>> THANK YOU FOR HOSTING US TODAY, MIKE, AND BRAD, THANK YOU FOR JOINING US.

BRAD, I JUST WANT TO KICK THINGS OFF WITH YOU, IF I COULD, WITH, YOU KNOW, JUST A LITTLE BACKGROUND ON KIND OF AN UNUSUAL INDUSTRY THAT WE HAVE HERE.

I GUESS FIRST CALIFORNIA, COLORADO GOT INTO THE WHOLE LEGALIZATION OF CANNABIS, MARIJUANA, NOW NEW YORK.

SO WE ARE FOLLOWING THEIR FOOTSTEPS, I TAKE IT?

>> YEAH, THIS HAS BEEN, I THINK, A LONG TIME COMING.

THERE HAS BEEN NEW YORK ADVOCATES FOR YEARS AND YEARS WHO HAVE ASKED FOR LEGALIZATION, MEDICAL MARIJUANA WAS LEGALIZED WAY BACK IN 2014, I BELIEVE.

BUT THE PUSH FOR RECREATIONAL HAS BEEN A LONG TIME COMING AND ONCE GOVERNOR CUOMO SIGNED THIS BILL, NEW YORK KIND OF TOOK A LOOK AT THE OTHER STATES AND SAID THEY WERE GOING TO TAKE SOME LESSONS FROM THEM AND THEN SEE WHAT WENT WRONG.

>> WE'LL GET TO MIKE IN A SECOND.

BUT PEOPLE LIKE MIKE REQUIRE A LICENSE FROM THE STATE, RIGHT?

YOU NEED A STATE'S BLESSING AND LICENSE.

HOW DOES ONE GET THE LICENSE AND, YOU KNOW, WHAT REQUIREMENTS ARE NECESSARY FOR THAT?

>> IT DEPENDS ON WHAT KIND OF LICENSE.

IF YOU ARE TALKING ABOUT A DISPENSARY LICENSE, RIGHT NOW THE GENERAL APPLICATION PERIOD IS OPEN FOR RETAIL DISMEN'SRY LICENSE.

PEOPLE ARE ACTIVELY APPLYING.

WE EXPECT TO SEE THOUSANDS UPON THOUSANDS OF APPLICANTS BUT THERE IS A LIMITED NUMBER OF LICENSES AVAILABLE AT THIS POINT IN TIME.

WE BELIEVE THAT NEW YORK STATE WILL OPEN UP AGAIN IN THE FUTURE FOR MORE LICENSE TYPES, BUT RETAIL BASICALLY ANYBODY CAN APPLY.

NOW WHEN IT COMES TO DIFFERENT OTHER TYPES OF LICENSES, THERE MAY BE OTHER KINDS OF LIMITATIONS.

>> IF I APPLIED, AND WAS SUCCESSFUL IN GETTING A LICENSE, COULD I OPEN A SHOP RIGHT NEXT DOOR TO MIKE?

ARE THEY MONITORING THE COMPETITION IN SOME WAY?

>> THERE ARE SETBACKS.

SO HAVE YOU TO BE A CERTAIN DISTANCE FROM OTHER RETAILERS, FROM PLACES OF WORSHIP, FROM SCHOOLS, THINGS LIKE THAT.

SO THOSE ARE CALLED BUFFER ZONES AS WELL.

THOSE ARE VERY CONTENTIOUS AT THIS POINT IF TIME, ESPECIALLY FOR AREAS LIKE LONG ISLAND, WHERE THERE IS NOT A LOT OF REAL ESTATE AVAILABLE.

>> SO MIKE, YOU KNOW, I ALWAYS LIKE TALKING TO FOLKS WHO START THEIR OWN BUSINESS, YOU KNOW, RUNNING THEIR OWN COMPANY AND WHAT NOT.

WE'LL TALK ABOUT SOME OF THE HURDLES HERE BUT HOW WAS THE PROCESS FOR YOU FROM GETTING THE IDEA TO GETTING THE LICENSE TO GET GOING.

WAS IT A LONG, DRAWN OUT AFFAIR OR WAS IT PRETTY STRAIGHTFORWARD?

>> IT WAS A PRETTY LONG, DRAWN OUT AFFAIR.

YOU KNOW, I GOT GOING RIGHT AWAY RIGHT WHEN THE GOVERNOR SIGNED THAT BILL, I WAS WORKING THE NEXT DAY ON GETTING THIS STARTED.

TO THE POINT WHERE I GOT IT STARTED AND I GOT IT FINISHED AND THEN I SAT VACANT FOR OVER A YEAR BEFORE I GOT THAT LICENSE.

>> WITHOUT OPENING YOUR BOOKS TO ME, I GUESS MY QUESTION IS HOW IS BUSINESS SO FAR?

FOUR MONTHS YOU HAVE BEEN OPERATING, FOUR OR FIVE MONTHS.

ARE SALES UP TO YOUR EXPECTATIONS SO FAR?

>> YEAH, I JUST RAN THE REPORT THIS MORNING AND WE ARE OVER 10 MILLION IN THE FOUR MONTHS WE HAVE BEEN OPEN.

>> THAT'S ENORMOUS.

>> YEAH.

>> SO AGAIN, EXCEEDING EXPECTATIONS.

SO FORGET THAT IT TOOK SO LONG TO GET HERE.

YOU ARE HAPPY NOW, I TAKE IT.

>> I'M HAPPY NOW.

THAT'S FOR SURE.

>> I DON'T BLAME YOU.

DISCUSS, IF YOU CAN, MIKE, FOR THE UNINITIATED, YOU KNOW, WHAT IS FOR SALE HERE?

WHAT IS THE PRODUCT LINE LOOK LIKE?

>> WELL, WE'VE GOT FLOWER THAT YOU CAN SMOKE.

WE'VE GOT VAPES.

EDIBLES, TINCTURES.

>> WHAT IS THE MOST POPULAR.

>> FLOWER.

GREEN BUD.

>> SMOKE.

>> YEP.

>> YOU KNOW, WE TALK A LOT ABOUT MONEY ON THIS SHOW SO LET ME TALK TO YOU ABOUT MONEY FOR A SECOND.

I SAW SOMEWHERE NEW YORK STATE WAS GOING TO ISSUE BONDS, $150 MILLION, I THINK OF REVENUE THEY WANTED TO RAISE TO HELP PROMOTE THIS.

THE STATE I THINK WAS GOING TO KICK IN ANOTHER $50 MILLION SOMEWHERE.

MY MATH $200 MILLION.

IN TERMS OF THE STATE BUDGET, NOT A TON OF MONEY, BUT $200 MILLION.

WHERE IS THE MONEY?

>> THAT'S A GREAT QUESTION.

NOBODY KNOWS.

>> YOU ARE JOINING.

>> NO.

THIS IS REALLY REALLY COMPLICATED.

I WON'T TRY TO GET INTO THE MI MINUTIA BUT THERE IS A DIFFERENT AGENCY THAT IS RESPONSIBLE FOR FINDING A FUND MANAGER TO RAISE THIS MONEY AND THEN OVERSEE IT AND BUILD THESE CARDS DISPENSARIES.

THEY DID RAISE $150 MILLION.

STATE KICKED IN 50.

TO THIS DATE WE THINK THERE HAVE BEEN AROUND $30 MILLION SPENT.

BUT WE HAVE NO IDEA WHAT IS GOING ON WITH THE REST OF THE MONEY.

THE PEOPLE WHO HAVE CARD DISPENSARIES CAN'T GET SAWNSES TO WHAT IS GOING ON WITH THE MONEY, THERE HAS BEEN NO LOANS GIVEN OUT FROM THIS FUND.

IT'S A GIANT MESS.

WE HAVE BEEN LOOKING INTO IT FOR A YEAR.

WE CAN'T GET ANSWERS.

>> THAT'S MILDLY DISTURBING.

JUST TO HEAR THAT.

BUT OKAY, LET'S MOVE OFF THAT.

YOU KNOW, MIKE, DID YOU RECEIVE ANY ASSISTANCE FROM THE STATE TO GET THIS PLACE UP AND RUNNING?

>> NO.

AND THEY KNEW THIS PLACE WAS JUST AS IT SITS FOR A YEAR AND A HALF BEFORE THEY GAVE ME THE LICENSE.

>> HERE YOU HAVE THE STATE SAYING OKAY, BUT THE FEDERAL GOVERNMENT WAS STILL KIND OF OPPOSED.

AND THE FEDERAL GOVERNMENT OVERSEES BANKING.

I KNOW THAT MUCH, RIGHT?

FDIC AND WHAT HAVE YOU.

SO CAN YOU WORK WITH BANKS, CAN YOU DEPOSIT INTO AN FDIC INSURED ACCOUNT CASH AND THE BANKS WILL WORK WITH YOU NOW BECAUSE THAT I THOUGHT WAS SO CUMBERSOME.

>> THE MONEY HAS TO GET PICKED UP FROM AN ARMORED TRUCK AND GO TO THE FED, WHICH IS IN NEW JERSEY.

SO I CAN'T JUST WALK ACROSS THE STREET AND DEPOSIT INTO AMERICU WHICH IS THE BANK WE ARE GOING THROUGH.

HAVE I TO HAVE IT PICKED UP FROM HERE AND SHIPPED TO THERE, WHICH IS VERY EXPENSIVE, LET ME TELL YOU.

>> HOW BIZARRE IS THAT.

>> IT IS BIZARRE BECAUSE THERE IS SO MUCH COST TO THAT, THEY CHARGE PER MINUTE WHILE THEY'RE HERE.

THE SERVICE FEE IN THE FIRST PLACE.

>> HAVE YOU TO PAY FOR SECURITY, I WOULD THINK.

>> YEAH, JUST THE WHOLE PROCESS AND ME HAVING TO STORE IT.

>> SO THERE IS STILL THAT KIND OF WEIRD WALL BETWEEN YOU AND THE FEDERAL SIDE OF BANKING.

>> YES.

>> IS THAT GOING TO CHANGE?

>> I HAVE NO IDEA.

>> COME ON.

>> I ONLY CONCENTRATE ON NEW YORK.

THERE ARE OTHER EXPERTS WHO WILL TALK ABOUT THE LIKELIHOOD OF SAFE BANKING PASSING.

>> ISN'T IT A CASE WHERE-- AND AGAIN, I'M OUTSIDE LOOKING IN, BUT THE FEDERAL GOVERNMENT ISN'T REALLY WORKING WITH THE STATE GOVERNMENT.

AND EVEN LOCALITIES-- LIKE I READ WHERE CERTAIN TOWNS OR VILLAGES DON'T WANT A RETAIL STORE.

EVERYBODY IS SORT OF NOT CONNECTED.

>> YEAH THERE IS MORE THAN HALF OF THE LOCALITIES IN NEW YORK STATE OPTED OUT OF RETAIL AND ON SITE CONSUMPTION WHEN THIS STARTED.

SO IT'S DISCONNECTED.

>> SO I'M JUST PUSHING THIS BECAUSE IF I WAS MIKE, THIS WOULD GIVE ME A HEADACHE.

IF WE ONLY HAVE 30 STORES IN THE STATE RIGHT NOW ON OUR WAY TO MAYBE A COUPLE HUNDRED?

I DON'T KNOW, MAYBE 300 OR 400.

>> THEY EXPECT MORE THAN 1500 I THINK AT SOME POINT.

>> THEN AT SOME POINT THAT HAS TO CHANGE BECAUSE YOU CAN'T HAVE THESE ARMORED TRUCKS GOING BACK AND FORTH WITH MONEY.

THE FEDERAL GOVERNMENT SHOULD RECOGNIZE THE BUSINESS, NO?

>> I MEAN THAT'S UP TO THEM, BUT, YEAH, YOU KNOW, IT'S A SECURITY RISK.

THERE HAVE BEEN UNBELIEVABLE AMOUNTS OF BREAK-INS AND ROBBERIES IN CALIFORNIA.

WE HAVE SEEN THIS OVER THE LAST DECADE OR SO AND IT'S CALLED SAFE BANKING THIS THING THEY'RE TRYING TO PASS BECAUSE OF THE RISK TO RETAILERS AND OTHERS WHEN IT'S A CASH ONLY BUSINESS.

IT JUST MAKES SENSE.

THEY'RE TAXED BY THE STATE FOR EVERYTHING.

>> THAT'S WHAT I'M SAYING.

THE STATE WANTS IN, I GET IT BECAUSE THERE IS TAX REVENUE TO BE HAD.

OKAY, GOOD.

BUT IT'S EITHER A LEGIT BUSINESS OR IT ISN'T.

I'M SURE IT HAS TO BE FRUSTRATING.

>> IT'S DEFINITELY FRUSTRATING BUT WHAT IS EVEN MORE FRUSTRATING WITH BAIJING IS THE FACT THAT THE BANKS WILL NOT GIVE LOANS OUT.

SO LIKE THE BUILDING, I HAD TO PAY CASH FOR THE BUILDING.

COULDN'T GET A MORTGAGE ON A PIECE OF REAL ESTATE.

>> THAT IS JUST WEIRD BECAUSE YOU CAN PROVE IT SOME WAY WITH A GOOD BUSINESS MODEL BUT THE WHOLE STATE VERSUS FED IS PROBABLY MESSING YOU UP.

>> YEP.

>> LET'S END HERE.

CHALLENGES ASIDE, OBVIOUSLY BUSINESS IS GOOD CHT WHERE DO YOU SEE THIS GOING.

IS THERE ANOTHER PHASE TO WHAT YOU ARE DOING?

WHAT IS THE NEXT STEP?

>> NEXT STEP FOR ME IS TO KEEP ON BUILDING THESE AND I MEAN THE STATE SAYS RIGHT NOW I CAN ONLY HAVE-- >> CAN YOU HAVE MORE THAN TWO FRANCHISES?

>> THEY SAID I COULD HAVE UP TO THREE BUT THAT'S A WHOLE OTHER STORY.

THEY'RE NOW NOT ALLOWING ME TO-- THE BLUEPRINT IS RIGHT THERE.

I'M READY TO BUILD ANOTHER DISPENSARY NOT TOO FAR AWAY RIGHT NEXT TO THE FAIRGROUNDS.

I'M GOING TO DEVELOP AN OLD GOLF COURSE THAT USED TO BE THERE AND I WENT TO FILL OUT THE APPLICATION AND THEY SAID I COULDN'T FILL OUT THE APPLICATION BECAUSE I HAVE A CAURD LICENSE AND I FILLED OUT THE APPLICATION FOR THE REAL LICENSE.

I WANT TO GET BUILDING THIS THING AND IT'S JUST SO FRUSTRATING.

>> SAME QUESTION TO YOU, BRAD.

FROM YOUR PERSPECTIVE, THIS IS A GROWTH INDUSTRY?

DOES THE NAFLT RUN WEAR OFF?

DOES THE STATE RUIN IT?

>> IT'S A LEGITIMATE VIABLE INDUSTRY IF ANY STATE WOULD GET OUT OF ITS OWN WAY.

WE HAVE SEEN THIS TIME AND AGAIN AND NEW YORK IS DOING IT AGAIN.

THEY'RE MAKING IT NEARLY IMPOSSIBLE FOR PEOPLE LIKE MIKE AND OTHERS TO RUN A BUSINESS.

IT'S LIKE RED TAPE AFTER RED TAPE AND THEN WHEN PEOPLE LIKE MIKE AND OTHERS WANT BASIC ANSWERS TO BASIC QUESTIONS, THEY CANNOT GET ANSWERS.

LIKE AGAIN, THE MOST BASIC QUESTIONS.

SO WE HAVE BEEN SEEING THIS SINCE THE INSENGS OF THIS INDUSTRY AND WE HAVE TRIED TO MAKE IT OUR JOB TO GET THE ANSWERS FOR PEOPLE AND PUT IT IN PRINT BUT THEY'RE BEYOND FRUSTRATED.

EVERYONE FROM THE GROWERS, PROCESSORS, RETAILERS.

EVERYONE IS FRUSTRATED HERE IN NEW YORK.

>> IT'S A FRUSTRATING INTERVIEW QUITE FRANKLY.

BUT I APPRECIATE YOUR COVERAGE ON THIS AND MIKE, CONGRATULATIONS TO YOU.

I MEAN STATE ASIDE, THINGS LOOK GOOD.

SO GOOD FOR YOU.

THANKS FOR YOUR TIME, GUYS.