Cannabis Con: June 2022

Grizzle is known for hard hitting cannabis research that delivers the big wins, we are now taking it to the next level with Grizzle Cannabis Con. Roundtable discussions and live Q&A with a targeted group of CEOs who are pushing the industry forward. This isn’t a boring zoom invite broker conference, we’re going LIVE on YouTube and Twitter, open to everyone.

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Still can sell real estate to raise money for growth. Don't need debt or to issue stock.

Seeing some very good values on private assets. Close to being too juicy to ignore. A downturn would be an excellent opportunity to buy great assets for cheap. Positive for cashflow, not just revenue growth.

Brand partnerships (cookies) will always be important, partner brands bring consumers through the door, gives TerrAscend opportunity to introduce in-house brands to customers.

Useful summary of what to expect in the coming 9 months. Lots of scaling, better margins, positive cashflow.

Kim prefers to leverage unique customer data she has to build brands from scratch. Would be a waste of her large retail footprint to lean too hard on paid partnerships with third party brands.

Most exciting new products to watch are infused powders and minor cannabinoids (THCv).

Trulieve to continue expanding into limited license states and is comfortable taking on more debt to grow at current debt levels.

Funding drying up in cannabis land is good for Trulieve, she will look to buy assets and has enough cashflow to get through any downturn.

Hooks consumer with exhaustive info on strains and matches them with the brand, dispensary or product they are looking for.

Can't take a cut of the final transaction but makes money off the referral now. Legalization will open new opportunities for consumer to buy the product and receive delivery all while staying on Leafly's platform.

Focusing on making the Leafly app more and more useful so consumers will spend more time there. The huge majority of consumer interact with Leafly through mobile already.

Also ramping up ad business. More tools for brands, more opportunities to put targeted, useful advertising in front of a customer as they interact with Leafly.

Market specializations is the future. Companies that only research and perfect genetics will then sell those genetics to companies who just grow for example. Focus on what you do best.

Within the next 12 months, a private insurance company will offer to cover cannabis products as a marketing ploy to capture more customers. Will open the floodgate on medical reimbursement.

National legalization is a huge long shot. Most likely outcome is descheduling of cannabis and then state legalization of commerce and banking. Similar to alcohol in Alabama, county by county legalization.

Cannabis is two markets, heavy black market user (OG) and new user. Two ways to grow demand. New products for casual users or higher quality and availability for a price that approached that of the black market. Occasional user more profitable per unit than OG user while OG user spends more.

Consumers judge quality largely on how high the THC content is right now. Will take more education about benefits of strain + terpene profile + overall high to turn that thinking around.

Government is letting down consumers with packaging. So much waste.

Biggest regulatory problem in Canada is 10mg limit per edible pack. Hurting adoption of edibles.

Three formats with fastest growth potential are full spectrum edibles, pre-rolls and products with minor cannabinoids (THCv).

Biggest hurdle to mass adoption is requirement that infused drinks are only sold in dispensaries. Almost no fridge space in dispensaries and fridges are often hidden in the back. National legalization would be a game-changer.

Both Happi and Cann are content with duration of high and onset time. Think the technology is pretty much good enough. They aren't exactly trying to mimic feeling of alcohol.

Consumption lounges will be a game changer for infused drink use. Only in CA, ramping up there right now, but will expand over time.

Happi is going after female with health and wellness needs while Cann is more focused on alcohol replacement in social situations.