 00:31:32,719 Speaker 2: it seems like all these places suddenly accept normal credit 589 00:31:32,720 --> 00:31:35,600 Speaker 2: cards right now, So it does feel like there is 590 00:31:35,640 --> 00:31:39,000 Speaker 2: a limit to the extent to which the market can 591 00:31:39,080 --> 00:31:41,520 Speaker 2: be solved through consumer education. 592 00:31:41,720 --> 00:31:45,880 Speaker 1: So a little update. After we recorded this episode, we 593 00:31:46,040 --> 00:31:50,280 Speaker 1: spoke to the Konbud team on October fifth. On October sixth, 594 00:31:50,400 --> 00:31:54,440 Speaker 1: the Friday, the injunction was in fact lifted, which means 595 00:31:54,680 --> 00:31:56,959 Speaker 1: it looks like Conbud should be able to open on 596 00:31:57,000 --> 00:31:58,640 Speaker 1: October nineteenth, so. 597 00:31:58,600 --> 00:32:01,320 Speaker 2: They can do their celebration. 598 00:32:01,560 --> 00:32:02,400 Speaker 3: Let's go check it out. 599 00:32:02,640 --> 00:32:03,360 Speaker 1: Shall we leave it there? 600 00:32:03,440 --> 00:32:04,160 Speaker 2: Let's leave it there. 601 00:32:04,480 --> 00:32:07,800 Speaker 1: This has been another episode of the Odlots podcast. I'm 602 00:32:07,840 --> 00:32:10,440 Speaker 1: Tracy Alloway. You can follow me at Tracy Allaway. 603 00:32:10,800 --> 00:32:13,760 Speaker 2: I'm Joe Wisenthal. You can follow me at the Stalwart. 604 00:32:13,800 --> 00:32:18,160 Speaker 2: Follow our guests on Instagram, Combud at Conbud and Why 605 00:32:18,400 --> 00:32:21,760 Speaker 2: follow our producer Carmen Rodriguez at Carmen Arman and dash 606 00:32:21,800 --> 00:32:25,160 Speaker 2: Ol Bennett at Dashbot, and check out Potlots, our series 607 00:32:25,160 --> 00:32:28,640 Speaker 2: from the last April tremendous amount of background context. To 608 00:32:28,760 --> 00:32:32,400 Speaker 2: further understand this conversation and for more Oddlots content, go 609 00:32:32,440 --> 00:32:35,160 Speaker 2: to Bloomberg dot com slash od Lots, where we post 610 00:32:35,160 --> 00:32:38,239 Speaker 2: transcripts a blog and a newsletter, and go to our 611 00:32:38,280 --> 00:32:41,480 Speaker 2: discord discord dot gg slash odd lots to talk about 612 00:32:41,560 --> 00:32:43,840 Speaker 2: this episode and others with fellow listeners. 613 00:32:43,960 --> 00:32:46,320 Speaker 1: And if you enjoy odlots, if you want us to 614 00:32:46,400 --> 00:32:50,320 Speaker 1: do a deep dive another series into another particular market, 615 00:32:50,320 --> 00:32:53,520 Speaker 1: then please leave us a positive review on your favorite 616 00:32:53,560 --> 00:33:13,840 Speaker 1: podcast platform. Thanks for listening in