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Business Roundtable


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. We Profile the current Players weekly in an Interview format to give you an inside look, to learn from their own experiences.

Popular Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech (AI, VR, Biotech, Chips, Electric Battery), Blockchain / Crypto, Real Estate, Legal, Vehicles, Franchising, Farming, Sales, Charity 

 

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May 18, 2021

BRT S02 EP20 (67) 5-16-2021 -

Topic: Cannabis Industry Big Picture from Associations to M&A

 

What We Learned This Week

  • National Cannabis Industry Association was founded (in 2010 in CO)on the principle of power in numbers, thousands of businesses involved in the state-legal cannabis industry
  • Legalization in states, current, and future – 2013 WA & CO first to legalize, AZ legalize in 2020
  • Moore Act - to de-schedule Cannabis as a controlled substance, FDA to regulate cannabis
  • Safe Banking Act – Allows for big banks to work in Cannabis industry and FDIC rules / Claims Act – like Safe Banking Act for Insurance
  • M&A Deal - Trulieve just bought Harvest Health in an all stock deal for $2.1 Bil

 

 

 

Guest: Morgan Fox Media Relations Director, Committee Manager of the National Cannabis Industry Assoc.

https://thecannabisindustry.org/

https://www.linkedin.com/in/morgan-fox-a3b25a11/

 

The National Cannabis Industry Association was founded (in 2010 in CO) on the principle of power in numbers. The thousands of businesses involved in the state-legal cannabis industry represent a tremendous economic force in this country and as the industry’s national trade association, NCIA proudly works every day to ensure our growing business sector has a seat at the table on the national stage. To promote the growth of a responsible and legitimate cannabis industry and work for a favorable social, economic, and legal environment for that industry in the United States thru advocacy and lobbying.

Morgan discusses all thing Cannabis:

Legalization in states, current, and future – 2013 WA & CO first to legalize, AZ legalize in 2020
Economics – taxes and regulations, and the changing of the 280E tax code
Fed regulations – decriminalization
Moore Act - to de-schedule Cannabis as a controlled substance, FDA to regulate cannabis

Safe Banking Act – Allows for big banks to work in Cannabis industry and FDIC rules

Claims Act – like Safe Banking Act for Insurance

 

Notes:

Ogden Memo RE: Cannabis and medical use (co)

“On October 19, 2009, Deputy Attorney General David Ogden issued a memorandum (the “Ogden Memorandum”), that gave U.S. Attorneys 'guidance and clarification' on how to enforce the Controlled Substances Act in states where medical marijuana had been legalized.

 

2009 Fed drops actions

2013 WA & CO legalize, 2020 NJ, 2021 NY pass adult use, 2021 NM & VA

Active summer – 2021 & stores open 2023 or 2024

Talking with members of Congress

2/3 Americans support

AZ had regulations set up with state bills

Help underserved communities

Politics – Advocacy & Lobbying, trade organizations

Networking, training

Trade shows – 2 dozen nationwide – 1 national, and 23-3 regional

Detroit 9/20

SF 12/21

AZ – virtual events MITA – AZ org.

Denver, CO & DC

Membership – 1500, Staff 20

 

Banks charge $10K / month to use banks in cannabis industry.                                                                                   FDIC – rules

Safe Banking Act – Safe Harbor for banks to work with cannabis businesses

Cash biz à debit cards and trade lending

 

**Moore Act – deschedule cannabis – lesser drug, criminal enforcement

Move to FDA or Alcohol, Tobacco to regulate

Claims Act – insurance, like Safe Bank Act

 

Tax – No write offs – tax rate as high as 70%, b/c of IRS – 280 E tax code

**Moore Act can help solve banking & tax issue.

 

 

Guests: Melissa Diaz w/ Rebel Rock

- customized accounting solutions, HR, and M&A for the Cannabis industry in AZ.


https://rebelrock.co/melissa-diaz/

https://www.linkedin.com/in/melissa-k-diaz-cpa-10215623

 

Melissa’s accounting experience as a CPA spans numerous industries, both domestically & internationally, including healthcare, hospitality and, of course, Cannabis. In addition to co-founding and serving as CFO to Rebel Rock, Melissa is CFO and Shareholder for High Rock Accounting, which places an emphasis on utilizing technology to strategically make day-to-day and long-term financial decisions, while pursuing company goals and compliancy.

At High Rock and Rebel Rock, Melissa helps companies remain competitive and efficient in increasingly high-pressure and high-stakes environments. Starting in 2016 she started branching out into the Cannabis industry.

 
Melissa discusses M&A deals in the Cannabis industry, from SPACs, to VC, and how money is flowing in. She give breakdowns on specific deals (Verano Holdings) and the typical breakdown case study. Melissa explains the Hockey Graph rise in deals, and how growth by acquisition is necessary because of limited licenses in states, or land zoning laws.

 

Notes:

Revenue increase, stocks increase, deals increase

Raising money for Holistic Industries

**Flora Growth IPO at $5 / share

Curaleaf, Aerofarsm

M&A Deal - Trulieve just bought Harvest Health in an all stock deal for $2.1 Bil

Hockey Stick graph – growth in Cannabis industry on upward trajectory

Verano Holdings - $100 million financing deal

MSO – multi state operator

Land zoning – limited land, limited licenser

 

Politics – More states legalizing and 3-6 times multiplier and tax code lessened

Safe Banking Act – to get institutional capital and pool of money increase

 

SPACS – work around to bring Cannabis companies vs traditional IPO

 

 

Guest: Steve White, Founder / CEO of Harvest Health

https://www.linkedin.com/in/steve-white-40bb098

 

*Replay Clip - interview excerpt from the 3/21/2021 BRT Podcast

FULL SHOW: HERE

 

Harvest Health is a public co. (since 2018) traded Cannabis company (in Canada) that operates in 5 states with 15+ locations in AZ alone. Steve talks about the history of Harvest from 2012 to present, and how the industry has changed in the last 5 years, ad what he expects in the next 5. Also how Steve sees the Cannabis industry – is it mature? – or - Issues with the image of industry. Steve believes it has moved into the mainstream.

 

 

Cannabis Topic: https://brt-show.libsyn.com/category/Cannabis-Hemp-Marijuana

 

‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT

 

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Please Subscribe to the BRT Podcast. 

 

 

Business Roundtable with Matt Battaglia

The show where EntrepreneursHigh Level Executives, Business Owners, and Investors come to share insight and ideas about the future of businessBRT 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.