LIZ: BREAKING NEWS ANY MOMENT
NOW THE HOUSE RULES COMMITTEE
WILL HOLD A HEARING ON THE
MARIJUANA OPPORTUNITY RE
INVESTMENT AND EXPUNGEMENT ACT
BETTER KNOWN AS THE MORE ACT,
NOW IF THE COMMITTEE APPROVES IT
THE FULL HOUSE IS EXPECTED TO
VOTE ON THE BILL WHICH WOULD
FEDERALLY DECRIMINALIZE CANNABIS
AND REMOVE IT FROM THE
CONTROLLED SUBSTANCES ACT BY
FRIDAY.
THE LEGISLATION NOT ONLY CREATES
OPPORTUNITIES FOR U.S. CANNABIS
COMPANIES AND THEIR STOCKS BUT
COULD PLANT THE SEED FOR
CANADIAN-BASED COMPANIES TO
FINALLY ENTER THE MARKET ON A
FEDERAL LEVEL.
SEVERAL CANADIAN CANNABIS STOCKS
POPPED LAST WEEK AFTER THE
EXPECTED VOTE WAS ANNOUNCED,
TILRAY SEEING A NEAR, WELL MORE
THAN 41% GAIN SINCE MARCH 23,
THE VOTE ANNOUNCEMENT WAS MADE
MID-DAY MARCH 24, SO LET’S BRING
IN TILRAY CHAIRMAN AND CEO IRWIN
SIMON TO FIND OUT, I GUESS, WHAT
WOULD HAPPEN IF IT DOES PASS.
NOW, IRWIN, WE’VE SEEN THIS
MOVIE BEFORE BACK IN 2020,
A SIMILAR BILL WAS PASSED BY THE
HOUSE, AND THEN IT KIND OF
JUST SORT OF WENT KAPUT WITH THE
REPUBLICAN-LED SENATE.
THIS TIME AROUND, WHAT’S YOUR
OVER-UNDER ON WHETHER IT MIGHT
PASS ALL THE WAY THROUGH TO THE
PRESIDENT’S DESK?
>> SO GOOD AFTERNOON, LIZ, AND
NICE TO SEE YOU.
LISTEN, I THINK MY OVER-UNDER IS
, YOU KNOW, I’M NOT TOTALLY
SURE IF IT WILL GET THROUGH, BUT
IT MAKES SO MUCH SENSE.
OUR LAWMAKERS ARE SITTING THERE
IN WASHINGTON.
HERE WE ARE AS BIDEN LOOKS TO
INCREASE TAX ON SO CALLED
BILLIONAIRES, BUT THIS HERE IS
SO IMPORTANT.
NUMBER ONE FROM A SAFE BANK ACT,
IN REGARDS TO, YOU KNOW,
INSTITUTIONAL SHAREHOLDERS WANT
TO BUY CANNABIS STOCKS.
WE’VE TRADED MOSTLY IN THE LAST
COUPLE WEEKS OVER 100 MILLION
SHARES.
IT SHOWS THEY WANT TO OWN STOCKS
INSTITUTIONS WANT TO OWN THESE
STOCKS.
IN REGARDS TO THE MORE ACT AND
REGARDS TO DECRIMINALIZATION AND
THE SOCIAL JUSTICE, IT’S REALLY
IMPORTANT APART OF THE SOCIAL
JUSTICE AND YOU KNOW, THERE’S PEOPLE SITTING IN JAIL TODAY
PEOPLE SITTING IN JAIL TODAY
BECAUSE OF CANNABIS LAWS THAT
ARE OUTDATED AND WE GOT TO
CHANGE THEM, AND REGARDS TO FULL
LEGALIZATION, YOU JUST SAW WHERE
WALMART DECIDED NOT TO SELL
CIGARETTES ANYMORE, WHICH IS
GREAT.
THERE’S ABOUT $65 MILLION WORTH
OF TOBACCO SOLD IN THE U.S. ,
AND IF YOU LOOK AT TAX DOLLARS,
THE OPPORTUNITIES FOR TAX
DOLLARS TO COME INTO THE IRS OR
COME INTO THE WORLD HERE IS SO
IMPORTANT IN CANADA ALONE,
$18 BILLION OF TAX DOLLARS CAME
IN OVER THE LAST THREE YEARS AND
YOU THINK ABOUT THE REDUCED GAS
TAX THAT’S HAPPENING OUT THERE,
THE REDUCED, YOU KNOW, TAXES
TOBACCO.
WHAT A GREAT WAY IF THEY LEGAL
IZE CANNABIS FOR AN
OPPORTUNITY TO PICK-UP
ALL THOSE TAX DOLLARS.
LIZ: WELL IT’S ALMOST TWO PIECES
HERE.
I’M GLAD YOU BROUGHT UP THE TAX
IMPLICATIONS, BECAUSE FROM A
POLITICAL STANDPOINT, IT’S A WIN
-WIN.
IT WOULD BRING IN SO MUCH
REVENUE ON A FEDERAL LEVEL.
I’M INTERESTED TO KNOW WHAT IT
WOULD MEAN FOR YOUR COMPANY,
TILRAY.
HAVE YOU SORT OF MODELED FOR HOW
MUCH IN TAXES YOU MIGHT BE
HAVING TO PAY WHEN IT COMES TO
THIS , IF IT WERE FEDERALLY
APPROVED?
>> SO HERE IS AN INDUSTRY TODAY
BY 2030, IF LEGALIZATION, FULL
LEGALIZATION HAPPENED, BE
$100 BILLION INDUSTRY.
YOU KNOW, IF YOU LOOK IN CANADA
TODAY, THEY PAY ABOUT 28% EXCISE
TAX, SO YOU CAN DO THE MATH,
WHAT’S 28% OF $100 BILLION?
SO THE OPPORTUNITY IS NOT ONLY
THE TAX DOLLARS, IT’S THE JOBS
ITS CREATED AND IN CANADA THERE
WERE $6 BILLION OF
INFRASTRUCTURE BUILT SO WHAT
DOES IT DO FOR TILRAY?
TILRAY IS ONE OF THE LARGEST
CANNABIS COMPANIES IN THE WORLD,
I’M UP IN ONTARIO TODAY AT OUR
CANNABIS FACILITIES AND WE HAVE
ABOUT TWO AND A HALF MILLION
SQUARE FEET OF CANNABIS GROWTH,
JUST THINK IN REGARDS TO
FREE-TRADE WHAT WE COULD DO IN
REGARDS TO GROWING CANNABIS HERE
AND SHIPPING IT INTO THE U.S.
LIKE WE DO INTO EUROPE
AND PLACES LIKE THAT.
IN REGARDS TO, YOU KNOW,
EXPERTISE.
WE’VE BEEN DOING THIS NOW FOR
THREE YEARS AND ADULT
RECREATIONAL AND MEDICAL.
WHAT IT WOULD MEAN FOR US IS WE
COULD TAKE OUR EXPERTISE IN
GROWING CANNABIS IN REGARDS TO
OUR MEDICAL CANNABIS RESEARCH
AND REGARDS TO EXPORT IT INTO
THE U.S..
LIZ: METMEN IS A COMPANY THAT
HERE IN THE UNITED STATES YOU’VE
TAKEN AN INVESTMENT IN FOR
CONVERTIBLE BONDS.
THIS IS INTERESTING TO ME
BECAUSE THEY ALREADY HAVE MORE
THAN TWO DOZEN STOREFRONTS IN
THE STATES WHERE IT IS LEGAL,
BECAUSE OF COURSE FOR THOSE OF
YOU THAT DON’T REALLY UNDERSTAND
HOW THIS IS WORKING, FEDERALLY,
WEED IS NOT LEGAL SO YOU CAN’T
HAVE CROSS-BORDER TRANSACTIONS
AND MONEY MOVING ACROSS BORDERS
BUT HERE ON THE MAP YOU CAN SEE
WHICH STATES HAVE LEGALIZED
IT.
MEDMEN IS IN THOSE STATES SO
IT’S ALMOST AS IF IT WERE
LEGALIZED ON A FEDERAL LEVEL,
YOU IMMEDIATELY HAVE STOREFRONTS
CORRECT?
BUT WHAT OTHER KIND OF BUILDOUT
ARE YOU PLANNING IF IT
BECOMES LEGAL EVENTUALLY?
>> SO, YOU KNOW, GOOD QUESTION.
IF LEGALIZATION DID HAPPEN, WE
OWN NOTES OF MEDMEN WHICH WOULD
CONVERT TO OWNING 25% OF MEDMEN.
MEDMEN IS LIKE APPLE IN THE
CANNABIS WORLD.
THERE’S 25 STORES, IT’S A GREAT
BRAND AND WE DID THIS DEAL IN
SEPTEMBER IN THE MIDST OF DOING
A LOT WITH MEDMEN RIGHT NOW.
IN REGARDS TO OTHER THINGS WE
WOULD DO, LIZ, WE WOULD ACQUIRE
OR LOOK TO DO SOMETHING WITH
OTHER MSO’S IN THE U.S..
WE HAVE THE BALANCE SHEET, WE
HAVE THE KNOW HOW, AND WE ALSO
HAVE A MAJOR SPIRITS BUSINESS IN
OUR SWEETWATER BREWERY AND OUR
BRECKENRIDGE BOURBON WHICH WE
WOULD LOOK TO DO WITH FUSED
DRINKS AND WE HAVE LIKE OUR
ALCOHOL DRINKS TODAY, WE HAVE
OUR DISTRIBUTION SYSTEM, SO WE
HAVE A GREAT SPIRITS BUSINESS, A
GREAT INFUSED DRINKS BUSINESS
AND THE MOST IMPORTANT THING IS
HERE.
WE’RE READY TO JUMP IN NOW.
IT’S NOT GOING TO TAKE US THREE,
FOUR YEARS.
THE OTHER THING IS TOO, WE ARE
REALLY REALLY GOOD AT FROM A
REGULATORY AND QUALITY
STANDPOINT, AND THAT IS
IMPORTANT IF WE’RE GOING TO DO
ANYTHING IN CANNABIS THAT YOU
GOT GOOD REGULATIONS, YOU GOT
GOOD QUALITY AND YOU GOT GOOD
PROCESSES OUT THERE, AND TILRAY
IS READY TO DO THAT.
LIZ: AND FOR THOSE WHO ARE NOT
FOR LEGALIZATION, THERE IS A
PART OF THIS MOORE BILL IN
ESSENCE THAT TAKES A TAX FROM
THE WEED COMPANIES AND HELPS
WHEN IT COMES TO THE WAR ON
DRUGS, ET CETERA, SITUATION LIKE
THAT.
IRWIN, PLEASE COME BACK.
AGAIN, WE DON’T WANT TO GET OVER
OUR SKIIS ON THIS.
I KNOW YOU’RE A GREAT SKIER BUT
WE’LL BE WATCHING BECAUSE RIGHT
NOW, THEY ARE STILL IN, WHAT AM
I SAYING, YOU KNOW, THEY ARE
MEETING, THEY ARE GOING TO MEET
THIS AFTERNOON.
RECESS, NOT A RECESSION.
>> YOU KNOW, LIZ, LIZ, OUR
POLITICIANS GOTTA LISTEN TO
THEIR CONSTITUENTS.
LIKE I SAID BEFORE, 63% WANT
ADULT USE, 90% WANT MEDICAL AND
WE DIDN’T TALK ABOUT THE MEDICAL
OPPORTUNITIES HERE, SO OUR
REPRESENTATIVES GOT TO LISTEN TO
WHAT THE CONSTITUENTS WANT.
THEY WANT THIS LEGALIZED.
THEY WANT THE MOORE ACT OR FULL
LEGALIZATION TO HAPPEN.
LIZ: IRWIN SIMON OF TILRAY THANK