fbpx

Ep.312: Paul Rosen, Tidal

Cannabis Economy Podcast
Ep.312: Paul Rosen, Tidal

Ep.312: Paul Rosen, Tidal

Industry veteran Paul Rosen joins us and shares that for cannabis he feels that Toronto is the most important city in the world as it’s the capital of capital. It’s gained that distinction based on a series of Canada constitutional court rulings which ruled that a patient had the right to the medicine of his/her choosing. The court rulings led to the first regulatory infrastructure- the Medical Marijuana Access Regulations or MMAR which was built around home grow. Prime Minister Harper’s government then put in the Marijuana for Medical Purposes Regulations MMPR which ushered in the current medical industry. And set up the opportunity for Prime Minister Trudeau’s government to introduce legal adult use cannabis in parliament which goes into effect July 2018.

Transcript:

Speaker 1: Paul Rosen, industry veteran Paul Rosen joins us and shares that for cannabis. He feels that Toronto is the most important city in the world as it's the capital of capital. It's gained that distinction based on a series of Canada Constitutional Court rulings which ruled that a patient had the right to the medicine of his or her choosing. The court rulings led to the first regulatory infrastructure, the medical marijuana access regulates mm, ar, which was built around home grow. Prime Minister Harper's government then put in the marijuana for medical purposes, regulations, MMPR, which ushered in the current medical industry and set up the opportunity for Prime Minister Trudeau's government to introduce legal adult use cannabis in parliament, which goes into effect July 2018. Welcome to cannabis economy. I'm your host Seth Adler. Check us out on social with the handle can economy. That's two ends of the word economy. Paul Rosen, founding and managing partner break water, venture capital, Paul Rosen, chairman, CEO of title Royalty Corporation, right.

Speaker 1: So it's only too well at the moment is the founder of what is now called the cronos group. I founded that company with some colleagues of mine in 2013. Right. And ran it actually laid in 2012 December 16th, 2012 to be precise. It's amazing. I can remember the exact day, but it was the day that Steven Harper announced the formation of our commercial medical marijuana program. So I'd been entrepreneurial cannabis since day one is I would say what is kind of is two point. Oh. And now I'm a venture capitalist and launching a royalty company focusing on expanding the US cannabis industry. Okay. Well that's interesting and I want to talk about that. I think maybe a little bit further down the line here in this interview, which is taking place at Mj Biz con in Vegas, right? It is November of 2017 even though podcast land knows no time, but you were just saying this isn't your first rodeo literally.

Speaker 1: That's right. Uh, I, I guess I'm a veteran at this point, the, I believe the show began in 2012. It was in, it was in Denver the first year. There were 40 attendees, 40 people showed up total. I was one of those 40 as improbable as that is, and it does remind me of that old Dorothy Parker line. There's no there, there at the time. And then the following year I upped my commitment and I exhibited as a table sponsor at the second annual marijuana business expo at a race track at Olympia, Washington that the industry had grown and the show had grown to 700 attendees and exhibitors as still very folky, very small. Um, but some of the people that are now will known entrepreneurs and pioneers were there. They were all, there were. Most of them were there by 2013. Then we went to Vegas and we exhibited in 14 and 15 and the show really began to blow up.

Speaker 1: And today I guess we all feel like the show is a perfect proxy for the dynamic growth of our industry for people that are not here. It is the most dense densely attended trade show I've ever been through in my life. I just came from the bed and I work also in the global hospitality business of no interest to your listeners, I'm sure. Uh, but I was at a show at the javits center on Sunday and Monday javits center, Premier Event Center without question at the hospital yet dynamic industry and it was busy. Yeah. I mean it was not, it was. There was no tumble weed, but it wasn't this, this is wall to wall people. It's very hard just to get to the washroom and when you get there, there like an epic way. So our industry is exploding and this show is exploding right alongside of it.

Speaker 1: Paul Rosen, industry veteran Paul Rosen joins us and shares that for cannabis. He feels that Toronto is the most important city in the world as it's the capital of capital. It's gained that distinction based on a series of Canada Constitutional Court rulings which ruled that a patient had the right to the medicine of his or her choosing. The court rulings led to the first regulatory infrastructure, the medical marijuana access regulates mm, ar, which was built around home grow. Prime Minister Harper's government then put in the marijuana for medical purposes, regulations, MMPR, which ushered in the current medical industry and set up the opportunity for Prime Minister Trudeau's government to introduce legal adult use cannabis in parliament, which goes into effect July 2018. Welcome to cannabis economy. I'm your host Seth Adler. Check us out on social with the handle can economy. That's two ends of the word economy. Paul Rosen, founding and managing partner break water, venture capital, Paul Rosen, chairman, CEO of title Royalty Corporation, right.

Speaker 1: So it's only too well at the moment is the founder of what is now called the cronos group. I founded that company with some colleagues of mine in 2013. Right. And ran it actually laid in 2012 December 16th, 2012 to be precise. It's amazing. I can remember the exact day, but it was the day that Steven Harper announced the formation of our commercial medical marijuana program. So I'd been entrepreneurial cannabis since day one is I would say what is kind of is two point. Oh. And now I'm a venture capitalist and launching a royalty company focusing on expanding the US cannabis industry. Okay. Well that's interesting and I want to talk about that. I think maybe a little bit further down the line here in this interview, which is taking place at Mj Biz con in Vegas, right? It is November of 2017 even though podcast land knows no time, but you were just saying this isn't your first rodeo literally.

Speaker 1: That's right. Uh, I, I guess I'm a veteran at this point, the, I believe the show began in 2012. It was in, it was in Denver the first year. There were 40 attendees, 40 people showed up total. I was one of those 40 as improbable as that is, and it does remind me of that old Dorothy Parker line. There's no there, there at the time. And then the following year I upped my commitment and I exhibited as a table sponsor at the second annual marijuana business expo at a race track at Olympia, Washington that the industry had grown and the show had grown to 700 attendees and exhibitors as still very folky, very small. Um, but some of the people that are now will known entrepreneurs and pioneers were there. They were all, there were. Most of them were there by 2013. Then we went to Vegas and we exhibited in 14 and 15 and the show really began to blow up.

Speaker 1: And today I guess we all feel like the show is a perfect proxy for the dynamic growth of our industry for people that are not here. It is the most dense densely attended trade show I've ever been through in my life. I just came from the bed and I work also in the global hospitality business of no interest to your listeners, I'm sure. Uh, but I was at a show at the javits center on Sunday and Monday javits center, Premier Event Center without question at the hospital yet dynamic industry and it was busy. Yeah. I mean it was not, it was. There was no tumble weed, but it wasn't this, this is wall to wall people. It's very hard just to get to the washroom and when you get there, there like an epic way. So our industry is exploding and this show is exploding right alongside of it.

Speaker 1: Yeah. Well, you know, one begets the other. I'm to get to the other. Exactly. Let's, uh, dive in on how you would have been one of those first 40 people. So let's go all the way back. Where are you from? I'm born and bred and still a proud resident of the greatest city on earth. Toronto. Canada. Okay. Fair enough. And Vancouver might argue, right? They would argue they would lose the argument, but it would be a credible argument. Will well, what is the, uh, what's the Toronto argument? The Vancouver specifically? Well, let me contextualize this. At least for cannabis, for cannabis, Toronto is the best, most important city in the world. It is what I call the capital of capital. It's where we're the bank. We are banking cannabis. We have taken more companies public. When I say we, I mean the Canadian capital market infrastructure.

Speaker 1: We've done more private placements. We have more investment bankers. We've raised more money for ourselves, but also for international companies. So in 2012, yeah, our Canadian government began to message a dissatisfaction with their previous medical marijuana program, which was a non oversight. Grow it yourself at home. Now. Harper did not put in that first one that it's a, it's an important. It came from a series of Constitutional Court decisions. Our highest courts validated that a patient with the supportive, they're practicing physician was entitled to a medication for their own choice. And so at that time we have to go back to the early 19 nineties. The liberals were empowering Canada, right? I was quite younger, younger than I am now, obviously chronologically. Right? Um, and so the first response by our government then was just to say, well then we'll let those people. There were only 200 patients.

Speaker 1: Yeah. They had no idea that there was going to be any uptake. They figured this is a stable non-growing class. A patients we're not going to build an industry for doing a. people will let them grow their own. Uh, and that's how that began. That's how the old program, which is called what's called the m and a are a now, let me just jump forward to 2012. They were now 9,000 unsupervised growers embedded in residential neighborhoods with Neeraj concern for how the safety, efficacy, sanitation security and believe it or not, even though we didn't know how to conservative government, they were lobbied aggressively by police and fire chiefs, police chiefs and fire chiefs to say, you know, we're not saying we're pro marijuana or anti marijuana, but if you're going to have a program that you kind of have this program, you're Jeff, you're causing great damage to our overall society.

Speaker 1: This isn't working, this is not working, but we constitutionally required to deliver a supply chain and if it's not going to be a grow your own supply chain. The Harper's, even though they had a palpable distaste for the product, understood that the conservative government very extremely. I mean in Canada is not a Canadian, right. Winger isn't a right winger and other. It's everything were to the left of America every so I write it to the left of your right. Got It. We will be. Our kids are going to be considered central fund liberals not about already kind of either way. Got some amount of pejorative. It's the name of our governing party at the moment, but I don't want to segue into politics even obviously a political junkie. Fascinating. Sure. So we started, when I read something, when I read the words commercial grade called commercial license to cultivate cannabis.

Speaker 1: That's when I dived in right then and there along with some colleagues which led us improbably to Denver in 2012 because the industry was taking root enough that we. Those of us that wanted to pioneer and entrepreneur in Canada had to see what was going on and the few other jurisdictions that actually we're gonna wear this Aiu, Colorado. Yup. And you. Anytime I've entered industry you start trying to figure out where are the people and the people usually are at a trade event. If I was a consumer electronics, I'd go to the consumer electronic show. When I'm in the hotel furniture business, I go to bed at one in New York City. Yeah. So this show from the earliest iteration was the only show, but it quickly developed scale to what it is now, which is the dominant and most important business to business platform. For the American cannabis industry.

Speaker 1: So when you say in 2012 when you read that it was going to be commercial grade cannabis and I have to get in, let's make sure we understand how you could have been in that position. Right. So you are from Toronto. What did you study? What did you become? What is your shirt? So seedlings of your career? So I have two degrees from a good Canadian universities. I have a Ba in economics, a bachelor's degree in economics. And then I graduated on to the University of Toronto Law School. Quick shout out our Ivy League law school, one of the top ranked law schools in North America. And I practiced constitutional law for six years, criminal and constitutional law for six years in Ontario. In fact, I was one of the few practitioners that successfully litigated a constitutional case all the way to the Supreme Court of Canada. So I was an extreme. I was a policy wonk.

Speaker 1: All he wanted to do is talk about civil liberties in the constitution. But um, I did not love the economic model of being a lawyer. I used to joke that we were one of two indices that sold at the time by the hour to two people that sometimes we're not desirable. What's the other institution? Yeah, exactly. Or politics. Yeah, that's what I could be. So I unexpectedly pivot into business. I started a side business just for a hobby and I won't bore you was a. It was an import or export or very unglamorous but. Well, but that's very common today and it's very glamorous to us Americans that you Canadians are able to import. Export. Indeed, yeah. I mean, but it was important to x importing and exporting furniture at the time, but I really my. What I was doing until cannabis came along and when I'm still do is I started a top 10 pure custom contract vendor supporting only one market, luxury global hospitality.

Speaker 1: So my company Skypad is now frankly an iconic company in global hospitality. We've been a vendor to over 2000 hotels. We've worked for some of the most famous industrial designers and architects in the world and it's a very invigorating, stimulating and challenging business. It's a management business, seth. We manage projects that take up to six months delivery. We have to collaborate with multiple constituencies, often all over the world, and it's one of the great accomplishments of my life was building that company. What is the business though? How would I understand it as a consumer, as a hotel? Are you staying? I'm staying at the Westgate. Right connected to the made furniture for that hotel. So you probably have sat on a chair I made or slept on a mattress that I didn't make them address. But you've interacted with our products dozens of times if you do business travel or recreationally travel more than that then, right?

Speaker 1: Yeah, indeed. Even a Ho. I met this thing of the wind and we. There was two items in my room that I made, which is great. It didn't get me a discount, but it's great. You don't understand. I designed the stuff that's never asked your customer for a discount. They should be asking you for the favorite. There you go. Little adage that I picked up along. I like it. I like it a lot. All right, so you were doing that for quite some time. I would imagine that company just so it's still, it's not past tense. Celebrate. You just celebrated its 20th anniversary and I ran. That was my job for 15 years until I read the newspaper one morning and saw that cannabis was going to become commercialized in Canada. I will now out myself just say that I was always pretty. I guess that was one of those people that truly self medicated with cannabis in it.

Speaker 1: In the actual sense medical cannabis you were using before. There was such a thing. I guess looking back I realized that cannabis, uh, I had, uh, I have children. I hope they don't hear this interview, but cannabis at a fairly pivotal role in helping me in my life. I think I suffered from non diagnosed add. Okay. And a little bit of minor ocd, very minor and not in any way dysfunctional cannabis. Helping those to it, it, it, it just did. Because from the moment I began consuming cannabis, like a highschool goof, it wasn't like I was thinking medication. We know we were just getting high, but I had a remarkable turnaround in my academic performance. I mean almost contemporaneous on stigma. You've said, I hope my kids don't listen to this. You just mentioned the fact that it actually medically helped you with your conditions, your rights actually turn your grades around if we enter the best.

Speaker 1: Yeah, actually I think for them to hear my kids, I'm just. I'm making a joke. My kids are fully aware. I don't think that I've ever articulated it quite that way, but it's very difficult to be the CEO of a publicly traded cannabis company and have kids that are of my kids' age and not obviously say I'm pretty comfortable with the plant. Yes, but the truth is that it's important that those of us that have seen cannabis as not just a goof or a fun time, and I enjoy the domain. Right. I also enjoy the experience of what this can do for me. Good time. Right. You know? Well, it's A. I'd rather have a edible cannabis product than drink alcohol. That's if I was out for a Saturday night, but really what cannabis really was for me was a form of medication and unfortunately what it was not was supervised by a physician or produced by a quality assured, sanitized a regulated body, which is what changed in 2012 when you read what you read, which begat a Kronos, I guess did.

Speaker 1: It began what is now called the cronos group. Uh, it's exactly right. We, it was clear to myself and my founders that we didn't have to imagine is there a large cannabis economy? We knew there was a large cannabis economy. The challenge was can we create, can the government create a platform in which private enterprise can scale up and become what it is right now, a multibillion dollar industry. And when we, when I put my name on it, seth, and actually suffered the reputational risk of telling people that I'm now in the cannabis industry. Let me tell you, in the hotel industry is pretty conservative. So there were a lot of clients that said, I can't buy from your company anymore. Which caused me greatly. That did happen. Yes. It happened multiple times. It did, you know, they're just felt that back in 2013 that I was a contributing towards the moral decay.

Speaker 1: Uh, and I kept it. I kept it quiet, which is a mistake because the only way to overcome the stereotype of that you're the canvas user is not what you think it is. It's a call it a rainbow coalition and the only way to fully disabuse the population a larger that stereotype is for all the people that are surreptitiously consuming cannabis to put up their hand and say, this is me too. Yeah. And when we do it, we see that it doesn't look just like the activists and God bless the activists. They provided the, the foundation in which we can now do what we're doing. And I hope in many cases they crossover where possible, but the activists were viewed by the population as the entire face of cannabis. In the same way that I would argue that there was a time when we had a very reductive and stereotypical view of people that were a same sex oriented.

Speaker 1: I'm just gonna say lgbt and it's a really, I think a powerful analogy, and I say this all the time, hopefully this is not controversial. I believe at 25 years ago, if you play the word association game and you asked enough people, you know, just give me the image. First thing, don't worry about political correctness. Don't think about what I want you to say. Homosexual man. What do you see? And I'm telling you back in 25 years ago, it's going to be a cross between the village people in a pride parade, right? Or Richard Simmons, and that's all part of the Lgbtq plus community. And no way are we saying that is not a valid, but we must hook the activists for the whole population. Why? Because the other 95 percent would have suffered legal, economic and social consequences. So they could not judges, doctors, lawyers, school teachers, school teachers, school schoolteachers they could not afford because they lose their jobs.

Speaker 1: Yep. Oh my God. You're must be. You're a gay man. No, you're a pedophile. This type of insane conflation. Right? So I get it. So now today, let's play that same word association game ask in most parts of the United States and Canada asked those same as that same question and you're going to get a very different answer. You're gonna get a not one simple stereotype. You're gonna get a much more nuanced answer. It's my grandmother, it's my aunt. It's my wife is my niece. It's Kinda anybody. It's, it's, it's one of the doctors. I know one of the lawyers, I know one of the neighbors. I have one of the architects. Yep. Uh, it's, it's the whole rainbow, if you will. Okay. Now let's just extrapolate that. The cannabis. So I myself as recently as 2012, 2013 when I entered the industry, found that when I told people might, and my other industry, which was not in the cannabis, I suffered economic penalties.

Speaker 1: I did when I was a lawyer. Oh, when I was saying before of clients is a, in the Skypak skypad in my. I mean I had clients that were very conservative and politics really felt that marijuana was the devil's Dandruff. The devil's drug, excuse me, devil's drug. And you know, the attorney general said not that long ago that good people don't do marijuana. So I have some customers. There are some people that still believe that, and so they wouldn't want to buy from my worldclass furniture manufacturing company because of my association with cannabis at this point, I'm like, that's your problem. I am loud and proud to use words from the Lgbtq plus community. Exactly. Loud and proud is what I'm saying. I'm so proud of what our industry has committed doing for every, for society. We are. I don't want to get to self grandizing on behalf of the industry, but are we not building a better world right now?

Speaker 1: Certainly feels that way. I'm confident we are. So not only am I proud, I've never been so proud of anything in my life is what we're collectively doing in global cannabis. That's of course a business for me. Uh, well a business for you. So let's make sure that we kind of connect the dots of your career. So the Kronos you just take us through how long it took from when you read that in 2012 to two producing cannabis, so to speak. So our first license was granted in October 2014, which, um, which allowed us to cultivate. So our first, our first exposure to revenue through Pharma can capital now doing business as the cronos group was in early, late fall, 2014. Our first investment, which was a company called the peace natural project still around and was Canada's first licensed under our MMPR program. Yep.

Speaker 1: First new license, I should say. They booked their first sale shortly after getting their license, uh, within a few months. So we began to expose us off to revenue late in 2014. Okay. Expose ourselves to revenue. That's such an interesting grouping of. We didn't know these were companies that were using, weren't giving, issuing dividends to their investors. So they were, they were earning revenue to fund their business, but the industry was still pre dividends. So we would have picked up on our balance sheet a, a recognition for our share of the revenue. But we weren't getting checks. Yeah. When did things change then? Right, because now we're. We've got publicly listing, we've got import export. I can tell you the story of Canada pretty quickly. How Canada, because Canada is the most powerful cannabis jurisdiction in the world. I don't think there's anyone that could credibly argue that right now with me in London and I made a keynote where I said I kind of proved that, in my opinion, a mathematical certainty.

Speaker 1: Sure. So here's how Canada blow up. It started with the fact that we had a federal government enforcing implementing a program that was constitutionally guaranteed, so we'd have to worry about the next government is saying not so much cannabis. We knew that the courts demanded at. Yeah, that was important to us. That gave investors a little bit of confidence to say that the government can make it go away. So the federal government one to private enterprise really leapt up. I don't think our harper government expected so many new companies to form to seek these licenses has been like 2000 application for cultivation licenses. We were going along fine. It was not small, tweed was already public, we were getting ready to go public at m at m and j Nfr, Megan. But what really ignited this industry was the, uh, election of Justin Trudeau and the specter of legalization that blew up our capital markets, which led to massive expansion, which led to what we have today, that the international hub of cannabis at the time, he was not expected to when he started the race as an underdog and ran a, I'm sure that campaign that other political organizations that will study for generations.

Speaker 1: Uh, he was, he was loud, if you will, about cannabis. He owned it. I mean, he, he, he was right. And everyone who was the loud, he was right. And I, I, I on this file, I'm glad that we have such vision and leadership and whether you're liberal or Conservative, this is an important issue that should transcend political lines. It certainly isn't. Their estates is the least divisive issue between Republicans. Important issues between Republicans and Democrats. So, but Trudeau, once we saw that we were going to read once when he won and he did not back off on that commitment. Yep. Then the capital markets went on a bonanza and we, we have what we have today, 41 public companies, a market cap of close to $10,000,000,000, billions of dollars of raised and many international companies using our unique capital market platform to grow their businesses, whether it's anthis capital where I'm on the board of international economists.

Speaker 1: In way I'm golden leaf. I'm just coming up with a few names again and again, Canadian Corporation again and again and again. So we are the capital of capital for cannabis. Now, just on a smaller note, right? You mentioned a bad players in the early days, there were also a good players or or folks trying to do things the right way as far as the dispensary's in Vancouver. Yeah, right. The, the bad players would never. The operators, they were some of the financier's. Let me be very clear on that. The operators were sometimes not competent, but they were never bad. There we go. I mean, with a few, there's always an exception of course, but they were earnest and they were trying their hardest. There we go. And many of them were up to the task and some were not. As we've gone here with the Trudeau government, the one of the key questions has been, what are we going to do about retail?

Speaker 1: And uh, here we are in the press room with the sodas behind us that very clearly made its way into our recording. Um, but uh, where are we as far as retail in Canada? Okay. So here's exactly where we are today. And it's, when I say today, I mean this is the, as of this morning, because we're, we get real time updates the federal government has in Canada, we have a, we have provinces not stayed. So we have a division of powers. What is the federal government's responsibility? What is the federal government's responsibility? And then when there's obvious overlap such as security or health care, how do we allocate? So the federal government has delegated the distribution to each province. Okay. So you will have, we have 10 provinces in Canada. Yup. Territories. But they, each province will go at it their own way, but they will be required to purchase all product from the federal supply system supply system.

Speaker 1: So it's a harmony and we working. Our federal government is working in harmony. That's true. Robin says cannot decide to buy. They cannot. They're licensed distributors. Must buy from accredited federal producers. But after that there's room for regional variations. So for example, in Ontario where I live the most populous province, we're going to have at least that rollout of government opoly over distribution. And I shouldn't say for people that are shocked by that, we have a government monopoly over the distribution of wine and spirits. Spirits for sure until recently. Wine, beer and spirits. And also healthcare. By the way, we have a monopoly on healthcare. We just have universal healthcare. We have like private practitioners, private health clinics. But I mean if you want to buy a. until recently above the wine, beer or vodka or any other spirit, you had to go to the Lcb or the liquor control board of Ontario.

Speaker 1: There actually is a very good retail experience now. So our government, Ontario wants to just replicate them model for a number of reasons. It's union jobs, it's public service jobs, so the most of the industry thinks it's a terrible idea and we're hoping that the government will, they won't be that Ontario will start with this, but then it introduced. Okay. That's the REC market. Well, hang on one sec. I just want to make sure that I understand. Most of the industry thinks is terrible idea because we're going to put cannabis next to liquor. No, it's not the same shell. No, no, no, no. Hello. Thank you for clarifying. That's it. We're going to bifurcate. You're going to have a very different location and you can have different rules. They will be, there'll be a whole different set of a social covenant that. But um, the reason we say it's a terrible idea is we're just not confident that they're going to provide an authentic enough retail experience to compete with the gray market.

Speaker 1: And ultimately because the cultures are different, the, you know, someone who's an alcohol fan, so to speak, is different than someone that's a cannabis fan. It's, it's a different. It's an entirely different product so it doesn't make. It doesn't. I actually think the you need to have my thing, you need to have a multifaceted distribution where the drugstores and the pharmacies are going to be part of medical distribution. I fully believe that private dispensary's with proper oversight, security plans and like getting rid of the elements that make it not necessarily safe or durable. Yeah, but once you have a platform that allows regulated actors. I'm a big believer in private enterprise. I don't think the government can do it as well. What does the government do as well as private enterprise other than deliver essential services, which I'm glad but so I hope that the Ontario government realizes that they can have their stores, but they should allow other actors in his will.

Speaker 1: Let me now go to some other provinces. Alberta sure is saying we are going to have private dispensary's, I don't know the dispensary's, but they're going to be private retailers and so Manitoba, they're going to private retailers. So there was already an application process in Manitoba where I can apply to get a distribution license and presumably open something like a dispensary in Manitoba, so it's going to be by province, by province, a Mary Taj, if you will. We have spoke about wine earlier, right? It will, but it will be. But there'll be the consistent thread and this is important is that they will all be buying from the federal sources and those federal sources are dispersed across the country. So they will be inter provincial trade. For example, when New Brunswick announce there for a supply contract, they awarded some of the supply contract to a company based in New Brunswick organigram and they awarded some of it to a company based in Ontario County Canopy Growth Corporation.

Speaker 1: I anticipate that when Quebec, which is going to sell through their liquor store, the Sqa, they will not say a contract. It'll be a made up of a cross section of good producers from across the country. So we're going to have a different different sort of a system depending on which province you're in, but you will be able to buy, if you like, for example, can trust product, you should be able to buy it in every province. So as you have mentioned a couple of times to your political junkie and you mentioned that, what can government do better than a private enterprise? Nothing except for essential services, which includes healthcare for you Canada. Absolutely. So when, when folks usually sit across from me and say, what can the government do better than private industry? Nothing. They are including healthcare in that, right? For my American friends here, where, where do you do enough business?

Speaker 1: You are here in the United States. Have enough. I work at as actively in the U. My dad is a US company based in Canada. What would you say about healthcare that we can all learn from? I always was taught, never talk about religion or politics of the people. Well, I'm talking about healthcare, right? I don't know what you're talking about. Well, it's hard. So we view. I view healthcare as a human right, as do I, and so I view that every citizen is entitled to that Basic Human Right. Okay. So I start with that proposition. So do you understand those that say it's a privilege? I fundamentally do not understand. Only a person that has that privilege could say that. Oh, that's interesting, right? All you need to be as on the wrong side of that economic equation and you will not have that point of view. So, uh, I have no doubt that the poor have compassion for the rich and the rich have some compassion for the poor.

Speaker 1: Yeah. Interesting. Yeah. Which brings us to just quickly, I know you don't really want to talk about it as far as global politics is concerned. Let's not speak of North America, right? It is globally. We are seeing there is a nationalist uprising, so to speak. Meaning that folks, uh, you know, John q public is not so satisfied with what's been going on as far as who's been in charge. What are your thoughts? You know, I think depending on where you go in Canada were largely happy with our government and when I say governments, I'm gonna Backtrack. Government is much better at private enterprise at, at putting the interests of the community ahead of the interest of its shareholders. There you go. Okay. So I, I, there's a fundamental role for government in a will govern society. And this is coming from a pretty sizable investor, right? I, I'm one of the, I think I'm the most, one of the, one of your largest investors.

Speaker 1: I'm a, I'm a, I'm a, I guess I'm an, an ran capitalists and FDR Social Democrat. So I believe in the power, I believe in the incredible ingenuity of the market. And I do believe that regulations is essential to control the market because when left to our own devices, we tend to lie, cheat and steal. So, and this gets back to my dad has this point of view, which is, if you believe in God, uh, the, one of the very first things he did was give us regulation. So the first 10, the 10 commandments, you know, not a lot of them, not a ton of hope, just sensible regulations. I'm just laughing because yes, we are, we are, we are just two things that if I could say there's two things I like to say when I deal with people that I find are of questionable moral judgment, I say about them. For them, the 10 commandments is to a, to do list to do.

Speaker 1: That's good. You said that's two things, right? One is an old joe, I'm sorry, I don't want it to irritate, but there's an old joke that when, uh, uh, when Moses came down from the mountain, he said to the Israelites, uh, I have good news and bad news. The good news is I got them down to 10 and the bad news is, and he left. And adultery. I'm a monogamous. I want to tell you, I practice monogamy. It's the best way to have a longterm durable marriage. But at the job needs a punchline. Is What your point is well taken is that we could, if we don't want to live in a state of nature where we just think that everybody will behave ethically, I look forward to that society one day. We're not quite there yet. Maybe cannabis will help engender that. Could help. Certainly. It certainly seems to make more people a little bit more, I would say empathetic, a little bit more engaged.

Speaker 1: I'm pleasant. Yeah. I would say, you know, would you rather hang out with a drunk person or someone that had had a cookie? And I would say, well, if I want to be, you know, potentially abused or, or just see someone make a mess of themselves, uh, I would go with the right person, but I don't. But if I wanted to maybe have an intelligent discourse, enjoy delicious food, listen to music, laugh at comedy, and really have an authentic experience, I would pivot to cannabis. I like all those latter things. I don't like those former things. So cannabis is my wellness product of choice, which brings us to the three final questions. I'll tell you what they are and I'll ask you them in order. What's most surprised you in cannabis? What's most surprised you in life and on the soundtrack of your life? One track, one song that's got to be on there.

Speaker 1: Oh my God. These are such good questions. First things first, here we go. What has most surprised you in cannabis? Just how fast we became big in Canada. How I. I never imagined seth. I still can't believe what my life looks like. Uh, I, my life is so fundamentally better than it was when this started. And when I look around at the industry we built and we're about to have recreational cannabis coast to coast in Canada, grown in authenticated pharmaceutical grade facilities. So for that to be happening right now when I'm walking into facilities that are a million square feet and there's people wearing lab coats and surgical masks and there was a commitment towards delivering a quality product. I just can't believe how quick this is happening. It's absolutely staggering. I'm a breakout entrepreneur, but nothing has ever gotten this fast. This is unbelievable. So that there's.

Speaker 1: What's what surprise, what stuns me is not that we're here, is that we're already here. Yeah. This quickly, this big, this big. I figured about three years ahead of where I thought we were going to be with constellation brands, made their equity investment and canopy. I thought, wow, I knew that. I knew that was gonna happen, but I just didn't think it was going to happen yet, and it did. It did. What was your second question? What's most surprised you in life? That my family loves me as much as they do and that I've earned their love. It's because you know you very well is your point and so for them to like you this much, it's like winning a lottery or you got to have so many to have my family support me, so fundamentally in everything I've ever done is the greatest gift anyone can have, so I'm surprised at my good fortunate in that regard. There you go. Congratulations and thank them on my behalf. I will. Now you're one. This is a tough one. Exactly. So on the soundtrack of your life, one track, one song that's got to be on there. That doesn't have to be the perfect song. It doesn't have to be the most appropriate song. It's just along the way as your life has gone. This one song would certainly be on the soundtrack.

Speaker 1: I got to think about that. I'm a music nut. Oh. So then if you, if you've got multiple songs, you can just start. I'm really think of the ones. I mean, I could go. I have a few I gotta throw. Some people would say it was fifty cents. Get Richard die trying. That's fair. It's appropriate. But I would say I might say it ain't no mountain high enough by Ross. Yeah, sure, sure. But, um, goodness gracious. I think the one song that really sums up what I kind of believe is, um, it's coming to me. It's coming to meet. It's forming in my head right now. It's, um,

Speaker 1: across the universe by the Beatles. Oh, look at you. You've come through. Thank you so much. Please keep going. Please keep doing what you're doing. All right. Let me also say to you what I've said to at least a thousand people in these last four days and I'm going to hug you and I say it. I'm a hugger. Yeah, likewise. But to all of us and to you, uh, first of all, one, congratulations on your success because I know there's a lot of successful people and to thank you for your commitment to building this industry because this is a true. It takes a village to raise a child.

Speaker 2: So thank you. And there you have Paul Rosen and ann rand capitalist and FDR Social Democrats. A unlikely combination, so very much appreciate Paul's time. Appreciate your time. Stay tuned.

Read the full transcript:

Become a member to access to webinars, quarterly reports, contributor columns, shows, excerpts, and complete podcast transcripts

Become a Member

Already a member? Login here.

Subscribe now to get every episode.

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