Medicine Man Technologies Inc (SHWZ)

[damAcon1]

In my opinion, In the current landscape, MSO is just a flashy title. With SHWZ it will happen in time and I am probably in the minority when I say that I am fine with them not pushing this right now...and especially for the sake of the stock price or prospective shareholders. Cannabis is a capital intensive business. It is tough growing in one state let alone raising the capital to expand and build out operations across multiple states.

I was going to reply last night, but I am glad that I held off until after I heard the Talking Hedge interview with the CFO of 4Front (link below).

Last night I was going to comment that it is expensive to run a multistate operation, especially when states laws differ and are ever evolving. I was going to reference the Seeking Alpha Cannabis Investing Podcast interview with Jushi's CEO (I think around the 10Min mark) where he talks about being in multiple states and that it is a $22M annual G&A expense. Anyway circling back to the 4Front interview, Andrew Thut, is an advocate of being a multistate operator, but he will also tell you that 4Front moved too quickly into being one that they ultimately had to scale back: cut admin expenses, their multistate presence from 9 states down to 5 and hire a new CEO). They also had to refocus their strategy. He goes on to say that this new strategy was their best move. That strategy being low cost, high quality, production and the want to 'go deep' in the states that they are in. It sounds like they are preparing for when the market correction happens, and cannabis prices level out, being able to still make profit margins...unlike those overpaying to play in limited licensed states expecting never ending high returns due to the ridiculous cost per pound of cannabis in those locations.

Personally, I thought he did a really good job at articulating a lot of the (industry) thoughts floating around in my head.

Anyway, there is a lot of other "good" information in the interview...and you could speed the video up to 1.5x and not miss anything: