Season 2, Episode 09 | Inside Minnesota Cannabis: Risk, Insurance & What Comes Next with Cory Lake

Some Canna Connect relationships go well beyond networking.

In this episode of The Canna Connect Show, Stephen Eigenmann sits down with longtime friend and collaborator Cory Lake of World Insurance for an honest conversation about what they're seeing as Minnesota's cannabis industry moves from planning into operation.

Stephen describes their relationship as somewhere between a brother and an uncle. That history makes this conversation different. Cory and Stephen can challenge each other, laugh about the journey, and get directly into the realities facing Minnesota cannabis businesses. 

Cory shares what has changed since moving from Lakes Group Insurance to World Insurance, including access to a national team focused on cannabis and additional resources for businesses ranging from startups to larger operations.

From there, the conversation expands.

They discuss insurance requirements for dispensaries, cultivators and vertically integrated businesses, facility site visits, state-by-state compliance, Minnesota's changing hemp market, cultivation supply and testing, and why Cory believes one of the biggest operational risks in cannabis is the human element.

Cory also shares lessons learned from real insurance claims, including a cultivation facility fire caused by improperly installed lighting equipment. The story underscores why SOPs, employee training, proper installation and risk management matter just as much as having an insurance policy. 

Stephen and Cory also look ahead at the Minnesota market and discuss where opportunity may still exist for entrepreneurs entering cannabis today.

This episode covers cannabis insurance, cultivation risk, hemp, compliance, testing, cash management, entrepreneurship and the relationships helping Minnesota's industry grow.

Canna Connect Partner Network

This episode is supported by What Rebates, helping Minnesota cultivators explore available energy-efficiency incentives and utility rebates for lighting, HVAC, dehumidification and other qualifying equipment.

Learn more about What Rebates

The episode also features Evolve Payment, a Twin Cities-based company helping cannabis businesses use ACH-based digital payments as an alternative to relying entirely on cash. 

Learn more about Evolve Payment

Canna Connect works with trusted organizations across insurance, energy, payments, technology and other areas of Minnesota's cannabis ecosystem.

Connect with Cory Lake 

Visit CannaConnectMN.com to explore more episodes, Community Spotlights, events and members of the Canna Connect Network.

Become Part of the Canna Connect Community Network

Every episode, Community Spotlight, and partner profile helps connect Minnesota's cannabis industry. Visit CannaConnectMN.com to explore interviews, resources, events, and the trusted organizations helping shape the future of cannabis in Minnesota.

Transcript

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So there's a lot of conversations that happen in and around the cannabis space,
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both here on the CannaConnect Show and in the Canniverse.
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But there's really one person that comes to mind for me who's there all the
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time, and that's Corey Lake.
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He's in the middle of it. World Insurance is his world now,
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and Corey Lake has made Minnesota cannabis his world, and it's
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starting to pay dividends. He's being seen as a thought leader and
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an advocate for the greater cannabis industry. He understands it.
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He takes a measured approach. He's never too up, too down.
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And he's fantastic to work with. We work with Corey Lake, World
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Insurance, and Cannasure, and we recommend you reach out to them if you have any
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insurance needs.
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Yeah. Look up Corey Lake. If you haven't met him yet, he's your guy.
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What are you now able to offer beyond what you had before when it
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comes to the World Insurance platform and serving your clients?
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Yeah. So now we get into things like 401
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benefits. Basically the entire spectrum.
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If you knew everything that you know
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now, but you weren't in the position that you are, where would you
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enter the cannabis space right now?
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What happens in Minnesota when the federal hemp ban goes into
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effect?
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You got your high school friends, you got your college friends.
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Then they start to get married and go out into the world.
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Yeah.
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And then they start to get divorced.
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So this was now the divorced friends
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with a s******d of money, and they want to relive all the crap that they

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missed.
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Yeah.
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It's all about party.
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Because they got married early.
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Yeah, married early. They had kids. Now they're reliving.
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Were you married?
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I was not.
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You were-
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And I hadn't had a girlfriend-
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You were single
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... in a long time.
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Yeah.
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But it was
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mounds of cocaine.

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Yeah.
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Copious amounts of alcohol.
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Sure.
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Because everybody had money. We had money, and we had access.
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What year did she call you?
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Well, I was 30, so I'm
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53 now.
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Okay.
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So
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what-
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23 years ago?
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Twenty-three years ago.
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Early 2000. Holy cow.
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Yeah.
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That was early 2000.
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Yeah.
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And your daughter's 8? 10?
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12.
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12.
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Yep.
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Yeah.
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Almost 13.
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Because I like our
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age difference.
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I have this at my apartment building or my condo as well.
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Scott lives upstairs, and Scott is a little bit older
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than you, but he's early to retirement.
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But his kids are Meg's age or younger, so they're in their
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20s or maybe just turned 30. But with you and I, it's just
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one true generation apart, and
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in theory you could be my dad, but
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you're not old enough to be my dad.
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And so-
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Could've been young
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... you're like-
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Could've been young
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... we have an
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uncle relationship, but it's even more.
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It's somewhere between a brother and an uncle-
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Yeah
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... relationship, and it allows us to do fun stuff like
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think outside the box and lean into
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opportunities, but also have transparent conversations.

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There's not a level of professionalism that I'm
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not afraid to-- I could talk to you about anything.
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Oh.
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Yeah. And that's why we're on the CannaConnect Show live from CannaCon,
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kicking off season two with Corey Lake from World Insurance.
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The first question that I think we should start with is: What is World
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Insurance? How do you fit into the company
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now? And let's go from there.
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Yeah. So World Insurance is, I believe,
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today the largest cannabis insurance brokerage
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in the country. So what we've seen is a lot of other insurance
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companies get in, and then they have one or two people that are
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involved, and then they get out. The reason why I chose World is
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because they have about 30 people across the entire country that

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exclusively do cannabis.
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So it's been an incredible transition, and it's been
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really great to be able to have now a team of people that,
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one, people to commiserate with, and then people to ask questions
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to that know something about the space.
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Right. So, you're based in Minnesota.
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I want to say the title now is a national account executive.
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Yeah.
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There's other national account executives across the country, and that's
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part of the network that you have now.
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You were doing a lot of that
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nationwide reach-out on your own with Lakes Group
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Insurance. However, a lot of folks were reaching out to you
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because of Minnesota's unique market, as
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we could put it, right?
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Yeah.
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Both on the hemp side and the cannabis side as we know it.
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What
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are you now able to offer beyond what you had before when it comes to the World
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Insurance platform and serving your clients?
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Yeah. So now we get into things like 401
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benefits. Basically the entire spectrum.
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And then being able to offer services from
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startup all the way into IPO. So they
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really do, and they thrive in those large market accounts-
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Okay
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... which is absolutely incredible. It takes a village at that point, right?
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Right.
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You can't do those things on your own.
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Right.
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You need more resources.
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You need a full team.
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And the other thing is compliance.
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So it's something that was really hard for me to keep up with, was what was
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happening around the country. So I got a call from a state.
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I had to do a copious amount of research to make sure that what I
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was doing was appropriate for the state.
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In Vermont.
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Vermont. Michigan is another great example.
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Michigan.
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They have very specific insurance requirements.
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And that was stuff that I had to spend time digging around and studying.
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Now I call somebody in Michigan and go, "Hey, what's going on?

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What do I need to know? Fill me in."
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Right.
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So-
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You've got the 411 through your colleagues.
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Absolutely. So it's not that I'm still not doing the research.
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It's just not as hard.
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Yeah.
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Doesn't take the time, the energy, the effort that it once did.
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Because cannabis is a state-by-state regulated market,
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every state is going to have a little bit of a different
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I'm going to say approach, but it's a program and it's the details, and it's the
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compliance aspect that's really critical.
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Correct.
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It's not so much the policy, it's how does the policy need to be crafted in order

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for it to be compliant-
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Yep
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... and effective.
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And needs.
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Oh, sure.
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We have transport stuff here.
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Yeah.
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Where you have to carry transport insurance.
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Right.
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We've got work comp requirements that have to be met.
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That's not every state. Every state doesn't require
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transport insurance.
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And when it comes to the license types that we have in Minnesota,
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we have around a dozen license types within the cannabis industry or the cannabis
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program here. Is that common in other states that they have a wide
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variety of license types?
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Yeah. Oh, yeah.
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Yeah.
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What's kind of funny is they
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name it different.
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Yeah.
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The Office of Cannabis Management isn't the Office of Cannabis Management in every
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state.
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Correct.
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So you've got different names for different things-
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Yes
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... but it's all sort of the same thing.
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Right.
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But then there's
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states with fewer license types. There are states with more license
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types. So understanding those nuances is, or having
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the resource to be able to go to to say, "Hey, what am I looking at here?"
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It's a huge weight off of my
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shoulders-
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Yeah
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... to know that I can get professional advice from somebody who's sitting
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on the ground in those states.
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Right. So you have more at your fingertips.
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You
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have more access to the understanding those tough questions, getting back
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to your clients,
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both in Minnesota as well as across the country.
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But within Minnesota, with the different license types, what license

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types require more insurance?
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Well, I would say anybody that's doing a full vertical,
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obviously. So, dispensaries are one bucket.
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Processing, cultivation. They can all be bucketed out, but if
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you're a micro or a meso-
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Yeah
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... or medical. That's going to really be the
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expansion.
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I suppose it's nuanced, right? Because micros can be fully integrated, or they
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could just be retail.
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Exactly.
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So the more integrated you are, the more insurance you're going to need to have.
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Correct.
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Does that make sense?

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Yeah, because again, I call it bucketed.
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Sure.
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So, a dispensary is going to have certain needs that cultivation
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doesn't-
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Yeah
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... at the end of the day. Professional liability is the big one there where if
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you are in a professional setting or I'm giving you advice
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on
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what type of product to use, that requires
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professional liability. You don't see that in cultivation.
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Okay. Are you getting out into the field,
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and what are some of the sites or types of companies
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that you've gone out and visited-
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Yeah
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... this spring and summer?
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So-
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Yeah
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... literally,
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I think it was last week, I just went and visited our friends
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at Carpe Diem in Ubetcha-
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Okay
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... and sat in a tractor. They have a new tractor .
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Oh my gosh.
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So-
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Wow
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... I love doing site visits.
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And I told them I'd come out and help.
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Wow.
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It's actually a big part of what we do and what we
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have to do-
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Yes
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... to really get a sense of what's going on and
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understand the risk that we're taking.
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So I get out to sites, I take photos.
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I try to get as immersed as I possibly can.
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And then I also want to see when the operation gets up and operating, I
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want to see how they're operating.
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Right.
252
00:09:49.752 --> 00:09:51.672
Because then I can do a risk assessment.
253
00:09:51.812 --> 00:09:55.232
I can look at it and go, "Okay, hey, these are things you should change.
254
00:09:55.692 --> 00:09:58.132
The boxes shouldn't be stacked to the ceiling.
255
00:09:58.852 --> 00:10:02.692
The fire hydrant should be checked." Those sort of things.
256
00:10:02.792 --> 00:10:06.302
And then we also have people on the insurance side that come out and do those

257
00:10:06.332 --> 00:10:07.732
compliance checks as well.
258
00:10:07.812 --> 00:10:09.792
Sure. So providing guidance along the way.
259
00:10:09.892 --> 00:10:10.512
Absolutely.
260
00:10:10.552 --> 00:10:12.082
And you're more informed than ever, right?
261
00:10:12.112 --> 00:10:12.702

Year after year-
262

00:10:12.781 --> 00:10:12.781
Oh, yeah
263
00:10:12.781 --> 00:10:14.352
... you gain more experience.
264
00:10:14.452 --> 00:10:15.752
Oh, yeah. Absolutely.
265
00:10:16.212 --> 00:10:16.532
The
266
00:10:17.752 --> 00:10:20.212
hemp versus cannabis, not so much the debate, but
267
00:10:21.152 --> 00:10:24.912
are you still onboarding new-ish hemp
268
00:10:25.032 --> 00:10:25.652
clients?
269
00:10:26.132 --> 00:10:26.512
Yeah.
270
00:10:26.572 --> 00:10:26.812
Yeah.

271
00:10:26.932 --> 00:10:29.212
There are people that are manufacturing beverage.
272
00:10:29.992 --> 00:10:32.492
And this is across the entire country.
273
00:10:32.672 --> 00:10:32.972
Okay.
274
00:10:33.352 --> 00:10:37.112
It's amazing and a little
275
00:10:37.191 --> 00:10:41.062
strange all at the same time. Obviously, I think Minnesota is,
276
00:10:41.632 --> 00:10:43.632
this is very near and dear to Minnesota.
277
00:10:43.812 --> 00:10:43.952
Yeah.
278
00:10:44.692 --> 00:10:48.532
I think we see it differently than a lot of people, but there are a lot of people
279
00:10:48.552 --> 00:10:50.272

that are coming into the space-
280

00:10:50.372 --> 00:10:50.532
Right
281
00:10:50.632 --> 00:10:52.252
... and a lot of people that are getting out of the space.
282
00:10:52.312 --> 00:10:53.092
Interesting. Right.
283
00:10:53.792 --> 00:10:55.002

But it doesn't-
284

00:10:55.012 --> 00:10:56.012
Market's ever-changing.
285

00:10:56.062 --> 00:10:58.532
Yeah, and it doesn't seem to be slowing down,
286
00:10:59.372 --> 00:11:02.752
just evolving or changing in different ways.
287
00:11:02.832 --> 00:11:03.792
Even on the hemp side?
288
00:11:03.892 --> 00:11:04.832
Even on the hemp side.
289
00:11:10.552 --> 00:11:10.832
What?
290
00:11:11.332 --> 00:11:11.992
Watt rebates.
291
00:11:12.332 --> 00:11:12.612
What?
292
00:11:13.172 --> 00:11:13.812
Watt rebates.
293
00:11:14.252 --> 00:11:18.012
What are operators in the Minnesota space leaving on the table right
294
00:11:18.052 --> 00:11:18.572
now?
295
00:11:18.732 --> 00:11:22.372
That they can get up to 60% of their lighting rebates covered if they're in Xcel
296
00:11:22.432 --> 00:11:26.392
Energy territory, and nobody's better at offering these rebates back to
297
00:11:26.432 --> 00:11:28.732
the growers and cultivators than Watt Rebates.
298
00:11:29.552 --> 00:11:29.932
Perfect.
299
00:11:30.652 --> 00:11:32.292

HVAC, lighting,
300
00:11:33.312 --> 00:11:37.232
overall cultivation, air conditioning, dehumidifiers.
301
00:11:37.592 --> 00:11:39.992
We've got these hot temperatures.
302
00:11:40.052 --> 00:11:41.832
We've got these humid conditions.
303
00:11:42.272 --> 00:11:44.572
Growing in Minnesota is unlike any other state.
304
00:11:45.232 --> 00:11:48.512
Work with a group that understands lighting rebates as well as HVAC.
305
00:11:48.972 --> 00:11:49.641
Watt Rebates.
306
00:11:49.872 --> 00:11:50.162
Bingo.
307
00:11:54.752 --> 00:11:55.412

So-
308

00:11:55.612 --> 00:11:57.512
And I'd love to give you my crystal ball reading.
309
00:11:57.562 --> 00:11:57.562
No.
310
00:11:57.732 --> 00:11:59.412
And we had this conversation earlier.
311
00:11:59.502 --> 00:11:59.502
Yeah.
312
00:11:59.512 --> 00:12:00.312
But the answer is
313
00:12:01.692 --> 00:12:02.312
nobody knows.

314
00:12:02.372 --> 00:12:02.752
I'm paying attention.
315
00:12:02.772 --> 00:12:03.592

I want to get on my-
316

00:12:03.752 --> 00:12:04.532
I'm paying attention every day.
317
00:12:04.692 --> 00:12:07.092

I want to see it on a betting app. I think-
318

00:12:07.152 --> 00:12:08.312
Yes, like Tanner said.
319
00:12:08.552 --> 00:12:08.732
Right.
320
00:12:08.832 --> 00:12:09.012
Yeah.
321
00:12:09.032 --> 00:12:12.852
It should absolutely be on a betting app, and we should be-- I'm going to guess
322
00:12:12.872 --> 00:12:14.792
that that line is 50-50 right now.
323
00:12:14.972 --> 00:12:15.172
Right.
324
00:12:15.472 --> 00:12:16.912
I don't think anybody really knows.
325
00:12:17.192 --> 00:12:20.732
As we're recording this week, the president came out and directed
326
00:12:20.772 --> 00:12:24.572
Congress to figure out how to get full-spectrum
327
00:12:24.652 --> 00:12:25.232
CBD

328
00:12:26.584 --> 00:12:28.864
Legal post-November 12th, right?
329
00:12:28.944 --> 00:12:29.264
Because it
330
00:12:30.324 --> 00:12:34.044
runs into some issues when you ban all hemp
331
00:12:34.244 --> 00:12:34.904
CBD
332
00:12:36.284 --> 00:12:40.064
over 0.4 milligrams. So I mean, your full-spectrum
333
00:12:40.164 --> 00:12:43.804
tinctures aren't allowed, your seeds aren't allowed, and that's not some of it.
334
00:12:44.224 --> 00:12:47.984
But when it comes to the Medicare program, the Medicare pilot
335
00:12:48.024 --> 00:12:51.964
program, yeah, there's going to be significant issues when the hemp
336
00:12:52.004 --> 00:12:53.644
ban goes into effect. And I wouldn't
337
00:12:55.084 --> 00:12:58.684
ask you, because I understand it just as well to say nobody knows.
338
00:12:59.024 --> 00:12:59.184
Right.
339
00:12:59.624 --> 00:13:03.564
And it's unfortunate. My biggest question when it comes to that is how is
340
00:13:03.624 --> 00:13:07.324
the OCM in Minnesota going to
341
00:13:07.484 --> 00:13:10.664
operate when it comes to, you can get a hemp license right now,
342

00:13:11.584 --> 00:13:14.694

and I'm sure there are applications being approved as we speak, but-
343

00:13:14.724 --> 00:13:14.984
There are
344
00:13:15.304 --> 00:13:15.484
... but
345
00:13:16.464 --> 00:13:20.304
what happens in Minnesota when the federal
346
00:13:20.364 --> 00:13:21.904
hemp ban goes into effect? That's
347
00:13:22.724 --> 00:13:23.454
one of the questions I am on.
348
00:13:23.484 --> 00:13:26.024
Well, and I think that
349
00:13:26.924 --> 00:13:29.964
our state will continue business as usual.
350
00:13:30.363 --> 00:13:30.664
Okay.
351
00:13:31.004 --> 00:13:34.004
I don't know that it will change at the end of the day.
352
00:13:34.304 --> 00:13:36.624
The interstate commerce would change.
353
00:13:36.684 --> 00:13:39.424
Yeah. Well, I mean, yeah, and I'm talking about just in the state of Minnesota.
354
00:13:39.564 --> 00:13:43.504
So the interstate commerce, and we're seeing it today where how
355
00:13:43.564 --> 00:13:45.264
you sell the product is changing.
356
00:13:45.324 --> 00:13:45.904

Yep.
357
00:13:46.804 --> 00:13:49.234
It may just be liquor stores and dispensaries.
358
00:13:49.424 --> 00:13:50.544
It may not be
359
00:13:52.084 --> 00:13:55.334
chiropractic offices and other
360
00:13:55.364 --> 00:13:58.104
spaces where we've been able to purchase products.
361
00:13:59.364 --> 00:13:59.884
Yeah.
362
00:13:59.914 --> 00:14:03.824
But that all being said, I think that they will allow us to continue to.
363
00:14:03.904 --> 00:14:07.604
The question will be though is as a manufacturer, can you
364
00:14:07.704 --> 00:14:08.104
sustain?
365
00:14:08.704 --> 00:14:08.844
Right.
366
00:14:08.904 --> 00:14:11.444

With that limited now supply-
367

00:14:11.484 --> 00:14:12.084
Market. Yep
368
00:14:12.104 --> 00:14:14.904
... or market or places to sell it.
369
00:14:15.024 --> 00:14:15.124
Yeah.
370
00:14:15.564 --> 00:14:18.984
And the answer is, I don't know. And I

371
00:14:19.904 --> 00:14:23.784
think it depends on where you sit as a entrepreneur
372
00:14:24.204 --> 00:14:25.464
and where you sit on
373
00:14:26.424 --> 00:14:28.444
is it my main thing?
374
00:14:28.504 --> 00:14:29.044
Yeah.
375
00:14:29.544 --> 00:14:32.904
Or is this a side hustle? And if it's a side hustle and you can
376
00:14:32.964 --> 00:14:36.864
make a pallet and sell it and have fun
377
00:14:36.924 --> 00:14:37.184

with it-
378

00:14:37.323 --> 00:14:37.784
Yeah
379
00:14:37.794 --> 00:14:39.024
... that's one thing.
380
00:14:39.224 --> 00:14:39.464
Sure.
381
00:14:39.724 --> 00:14:43.504
If it's your main source of income that you've had for the last four
382
00:14:43.564 --> 00:14:43.953

years-
383

00:14:44.084 --> 00:14:44.364
Right
384
00:14:44.384 --> 00:14:46.444
... and you're used to a national footprint-

385
00:14:46.564 --> 00:14:46.734
Right
386
00:14:47.044 --> 00:14:48.564
... the model doesn't work anymore.
387
00:14:48.844 --> 00:14:52.064
But are the guys that are producing your one pallet per
388
00:14:52.124 --> 00:14:54.164
quarter still going to be in business?
389
00:14:54.204 --> 00:14:54.474

And that-
390

00:14:54.524 --> 00:14:54.884
Right
391
00:14:54.893 --> 00:14:58.634
... as you go further up the chain, that's where it really becomes
392
00:14:58.644 --> 00:14:59.624
concerning because
393
00:15:00.964 --> 00:15:04.644
Surly gets referenced a lot as one of the largest breweries in Minnesota to be
394
00:15:04.684 --> 00:15:06.544
producing cannabis beverages.
395
00:15:07.044 --> 00:15:07.054
Yeah.
396
00:15:07.084 --> 00:15:09.664
And they're seriously concerned about
397
00:15:09.784 --> 00:15:13.664
the hemp ban and how it affects their
398
00:15:13.724 --> 00:15:14.404
overall business.
399

00:15:14.604 --> 00:15:16.804
Well, and we've seen breweries already go out of business.
400
00:15:16.844 --> 00:15:17.884

Right. As we record-
401

00:15:17.944 --> 00:15:18.364
More of those recent
402
00:15:18.404 --> 00:15:18.764
... this is the
403
00:15:19.744 --> 00:15:21.244
last weekend of Bauhaus Brew Labs.
404
00:15:21.484 --> 00:15:21.824
There we go.
405
00:15:22.024 --> 00:15:22.124
Yeah.
406
00:15:22.224 --> 00:15:22.744
Exactly.
407
00:15:22.864 --> 00:15:23.024
Yeah.
408
00:15:25.604 --> 00:15:26.624
Super concerning.
409
00:15:27.564 --> 00:15:31.264
We could probably spend all day talking about it.
410
00:15:31.364 --> 00:15:34.544
One thing that has come up this week as we've been talking on the Canna Connect
411
00:15:34.564 --> 00:15:38.464
show is how it has been such a good entry point for
412
00:15:38.524 --> 00:15:42.184
entrepreneurs. You mentioned Carpe Diem and Ubetcha
413
00:15:42.784 --> 00:15:46.764

as an example. We've talked about them in the past where it provided great
414
00:15:46.804 --> 00:15:50.444
exposure, great opportunity to learn and understand the market on the
415
00:15:50.484 --> 00:15:51.384
low-dose hemp side,
416
00:15:52.364 --> 00:15:56.224
and then now to see what they're doing with manufacturing on the adult
417
00:15:56.304 --> 00:15:58.124
use tribal side.
418
00:15:59.844 --> 00:16:03.824
This is a huge summer for adult use cultivators
419
00:16:03.884 --> 00:16:07.474
to be producing product to have their first run at the end of the
420
00:16:07.544 --> 00:16:11.244
year, but not everybody's going to be up and
421
00:16:11.304 --> 00:16:13.444
running and have flower by October.
422
00:16:13.484 --> 00:16:17.154
There's going to be folks that are up and running later on this
423
00:16:17.284 --> 00:16:19.564
year and will have flower by this winter.
424
00:16:19.613 --> 00:16:23.544
And how do you foresee the next six months, 12
425
00:16:23.564 --> 00:16:27.304
months, 18 months going as it relates to supply, demand,
426
00:16:27.604 --> 00:16:28.694
and the overall market here?
427
00:16:30.384 --> 00:16:33.004
So I guess my

428
00:16:33.964 --> 00:16:37.724
forethought is that obviously we'll see more
429
00:16:37.744 --> 00:16:41.344
product. I have a big question mark on
430
00:16:41.984 --> 00:16:43.984
what type of product we're going to see.
431
00:16:44.064 --> 00:16:44.224
Mm.
432
00:16:44.684 --> 00:16:48.124
Meaning most of the product we're seeing today is remediated.
433
00:16:48.564 --> 00:16:48.804
Yeah.
434
00:16:49.644 --> 00:16:51.654
Are we going to get over those mold issues?
435
00:16:52.004 --> 00:16:55.864
Are we going to be able to get how much
436
00:16:55.904 --> 00:16:57.464
cannabis is going to make it through?
437
00:16:57.604 --> 00:16:58.104
Right.
438
00:16:58.184 --> 00:16:58.504

So-
439

00:16:58.544 --> 00:16:58.714
Right
440
00:16:59.144 --> 00:17:01.954
... that will be a big determinant on pricing.
441
00:17:02.384 --> 00:17:02.604
Right.

442
00:17:02.784 --> 00:17:06.224
So if a lot of it gets through and a lot of it tests great and it's
443
00:17:06.764 --> 00:17:09.164

not remediated, all of those sort of things-
444

00:17:09.174 --> 00:17:09.174
Yeah
445
00:17:09.174 --> 00:17:13.065
... I think the price per pound will stay, it'll go down but it's going to be
446
00:17:13.104 --> 00:17:13.744
fairly stable.
447
00:17:13.785 --> 00:17:13.944
Sure.
448
00:17:14.624 --> 00:17:18.124
If a lot of it gets through and it's not remediated,
449
00:17:18.344 --> 00:17:21.384
and all the sudden we've got more product to sell.
450
00:17:22.045 --> 00:17:25.664
Do you think there's an element of trying to control the amount of supply that's
451
00:17:26.144 --> 00:17:29.744
entering the market right now? Because we're seeing some bottlenecks with testing.
452
00:17:30.084 --> 00:17:34.004
Yeah, I don't think so. I think that that's just growing
453
00:17:34.084 --> 00:17:34.324

pains-
454

00:17:34.404 --> 00:17:34.664
Okay
455
00:17:34.784 --> 00:17:35.664
... at the end of the day.
456

00:17:35.744 --> 00:17:35.864
Yeah.
457
00:17:37.124 --> 00:17:40.584
We saw people early on
458
00:17:40.704 --> 00:17:44.524
trying to get labs up and operating and learning that it
459
00:17:44.564 --> 00:17:46.084
was very expensive and hard to do.
460
00:17:46.404 --> 00:17:46.584
Yeah.
461
00:17:47.084 --> 00:17:49.604

We're seeing more labs come on board now-
462

00:17:49.724 --> 00:17:49.924
Yeah
463
00:17:49.944 --> 00:17:51.664
... and we're seeing some disappear.
464
00:17:51.764 --> 00:17:52.274

Yeah. I mean-
465

00:17:52.564 --> 00:17:52.864
Ugh
466
00:17:53.064 --> 00:17:55.214
... yeah, right behind us, an open booth from
467
00:17:56.524 --> 00:17:57.654
Legend Technical Services.
468
00:17:57.744 --> 00:17:58.044
Correct.
469
00:17:58.384 --> 00:18:01.444
Yeah. That's disappointing. But then you see Adams Independent Testing coming
470
00:18:01.504 --> 00:18:03.424

online in Moorhead. So it's like-
471

00:18:03.444 --> 00:18:03.744
Correct
472
00:18:03.944 --> 00:18:07.404
... it is part of the growing pains of a new market, of a new space.
473
00:18:08.384 --> 00:18:12.084
Within the space, what are the biggest operational risks cannabis companies
474
00:18:12.144 --> 00:18:12.464
face?
475
00:18:15.384 --> 00:18:18.684
And maybe not the biggest, but what do you really have to look out for?
476
00:18:19.004 --> 00:18:20.524
And I think all business.
477
00:18:20.584 --> 00:18:20.844
Yes.
478
00:18:20.924 --> 00:18:22.864
It's humans.
479
00:18:23.484 --> 00:18:23.694
Okay. Yeah.
480
00:18:23.724 --> 00:18:25.744
At the end of the day, it's the human risk.
481
00:18:26.584 --> 00:18:30.044
And this is where SOPs
482
00:18:30.424 --> 00:18:30.884
become
483
00:18:31.800 --> 00:18:35.740
... a big, big deal. And making sure that the
484
00:18:35.880 --> 00:18:39.660
people that are working have things that they need in order to be

485
00:18:39.800 --> 00:18:40.460
successful.
486
00:18:41.460 --> 00:18:41.540
Yeah.
487
00:18:41.660 --> 00:18:42.600

We make the green-
488

00:18:42.620 --> 00:18:43.740
House stands. Yes
489
00:18:43.750 --> 00:18:45.260

... at the end of the day. So-
490

00:18:45.490 --> 00:18:45.490
Yes
491
00:18:45.490 --> 00:18:47.339
... I'm going to say it's the human element of that.
492
00:18:47.400 --> 00:18:48.940
Minimizing human error.
493
00:18:49.000 --> 00:18:49.320
Correct.
494
00:18:50.760 --> 00:18:53.800
Going through it in practice before it becomes
495
00:18:54.700 --> 00:18:55.040
real.
496
00:18:55.340 --> 00:18:55.460
Yeah.
497
00:18:55.760 --> 00:18:58.000
Right? And some of that is experience-based.
498
00:18:58.520 --> 00:19:02.260
Yep. Absolutely. And limiting risk

499
00:19:02.320 --> 00:19:06.300
profiles. So making sure people have the appropriate PPE.
500
00:19:06.640 --> 00:19:10.329
Making sure people are on mats,
501
00:19:10.380 --> 00:19:11.800
slip and fall mats.
502
00:19:11.980 --> 00:19:11.990
Sure, sure.
503
00:19:11.990 --> 00:19:15.620
That sort of stuff. Making sure people are wearing protective
504
00:19:15.660 --> 00:19:19.590
gloves if they're doing something with sharp objects or
505
00:19:19.660 --> 00:19:23.640
heat or whatever it is. So it's just making sure that we have
506
00:19:23.740 --> 00:19:27.210

those sort of things. Where we see the most claims-
507

00:19:27.360 --> 00:19:27.500
Yeah
508
00:19:27.720 --> 00:19:28.880
... are on the human side.
509
00:19:29.010 --> 00:19:29.010
Right.
510
00:19:29.020 --> 00:19:31.120

It's slip and falls. It's-
511

00:19:31.450 --> 00:19:31.469
Mm
512
00:19:31.469 --> 00:19:33.930

... getting injured in some way-
513

00:19:34.200 --> 00:19:34.340
Mm
514
00:19:34.350 --> 00:19:36.650
... doing something, physical activity.
515
00:19:36.800 --> 00:19:37.020
Okay.
516
00:19:37.180 --> 00:19:40.420
A lot of living soil where you're lifting heavy
517
00:19:40.960 --> 00:19:41.880
buckets of dirt.
518
00:19:41.960 --> 00:19:42.240
Yeah.
519
00:19:42.680 --> 00:19:43.960
Those sort of issues.
520
00:19:44.920 --> 00:19:48.640
It's not a lot on the fire side or
521
00:19:48.820 --> 00:19:51.020

those sort of bigger things-
522

00:19:51.060 --> 00:19:51.070
Okay
523
00:19:51.070 --> 00:19:54.940
... that we think of when we think of what insurance and what insurance
524
00:19:55.080 --> 00:19:55.570
actually is.
525
00:19:55.720 --> 00:19:59.719
How different are the conversations you have with a dispensary operator
526
00:19:59.780 --> 00:20:01.340
versus a cultivation client?
527
00:20:02.300 --> 00:20:06.080

And is there a little bit of a learning curve for you on the cultivation
528
00:20:06.180 --> 00:20:06.880
side, given that
529
00:20:08.260 --> 00:20:10.820
... Well, let me leave it right there.
530
00:20:10.880 --> 00:20:11.840
Yeah. So
531
00:20:12.780 --> 00:20:16.300
the answer is kind of. Because this has been a
532
00:20:16.360 --> 00:20:18.940

complete vertical business since the beginning-
533

00:20:19.100 --> 00:20:19.200
Yeah
534
00:20:19.240 --> 00:20:20.360
... you had to learn everything.
535
00:20:20.760 --> 00:20:20.960
Yeah.
536
00:20:21.520 --> 00:20:24.540
And I had experience before, so
537
00:20:25.380 --> 00:20:29.060
that helped a lot. But a couple of years ago,
538
00:20:29.360 --> 00:20:33.010
I had an incredible opportunity through Cannasure to
539
00:20:33.010 --> 00:20:36.520
talk to the claims people. So they had
540
00:20:36.560 --> 00:20:38.220
brought in five claims people.
541
00:20:38.860 --> 00:20:38.870
Okay.

542
00:20:38.870 --> 00:20:40.740
And I got to spend a couple of hours with them.
543
00:20:40.780 --> 00:20:41.000
Okay.
544
00:20:41.020 --> 00:20:44.920
Which was absolutely amazing. And I got to hear the stories
545
00:20:44.980 --> 00:20:48.640
about the claims. And a lot of it
546
00:20:48.740 --> 00:20:52.720
was human error. So things that people were
547
00:20:52.760 --> 00:20:55.340
supposed to do that they didn't do.
548
00:20:55.690 --> 00:20:55.840
Didn't do. Okay.
549
00:20:56.400 --> 00:21:00.020
One of them, and I'm not sure if I had told you this story or not,
550
00:21:00.160 --> 00:21:03.360
but somebody had installed a bunch of lights
551
00:21:04.540 --> 00:21:08.220
and in those, the LEDs, there was these little metal
552
00:21:08.340 --> 00:21:11.960
clips that came in there, and a lot of the times you're just popping those
553
00:21:12.040 --> 00:21:13.640
into a ballast and they click.
554
00:21:14.820 --> 00:21:16.060
So you think they're secure.
555
00:21:16.220 --> 00:21:16.400
Mm.

556
00:21:17.000 --> 00:21:20.820
But they had added these little clips that were supposed to go around the
557
00:21:20.840 --> 00:21:21.300
lights.
558
00:21:22.220 --> 00:21:23.760
Well, they didn't install the clips.
559
00:21:24.380 --> 00:21:28.240
The lights heated up, bent down, and started a fire.
560
00:21:29.440 --> 00:21:31.350

So I guess it was-
561

00:21:31.400 --> 00:21:32.280
AC or LED?
562
00:21:32.360 --> 00:21:32.900
LEDs.
563
00:21:32.940 --> 00:21:33.340
Wow. Yeah.
564
00:21:34.000 --> 00:21:37.380
So the blessing and the curse about having cameras everywhere,
565
00:21:37.960 --> 00:21:41.640
the blessing is that they could go back and they could watch the whole thing
566
00:21:42.120 --> 00:21:45.120
from start to finish. They're like, "Oh, we didn't see.
567
00:21:45.280 --> 00:21:46.860
You didn't install these clips."
568
00:21:46.960 --> 00:21:47.580
Mm-hmm.
569
00:21:48.640 --> 00:21:52.480
The curse is, is that there was no insurance coverage
570

00:21:53.040 --> 00:21:56.800
because they didn't follow the instructions to the T.
571
00:21:56.900 --> 00:21:57.400
Yes.
572
00:21:57.440 --> 00:21:59.220
And because they didn't do that,
573
00:22:00.200 --> 00:22:01.020
they had no coverage.
574
00:22:02.280 --> 00:22:06.020
Yeah. So those sort of things are things that we
575
00:22:06.080 --> 00:22:09.160

learn, and you can only learn those in the field or from-
576

00:22:09.400 --> 00:22:09.680
Right
577
00:22:09.700 --> 00:22:10.330

... somebody that's had to-
578

00:22:10.560 --> 00:22:13.260
It's like if it's not installed properly, the warranty is void.
579
00:22:13.420 --> 00:22:13.700
Correct.
580
00:22:13.760 --> 00:22:17.330
Mm-hmm. That makes sense. Now, you brought up Cannasure, which has been a great
581
00:22:17.360 --> 00:22:18.320

partner for you-
582

00:22:18.400 --> 00:22:18.410
Yeah
583
00:22:18.410 --> 00:22:19.540
... as long as I've known you.
584
00:22:20.400 --> 00:22:23.940

Appreciate it.
1326
00:49:26.724 --> 00:49:26.964
Yeah.
1327
00:49:27.984 --> 00:49:31.824
That's all for today on the "Canna Connect Show." We'll see you next week with a
1328
00:49:31.844 --> 00:49:34.264
brand-new episode brought to you by What Rebates.