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Ep.245: Peter Barsoom, 1906

Cannabis Economy Podcast
Ep.245: Peter Barsoom, 1906

Ep.245: Peter Barsoom, 1906

Peter Barsoom joins us and shares that he wound up getting a job in management consulting in the late 90s. It turned out that his clients were in financial services…the industry in which he stayed for the ensuing 20 years. He got experience at top financial firms which put Peter at the Federal Reserve the weekend before Lehman collapsed. At the parent company of the New York Stock Exchange his position was introducing regulated and transparent credit derivative markets. That thinking attracted him to the cannabis market, Peter realized an opportunity for his skill set in the industry and jumped in- and has been here ever since.

Transcript:

Speaker 2: Peter Barsoom joins us and shares that he wound up getting a job in management consulting in the late nineties. It turned out that his clients were in financial services, the industry in which he stayed for the ensuing 20 years. He got experience at top financial firms, which put Peter at the Federal Reserve the weekend before Lehman collapsed at the parent company of the New York Stock Exchange. His position was introducing regulated and transparent credit derivative markets that thinking attracted into the cannabis market. Peter realized an opportunity for his skill set in the industry and jumped in and has been here ever since. Welcome to cannabis economy. I'm your host Seth Adler. Check us out on social with the hand mechanic economy. That's two ends of the word economy program. Note, my mic has an issue on this one. Apologies Peter Barzun 19. Oh, zero ll six

Speaker 1: a year, right? Yeah. Um, so peter, thank you for having me in 19. Oh, six HQ, right? You just gave me a tour. Everything smells perfect in here because it's chocolate least for the time being. Right. You know, who knows, always smells good in here. But 19. Oh six. Let's attack it right away. Why? Why would 19? Oh, six b, the name of your organization here, your product? Yeah. So 19. Oh, six was the year that the wily act was passed, which effectively started the era of prohibition of cannabis. Part of our mission is to bring cannabis back to its pre prohibition status, whereas safe, accessible, widely available for both medical and recreational folks. Uh, and a name means something and we put a lot of thought into our name and the intent behind it. Um, and so it's a message about the, what the effects of prohibition have been.

Speaker 1: Um, our tagline is took more than a century for the world to return to its senses, which I love that. Well, thank you. Um, and also as a number, it signifies position as well. So a lot of what we do is about being precise. Okay. So you've clearly been thinking about all of this, right? So you're one of the newer guys, is that fair? For me to say that, you know, as far as I mean, now you told me the backstory, you've been doing it since 2015. These kind of became aware of 2014. Um, but still as far as the 200, whatever episodes you'd be on the newer end, we just hit market late November. So, uh, we're, we're hot off the presses. There you go. So, uh, uh, which is ironic because first you cool your product before it gets them to the boxes, but the title needs to.

Speaker 1: But anyway. Um. Alright. So then let's understand how this guy gets here. Right? So let's just go all the way back. Where are you from? I grew up in the northeast, New Jersey. Lived in New York for the last 20 years. Were in New Jersey. Are you from East Brunswick? Okay. So explain to folks that aren't from New Jersey, New York or Connecticut. What East Brunswick is East Brunswick is a bedroom community right off of exit nine off the turnpike. So you have to know what exit it is exactly. If it's in New Jersey. Um, and then as far as the king and the prints, Bruce Springsteen, Bon Jovi, explain the relationship of a, someone from New Jersey, but those two gentlemen, you know, if you're from New Jersey, those are some of your New Jersey heroes when you're growing up. And of course, but, uh, how long did you stay? I mean, cities right there, right here. Only a few miles from New York City.

Speaker 2: Peter Barsoom joins us and shares that he wound up getting a job in management consulting in the late nineties. It turned out that his clients were in financial services, the industry in which he stayed for the ensuing 20 years. He got experience at top financial firms, which put Peter at the Federal Reserve the weekend before Lehman collapsed at the parent company of the New York Stock Exchange. His position was introducing regulated and transparent credit derivative markets that thinking attracted into the cannabis market. Peter realized an opportunity for his skill set in the industry and jumped in and has been here ever since. Welcome to cannabis economy. I'm your host Seth Adler. Check us out on social with the hand mechanic economy. That's two ends of the word economy program. Note, my mic has an issue on this one. Apologies Peter Barzun 19. Oh, zero ll six

Speaker 1: a year, right? Yeah. Um, so peter, thank you for having me in 19. Oh, six HQ, right? You just gave me a tour. Everything smells perfect in here because it's chocolate least for the time being. Right. You know, who knows, always smells good in here. But 19. Oh six. Let's attack it right away. Why? Why would 19? Oh, six b, the name of your organization here, your product? Yeah. So 19. Oh, six was the year that the wily act was passed, which effectively started the era of prohibition of cannabis. Part of our mission is to bring cannabis back to its pre prohibition status, whereas safe, accessible, widely available for both medical and recreational folks. Uh, and a name means something and we put a lot of thought into our name and the intent behind it. Um, and so it's a message about the, what the effects of prohibition have been.

Speaker 1: Um, our tagline is took more than a century for the world to return to its senses, which I love that. Well, thank you. Um, and also as a number, it signifies position as well. So a lot of what we do is about being precise. Okay. So you've clearly been thinking about all of this, right? So you're one of the newer guys, is that fair? For me to say that, you know, as far as I mean, now you told me the backstory, you've been doing it since 2015. These kind of became aware of 2014. Um, but still as far as the 200, whatever episodes you'd be on the newer end, we just hit market late November. So, uh, we're, we're hot off the presses. There you go. So, uh, uh, which is ironic because first you cool your product before it gets them to the boxes, but the title needs to.

Speaker 1: But anyway. Um. Alright. So then let's understand how this guy gets here. Right? So let's just go all the way back. Where are you from? I grew up in the northeast, New Jersey. Lived in New York for the last 20 years. Were in New Jersey. Are you from East Brunswick? Okay. So explain to folks that aren't from New Jersey, New York or Connecticut. What East Brunswick is East Brunswick is a bedroom community right off of exit nine off the turnpike. So you have to know what exit it is exactly. If it's in New Jersey. Um, and then as far as the king and the prints, Bruce Springsteen, Bon Jovi, explain the relationship of a, someone from New Jersey, but those two gentlemen, you know, if you're from New Jersey, those are some of your New Jersey heroes when you're growing up. And of course, but, uh, how long did you stay? I mean, cities right there, right here. Only a few miles from New York City.

Speaker 1: But what was the, what was the house like when you were a kid in East Brunswick? What, what, what, what was mom and dad like? Um, so yeah, my parents immigrated here from Egypt in 1969. Nineteen 70. I was born in Brooklyn, grew up my first few years in Jersey City. And then like typical immigrant family, it's about moving out to the suburbs and having a yard and they, they did that. Uh, so from seven onwards we lived in New Jersey. Um, and uh, I went to school in upstate New York, ended up back in New Jersey despite my, my desire to be back in New Jersey for, for graduate school. So what, what? Uh, upstate New York was a, I'm going to guess Cornell and Colgate, colgate was a small and you might know an ex girlfriend of mine, but we'll, we'll do that off mic, uh, because I think we're the about the same age.

Speaker 1: Um, but as far as your immigrant parents, what were the key lessons from growing up? What was the tent poles of philosophy? It was not making cannabis chocolates one day. So this is what you'll be doing. Um, it was really about kind of education and hard work were the, were the tenants, right. And so from colgate you get into finance right. From colgate. Then I went to go do my phd on Rodney, just sit back in. I wanted to be an academic. What school? In New Jersey. Princeton. Oh, okay. That's a good one. Yeah. Because there's also rutgers. You could have done that. I know Princeton. Yup. And so you were going to be an academic in what area? I was going to do political science, or though that was my, that was my field. So I did international environmental politics and relations. So very focused on how to make international environmental treaties more effective.

Speaker 1: Sure. Right. That makes sense. You see the transition. Uh, and then I'm just thinking about the international environmental treaties we have that we're not going to get into politics. I just, that's where my mind went. But anyway, you were doing that. You got your degree. Did you get a job in the space or. No? No, I decided before I defended my phd that I didn't want to become an academic, so I left. Why I'm there. One, the life of an academic is a pretty lonely life. Uh, so the, I wanted to be working more with kind of people in it, more team oriented environment. The second thing is that I wanted to be doing things that were more directly effective. Um, so, so I decided not to pursue an academic career. I got a job. This was back in 97 in management consulting because at the time they were hiring people with non traditional degrees who didn't necessarily know anything about business.

Speaker 1: Sure. Which was me and provided a fertile training ground. Right. So I thought, here's a smart guy with this wacky degree, you know, he's coming from Princeton and Colgate, which is also a good school, you know, let's bring him in. He's got to change the way we think, at least somehow. Yeah, it did that. And uh, my clients at the time were financial services clients, so I learned a lot about marketing and business in that area and then ended up staying in financial services for 20 years. Always knowing that there was going to be a short duration. I was going to be in finance. I never expected it to be that long. Huh. Uh, but it just so happened that kept sucking me back in. I got your twitter out. Michael Corleone. Yeah. Alright. So you get this management consulting Gig just simply because we had a philosophical change and then we're in now we're in finance for 20 years.

Speaker 1: Were like, what kind of finance? I worked for American Express part of it. Uh, then I went over to Merrill Lynch or Morgan Stanley. Sure. Went to a hedge fund and then finally went to a company called ice, which is the parent company. The New York Stock Exchange and other exchanges. Sure. The, uh, talk about where you were, if you would in 2007 and 2008 and when you realized what all of us would soon know, in other words, when did it become apparent to you in finance that, uh, we have a problem with? Yeah, it was in 2007. I was at Morgan Stanley and I had responsibility for a large chunk of the mortgage business at Morgan Stanley. Um, on the, um, the retail brokerage side. So explain that for anybody that Morgan Stanley has a network of financial advisors like Merrill Lynch that sold mortgage products, home loans, home equity lines, so on and so forth.

Speaker 1: So I had an inside peek into kind of the mortgage market at both the origination side of things, but then also the securitization side, which was done on the capital markets. And that's when it became. Morgan Stanley was one of the first ones that had issues in terms of a mortgage. And that's when it became clear to me that I, I didn't want to stay at a bulge bracket, large financial investment firm. So you saw, I mean at the time, and thank you for talking about this, did you, you saw the writing on the wall and said, I don't want to be a part of this, is that correct? Okay. And then the writing on the wall, can you describe that to us? In other words, I really want to get to that epiphany moment of your eyes widened me and you saying, Oh, you know, did that happen or did you get out before you realized it was actually going to take everything down type of thing.

Speaker 1: I don't think there's not many people who really could have expected the destruction that happened at that time. Well show. That's why it happened because I sensed that things were not right. Practices were not right. It didn't go. Wasn't consistent with my ethics and that financial firms, we're gonna have a hard time. Right? The degree of impact for me, I could not have imagined, but I just knew now's the time to. I just knew I wanted it to get out. Yeah. Know the CEO of Lehman Brothers didn't know on the day that it happened. So yeah. A while, so I'm in a lot of companies exactly. Um, but uh, this, this ice company with the New York Stock Exchange, et Cetera. That sounds fascinating. Well, what were you doing with that? That was running the credit, um, uh, divisions there. And so I was actively involved in the emerging regulatory structure around credit derivatives markets and other things.

Speaker 1: So at ice I saw myself not, I saw myself. I was playing the role of introducing more regulated, more transparent markets into what was a very large and opaque corner of the financial industry that had the opportunity to create tremendous havoc but also if regulated and in a well run place also has the opportunity to make for more efficient markets. And so, so you're kind of talking like a finance guy. So what do you mean? So here come these new regulations, here's a kind of corner of the market that doesn't have them speak further to that are our role at ice was to run regulated markets. And so it was about abiding by regulations, bringing market participants in and running a compliant marketplace that um, didn't have that no longer had the negative behavior and the consequences that happened in the 2008, 2007 era. So it was after that that you had that job?

Speaker 1: Yeah. Interesting. And who were you with when it actually happened? I was at a hedge fund called Blue Mountain capital, which was one of the largest is one of the largest credit hedge funds. So I got a chance to observe kind of the financial meltdown from what I would say it was a front row seat. Yeah. Being at one of the largest hedge funds on, on Lehman Day. Can you take us through your day? Yeah, in fact, I was at the Federal Reserve that weekend. Yeah. How is that possible? Well, you know, they invited participants in from the largest players of which the hedge, when I was at who was there and we were there to plan for what would happen if Monday morning Lehman goes down, you can't plan for that over a weekend. And our hope, my hope, I'll just speak for myself. Sure. Throughout that weekend was something's got to happen because if this goes down, this is not going to be pretty right.

Speaker 1: So I was shocked on a Sunday night when a government did not intervene and, and Lehman went down a Sunday night, Monday morning. So this was, they had the chance to and they decided not to and then realize, oh, I guess we should have type of thing. Yep. So, uh, then let's, if, if that's where you were that weekend, let's Kinda get to the weeks leading up to that because as you said, you had a front row seat and very few of us did. When did you realize that a potentially going to the Federal Reserve was something that might happen? Was it the week before or was it the month before or you know, there were discussions and concerns, but no real planning in place. I don't think not many people anticipated that Lehman was actually going to fail. But that weekend, that Sunday before they did what they did, they did.

Speaker 1: Or that Friday when leaders of different financial institutions were summoned, it was like, Oh shit, summit to a desk to the Federal Reserve. So we were in two different buildings. We own the New York Federal Reserve. Yeah. So you had the ceos of the major financial institutions meeting across the way and you had the rest of us who were senior managers have a meeting also. And the dynamic was, I hope you guys in the other building are going to do the right thing because on this side it's going to be mayhem. You cannot organize the orderly winding down of one of the major financial institutions over a weekend. So maybe, and I don't know if you can answer this, can you simply explain why that from tumbling down. So this is not a finance audience. Um, why that from coming down? Just uncouples everything. It. Can you explain that simply very simple.

Speaker 1: Okay. Our financial institutions depend upon one thing and that is trust. In the absence of trust, the economy and financial institutions fail. And what happened there was a complete and utter breakdown of trust. Okay? Now, not to get political, but, uh, when you saw things like dodd frank come in, when you saw, um, kind of a different way of thinking over financial markets happen, uh, however no one really kind of get in trouble for it. What were your thoughts from being inside of the belly of the beast? So to speak, that there's, I've always had a strong belief and it just confirmed it, that there is a strong role for governments in the functioning of any market. Um, and so then you kind of undertook some of that in a way with ice. Is that fair? Yeah, exactly. Okay. All right. So, uh, and that's kind of what attracted me frankly, to the cannabis markets, is the need for a well functioning regulated market. Every market needs good

Speaker 3: and when it's done right, everybody benefits. And given my experience in running regulated financial markets which are way more regulated than cannabis, you should probably say that again for the folks that are listening because folks in this industry think that it's the most regulated. Yeah, it's not true. When I worked at, at ice, I had the Federal Reserve, the SEC outside my door, every single day we have a staff of those regulatory agencies co located with us. Um, this is nothing to bear to kind of regulated financial markets. And so I wanted to be part of another transformation of a market and being able to run a compliant organization is something that I know how to do. Brian. Yeah. So, all right, so you're sitting at ice and uh, you go home one night and smoke a joint and that uh, uh, that's, that's one way it could have happened, right?

Speaker 3: Yeah. How did it. Actually, I know how it actually not that dissimilar. Okay. I left ice not knowing exactly what I wanted to do next. Well, why did you leave ice? Because it was, it was time you done. I was done. It's like, I mean, here now I need to kind of get out. Okay, I'll go work at this at ice and I'll try to bring regulations and then, okay, fine, now I'm just done. Yeah, I'm done. I wanted to do something different. I didn't know exactly what, but I knew that I needed to take some time to spend thinking about what I wanted to do next, and really the genesis of the idea came from my co founder and partner, a Geeta she had, she's an actress, has worked in a number of other places and agricultural markets before, and she said, you know, Peter, we should get into the cannabis business.

Speaker 3: Just real quick. What is it an actress do in agricultural markets? I just want to share that. She originally worked in agricultural markets. Uh, in Morocco. They have issues of family run business, large tomato producer. Perfect. Yep. Tomatoes are very similar to actually how cannabis has been. She's been a more active cannabis user. And she said, you know, we should get into cannabis. Where's the first thing that she's still an actress. Oh, okay. Yeah. Here in, in, uh, in New York actually. Oh, okay. I was going to say the entertainment hub of Colorado. Yes. No, no, no. In New York. So she said we should get it together. Yes. Uh, she said, uh, you know, all about these tomatoes. They grow very similarly to the pat of this, we should get into cannabis because, because now is the time because it's growing, more and more people are going to be coming into cannabis.

Speaker 3: She loves cannabis as do I. and I want, we wanted to, I spent 20 years making products or overseeing products that most people can't understand or can't enjoy or even myself can enjoy. So it was about even Mike does not enjoy specifically. So it's about time to actually make something real. A okay. And what year was this? What month? So this was November 2014. Okay. And so, uh, you had seen a, a whole year of adult use and people starting to talk about this canvas thing and you at the time that you were in New York. Okay. And so how did that first conversation about, okay, yeah, let's do it. What did we do? Let's go to Colorado. Okay, let's, let's go to Colorado. Let's check out what the market is like. And we had, we came in kind of with the theory, which is that as legalization expands, more and more people are going to be coming into the market.

Speaker 3: We don't want to smoke cannabis. So though that's not their preferred choice, smoke flower. Right. Okay. All right. Uh, so that was the theory. Yes. That's what you've postulated. Yup. Which, uh, turns out to be cogent and supported by numbers. So you get here, you go to what you just went through. We went to about six, six to seven dispensary's, but lots of different product. So first it was exciting, right? To be able to walk into a store and buy marijuana legally, legally other than in Amsterdam. This was the first time outside of Amsterdam that we could actually do that. Sure. And that's a coffee shop experience, that's a whole different thing. Totally different. And that's where you can smoke it there and you don't have edibles, you don't have. So. So we bought our fair share of chocolates and gummy bears and the whole range of products.

Speaker 3: So we were struck by a few things. One is like the package and left a lot to be desired for you. Yes. Fair enough for us. Um, the range of different experiences in a dispensary from a consumer experience was also a surprising as well to get into what you mean by that. So from some places like, uh, the farm that have a great customer experience, you are greeted well, you have beautiful displays, it feels more normal to other places where you feel like you're still doing something illegal when you're walking in, just doesn't feel right. Yep. Okay. Yep. So we were surprised by that kind of full range. So anyway, so we bought all these products, brought them back to our hotel room. Oh, started opening them up just to taste and just to taste decent it, just to taste. We had a dinner in an hour.

Speaker 3: So, you know, we started trying to. The first thing we were struck with is that these don't really taste great. Okay. That's the first part. The first one it's like, wow, there's a lot of hash flavor here and most of us don't. A Hash is not kind of a flavor that we like. I don't put it in my pasta, I don't put it, you know, I don't spray it on as Cologne. So it's not the necessarily the most desirable aroma or taste. So that was the first thing. Um, we're now sitting at dinner about an hour later. Oh yeah. And that's right. And then it's like, Whoa, okay. All those little bites add up and they start low, go slow and they add a part and they hit you hard and they hit you a long time after that. And then we're sitting at dinner. Yeah. Delayed, right.

Speaker 3: And then, so we're sitting at dinner and we're intermittently giggling to like silence because it's hitting us in different waves at this point because we've tried a gummy bear, a little piece of this edible, a little kind of men. We tried, I think a drink as well. It was not pleasant. So we realized of the second thing, which is this long delay time just isn't, doesn't feel right. When you take an advil, you don't wait an hour for it to hit you. When you have a glass of wine, it doesn't hit you 60 to 90 minutes later, but with edibles it hits you. Most of the time kind sucks. So that was our second observation, which is that, um, uh, the long delay in acting was, was not desirable. And then the third observation was that when you go into buy flour to smoke, you're given this wide range of different options.

Speaker 3: If this will make you giggle, this'll put you to sleep. This is great for focus. This is great for just chilling out, right kind of data you want. Exactly right. And you can do that with smoke. You go over to the edibles and what do you have? You have? Do you want a gummy? Do you want a chocolate? Do you want to mit? So nothing to really tell you how this is going to make you feel. And so that was the third thing that we wanted to focus on. Okay? So that's a November 2015, November, January of Twenty 15, January 2015. And so you're in Colorado, you're at this restaurant, you're having probably one of the most interesting, uh, meals of your life, uh, for, for, uh, for many reasons. Right. Uh, and then, you know, tomorrow when tomorrow game. Oh, what did you decide that then we had a series of other meetings kind of on that trip.

Speaker 3: We said, you know, let's, let's, let's figure out if we can do this or what were the meetings, just so I know we were meeting with dispensary. Yeah. I mean just going to visit dispensary's and then, um, and then we said let's figure out if this is something we can do. So we had an idea, you know, all we had at this time is now we had an idea that the market could be improved. Sure. And better tasting. Yep. Faster acting and specific effects. Some sort of mission that was established. Okay. So then, then the question was, okay, let's figure out if we can do it. So then we, we started, uh, we had our first chocolate tier. Then in January, I'm the person. Yup. A person who can. Because we said let's focus on chocolate. Because of two things, chocolate is one of the most universally loved flavors and it's also chocolate in cannabis.

Speaker 3: From a science perspective, there's a lot of great synergies between the two of them. Chocolate works on the same endoccanabinoid system that a cannabis does. It gets you and you get it. And that's why, uh, that's why we're so passionate about chocolate in, in, in some ways scientifically. But anyway, so, okay, we're doing chocolate. We'll just go ahead and knock out a bunch of chocolate bars. Everyone's going to be great, right? I wish it was that easy. April, we did our first, uh, cooking, what we call our cooking week where we had our chemists here. Um, and then we had our chocolate tier and we started making formulations and we started trying. And so from April we would meet in Colorado every other month or so to actually come in and do formulations. We would rent an airbnb and we'd spend a week and I'm making stuff because we knew that if these were the three things we have to do before we kind of have a product, we have to be sure that we can actually do these three things. Each one of them has its own set of issues, let alone doing all three of them is a pretty high, uh, was a pretty high hurdle. So we got tastes down. Sure. That was probably first, right? Yup. What was second out of the other two?

Speaker 3: They were both took a while to get right. And uh, I would say, um, the fast acting, we had some good elements of that, uh, in the first few months, but it took awhile to kind of tweak and get it perfect. And then the experiences is something we just always continue to work on. Um, so I'd say from April of 2015, we got the fast acting nailed probably in February or March of 2016. Right. And then on the experiences, that's something we continue to keep tweaking really until we actually got into production in November. All right, so, so March, 2016, fast acting is it gets down to what amount of time we got. Fifteen minutes. We'll take it right? Yep. Close enough. So fast acting. Okay, great. Now we've got two out of the three. The experiences will come along. What about the business at hand? Licenses and buildings and this and that.

Speaker 3: What was going on? So that process. So the first problem is you got to get real estate. Sure. Before you get your license, you have to get your real estate. Everybody wants to deal with the cannabis plant touching a business. Right, exactly. That was easy. We just drove around and found a factory and it's like, wait years, let's get started. How long did that take? The time to find, you know, we were lucky. Oh you are? We started looking fulltime in April commerce city, which is where we're at right now. Sure. Had just opened up beginning of June. So it was one of the first jurisdictions to open up in the Denver Metro area. Um, and so we were one of the first ones to secure our facility right after commerce city opened up its laws to, uh, to marijuana. God knows how long it would have taken if we, if we weren't fortuitous.

Speaker 3: No, you did kind of stumble upon that. Let's, let's say that. Alright, so you've got the building now. The licensing, what, uh, how, how were your meetings with Louis data led, right? Yeah, you know, I've got to say Med has been med has been great to work with no issues whatsoever now. So, uh, I know that that's true just from speaking with others because it does seem that Colorado as far as regulating a market gets how to do this with your background of being a regulated with sorts. Um, when did you realize that you had made the right choice in terms of the fact that this is about regulated market, they're doing it the right way, the rules are in place and all that, you know, when did they appeal to you as far as someone that understands regulated markets? Really from day one, one of our first meetings, I remember this was probably in February or March of 2015, was with her law firm.

Speaker 3: Descente Cedarburg oh, okay. So you went with them. We sat down with Christian and within the first hour of meeting we knew we were going to work together and he convinced us of that. We had a great idea that we can do this. Sure. Uh, and the whole team epicenters of rick has been really a part of the 19. Oh, six family. Sure. And Christian was on the taskforce, you know, the governor's task force to put the regulations in place. So, and I felt okay by that. Yeah. And so we would come in like every other month to do these r and d batches that we were making and we didn't know people here in Colorado. So it was one of the things you need to do is to have enough people here who can taste. And it was really every time we invite the whole firm in to come and try and give us feedback, including Sarah, uh, you know, uh, at the front desk that Sarah is one of our best kind of r and d folks.

Speaker 3: I'll have to let her know that she's in this episode, but. Okay, good. Obviously you found a community, you found the community you found are the regulations, but to actually get the building to where it needed to be and the whole production up and running April to one. So, uh, uh, April, July we were under contract. September 2015. We are in, we have possession of the facility, so that's when you can actually have your, the appointment with the med. Um, and then we had plans submitted our plans in November of 2015. Um, permits were finally pulled in the, uh, spring of 2016 construction. July 2016. Construction Complete September 21st 2016 first day on the shelf. November 11. Perfect. Right. Month and a half later, uh, were on shelves. Now since it's, well, it's February. Oh my goodness. I was going to say January, February 20, 17. What have you heard from folks that have purchased 19?

Speaker 3: Oh, six off the shelves. What's the customer feedback? So the feedback has been great. We've been very fortunate to have had a couple of years to work on it and have great consumer feedback. I'd say number one is one of the first things people love is the packaging. It doesn't look like your typical other cannabis edibles product and so it's attractive in that sense. The second thing is people, the effects are as promised. So we have go for energy, pause for relax, midnight for sleep and then we're hitting store shelves on Monday with Hi, love are aphrodisiac chocolate. And I think people have been surprised because they're used to. So people will say, oh, is that just an indycar or a sativa? And it's like, no, it's a lot more than that. It's not only are we strain specific but it's all the other plant medicines that we add in with cannabis that actually create those effects.

Speaker 3: So for instance, midnight, it will knock you out in 15 minutes, put you to sleep, tell us, without obviously giving away Ip, although you're smart enough not to, um, how, you know what, how much can you tell me about why that works? Well, we're very transparent. Okay, good. So we spent a lot of time looking at a number of other plant medicines to incorporate with cannabis that are effective, are synergistic with cannabis, can be incorporated into a nine grand piece of chocolate. So midnight for instance, has a herb called Cory Dallas, which has been used in traditional Chinese medicine for over 2000 years. And it gives you a non groggy knock you out quick sleep, uh, that a lot of people have said, you know, I have trouble sleeping. This is my go to every single night. So according to us, what else is in there? Um, and then thc and cbd, from what strength can you tell me?

Speaker 3: Yeah. So that one is from pokey, which is a endeca dominant strain, and each piece is a five milligram thc, five milligrams of CBD, plus the Corey Dallas. Okay. And so then whoever I am one of pieces, two pieces, whatever it is. Yep. Okay, great. Do you mind if we just keep going? Yeah. So I guess next would be go. Yep. Go. So go has whiteout, which is a sativa dominant strain and then it has a combination of other plant medicine like theobromine, which is the natural stimulant founded in chocolate, but we add more of that caffeine theanine, which is a green tea extract and caffeine and theanine and combination balance each other out. We're so like everyone drinks green tea, including me. Yeah. Because you don't get that jittery side of just the caffeine now it's Montay before Montay. Exactly. Yeah.

Speaker 3: Yep. Uh, and then you'll him bay, which is a west African stimulant as well. Now, where did you, where did you find your, how did that happen? You know, Peter's just in a, you know, in that neck of the woods as far as the globe is concerned or in all serious. That's our chief scientist. So he has been working with botanicals and plant medicine for over a decade and so he's got experience in the nutraceutical industry and that's, these are master formulator. Pause, I would imagine also based in Indycar, right? Yup. Pause. Also uses pokey and pause. Has um, theme as well, which is the green tea extract as well as Magnolia and Magnolia's a wonderful herb that's got very strong anti anxiety. Um, so even on its own. Magnolia is great. We have a, our own proprietary extract of that that we, that we create in winning combination with cannabis.

Speaker 3: It, uh, and the, and the CBD is a great. Doesn't knock you out, but it gives you, as it's called a pause. Just hang on one second. Okay, good. I'm back type of thing. Yep. Um, and then there was high love, I think you called it. Alright. So. Hi. Love is what we made today and hitting store shelves, uh, starting this weekend. So highlight. Congratulations. Thank you. We're very excited. It's the only cannabis, a chocolate aphrodisiac on the market. Okay. So in addition, that's well stated because the other effort dcx fair enough. Yep. The only points cannabis chocolate effort, dcf market, right. And so in addition to the thc and the CBD that has dumped Miana, which is a from Mexico, we're a plasma cutter, which are both a Brazilian aphrodisiacs him bay, which is a west effort, west African effort use pollen, uh, which will, which has also got some very strong properties in terms of increasing blood flow.

Speaker 3: What if I'm allergic? I'm there are, we've made sure we look at all the clinical and scientific data so that there's nothing in here that has any pronounces kind of, uh, uh, allergic effects. So that's not to say that anyone, right? Yeah. Fair enough. Yeah. And then, and then, uh, theobromine, which is a stimulant as well. So you have a range of different herbs that are known for their effort. DCF Properties with a little bit of stimulant and, and blue dream is the, uh, is the strain, which is one of my favorite stores. It's familiar one, right? You know, more pot, one of the more popular ones. So it's a great quality high. And you're, what you're talking about really is plant medicines. Are you using more than just cannabis as we go here? Again, without, you know, kind of gave them the whole shop away.

Speaker 3: It sounds like you could do, you know, hundreds of skews. Is, is that a goal for, you know, any point for where do we want to go with this as far as growth? So we're focused on five experiences. Go for energy, pause for relax, midnight for sleep. Hi, love for central and the fifth one that's coming out is present, which is for focus. We think those are kind of the five core states. That's not to say we couldn't add more, but we think those are the five core states. From there it's really a chocolate is one main line and then we've got a number of other, I would say formulations are products that these could be translated into like a pills and tablets so that for some people who don't want chocolate but want to be able to have these same experiences, there'll be able to have that in a pillar or a tablet for instance.

Speaker 3: Excellent. And then we're also working on some, a great massage oil as well. And then we've got some other products that are kind of in the works, but everything, almost derivatives of the exact spot. Everything kind of starts from how do you want to feel right? And everything starts from plant medicine plus cannabis. And then, you know, we want to be fast acting in everything you do. So those I would say are the three core pillars of everything they have. Everything 19. Oh, six does. Okay. Now I just, because we did everything else. A first office is present close. Yes. Okay. And how much can you tell me because she told us all about the other ones. Why not tell us about this? So a present is going to be a green tea, much a white chocolate. It's been one of our favorites that we produced kind of from an R and d perspective.

Speaker 3: And that will have a number of different nootropics, cognitive enhancers, um, such as, uh, like Rhodiola is one of the ones that will be in that. And then we've got a few others. Ginkgo Biloba. The issue with Gingko, uh, that was one of the ones that we considered. I think we have a better alternative to people that's more effective. One of the big problems with plant medicine is they don't taste good. So even if that's why most of this stuff is found in a pill. Right, right. Uh, and so we do a lot of work to ensure that what is in a chocolate actually tastes great. So I would tell you that that is a good. That takes a good long time to get the taste masking, the extraction techniques and the other things. The other thing is right. And then what strain would be in that? Um, I don't know. Yeah. When, when will that be out? I guess it should be out. Probably our goal is to get that out by 4:20. Okay. Alright. So. Sure. Yeah. Any Day now, right? Yeah, that's fantastic. Um, how different is being in cannabis than being in finance?

Speaker 3: This is way more fun. I love the people in this business and I love being able to create stuff that makes people happy. Um, so yes, what lessons from finance? I got a general way of working and all that. But what specific lessons from the finance, if any, from that industry have you philosophically taken into, into 19 six? Um, I think it's around discipline is one of the key things. How does that act in finance and how does it act here? I mean, in this, uh, in finance, my view was always we are stewards my role, we're stewards of other people's money. We are entrusted with other people's money and faith. And so that has carried through. Here we are, we're creating products that people will eat and are intended to make them feel a particular way. You're supposed to with my experience. Yeah, exactly.

Speaker 3: When I give you a 19. Oh, so when you take a 19 Oh, six product, there is a trust there that we have to build, develop, maintain, and never sacrifice. And so that is one of the key lessons I would say. Um, and there's trust to kind of at the consumer level there's trust at the regulatory level. Um, so that's, that's the biggest one. Is there another one or is that, uh, you know, um, I think that's, that's one of the biggest ones. I mean, there's so many other lessons from finance to kind of ensure those are the. That's the most interesting one. What reality of life that has always been there. Have you realized from being in cannabis that you hadn't realized before? Hmm. That's a good question. Something that I hadn't realized before.

Speaker 3: This is hard. This is hard stuff. It's complex we're going through because it's not just about taking some marijuana and sticking it into some product. This is a social legal or political transformation that we're going through. And so at so many different levels to see this kind of all these changes going on, um, far is fascinating to see and even more fascinating to be a part of that. Thanks for being here. How about that? I could sit here all day, although it's probably not a good idea for either of us. So I will ask you the three final questions. I'll tell you what they are and then Alaska, but in order, what has most surprised you in cannabis was the most surprised you in life and on the soundtrack of your life? What does one track one song that's got to be honest first things first, what has most surprised you in cannabis?

Speaker 3: Which he could be the same answer that you just gave me, but it might be different. I think what's most surprised me in in cannabis since I'd been part of the market is how one of the things that struck me when I came out to color is how much people really. It's not just about using cannabis to get stone, but how much it's transformed their life. I've had the privilege of hearing stories of people, you know, from a medical perspective, anti anxiety, pain, whatever, that cannabis has saved their life and that they in some cases couldn't function without it. It's it, it's been a humbling. I used to not be able to really go out and now I can. Yeah. That type of thing. Yeah. I used to have seizures all day. Now I don't know, that type of thing. Uh, what has most surprised you in life these last few weeks?

Speaker 3: I got to touch. We're not going to go into politics, but boy, I could spend some time talking about a lot of things that have surprised me these last few weeks. I, uh, I have tried to talk about politics in a way that I hope is constructive. And my take here at this point is a, I'm American patriot. I love this country. I hate that we as Americans aren't all loving each other at this point. And I would like for us to be able to communicate a little bit better. That's what I'll take from that. It's so true. Yeah. So here's two that I'm on soundtrack. Fear of your life. One track, one song that's got to be on that kept moe life is beautiful. Look at you. Can't mow. That's not a. not everybody knows Kevin Mo. He's, I mean I call them blues, but he's a little bit more than that too. It's like almost music from a blue perspective. Life is beautiful and tHat's what I feel. Peter bar soon. Thank you so much. Thank you so much. And there you have peter bar soon. I mean, come on, sitting there. Well, it doesn't sound like he's doing much sitting, but beIng there at the federal reserve the weekend before lehman collapses, I mean, my god, I don't know. I don't even know. Well, anyway, he seems to know his cannabis, so very much appreciated peter's time and thank you for listening.

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Cannabis Economy is a real-time history of legal cannabis. We chronicle how personal and industry histories have combined to provide our current reality.