The 2022 Benzinga Cannabis Conference

Benzinga Miami Cannabis Conference 2022 – 5 things I learned in 48 hours

The wonderful Miami Cannabis Conference sponsored by Benzinga at Fontainebleau will conclude tonight with a celebrity concert by Rick Ross and a guest appearance by Mike Tyson. Originally scheduled for a panel and interviews, Mike ran into some turbulence on the flight to Miami and will now be a game decider.

What’s new in the cannabis markets of the cannabis capital? The Benzinga shows are about raising capital, going public, and getting in the flesh with all the public and near-public CEOs. Some new tidbits I picked up as an 8 year old cannabis show walker and author are the following, in no particular order, just random thoughts

• I never heard the word “marijuana” at any point over 2 days of 12 hours of networking and speaking. The only word used was cannabis and, as a certain sarcasm put it, weed. Imagine the day you can walk and network at a cannabis conference for 2 days and never hear the word “marijuana”. We’re biased, of course, but excited nonetheless.

• Largest minority and non-Caucasian attendance in marijuana conference history, which is also a good thing. While we’re nowhere near the parity levels we want to see as an industry, one insider told us, “At least here today it’s not 98% to 2%, it’s more like 93% to 7%.” What are the reasons? Could more social justice and economic empowerment businesses come online and in the funding phase could also be the location for Miami, with a strong Latino culture to start with, either way, another win for Benzinga!

• The most interesting question from Day 1 was “What is the biggest problem in the marijuana industry?”. Answer: “Oklahoma. They issued unlimited licenses for $200 and are now producing 10 times the amount their entire population could consume. Where do you think the rest are going? My guess was Texas, but all neighboring states must be thrilled, early Colorado all over again.

• Rep. Mace is a true rock star and the future of the cannabis legalization movement. Their conversation was personal, insightful, fun and their plan makes a lot of sense. The Democrats would never give a Republican a “win” on cannabis legalization, but let’s hope they can reconcile the various bills out there and have a strong bipartisan push for legalization by the fall. An interesting idea brought to us by Mace, which we’ll explore with her at a later date, but legalizing marijuana is a Republican thing if we do it state by state. Republican ideology is rooted in a deep value in states’ rights, not in an encroaching federal government. As she said, “the government that governs closest to the people is better than a government that is far away.” I think it’s a famous quote about the British Empire and US independence, but you get the point. State rights are a Republican matter, and state-controlled cannabis is technically a strong Republican theory, even when it comes to cannabis legalization.

• Full federal legalization of cannabis is years away. Discussions with 3 lobbyists show they appear safe on the matter for the next decade. Do MSOs even want legalization since they earn tons from every fiefdom (state) they operate in? The established players would lose out on cannabis with lower margins and even lower prices if interstate trade were legal, so why would they want it. Moats are good if you are the one benefiting from the moat. One lobbyist said that if current cannabis laws removed deletion and parole, we would already have federal legalization. He said Republicans are okay with anything to do with banking and commerce, but as soon as it comes to parole and parole, it’s a “no go” for any conservatives fighting legalization. I called the bluff, but as sad as that is, it’s 100% true.

• The best idea for the future, unfortunately, was gradual legalization in small increments. Do a veterans access bill, a medical marijuana bill, a research bill, get everyone to say a small “yes” to cannabis, and then later you’ll come to a “yes” to full federal legalization if you ask for it. Based on a poll of lobbyists, the Banking Act is the best bet for passage eventually, and the overall bill for full legalization when finally ready will most likely look like state law.

• Fresh Toast’s JJ McKay received the unofficial Best Dressed award, when JJ attends a show he is a magnet for good energy and fun. He also hosted two great speaking sessions including one with weedmaps.

• A group of respected value investors on Wall Street spoke on various panels, and everyone agreed that marijuana stocks are a great buy right now. They joked that if they all like a sector as deep value quant guys, then you know you’re hitting a bottom. The value investor argument in cannabis is something like the worst is behind us, it can’t get any worse, more states are coming online, laws will be asking to change next 6 to 24 months, now is the time buy low and just hold based on headlines and numbers there isn’t much left down. The only caveat I would like to make about this “all the bad news baked in” model is that interstate trade will decimate current brick-and-mortar MSOs’ business models. Once cannabis can be shipped freely and sites like Cannabis.net, Benzinga, and Fresh Toast can start selling cannabis direct to consumers, Amazon will be there. I don’t know how this story ends, but it’s no good for brick-and-mortar, just like Amazon is for e-commerce.

• CNBC’s Tim Seymour cut the flowing curls and doesn’t wear short haircuts, looks great, keep it up!

• Terry Booth still brings Canadian fire to a presentation like he did with Aurora, his presentation for his new project Audacious Brands was personable and funny.

Get home safe!

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