MJNA will on NBR today again ...more News for MJNA The Legal Fate of Legalized Marijuana in Colorado & Washington HUDSON: This week, it became legal in the state of Colorado to use marijuana without a doctor’s recommendation. It’s the second state to do so; Washington was the first. The legal fate of these state laws is really uncertain since Federal law still considers marijuana illegal. But the legal business of marijuana is already growing in 18 states where it is allowed for medical use. We recently spoke with Tripp Keber, CEO of Dixie Elixirs, a company that makes marijuana-infused products. Tripp Keber is the owner of Dixie Elixirs. He joins us from Denver, Colorado. Tripp, do you consider yourself in the drug business?
TRIPP KEBER, CEO, DIXIE ELIXIRS: I absolutely do not. We have been in the business for the last three years of making medicine for patients here in the state of Colorado. By that, we certainly don’t consider ourselves drug makers.
HUDSON: Considering you sell not marijuana specifically, but elixirs derived from marijuana and other properties, where do you get your raw materials?
KEBER: We have approximately a 50,000 square foot cultivation facility here in Denver, Colorado in the city of Denver proper. And that cultivation facility feeds our manufacturing facility, which is a 27,000 square foot state of the art facility here in Denver, Colorado as well. So we control what is called from seed to sale.
HUDSON: Seed, you grow it and then you derive the compounds from it to make your elixirs, your sodas and your other products, is that right?
KEBER: We take the raw plant material and render it into a liquid format, cannabinoid oil. The internal language we us is mother’s milk. We take that, concentrate it and then we infuse into nine different delivery systems, what we call product lines that represents just under 65 unique products that we serve here in the state of Colorado.
HUDSON: Tripp, could your business have existed say a decade ago?
KEBER: Not likely because the medical marijuana movement is really still in its nascent stages, just less than 10 years across the country. California was leading that effort. In the last four years, the state of Colorado really became the forefront of this movement and certainly in the last two and a half years, things have really stabilized. Colorado has been extremely thorough in providing a strongly regulated and compliant model that I think many other states are starting to look at and develop their models after.
HUDSON: To that point, Tripp, how limited is your market right now geographically?
KEBER: You’re talking about 105,000 patients to in excess of probably a million consumers of the product overnight. I think that number will be conservative when you take into consideration potentially the marijuana tourism aspect of it which could be in effect doubling, but in effect the market has grown 10-fold over night with the passing of 64.
HUDSON: Your website states Medical Marijuana Inc., your parent company does not grow, sell or distribute any substance that violates United States law or the controlled substance act. How do you put this two together, Colorado state law allowing for legal consumption, but Federal law not.
KEBER: It’s an interesting dynamic. Specifically, Medical Marijuana Inc., which is a publicly traded company - I’m a board member and officer of that company—actually does not actually own anything directly related to the cultivation, manufacturing or distribution of these infused products. What we own is the intellectual property, the formulation, the research and development through our portfolio of companies called Red Dice Holdings (NYSE:DHX), of which I’m the president and CEO. So it’s a delicate balance, but we’re absolutely committed to making sure that we adhere to all state and Federal rules as it relates to the ownership of these various entities.
HUDSON: The holding company structure helps you out with that. You did $3 million in revenue in the last quarter. What does next year look like?
KEBER: I would imagine the next 12 to 14 months, the adjustable market year, the revenues will grow to excess of a billion dollars. Currently my company, Dixie Elixirs, distributes to just under 500 of the 523 medical marijuana centers in the state. So we have almost ubiquitous coverage. So I would say our distribution is going to position us very nicely for what the overall growth in the market is going to offer.
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