“Because of rescheduling, we’re falling into pharmaceutical concerns now. Are we going to be doing new drug applications? How does this impact the state markets? Is it as simple as ‘280e no longer applies and away we go?’ Or are we looking at new additional federal regulatory burdens in order to gain some of those benefits? What kind of business models are we going to need to be pursuing?”—Zach Huey
The finer details of this episode:
Episode resources:
Timestamps:
Welcome to the Cannabis Success Show (00:00:00)
Introduction to the podcast and the purpose of the show.
Zach's Journey to Cannabis (00:01:10)
Zach Huey shares his background and how he transitioned from a non-profit and renewable energy to becoming a business attorney in the cannabis industry.
Roles of a Business Attorney (00:02:06)
Zach explains the role of a business attorney, including entity formation, commercial contracting, capital raising, and intellectual property.
Protecting Brands and Patents (00:10:14)
Discussion on how cannabis companies can protect their brands and patents, including the use of trademarks and the importance of intellectual property.
Considerations for Startups (00:15:37)
Advice on prioritizing business needs, regulatory compliance, and the importance of investing in legal protection for long-term success.
Contrasting Licensing Processes (00:17:34)
Comparison of the intense licensing process in Alabama with the more approachable process in Missouri, highlighting the differences in timing, requirements, and challenges.
Navigating the Application Process (00:22:26)
Insights into the journey and expectations for applicants, including the probability of obtaining a license, the cost, and the work involved in the application process.
Micro licenses in Alabama and Missouri (00:22:27)
Explanation of micro licenses in medical and recreational markets, qualifications, and market bifurcation.
Missouri's cannabis regulations (00:22:58)
Overview of resources, regulations, and licensing statuses in Missouri's cannabis market.
Challenges of microbusinesses in Missouri (00:25:26)
Discussion on the potential impact of market bifurcation on microbusinesses and existing operators in Missouri.
Market profitability and oversupply (00:26:34)
Comparison of market profitability and oversupply in Colorado and emerging markets like Missouri.
Licensing process in Maryland and Missouri (00:31:17)
Comparison of the licensing process in Maryland and Missouri, including social equity rounds and consultant experiences.
Advice for applicants in emerging markets (00:34:54)
Recommendations for applying for licenses in Missouri and Maryland, including the importance of networking and vetting service providers.
Vetting service providers (00:36:50)
Discussion on finding trustworthy business attorneys, accountants, and advisors, and the value of transparent subscription-based services.
Understanding the cannabis market (00:40:38)
Reflection on the shift in the cannabis market, the need for sound financial decisions, and the importance of a well-planned business approach.
Application process and business planning (00:44:22)
Importance of financial forecasts and understanding the market for successful business planning in the application process.
The Reschedule Outlook (00:44:45)
Discussion on the likelihood and potential impact of rescheduling cannabis at the federal level.
Federal Change Predictions (00:45:52)
The constant narrative of federal change, potential impact on operators' lives, and the impact of rescheduling compared to safer banking.
Impact on License Holders (00:50:29)
Immediate and potential future impacts of rescheduling on license value and cash flow, and communicating the value to investors.
Regulatory Education and Rescheduling (00:54:58)
The need for regulatory education on the differences in cannabinoids and the potential impact on understanding rescheduling.
Zach's Availability (00:57:58)
Zach's availability for contact and upcoming conference involvement in the cannabis industry.
