RUSH TRANSCRIPT As David ░░░░░░░░ a moment ago the ░░░░░░░░ names are down despite ░░░░░░░░ efforts by the states ░░░░░░░░ legalize adult and recreational ░░░░░░░░ let s talk about ░░░░░░░░ with emily poxi managing ░░░░░░░░ at poseidon management Great ░░░░░░░░ see you again Thank ░░░░░░░░ for having me today ░░░░░░░░ general concern among some ░░░░░░░░ the street is that ░░░░░░░░ companies still have a ░░░░░░░░ of need for cash ░░░░░░░░ liabilities despite the wave ░░░░░░░░ we saw on Election ░░░░░░░░ What s going on ░░░░░░░░ you think We should ░░░░░░░░ very specific here talking ░░░░░░░░ the Canadian names that ░░░░░░░░ benefitted on a federal ░░░░░░░░ opening early capital flowing ░░░░░░░░ to the companies and ░░░░░░░░ balance sheets rich and ░░░░░░░░ after the very aggressive ░░░░░░░░ plans without having really ░░░░░░░░ the strength of the ░░░░░░░░ so we have seen ░░░░░░░░ real challenges in terms ░░░░░░░░ operational efficiency and the ░░░░░░░░ out of a ltd ░░░░░░░░ these companies have just ░░░░░░░░ really disappointing for invest ░░░░░░░░ thes across the board ░░░░░░░░ we are however thinking ░░░░░░░░ more positively about what ░░░░░░░░ see in the U ░░░░░░░░ so right now the ░░░░░░░░ that the sector moves ░░░░░░░░ based on catalysts and ░░░░░░░░ the election with Joe ░░░░░░░░ and Kamala Harris winning ░░░░░░░░ interest into the sector ░░░░░░░░ moving towards progress here ░░░░░░░░ we have to be ░░░░░░░░ in thinking about what ░░░░░░░░ means for how the ░░░░░░░░ perform When you say ░░░░░░░░ what do you mean ░░░░░░░░ you mean trying to ░░░░░░░░ Canada from the portfolio ░░░░░░░░ something else You have ░░░░░░░░ pick the operators carefully ░░░░░░░░ we are looking at ░░░░░░░░ is gti announcing a ░░░░░░░░ S mso announcing the ░░░░░░░░ after the close and ░░░░░░░░ excited to see what ░░░░░░░░ are doing in the ░░░░░░░░ because they really are ░░░░░░░░ ones who stand to ░░░░░░░░ from what s going ░░░░░░░░ in this shift in ░░░░░░░░ Some are getting their ░░░░░░░░ seem to be getting ░░░░░░░░ feet under them a ░░░░░░░░ bit more and driving ░░░░░░░░ execution We re really ░░░░░░░░ about what we re ░░░░░░░░ in the U S ░░░░░░░░ investors should contemplate is ░░░░░░░░ s coming behind these ░░░░░░░░ U S Operators that ░░░░░░░░ publicly listed I m ░░░░░░░░ that some of these ░░░░░░░░ operators will be looking ░░░░░░░░ a public listing within ░░░░░░░░ and I think we ░░░░░░░░ going to see very ░░░░░░░░ operations out of those ░░░░░░░░ Emily what is the ░░░░░░░░ for nationalized legalization in ░░░░░░░░ U S under a ░░░░░░░░ Administration You know we ░░░░░░░░ to be much more ░░░░░░░░ and long view in ░░░░░░░░ of how we think ░░░░░░░░ when these things will ░░░░░░░░ when we first launched ░░░░░░░░ fund in 2014 we ░░░░░░░░ maybe 2021 we would ░░░░░░░░ some shifts at the ░░░░░░░░ level But the way ░░░░░░░░ have moved in the ░░░░░░░░ S government these days ░░░░░░░░ what s happening in ░░░░░░░░ Senate with what s ░░░░░░░░ in Congress we think ░░░░░░░░ this could be slowed ░░░░░░░░ further we know that ░░░░░░░░ and Harris have committed ░░░░░░░░ decriminalizing cannabis I talk ░░░░░░░░ nuance a lot because ░░░░░░░░ does matter in terms ░░░░░░░░ how these markets are ░░░░░░░░ and how regulation is ░░░░░░░░ so it is critical ░░░░░░░░ us to think about ░░░░░░░░ fine points of these ░░░░░░░░ for us the most ░░░░░░░░ thing that can happen ░░░░░░░░ the federal level is ░░░░░░░░ in banking and that ░░░░░░░░ not just for access ░░░░░░░░ bank accounts and lines ░░░░░░░░ credit and all of ░░░░░░░░ things that these businesses ░░░░░░░░ to have it s ░░░░░░░░ access to the uplifting ░░░░░░░░ the NASDAQ the New ░░░░░░░░ Stock Exchange so that ░░░░░░░░ can get more institutional ░░░░░░░░ access into these names ░░░░░░░░ gti true leave all ░░░░░░░░ these wonderful names that ░░░░░░░░ really driving growth in ░░░░░░░░ industry the industry is ░░░░░░░░ 40 year over year ░░░░░░░░ the u s so ░░░░░░░░ we can capture that ░░░░░░░░ with these operators and ░░░░░░░░ believe that we can ░░░░░░░░ can create jobs and ░░░░░░░░ can create lasting businesses ░░░░░░░░ mentioned access to capital ░░░░░░░░ being a big problem ░░░░░░░░ of the big disappointments ░░░░░░░░ continue to have is ░░░░░░░░ negative cash flow continues ░░░░░░░░ disappoint investors Is there ░░░░░░░░ these companies can and ░░░░░░░░ be doing as they ░░░░░░░░ some sort of federal ░░░░░░░░ that would give them ░░░░░░░░ access to banks and ░░░░░░░░ markets as you mentioned ░░░░░░░░ well I think we ░░░░░░░░ see a lot of ░░░░░░░░ reigning in way back ░░░░░░░░ q1 of last year ░░░░░░░░ the msos dialed into ░░░░░░░░ fact that was not ░░░░░░░░ with investors that was ░░░░░░░░ starting to fall flat ░░░░░░░░ we re starting to ░░░░░░░░ these things happening and ░░░░░░░░ re seeing the operators ░░░░░░░░ towards free cash flowing ░░░░░░░░ that is really resonating ░░░░░░░░ investors because they are ░░░░░░░░ that the business case ░░░░░░░░ cannabis is being demonstrated ░░░░░░░░ Canada it s been ░░░░░░░░ I think there was ░░░░░░░░ lot of reaching for ░░░░░░░░ stars we re going ░░░░░░░░ export into Europe They ░░░░░░░░ t have the logistics ░░░░░░░░ out for how that ░░░░░░░░ going to work We ░░░░░░░░ talking about U N ░░░░░░░░ that mirror what we ░░░░░░░░ got in the U ░░░░░░░░ that are hard to ░░░░░░░░ around Not to mention ░░░░░░░░ you re anticipating that ░░░░░░░░ like Germany are just ░░░░░░░░ to open their doors ░░░░░░░░ allow for importing of ░░░░░░░░ you know there s ░░░░░░░░ points to that as ░░░░░░░░ in terms of how ░░░░░░░░ approaches their economy Right ░░░░░░░░ did talk to an ░░░░░░░░ last week with the ░░░░░░░░ that the Georgia runoff ░░░░░░░░ prediction markets don t ░░░░░░░░ that taking the Democrats ░░░░░░░░ 50 in the Senate ░░░░░░░░ if it did happen ░░░░░░░░ analyst believed that would ░░░░░░░░ transformational would you have ░░░░░░░░ actually see it to ░░░░░░░░ it I think a ░░░░░░░░ it to believe it ░░░░░░░░ is absolutely in order ░░░░░░░░ 2020 and for our ░░░░░░░░ alone our industry we ░░░░░░░░ great strides and then ░░░░░░░░ a little bit of ░░░░░░░░ stepback a person once ░░░░░░░░ me it s all ░░░░░░░░ getting the pendulum to ░░░░░░░░ further in One Direction ░░░░░░░░ not having it swing ░░░░░░░░ to the starting point ░░░░░░░░ think we re making ░░░░░░░░ and we saw five ░░░░░░░░ legalize cannabis it was ░░░░░░░░ landslide passing of an ░░░░░░░░ in the U S ░░░░░░░░ those states are traditionally ░░░░░░░░ conservative so I m ░░░░░░░░ we re seeing a ░░░░░░░░ bit more support for ░░░░░░░░ issue across the board ░░░░░░░░ there s this excellent ░░░░░░░░ out from the gallop ░░░░░░░░ 68 of Americans are ░░░░░░░░ support of legalizing cannabis ░░░░░░░░ if we can get ░░░░░░░░ form of banking reform ░░░░░░░░ the Senate and I ░░░░░░░░ think we can do ░░░░░░░░ in 2021 I think ░░░░░░░░ have the support there ░░░░░░░░ s a long way ░░░░░░░░ where we were even ░░░░░░░░ or 10 years ago ░░░░░░░░ s for sure Emily ░░░░░░░░ Fascinating market action today.