Apr 13, 2021
Cannabis Farming to the Flower Shop w/ Copperstate Farms -
BRT S02 EP15 (62) 04-11-2021
Things We Learned This Week
- Copperstate Farms is one of the largest greenhouse cannabis producers in North America, with over 1.7 million sq ft of canopy & 40 acres under glass
- Sales Tax is 24% for recreational, but w/ Medical Card can avoid 16% sales tax
- Cannabis sales in AZ circa $700+ mil in 2020, and expected sales of $2 bil + in 2021
- IRS – Sec. 280 E, Cannabis is fed illegal, need Safe Banking Act, Trafficking in controlled substance cannot deduct business expenses
- Cannabis is a Startup industry & Recession Proof
Guest: Ryan Hurley of Copperstate Farms
https://www.copperstatefarms.com/
https://thecannabisindustry.org/board-members/ryan-hurley/
Ryan Hurley is General Counsel at Copperstate Farms, the largest medical cannabis grower in the Southwest. Prior to joining Copperstate, Ryan was a partner at Rose Law Group, Rich, Hurley in Scottsdale, AZ where he led the firm’s Marijuana Practice Group. He has a background in land use and zoning law, environmental and water issues, renewable energy and a wide variety of regulatory compliance and administrative law issues. National Cannabis Industry Assoc., like the Chamber, in Colorado, and Ryan is on the board & a founding member in AZ.
Copperstate Farms is one of the largest greenhouse cannabis producers in North America, with over 1.7 million square feet of canopy and 40 acres under glass. We bring best practices from big agriculture, consumer packaged goods, and pharmaceutical industries to cannabis. We are building a culture where our employees view Copperstate Farms as one of the best places to work.
Notes:
Copperstate Farms started in 2016, w/ Corporate office - Camelback and 40th St.
Fife Simonson IV farms and greenhouse
M&A business
Soul flower Shops – Tempe, McCl. 202
Farm in Snowflake, AZ – 40 acre greenhouse, all indoors.
Bought greenhouse facility and converted to cannabis c2017
600 co. / 300 in Snowflake plus 200 with next facility – 2022
State Banking in AZ – No Federal Banking
IRS – Sec. 280 E, Cannabis is fed illegal, need Safe Banking Act.
Trafficking in controlled substance cannot deduct business expenses
Moore Act – federal decriminalization
$700 - $800 million in 2020. $2 – 2 1/2 billion in 2022
Guest: Greta Brandt
https://www.theflowershopaz.com/post/women-get-things-done
Greta Brandt currently serves as President for The Flower Shop of AZ as well as for True North Organics and Perfect Earth Modern Apothecary of Utah. Collectively, these three branches operate five medical marijuana dispensaries plus four cultivation sites and processing facilities.
Greta is licensed as a corporate attorney in both Arizona and California and serves as a board member and officer for two not-for-profit corporations that currently operate three licensed dispensaries and cultivation facilities in Arizona.
Her industry insight and awareness as it relates to company operations under Arizona’s Medical Marijuana Program has allowed her to create valuable connections with various local municipalities and all key Arizona and Utah regulators; the Arizona Department of Health Services and the Utah Departments of Agriculture and Health Services.
The Flower Shop is a multi-state cannabis operator, focused on curating the largest flower selection in the state of Arizona. We are committed to providing our customers with artisan and craft cannabis products to meet the diverse needs of every customer. Our mission is to provide a robust selection of clean cannabis products that improve our customer's health and well-being.
Notes:
The Flower Shop is Female led w/ 3 off site cultivation
130 – AZ – 2017 purchase and re-brand to Flower Shop
Cultivation – industrial and downtown Phoenix, plus a farm, & greenhouse
$5 million – $20 million build-out for Cannabis op
$3K / pound – making hundreds
Sales up 6x at 420
THC – marijuana, part of the drup that gets you high
60 + 20 – Utah – diff (2) 2019 Perfect Earth / True North of Utah
+40 in 6 months – President of Utah Cannabis Assoc.
Cannabis is a Startup industry and recession proof
Medical Card – w/ a medicinal card, can avoid 16% sales tax
Dispensary Agent Card – DA/FA – 24.6% Tax in Phoenix, AZ
Risks – No FDIC (insurance)
Banking regulations and fees, & security like armored cars to pick up money weekly
Segregate the banks – First Fidelity, Republic, Western
M&A Acquisitions – 20% cash, 80% stock
Medmen Scottsdale Talking Stick
Cannabis Topic: https://brt-show.libsyn.com/category/Cannabis-Hemp-Marijuana
‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT
Thanks for Listening.
Please Subscribe to the BRT Podcast.
Business Roundtable with Matt Battaglia
The show where Entrepreneurs, High Level Executives, Business Owners, and Investors come to share insight and ideas about the future of business. BRT 2.0 looks at the new trends in business, and how classic industries are evolving.
Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more…
BRT Podcast Home Page: https://brt-show.libsyn.com/
‘Best Of’ BRT Podcast: Click Here
BRT Podcast on Google: Click Here
BRT Podcast on Spotify: Click Here
More Info: https://www.economicknight.com/podcast-brt-home/
KFNX Info: https://1100kfnx.com/weekend-featured-shows/
Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.