Higher Exchanges

In this episode of Higher Exchanges, we sit down with Seth Yakatan, Partner at Katan Associates and Strategic Advisor to Glass House Brands. Known for his candid insights and strong voice on LinkedIn, Seth joins us to unpack the hard truths, overlooked opportunities, and evolving dynamics in the cannabis capital markets.We dive into:Seth's journey into cannabis investing and how he became one of the most outspoken figures on LinkedIn.A deep look at the Glass House x LEEF Brands partnership, why it's a rare win/win, and how both sides view the deal.What's working right now: Why fundamentals, discipline, and the low and middle-market privates are where Seth is focused—and how he's identified 100-150 compelling companies.What's broken: From flawed regulatory frameworks to the dangers of fast and loose capital and the illusion of scale without exits.The hemp and beverage space: Where Seth sees the real opportunities and how investors should approach the category.

Zachary George joins Higher Exchanges to share the strategic vision behind SNDL's transformation into a debt-free, cash-rich cannabis leader.We cover:

In this episode of Higher Exchanges, we're joined by one of the sharpest minds in cannabis policy and strategy — Hirsh Jain of Ananda Strategy — for a fast-moving, wide-ranging conversation on where growth is actually happening in the cannabis industry.We cover:

In this episode of Higher Exchanges, strategic advisor and industry veteran Mitchell Osak joins us to unpack what it really means to win in today's cannabis landscape.We dig into:

In this episode of Higher Exchanges, Jesse Redmond and Morgan Paxhia dig into three pressing topics shaping the cannabis industry.

In this episode of Higher Exchanges, we're diving deep into the latest cannabis investment trends, exploring key shifts in credit markets, pricing strategies, and hemp sentiment with Colin Ferrian, Portfolio Manager at Poseidon. Topics Covered:

Join us as we sit down with Sam Brill, CEO of Ascend Wellness Holdings, to unpack the latest in cannabis investing and industry strategy. We cover:✅ Ascend's strategic evolution and key takeaways from Q4

In this episode of Higher Exchanges, we sit down with Erich Mauff, Principal at FiSai, to explore the evolving cannabis investment landscape. From his time at Deutsche Bank and Jushi to launching FiSai, Erich shares key lessons learned.We dive into:

In this episode of Higher Exchanges, we sit down with TerrAscend Executive Chairman Jason Wild and CEO Ziad Ghanem to break down the company's Q4 and full-year 2024 results. We cover TerrAscend's key market strategies across New Jersey, Maryland, Pennsylvania, Michigan, and Ohio, and dive into how the company has been strengthening its balance sheet and tax position.Jason and Ziad also weigh in on shifting consumer trends, including the decline in alcohol consumption and the potential opportunities in the intoxicating hemp market. Finally, Jason Wild addresses a crucial question: What would he say to a frustrated TerrAscend investor?

This week on Higher Exchanges, we're joined by Nick Gastevich, aka CannaVestments, Vice President of V. Gastevich Investments, for an in-depth look at cannabis industry earnings.

In this episode of Higher Exchanges, we sit down with Sammy J, VP of Corporate Development at C21 Investments, to discuss the state of the cannabis industry four years into the Great Cannabis Drawdown. Sammy shares his insights on the key factors behind the market's decline, including revenue drops, margin erosion, and overspending on growth.We explore the potential catalysts for recovery, from value-driven opportunities to possible regulatory shifts with S3, SAFER banking, and the BSF lawsuit. Sammy also breaks down what investors should own when the next bull market hits—reform dependents vs. independents—and how the path to industry recovery may look different from past cycles.Whether you're an investor, operator, or industry watcher, this episode offers an in-depth look at what's next for cannabis. 

In this episode of Higher Exchanges, we sit down with Scott Grossman, VP of Corporate Development at Turning Point Brands, to dive deep into the state of the regulated cannabis and hemp markets.We explore:✅ Scott's role at TPB and how legacy brands like Zig-Zag provide unique market insights✅ Which states are seeing strong unit growth—and which are struggling✅ Why cannabis stocks are down 95% and the key drivers behind the downturn✅ What needs to change for the industry to recover and grow again✅ The most important reforms to watch—and when they might happen✅ Why is the MSOS ETF selling Green Thumb Industries?Plus, Morgan has another insightful ask Grok comparing the gold and cannabis industries. 

Morgan is fresh off the plane from Vegas, and we start the show by asking how Poseidon is approaching investing in cannabis beverages. We discuss opportunities, risks, and ways to get involved. Twenty minutes in, we are joined by Craig "Lewie" Lewis, Founder and CEO of Flyers Cocktail Co., to explore the fast-growing non-alcoholic and hemp-infused beverage industry. Lewie shares his journey into the space, the "aha moment" that led to Flyer's creation, and the surprising trends—like the fact that 54% of Gen Z legal drinkers have never tried alcohol. We dive into the market size, regulatory challenges, and federal lobbying efforts, including the latest on the Farm Bill and beverage carveouts. On the business front, we explore Flyer's positioning in a crowded market, direct-to-consumer vs. wholesale strategies, and the role of AI in shaping product development. Plus, Lewie gives us a sneak peek into new product launches and key trends to watch in the next 18-24 months.

Jesse just joined LEEF Brands as Head of Investor Relations and Business Development. LEEF is one of the leading producers of bulk extracts in California, has a dispensary in Palm Desert, and a wellness line called LEEF Organics. LEEF CEO Micah Anderson joined Jesse and Morgan to discuss his background, the origins of LEEF, and the unique set of fundamental catalysts ahead for the company in 2025: 1. Planting Salisbury Canyon Ranch2. Advances in extraction technology3. Out-of-state opportunities4. Bitcoin treasury strategyThe show ends with the guys asking Grok if Salisbury Canyon Ranch may become the world's largest cannabis farm. This was a fun show, thanks for listening!

This week's show starts with a conversation about whether we are seeing signs of the bottom. Jesse and Morgan contrast sentiment with valuations, drawing parallels to the tech bubble and recovery. Kyle Sherman, CEO of Flowhub, joings the show to talk about his cannabis journey, insights from visiting dispensaries across the U.S., and key trends shaping the industry. We explore price sensitivity, differences between public and private companies, and how Flowhub's data drives innovation. Plus, we discuss the potential role of cryptocurrency in cannabis and how companies like LEEF Brands are integrating Bitcoin into its ecosystem. Morgan wraps up the show with a timely Ask Grok about hemp beverages at concert venues. 

The first show of 2025 starts with Jesse and Morgan reviewing Senorita Beverages. This is Agrify's first hemp beverage acquisition, and the guys give their thoughts on the two flavors they tried and where they fit in the evolving beverage landscape. Jerry Derevyanny, Partner at Bengal Capital, joins to discuss what has gone wrong with the MSO model. The guys discuss cracks in the state-led growth story, particular challenges facing Florida, and which operators may have the most difficulties ahead. Jerry points out potential opportunities on the debt side, which gives investors greater security than equity investing. The conversation concludes with an analysis of how banning or approving intoxicating hemp may drive more revenue, and Morgan asks Grok about the economic impact of dry January. 

The boys are back for the final show of the year. This week, they discussed what they got wrong in their 2024 predictions and made fresh predictions for 2025. Topics covered include: - Rescheduling timeline- Boies Schiller Flexner lawsuit- Potential Republican reform- Price compression- Intoxicating hemp- Potential M&A- Dispersion in returns and stock prices- The future of intoxicating hemp, and more...Many thanks to everyone who listened this year, and we look forward to more conversations in the new year!

The guys are back from traveling and eager to share lessons learned from the road. Morgan was in Boston for the Boies Schiller Flexner oral arguments and explained what happened that day and the next steps for the case. Jesse went to MJBiz in Las Vegas and offered his take on sentiment, outlooks, and how intoxicating hemp has penetrated the Nevada market. The show also covers Verano Co-Founder Sammy Dorf joining Flora Growth as Executive Chairman to accelerarte entry into the THC-infused beverage market. Plus, there is a conversation about Texas potentially banning all THC products, which would damage its network of approximately 7,000 smoke shops. Finally, Morgan offers a thought-provoking Ask Grok about cannabis, mental health, and productivity.

This week's show focuses on the next steps with the Boise Schiller Flexner lawsuit. Oral arguments are on December 5th, and we are joined by Jason Wild, Emily Paxhia, Erik Luna, and Weldon Angelos to dive into the details. Topics covered: * Overview of the case.* What's happening on December 5th? * Key parties involved. * Benefits of the case versus Schedule III and SAFE Banking.* Potential outcomes and timelines. Please consider supporting the case. You can donate here: https://atach.org/constitutional-challenge/

This week's show begins with Morgan and Jesse talking about the evolution of Agrify. A once stale and forgotten business has new life with an investment from Green Thumb Industries and evolution into intoxicating hemp. The guys talk about the path to get here and how it may evolve. AYR Wellness Interim CEO Steven M. Cohen joins the show and shares his background and vision for the future. We cover the lost opportunity with Florida's failure to pass Amendment 3, and Cohen explains why AYR is still moving forward with cultivation expansion in the Sunshine State. We dig into how AYR can evolve in Ohio and New York and what other growth levers the business has. AYR has a large amount of debt, and Cohen gives his perspective on how they can service the debt and maximize the probability of refinancing it before 2026. The conversation closes with Cohen offering his perspective on the Trump administration and potential political progress in 2025. 

This week's show starts with an update on Jesse's experience at Benzinga's California Cannabis Spotlight conference in Anaheim. He explains who attended, what was discussed, and why you can't paint California with one brush. Jesse points out that California operators like LEEF Brands (CSE: LEEF, OTCQX: LEEEF) have transformational catalysts on the horizon and may stand out in 2025. Ascend Wellness (CSE: AAWH, OTCQX: AAWH) CEO Sam Brill joins us and shares his background and how he hopes to evolve and optimize the business. We cover the company's cost-saving initiatives, recent quarterly results, Ohio's launch, and the importance of value brands. The conversation with Sam concludes by getting his perspective on the recent political appointments and why he's excited about the next step in the Boise Schiller Flexner case. 

It's been a wild week in cannabis with elections and earnings results. We were joined this week by Dai Truong, Managing Director at Arlington Capital Partners, and Doug Kass, Founder of Seabreeze Partners. The conversation begins with a recap of the elections, emphasizing Amendment 3 failing in Florida and Republicans sweeping the executive and legislative branches. Doug Kass makes a surprise appearance to share his perspective on the industry challenges and the short-term invest-ability of the space. The need for new states and federal catalysts is impacting investor sentiment. The conversation concludes by analyzing the latest lackluster earnings results. While margins and adjusted EBITDA remain relatively strong, the industry is struggling to return to growth.

With the election just days away, we are happy to have Hirsh Jain, Founder of Ananda Strategy, join us to break down all the races. We start with the Presidential election and handicap the outcome and potential consequences of a Harris or Trump victory. Cannabis is a state-led growth story, and several new adult-use states are on the horizon, with none more significant than Florida. We assess the chances that Amendment 3 will be passed and dig into smaller states like North Dakota, South Dakota, Nebraska, and Arkansas. Finally, we cover the control of Congress and potential implications for SAFER Banking and other legislative progress. 

This week's show has two special guests: Dan Neville, CEO of AFC Gamma, and Brady Cobb, Founder and CEO of Sunburn. The episode begins by discussing the vibes in Florida as we head into the adult-use vote on November 5th. Brady shares his optimism and how they are preparing for the potential adult-use launch. Dan offers his perspective on the Sunshine State, the deals they have done, and what they look for when evaluating Florida operators. Brady drops off, and we dig deeper into the AFC Gamma business and how it differs from other debt funds. Dan explains how they underwrite investments and manage risk in the portfolio. The episode concludes with Dan sharing what he sees as a favorable and unfavorable environment for their portfolio and his views on the potential catalyst ahead in 2025. 

Morgan and Jesse are back from a busy week at the Benzinga Cannabis Capital Conference in Chicago. This week's show focuses on what they learned at the event, and they both share their three biggest takeaways. Topics include institutional involvement, hemp, M&A, Ohio, and more. The guys also discuss the Gartner Hype Cycle and how we feel deep in the trough of disillusionment. Investors feel impatient and fatigued, which contrasts with what may be an exciting set of catalysts as we head into 2025. 

With no guests this week, Morgan and Jesse had time to catch up on several topics. The episode starts with an update on a recent X poll about moving off Spaces and how the podcast may evolve. Jesse and Morgan are heading to the Benzinga Cannabis Capital Conference in Chicago next week and shared what's on their schedules and how to make the most of the event. It would not be a cannabis podcast without addressing politics, and the guys talk about the Democrat's recent comments. Jesse stumps Morgan by asking which candidate is better for cannabis and then has difficulty answering the same question. The rest of the show focuses on California. Statehouse appears to be heading to receivership, and Morgan explains the history of the business and the steps that contributed to the company's problems. They also review the demise of Ignite and the incremental progress the state is making with removing double taxation and allowing cannabis cafes.  

This week's show begins with a discussion about Senator Wyden's Cannabinoid Safety and Regulation Act, which proposes more regulation for the hemp industry. Jesse and Morgan review the key points and how they may impact the intoxicating hemp market and legal cannabis business. Grown Rogue's CEO, Obie Strickler, joins the show to share how the company has cultivated a low-cost flower production advantage and expanded to new markets. We review the company's core operations in highly competitive Oregon and Michigan markets and attempt to get Obie to explain the secret ingredient to their low-cost advantage.The conversation evolves into exploring expansion opportunities in Illinois and Michigan. We also cover the company's strategic advisory agreement with Vireo Growth in Minnesota and Maryland. Finally, Obie shares what risks an investor may consider when investing in Grown Rogue.  We apologize for Obie's connection issue. We record live on X, and this week, the internet was not our friend. 

This week's show starts with a conversation about the large number of CEO replacements this year. Thus far, AYR Wellness, Ascend, Curaleaf, and The Cannabist all have new leadership. Jesse and Morgan discuss what's driving the changes and what makes a qualified cannabis CEO. Emily Paxhia, co-founder of Poseidon, joins 20 minutes into the episode live from Florida. She's been in Tallahassee and shared her perspective on the obstacles in getting Amendment 3 passed and potential hurdles with the implementation. We also dug into what it takes to succeed in Florida and the challenges and opportunities associated with mandatory vertical integration. Finally, Emily explains how what makes a good medical dispensary may not translate to adult use and how the state's over 130 million annual tourists impact the cannabis industry. 

Morgan and Jesse just returned from Glass House Brands' first analyst and institutional investor day and were joined this week by Glass House CEO Kyle Kazan and President Graham Farrar. The group recapped the day and shared some of the highlights from the presentations and tours. Glass House is a single-state operator focused on the California market. We walked through the state of California cannabis and the challenges and opportunities it presents. Kyle and Graham helped us better understand the retail climate and CPG opportunities and explained their continued success in the wholesale market. The company is in the process of building out Greenhouse Two, which is a special greenhouse with almost 11,000 HPS lights supplementing the power of the sun. Glass House is considering using this facility to grow Farm Bill flower, or what some might consider THCA flower, that is compliant with the 2018 Farm Bill. We cover the potential to enter new states with Farm Bill flower, direct-to-consumer options, and how pricing compares to California cannabis. The team also explained the risks of the dynamic political environment and the risk of potential changes to the Farm Bill language. For this reason, they are weighing all options before making a final decision to enter this market. Finally, it would not be a cannabis conversation if we didn't discuss politics, and Kyle and Graham shared their thoughts on Schedule III timing and the path to higher exchanges. 

Jeff Schultz, Partner at Foley Hoag, joins the show this week to help us understand the complex political catalysts ahead for cannabis. We start with rescheduling, and Jeff offers his perspective on the ALJ hearing and when we may see a final ruling. A Garland Memo may follow the final ruling and Jeff explains the memo's importance. SAFER Banking may become topical again late this year. We discuss the importance of SAFER in light of Schedule III, and how it would complement a Garland Memo. A combination of Schedule III, Garland Memo, and SAFER my unlock uplisting, and we debate what's needed to get to higher exchanges and when this may happen. We wrap with a conversation about state catalysts and dig into adult-use opportunities in Florida, Pennsylvania, Minnesota, and a handful of smaller states. 

The rescheduling process got extended with the announcement of the ALJ hearing on December 2nd. The show starts by discussing whether this is categorically bearish or if going through a more thorough process may yield a net benefit. Jesse and Morgan debate whether this impacts the broader thesis and the types of companies you should own. David Goubert, CEO of Ayr Wellness, joins the show about twenty minutes in and shares their perspective on the ALJ hearing. The conversation transitions into AYR's 2Q24 results and steps they can take to drive more revenue and boost margins. AYR operates 94 dispensaries, and 76 (80%) are in states that may soon transition to adult-use sales. David gives his thoughts on opportunities in Ohio, Pennsylvania, and Florida, where AYR operates 65 stores. Finally, the guys talk about the intoxicating hemp market and how AYR may approach this emerging category. 

This week, we were joined by Nicholas Gastevich, Vice President of V. Gastevich Investments, known as CannaVestments on X and Reddit. Gastevich is a seasoned cannabis investor known for his excellent earnings analysis and industry perspective. The conversation began by discussing 2Q earnings results. We saw more differentiation this quarter between the tier 1 and tier 2 MSOs, especially in gross and adjusted-EBITDA margins. Tier 1 gross margins averaged 52%, versus 41% for tier 2s. Gastevich shared how CapEx has been declining since 2021. 2Q averaged $128 million, which is up 33% sequentially, but down 67% since 2021. We debated the tradeoff between spending more on growth versus focusing on generating cash flow.  Ohio opened for adult-use sales and is the biggest state-led catalyst this year.  The Buckeye state is an approximately $600 million medical market bordered by four non-adult-use states. We expect the Ohio market to triple in size quickly, and sales may accelerate in September when pre-rolls and concentrates begin being sold in dispensaries. We covered who is best positioned to succeed in Ohio and who may be leaders in the wholesale market. Finally, we explored opportunities for cannabis companies to participate in the hemp market. We've seen Curaleaf begin producing hemp-derived beverages and edibles, and Glass House Brands is considering entering the THCA flower space and potentially using a similar direct-to-consumer model. On the show, we talked about risks and opportunities in this growing category.

Higher Exchanges this week kicks off with a listener question about whether Schedule III is enough to kick off a lasting bull market. After going around the horn, Jesse, Morgan, and Toby agree that a combination of growth, cash flow, and greater access will meaningfully move share prices. TerrAscend's Executive Chairman Jason Wild and CEO Ziad Ghanem join the show 20 minutes in. Jason shares his thoughts on what conditions may lead to a lasting move. We then transition to talking about returning to growth and progress on potential M&A in Ohio. Ziad shares updates on Michigan and Pennsylvania and then explains how they've assumed the top position in the profitable New Jersey market. It wouldn't be cannabis without discussing political progress, and Jason gives his perspective on Schedule III, Trump, and updates us on the Boies lawsuit. He hopes the Boies case may be heard by the Supreme Court as soon as the second half of 2025.The episode concludes with a classic Ask Grok that involves Morgan singing!

It was a busy week in cannabis, and the trichome trio is back to cover all the news. The show starts by analyzing Trump's comments about cannabis and what it may mean for Schedule III and broader reform. The group agrees that the early Republican statements appear to derisk the space and reduce possible opposition to Schedule III. We also explore the potential for federal legalization and what it may mean for cannabis stocks. The top ten MSOs all reported 2Q earnings, and the show's second half digs into the results. We analyze quarters relative to expectations, compare margins, and discuss what drives the outperformance of the larger tier-one operators. Jesse, Toby, and Morgan all weigh in on who had the top quarters and what areas they would like to see improved. The show concludes with another fun Ask Grok segment. 

It's 103 days until the elections, and political theater continues to dominate the cannabis investing news cycle. This week, we learned that Kamala Harris is likely replacing Biden, and Toby helps us understand if this will be beneficial to cannabis and specifically to the Schedule III process. The rescheduling comment period also concluded this week and Headset produced an insightful report showing broad support for rescheduling, and even descheduling cannabis. Morgan walks us through the report that you can find on headset.io.  2Q earnings are around the corner, and Jesse shares analyst expectations for revenue and AEBITDA for the top ten MSOs. The group chimes in on what they are looking forward to most in this round of reports. The show concludes with another edition of Ask Grok. 

Hirsh Jane, Founder of Ananda Strategy, joins the show to discuss the series of state-level catalysts ahead in 2024 and 2025. Ohio is in the process of approving stores and Hirsh updates us on when we might see doors open in the Buckeye State and his expectation for how sales will evolve. Florida is the biggest potential adult-use flip in 2024, and the guys agres the state is polling well, and Amendment 3 is likely to pass this fall. Pennsylvania is the next biggest opportunity, and Hirsh shares why progress has been held up and explains why he thinks this state will likely open to adult use sometime in mid-to-late 2025. Jesse's home state of Minnesota is one state we can count on starting sales next year, and the group talks about implications for GTI and Goodness Growth and what we can learn from the thriving hemp-derived THC market in the Land of 10,000 Lakes. Finally, Hirsh explains the "Red Wave" thesis and how more adult-use Republican states may influence federal reform. 

The trichome trio is back to discuss progress on federal catalysts. The episode begins by discussing the 07/10 holiday, and Jesse updates us on trends he's seeing in the California concentrate market. The bulk of the conversation centers around Schedule III and how to assign probabilities to different outcomes. Morgan also gives us an update on the Boise Schiller lawsuit, and the group covers capital raises and lessons learned from 4Front Ventures' recent raise attempt. The episode concludes with a sexy Ask Grok. Next week, we'll have part two of the Mid-2024 Catalyst Review with an emphasis on the state-led growth story. 

The show begins this week by sharing due diligence tips when visiting a grow or dispensary. With cultivation, the group agrees there is no one way to grow great cannabis, but there are a handful of best practices. Regarding retail, location, parking, product selection, and budtenders were on the top of the list.Curaleaf CEO Matt Darin joins the conversation to talk about their new line of hemp-derived THC products. He shares the vision for the project and how it can complement their current cannabis business. We dig into the products, formulations, and who is the target market. The conversation concludes by talking about pricing and how to compete with more affordable cannabis and alcohol products. 

Off the top, the guys discuss Verano's announcement of a share repurchase program. The company authorized the repurchase of up to $50 million of shares and we debate whether this is a good use of capital. Toby is more bullish on the program, while Morgan is more concerned about preserving cash and investing for growth. The Cannabist Company CEO David Hart joins the show to cover their recent restructuring and Florida divestiture news. David explains the rationale behind the Florida decision and how they are leaning into their core markets. Ohio is a key new state, and David walks us through their five-store footprint, tier-one grow, and the process for adding three new stores. Morgan digs into the Colorado market, and David explains how they have optimized those assets and built a strong core retail presence. The conversation concludes with David recapping balance sheet priorities. As always, Morgan has another fun question for Ask Grok. 

The episode begins with Toby elaborating on a recent X post stating that a large $90b pension plan recently invested >$100m in a leading cannabis-focused fund. This led to a broader discussion about how institutions are approaching investing in cannabis. The conversation evolves into what's taking place in Florida. We recently saw a Fox News poll showing 66% support for legalizing adult-use cannabis. Meanwhile, Governor DeSantis recently came out against legalizing cannabis while simultaneously vetoing a bill that would bring new restrictions to the state's thriving intoxicating hemp market.The show concludes with another timely installment of Ask Grok. 

It's merger mania week--or merger maybenia as Morgan called it--and this week's show is dedicated to the potential partnerships between GTI and Sam Adams and Cansortium and RIV Capital. We tackle GTI and SAM off the top with an overview of the proposed merger and discuss the timing and synergies. We debate the timing and wonder why now as we are just approaching potential federal reform and meaningful TAM expansion if Florida flips adult use. The group also covers potential synergies in the sales and distribution, plus expanding the cannabis beverage category. Cansortium and RIV Capital are planning to merge, with the deal expected to close in the fourth quarter. The team talks about how it is hard to find a compelling balance sheet and income state, and perhaps this partnership effectively marries those two pieces. Toby offers perspective on the structure, and Morgan raises hurdles that may make it challenging to close, and this is reflected in the already wide deal spread. The show closes with Morgan asking Grok who is buying who in the proposed GTI/SAM merger. 

With Toby on holiday this week, Morgan and Jesse kick off this week's show by reviewing recent price action and contrasting it with reality. While falling share prices have eroded sentiment, there are positive developments. Ohio is beginning to turn on adult-use stores next month, and we analyze key dates, estimate the potential size of the adult-use market, and dig into MSO exposure in the Buckeye State. With 43 MSO-owned stores that may expand up to 70 in the near term, this is an important market for public operators, especially those with Level One grows that can add three additional stores and still have the capacity to participate in the wholesale market.The show ends with a brief analysis of the Farm Bill and changes that may impact the hemp-derived cannabinoid space and Morgan Ask's Grok about the worst M&A deal in history

Nick Gastevich, known as CannaVestments online, joined us this week. He is one of the most experienced cannabis investors  and manages a family office that is active in the space.  We discussed cannabis stock's adverse reaction to the positive momentum on rescheduling and debated time frames for a final ruling. The heart of the conversation centers on first-quarter earnings, and we evaluated top-line growth and EBITDA conversion and analyzed cash flow metrics. The conversation concludes with an evaluation of different factors investors can use when analyzing cannabis stocks. 

Cresco CEO Charlie Bachtell joined us this week to discuss the proposed rule on Schedule III and the company's recent earnings results. Cresco is active in Washington, and Charlie shared his perspective on Schedule III's next steps, timing, and impact on Cresco's business. We also dug into Cresco's progress. 2023 was the year of the core, and Charlie highlighted the tough decisions they made to cut costs and rationalize the footprint. He also explained Florida's importance and the efforts they are making to help pass adult-use legislation this fall. He closed by telling us, "Every year is now the year of the core; it is just who we are."The episode concludes with another fun edition of Ask Grok. 

Verano Co-Founder, Chairman, and CEO George Archos joined the show to discuss the company's recent quarter. The business is beginning to generate significant cash flow, and George shared how he expects revenue to grow and opportunities to use the financial flexibility. We also asked about optimizing Florida assets ahead of the potential adult-use transition and M&A strategy. The second half of the show is about free cash flow yields. Jesse provides an overview of the metric, and Toby shares how he uses it to analyze investments. The trio then discusses how GTI, Verano, and Ascend free cash flow yields compare and discuss optimizing cash flow and growth. The episode concludes with everyone's favorite segment, Ask Grok. 

Today, we heard the welcome news that the DEA is agreeing with the HHS recommendation to move cannabis from Schedule I to Schedule III.  Boris Jordan, Executive Chairman of Curaleaf, joins at the top of the show to share his thoughts on the next steps in the process, the timing of a final ruling, potential risks along the way,  implications for institutional interest, and the specific impact of 280E on Curaleaf's business. Hirsh Jain, founder of Ananda Strategy, joins for the second half and helps us better understand the similarities between cannabis's path to legalization and what happened with gay marriage. He also gives his perspective on the time frame for the DEA final ruling, advances in medical research, and how Schedule III may impact state election outcomes. We close by asking Hirsh his biggest concerns about this process and potential stumbling blocks.  This was an exciting day. Thank you to our regular listeners, and welcome to the new ears learning about this space. 

It's a quieter time in cannabis, but this was a fun show. We started by reviewing the 4/20 holiday, focusing on the revenue lift and which categories performed best. Beverages were a top seller, and the guys debated the category's future and who will drive its growth. We debuted a new game called "buy or sell" that led to several fun debates on rescheduling probabilities, how to play a potential rescheduling bounce, when Florida may eclipse California in legal cannabis sales, and whether dispensaries will exist in twenty years. 

The trichome trio is home from the Benzinga Cannabis Capital Conference in Florida and the show starts with their biggest takeaways from the event.  The conversation evolves into a spirited discussion on where we stand on Schedule III. The guys debate the probability of landing on Schedule III and the time frame in which it may happen. The episode concludes by talking about the AGP sentiment survey and what everyone is doing for the 4/20 holiday. 

2024 is the year of potential cannabis catalysts and we had Hirsh Jain, Founder of Ananada Strategy join us to discuss a bevy of federal and state-level opportunities. Next week is 4/20, and one potential time that the DEA could respond to the HHS' Schedule III recommendation. The trio debates the probability of a response and the implications to short and long-term investors. On the state side, we tackle Ohio first, and the exciting news that adult-use sales could start as soon as July 2024. Hirsh sees this as a big market, and potentially very profitable due to the reasonable regulatory structure. The conversation evolves into the biggest state-level catalyst, Florida. This massive market may flip to adult-use in 2025 and Hirsh walks us through how he sees the vote potentially happening and the factors determining if it gets to the 60% threshold. We close the conversation handicapping Pennsylvania and when this legislative process could approve adult-use sales and implications for the publicy-traded operators. 

This week's show starts with a recap of adult use making the ballot in Florida and what it may mean to the industry. Morgan shares his perspective after recently visiting the Sunshine State. We cover the pros can cons of the mandatory vertical market and opportunities for smaller companies like Sunburn to expand if adult use succeeds. Toby gives his thoughts on how Florida will expand the TAM and drive revenue, especially to the tier-one operators. AYR Wellness President and CEO David Goubert and VP of Public Engagement Rob Vanisko join twenty minutes into the episode. They offer AYR's perspective on getting on the ballot and review AYR's Florida assets. AYR also has significant exposure in Ohio and Pennsylvania and the team updates us on where we are in these respective processes and how the company is positioned in each state. Toby asks David how they are planning around Schedule III, and their current tax strategy. Finally, Morgan thanks the AYR for recently joining the Boises lawsuit and shares how others can contribute to this case. Of course, the show ends with another captivating Ask Grok segment. 

Jesse starts the show by sharing his experiences visiting LEEF Brands and Gold Flora. LEEF is a leading producer of concentrates in California and he went to see their 12,500-square-foot extraction facility in Northern California. Gold Flora is a top vertically integrated California company and Jesse shared his experience seeing their stores and cultivation facilities in San Jose. Sam Armenia, known as Sammy J on X and VP of Corporate Development at C21 Investments, joins the show to share his perspective on Schedule III implication and potential adult use in Florida. He has done some interesting math on how Schedule III will unlock cash flow and we discuss how these funds can be deployed to grow revenue. We also cover how the Florida Supreme Court did not opine on cannabis today and we will find out next week whether it makes the ballot. The show concludes by asking Grok what happens if the Florida Supreme Court does not respond in time for a deadline.