Can I Sign Idaho Banking Notice To Quit

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[Music] [Applause] good morning my name is barrington miller i'm with the canadian securities exchange and today i'm here with james gavilan from gavilan commodities he is the principal over there and we as part of our educational and web series that we're doing um he's got some unique insights into risk management and uh some capital raising strategies which we think you'll find of interest welcome to the show thank you barrington pleasure to be here yeah sorry you're you're gonna be steering this uh this episode for the most part so let's tell us a little bit about who you are and what it is you do thank you uh it's great to be here and i appreciate the opportunity to talk about very exciting times in the markets as noted here my name is james gablin i'm the principal advisor for gavin commodities which is a management and consulting group focuses on providing advisory risk management and marketing services to the broader global commodities industry and today we're going to take a look at uh really look at the market from a broad point of view as far as liquidity and then drill down into reasons why uh capital has been difficult to access and then and then go a step further and look at some risk management tools for financiers that are looking to deploy capital into the space so here we will begin we think it's a very very timely timely subject uh as far as what's going on in the pre jeering and postcovid so thank you thank you for taking the time absolutely uh you couldn't have been more uh accurate with that statement the pandemic post and pre has absolutely altered the entire uh capital landscape and uh aptly stated uh my title the title of my presentation is dude where's my capital risk management and working capital solutions for industry participants in industrial hemp medical and adult use cannabis and the junior mining sector as you know barrington your csc exchange does have quite a diverse listing of cannabis stocks as well as uh metals and mining stocks so we will be talking about uh certain throughout the presentation certain points respected to mining and also to cannabis awesome a little word here about thriving roots collective uh which i'm actually a founding partner of um thriving roots is a collection of professionals with decades of experience in marketing technology law and finance and we are looking at providing business development and consulting opportunities to the uh industrial hemp medical and adult use cannabis market a lot of the work that i've um done in with respect to capital in the uh broader cannabis market um the feedback i received from the lenders has been very interesting and we'll be speaking about that during this presentation awesome so here we're going to start um on a broader level and then start a drill down um i wanted to give a little bit of an update overall just of the broader uh cannabis market so we're going to go through a few slides and uh look at the market from the uh in industrial hemp space as well as medical and adult use candidates um starting here i'm sure many uh listeners and participants have seen this chart which is uh some great data been compiled by new frontier data i found them to be a rich source of information for the old broader cannabis market and in this chart we can see a pretty steady trend of growth starting from 2016 um to where we are now it's almost uh three times over and um at least according to this analysis by 2025 will have about 30 billion in sales and what is interesting here as you can note um the projections at least have the us as a pretty large share of of those sales so as we'll see in the next slide the reality of that is actually very interesting um this is a chart here where we can see cannabis demand expressed between illegal and uh illicit excuse me illicit and legal sources so um looking at the chart you can see that the overwhelmingly it's a lighter blue which is essentially saying that across these major states california new york um texas etc there's there's quite a bit of um room for legal demand to take over this consumer cannabis demand so we are positive in that respect that if regulations and um acts and law keep moving forward we will be able to see this uh chart ideally in uh all dark blue setting what i what i like about this chart is uh or what i find curious is california and how it's uh what i would call a an advanced cannabis marketplace exactly on both sides and it has remained steady over the past couple years very good point there and um switching over to industrial hemp which is of course all part of the same you know cannabis family if you will this is a nice representation of sales from industrial applications which as in 2018 uh just came under uh 800 million dollars and what is of note on this particular chart is the really development that we've seen in europe you know kind of leading the charge they have 54.7 of that sales figure and then also of note is china which is only at 7.6 however they're the largest exporter of him so we will um it'll be interesting to see how that supply chain dynamics in the post uh pandemic world change and we'll touch up on that a little later in the session rounding out the market snapshot is another point with respect to interest and demand and this is essentially hemp license issued by state in 2019 and the numbers are there um unfortunately the prices also reflect this uh overwhelming uh application process but you do have about 328 increase in the issuances of licenses since 2018 which is uh exactly when the farm bill came out and basically removed uh industrial hemp from the um and added it into the major crops that are already uh bellwether crops such as wheat and corn et cetera which allowed for full federal um acceptance and in total stat we have about 480 000 acres of available uh acreage that has been licensed for growing and processing him so overall um in these few slides you can see that albeit there might be some depressed pricing in hemp and some concerns about the overall cannabis market um the the signs do kind of point towards uh improvement in the years to come so here we on uh going to begin a little bit of a discussion about liquidity so i just wanted to highlight a quote from the former heavyweight champion four-time world heavyweight champion evander holyfield who unfortunately 2008 ran into a little bit of a financial difficulty and at the time he was famously quoted as saying it's not that i'm broke i'm just not liquid on which uh either way but unfortunately in this market in the next few slides we are going to discuss liquidity and really look into how that liquidity is being compromised from a larger banking level will drill down into uh commodities and then see in the cannabis space the similar theme so um in the next coming slides we're going to look at banks specifically starting with the chart on the left i know there's a lot of data here but we'll be able to wait all right through it um the left chart uh as it notes there there's been large increases in provisions for loan losses so as we can imagine in the post pandemic world um there's a lot of concern about um the hospitality sector rent rental income and overall defaulting on loans um we're seeing a lot of companies that are accessing the loan programs issued by the united states but really in this chart you can see how the banks are bracing for a lot of more loan losses in future months uh just looking at the upper left chart you have q1 loss provisions of 8.2 billion by jpmorgan chase but the prior quarter was 1.4 so you're looking at almost a six times increase and throughout the other three larger banks are just multiples of an increase with respect to loan losses further adding to the liquidity uh snapshot we've had some one-off events in oil and gold and a lot of issues with customers in q1 that had to deal with margin calls and dealing with falling asset prices and two headlines to me that really caught my eye with the first one up in the upper right that abn amro bank had to incur a 200 million dollar loss on one client in the recent volatility in the markets in q1 it's quite a bit of money and then ironically enough hsbc after their quarterly earnings were announced they had 200 million dollars of a loss in one day instead of one client but and related to the gold market and as you can see in the bottom chart um which is hsbc's quarterly profits uh on during uh on a monthly run they had us a great run there with the red lines pointing upwards and then that one 200 million dollar day is that yellow bar that's pointing down and ultimately their quarter closed on a down note it's important to uh express that these are unrealized losses but nonetheless even a negative mark to market can have a great impact on liquidity and credit and risk appetite and that's really what we're trying to highlight in these few slides looking now at the flattening yield curve so we've all heard recently about flattening the curve and how that's a positive thing certainly with respect to the coronavirus pandemic it is good to flatten the curve however in the treasury market um the flattening of the yield curve is a negative for banks and the profit billing just to dive into this a little bit the treasury curve is essentially a series of government-issued debt over uh tenor from one month out to 30 years and the rates according to the tenor reflect normally a upward sloping uh yield curve which intuitively makes sense if you think about having a mortgage you're normally going to have a 30-year mortgage at a higher rate than a 15-year mortgage what we're seeing here in this chart is that there are points and this is a historical chart back from 1980 up until today where that curve has gone from this normal shape to this shape so normally banks are going to be able to lend and make money on this end of the curve and then they borrow on this lower end of the curve and they're able to capture that difference but when the actual um treasury yield curve starts to go into zero or negative territory it's not a good sign not only for banks but for also the entire uh economic situation and i say that because in this chart which was compiled by the federal reserve bank of st louis you can see that these um six arrows point to that point where the treasury curve is flattened in this case that means the two year and the ten year are the same and those gray bars show recessionary periods so the main point in this chart is to show that we are looking potentially at some downside risk banks already preparing by covering for losses on loans and their profitability is going to be in question in the months to come and to round out the bank snapshot here we can see more proof of this profitability concern the upper left chart uh shows that in countries that have had that flat curve or negative curve as they just described you've had a reduction in the net interest margins from those banks that are in those countries from 2015 to 2019. as you can see the us hasn't dealt with this yet and at this point we have a 36 percent net interest margin but as we can see in that earlier chart and the chart below that i'll explain in a moment this uh profit could could be hurt and there could be more concerns about liquidity and profitability in the banking sector the final chart as i mentioned shows the movement of treasury yields from the whole curve one month to 30 year on a year on year basis and the one take away from this chart you can see the large green bars pushing downwards that's actually the yearly change in these rates and on the shorter end you have almost a 230 basis point reduction and a 30 and a 30 year end around 140. so just to wrap this section up banks are reserving large amounts of cash for potential loan losses banks are also negatively impacted by a negative interest rate environment which will lower their margins and market volatility and one-off shocks in gold and oil have further hindered bank risk appetite and lending and that is going to be an overall larger concern for people in the cannabis space and in the metals mining space and then uh my favorite market which is the gold market this is where i grew up and i've been a bullying banker my entire life i wanted to put a little bit of a slide here about how gold has been responding to this and also to give a shout to the metals and mining space in the upper left section we see the uh officially official quarterly gold reserves that's put out by the world gold council they produce excellent data and metrics and this is just a slate of um countries that do have gold in their blood or they have interest in holding reserves such as china india and russia but the point here is even at an official market sector they are dealing with currency issues liquidity crises the pandemic and gold is being utilized as sort of safe haven investment and a diversifier for an overall larger portfolio and the chart on the right we see a similar behavior pattern um instead of the official sector but on basically wall street and main street where you have a product called the gld which is an exchange traded fund that allows investors to express their views and gold without having to hold physical metal or owner mining stock and that contract is getting near record highs not seen since 08 and 09 which ironically is when we had the subprime crisis um mining wise just a little bit of a snapshot here we have the canadian mining eye index which is ernst young publishes this and in q1 of 2019 uh q4 of 2019 excuse me they were up 11 but in q1 of 2020 down 29 so again we're looking at um liquidity on a global basis as we just said is coming in a little tightly we've touched up a bit on commodities and how the markets have responded to this concern and also seeing a little bit of a kickback in the mining sector although in recent uh weeks the gold price and silver as well has actually responded quite nicely to the crisis overall as things have kind of worsened a bit you know with respect to china and trade wars and other other important factors so here we're going to drill down um into the cannabis space and this is a great little chart put together by viridian capital advisors that tracks capital raises on a weekly basis on the right you can see the um steady kind of coming out of the gates week 1 2 3 four etcetera you had some good movement and then as you can see with the pandemic coming in and the quarantine and this sort of self-isolation and slowing down business that raising seemed to have leveled off a bit but the numbers really bear out if you look at week 15 comparison from last year you had 185 million dollars raised and then this year 8.4 so you know the numbers are there and that's really going to close out the liquidity section where again we're seeing at the bank financial level a concern for liquidity commodities concern for liquidity and of course in our industrial hemp and adult uh use and medical cannabis space we're seeing further crimping of liquidity um we've been doing a cannabis week or cannabis weeks here at the csc and we've talked to a number of ceos and this mirrors exactly the the type of information they've been relating to their um to their customers to their investors to their um just important people who are related to the company um the one thing is nobody could say everybody felt that this was coming right but they felt it's been exacerbated by by the pandemic things were definitely uh on a down slope um from the end of last year and going into this year and then we just saw it completely level off just like the chart said so absolutely and that that's um it's not a surprise so it and this kind of really brings us thank you barrington for that comment because it really brings us to where the meat and potatoes of our seminar today and that's really you know well what do you do you know what are the solutions so one of the things that we've looked at and we'll focus on our alternative financing solutions in the metals and mining space and then we're going to look at some non-diluted financing instruments for the overall cannabis market so uh here what are non-diluted financing um what is non-diluted financing and as you can see here in this little text box it's typically a secured type of uh transaction that could be potentially bankruptcy remote and it's a way for our reluctant financiers to enter this emerging industry on a physical transactional basis for example the financing of a piece of equipment or the financing of a of inventory that may be idle but the point here is that it is a nice entry point for financiers to look to explore the space but also from the client side where they can't access equity markets or they're not large enough to access uh you know funds and private offerings this is another sort of entry level product that may work for that uh community and just to kind of round off the broad sort of four categories as i mentioned you have asset-based lending which you can imagine as the word states it's lending against an asset um employee finance which is financing against idle inventory or maybe inventory that might be in various stages of process um equipment finance which we're going to focus on as well and certainly driving routes collected has been working on developing a platform for equipment financing and then in more mature markets you know metals and energy and base metals and precious metals you do have trade finance where you're helping finance commerce and movements of cargo from say you know copper mine in chile over to uh china um what's interesting too as you mentioned in q4 with the sort of downtick you know these companies still have to make money they still have to build they still have to acquire so what i'd like to highlight here are two flagship deals that we've seen that under underline the value in the non-diluted financing uh error and as we've probably been talking about ad nauseam uh you know is um the syndicated loan that uh cure leaf was able to procure in q4 i watched your um web uh interview the other day with uh joe la sardi which was great and you know he mentioned it at the time but um i want to give this one quote which is in the release he said importantly we have raised debt capital at attractive terms without the need to dilute our shareholders which is exactly uh what is non-dilutive financing and that's it it's exactly what we uh we got from all of the ceos that we interviewed over the past few weeks they're some of the biggest multi-state operators around certainly the largest ones on our exchange and they have options available to them as far as raising money and they have to be very very careful on how they manage it and the theme throughout it was you know shareholder protection preservation of capital while still moving forward and kira leaf just announced their results and they they blew the doors off they absolutely blew the doors off of their their earnings um and they're handling it in a correct way just like uh just like joel sardi had said absolutely i saw that earlier you know 96 million or something record revenue and uh you know the big another big feature has been green thumb industries right i had that nice quarter for u.s space cannabis stocks so you know certainly even though as you said there there are some we're coming in we're in a sort of downtrend there are some bright spots um oh for sure for sure and moving aside here to um another non-diluted flagship deal that i've uh highlight is monroe capital providing 50 million dollars credit facility to cushco holdings and that is more of a a traditional asset-based lending facility um but again you can you can literally hear the non-dilutive aspect in in um nick kovacevich's quote here where he says we're continues to execute on its less dilutive financing strategy that will provide the capital necessary to support our continued operations and acquisitive growth and really and that hits nail on the head between these two major uh players we're seeing two examples of non-diluted financing and that's why we feel certainly from the sort of lower uh rung of corporate clients that don't have access to these types of deals um the non-diluted financing route may be an acceptable and uh interesting option for it now we're going to put on a little bit of a metals and mining spin here and just look at alternate capital providers as i mentioned uh we we talked about how liquidity in the market is a little is drying up at the moment and this is a smattering of companies that are looking at alternative ways to provide capital to the metals and mining sector full disclosure here i am a um advisory board member for american condor and um to highlight them is uh the reason for that is that they are a mining finance outfit looking at companies that are 12 to 18 months um away from commercial production and uh which is not it not nothing new there's plenty money finance operations out there but what is interesting with american condor is that they've also launched a security token crypto coin essentially called condor capital coin and the idea there is that the coin will launch and generate proceeds those proceeds would go to actually finance the mines the mines would then uh yield and produce gold and the gold would go back to support the coin and ultimately over time you'll have a gold back security token uh this isn't new in the industry there's a company called paxos that has a pax gold token which is fully gold backed but that's more bars and coins and things of this nature whereas with american condor it's looking to get that backing from the organic on the organic side you know via developing mines and taking their output on a transactional basis two good examples are kimura and argentum which are looking at bill themselves as alternative credit for corporations uh so again as we stated earlier trade finance inventory finance also physical off take which is very interesting and i think will be really exciting when we can develop this into the broader cannabis space is is a financing vehicle where where you agree to take the physical output of a particular operation and you um pay for that ahead of time or you agree to fund money and get paid back in that physical manner so um this these are well-developed instruments in metals and mining and as i said these are some alternative capital providers looking down now at asia-based corporations um as i'm sure you know barrington you know vancouver's seen a lot of chinese investment there's a lot of mining investment in um africa and in other nations but uh shangdong which i'm highlighting today actually recently purchased a company called tmac resources whose acid is in canada so i'm bringing that up because it's very interesting where china used to kind of work in those tougher jurisdictions they're still very strong in their appetite and and they're looking at uh you know acids that are within uh you know north america and then rounding out the group um the algon group i'm actually senior advisor for this company uh this is a group that's focusing on sort of complex situations and distress situations if you look at the uh insolvency insider that's published weekly out of canada every other week or so there's a cannabis company or another company seeking protection so hopefully um the idea is not to want to call these people but if you have to um this is a group that does a lot of work um has the experience in commodities and has been looking on a case-by-case basis at some of the industrial hemp um uh and uh adult use and medical cannabis uh clients that may be running into difficulty so distressed assets is definitely a theme we've heard about a lot in 2020 those uh those two words side by side it's um you know we've been speaking to the partner the founding partner the other day he was telling me that the the hospitality um market is is what he's very much concerned about and it makes sense you think of hotels oh yeah yeah you know strip malls that have uh rents and they're not meeting those rents so um this is certainly um a group and there's many providers to this type of debt uh but this is one that i happen to be affiliated with and that has has uh experience in the commodity set so now looking back to the title dude where's my capital um we've been able to kind of show the client side where they can go seek and find capital so now we're going to switch gears a bit and look at the risk management tools for financiers so basically help them to keep an eye on their capital right um leading off again full disclosure i'm a uh senior advisor for rs metrics um just to get into them and i think they're very meaningful from a post pandemic uh environment as well but rs metrics is the market leading company for satellite imagery and geospatial analytics one of their main instruments is called metal signals which basically is the uh a predictive data set and platform for global metals basically base metals and iron ore and what they do with their satellite imagery and geospatial analytics is try to track pricing movement um respond to one-off disaster events and also have a pretty rich uh backlog of five years of financial data by historical data to look back and see how these um changes have occurred over time so if you think from the mining side for a moment if you're looking to invest in a mine or there is a disaster event out of mine um it's much harder to get to that mine physically now more than ever and this is an option that can allow you to see from you know albeit a 20 000 foot view to see uh good good granularity now was there a burst in a leech pad or was there some flooding uh things of this nature or you might want to see if a mining client that said they've done environmental remediation you can look back and see how that is progressed specific to industrial hemp now and the medical and adult use cannabis space we are working with rs metrics to develop a similar platform but for for outdoor growth so you can imagine a reluctant financier looking to maybe lend uh to a farm or to purchase acreage this is another layer of protection that they can have eyes eyes above on plants and there is some development with respect to infrared technology that can actually look at the temperature of these plants you know whether they're red you know um lower or green growing you know higher so it's it's quite amazing stuff and the group's been very um interested in collaboration development with products so this is a type of uh platform as i mentioned that has use in the metals and mining space and also a good application for reluctant investors financiers into the broader cannabis market and it's it's very very well timed because as we enter this new unusual usual times people are going to be traveling less uh people are going to want to not touch or not physically hold or see and this is a good way to uh like you said to keep an eye on things absolutely and then again along that point again you know keeping an eye on your capital and being being wise and how it's deployed this slide kind of talks about three main points transferability real-time monitoring and robust sops so transferability um i'm going to explain that with the story really i was at a conference a couple years back at metals conference and i met with a italian equipment manufacturer called italian pianti and he was telling me that he's getting all these outbound inbound calls of people looking for filter trolleys and presses which made him he was puzzled at the beginning and then in developing these leads they were actually from hemp extractors in the states so it's kind of interesting how you're having this crossover from precious metals into into the um broader industrial hemp market and um these filter trolleys and presses are used as i understand as part of the hemp extraction process you know you get the raw material and then you can derive the finished products but what's interesting here is if you're a financier that's financing this equipment it's good to know that you have an exit strategy right you can say look this isn't customized equipment for hemp or for other applications this is a instrument that's been used in in in other developed industries and that's what i mean by transfer billing right we also see this in violet grow which has a series of led highly led highly efficient excuse me led lights that are used for controlled indoor grows as you can imagine these lights can be used for lettuce or tomatoes as much as um for medical and adult use cannabis and that another example of that transferability is that violet bro has launched a uv disinfection solution using their lights to help increase the turnover of ppe equipment at hospitals maybe even at hotels and things like this so speaking to their owner one of the partners the other day he mentioned that these he's donated some of these units to help local area colorado hospitals get that equipment turned over in a much in a much quicker way and and the theme again is you have uh equipment that can be easily deployed in other areas so you're not stuck with it if you will and there's another thing to keep in mind it's not just a one-time transferability so you can go from one industry in one sector it can be used in another industry in another sector it could actually then go back to that first industry and that way you're able to uh to cover your bases absolutely and then real-time monitoring which is a theme we've seen in the in the uh let's call it the indoor grow space um with uh you know iot technology and and real-time data violet grow has teamed up with hyperponic and they have um essentially a system that's linked up with these lighting arrays to provide real-time monitoring and maintenance of of this equipment so you can reduce uh labor be more efficient with water and power automate a lot of procedures and really keep an eye you know are these people using the equipment properly frankly so from that point of view real-time monitoring is important it's important if it's 20 000 feet above and it's just as important if it's right in there inside to grow and to add to round out this slide with respect to robust sops standard operating procedures uh violet grow from our discussions with them they take an extra layer and they actually deploy an employee with each customer where they deploy the equipment so talk about you know eyes and ears and boots on the ground that's a great example and which is why i think it's relevant to highlight them because they take the box if you will as far as transferability real-time monitoring and robust sops awesome now moving on to insurance which we could probably do another 40-minute seminar just on this slide but uh i think it's important again from the risk management side um you know we don't want to highlight metals in this at this point because there's such a developed market and there's plenty of insurance products available but hemp is now really starting to come into play and recently announced the usda has launched a pilot program for multi-peril crop insurance and this is important because instead of just having a sort of umbrella coverage of your farm if you will this will cover um yield losses in hemp fiber hemp grain and hemp derived cbd again from the financier perspective if let's say you're in you're financing an operation you're going to want to make sure hey that this insurance is in place but also perhaps that you're a loss pay on that insurance so if there is a claim you have you have some rights to that and and that's what i mean by managing the risk you know trying to use tools to keep an eye on your product to minimize risk in in if there's an ex if there's an exit or a default and also to use um you know insurance programs and government issued vehicles that are available to help protect not only the grower but the financier and then this is our last slide um with respect to the financial uh tools for finance years and this is really about the development of the market so we have transparency price discovery and market development uh the pan exchange which i've been able to look up on i'm sure you're familiar with them as well barrington they launched in q4 2019 the first hemp physical hemp market exchange and that's a great it's great to see this cush.com has a similar platform but i think they're more on the d2c direct to customer side but the point being is well right now there's no official marketplace there's no futures markets you can't really do anything these are the beginn ng of a development of a market which i think is very exciting to be a part of and i want to highlight these two examples in that they seem to have made the most uh progress um thus far well when we uh when we used to attend i'm gonna say way back when uh two or three years ago and people always wanted to do the forward thinking and what to look for and what's coming up next and the one thing that was consistent was data data data data and data information um that itself was and has become a commodity and things like the pan exchange and push.com at the end of the day they're providing data they're giving the customer they're giving the investor information and you can base your judgment and decisions off of that and it's real time it's accurate well as accurate as it can be um all of all of these things are great all of them absolutely and you know so moving on as you said transparency from a price discovery perspective as you just highlighted new leaf data services has their uh cannabis benchmark and hemp benchmark which show uh pricing um on those various uh products and again it's it's just all in the development of of a market and finally rounding out this side is new frontier data who you can see is featured throughout the webinar and bdsa which again they're looking at um distilling research um showing trends and forecasting and really giving both sides of the market uh the tools needed to make informed decisions yeah we've worked with uh new frontier and bds analytics um very very closely so it's uh good good platforms and that rounds out you know the sort of risk management side of the uh webinar and we're gonna kind of now go to the closeout section and uh do the reading of the smoke signals i love it yeah so here um this is actually as you just mentioned the new frontier data is fantastic and this is a a really really prescient slide that shows the coronavirus pandemic right so you have on the left you have what are considered disruption events and then you have on the right what are the views of how cannabis can be can actually come out ahead of this thing so i think one thing we definitely want to highlight is the idea of an essential business right here in the states yeah i mean medical medical uh adult use sorry medical cannabis is stores were viewed as essential so they weren't closed i know toronto had also uh viewed adult use and medical cannabis as essential but then they made a decision and shut down the adult use side of the stores but i think the just being categorized as essential um i think for the people that i speak to um that this is a really big stepping stone as far as the acceptance of of the overall cannabis market into into the trade and commercial markets oh absolutely it's it's an essential service there are medical patients it is it's medicine and to to deny it especially during these times um it can't be overlooked absolutely absolutely i i saw somewhere and you correct me from wrong but i heard that uh you know for veterans in particular at least certainly in the states at least i'm not sure exactly how it works canada but you you if you were to apply for say a medical uh marijuana card um medical cannabis card excuse me you would lose you stand to lose your veteran benefits yes that's correct okay yeah that's it um i i believe uh that's a subject that's dear uh close and dear to joe lo sardi's um to his heart and that's one of their driving forces is uh is the way that we treat our vets absolutely absolutely and i think um this this type of pandemic obviously is disruptive it's it's it's cost you know thousands of lives but we have to try to find a way to to come out of that and i think that's something that will be positive is to get this recognition that's needed and then another another feature on disruption uh section is supply chain as i mentioned earlier china ate over uh 80 i believe or 70 of the exports of hemp uh come from china whereas here you have the ability to grow locally as you can see in this chart as well um cannabis demand is typically hyper local so um this this pandemic is in a way oddly enough laying the groundwork for these industries to survive so it'll be interesting to see um how that goes in the in the months ahead and then finally rounding out this slide we wanted to mention a little bit about the safe banking act which um the insurance business insurance journal says it could be uh put the industry on steroids i'm not as optimistic about it as nothing looks like it'll come through by the end of this election cycle but the point is it's more about general acceptance and the safe banking act is essentially going to allow um depository institutions to transact in this space and support these people without the stigma of getting of illegality and and that's an important point to the overall development of the market when we're talking with uh the ceos from the past few weeks we asked them their christmas wish list legalization or banking and i think it was four out of five or five out of six said banking absolutely yeah one question no question so but the ones that did say legalization had uh uh they had some pretty good reasons for it as well so i don't want to uh i don't want to ignore that but overall the they would prefer to see banking first it would be the easiest one over legalization to pass through and then uh wanted to touch up a little bit on the hemp side you know of the cannabis plant and uh really interesting here again it's it looks like a negative chart but to me i i view it positively you have these yellow states that explicitly forbid cbd in food products um and then smattering the blues that allow it and the point here is that this is a major feature to the development of the cbd market and if you can start to allow for the uh infusion of this product into foods you're opening up to a much broader product offering and also a much larger consumer base so we're happy to see that hopefully this will change over again as the overall market develops and i think as part of that development the usca recently launched loan program in 2020 that will provide capital for hemp producers which is fantastic right support and allow some of these operations to to flourish and then ultimately uh sorry to end this note you have all but two states uh idaho and mississippi allow some form of hemp cultivate hemp cultivation could be research level it could be commercial but the point is the the overwhelming majority of the us is looking and moving towards this oh that's you know what 2020 is uh this is definitely a silver lining for this year and then uh kind of to close out really it's a shame i'd love to speak all day about this stuff we're running out of time here but we uh i wanted to close out with a just kind of forward-looking view again a great survey that uh published by new frontier data and the question is exactly to your point uh since the coronavirus pandemic began how much of a challenge do you think each of the following will be for the cannabis industry in the year ahead and no doubt number one 65 securing access to capital which highlights exactly we've been talking about all day and then yes it's you know what i i there is i wish we did have more time um to talk about it because that has to be when you when i used to go to conferences when our team used to travel that would be one of two questions within the first three sentences uh securing access to capital how do i get it where can i get it do you know people who do it and that's the hope of this webinar today is just to illustrate to to to junior minds and and participants in the uh hemp adult use medical cannabis space that there are there are avenues and ways to try to procure financing uh outside of the traditional equity markets and as you can see number 52 the second most concern is access to banking and financial services and this is simply being able to have credit cards you know or be able to to take wads of cash that are now being stored in vaults or behind you know in in in rooms um and actually putting that safely and funny enough with the pandemic um a lot of these lobbyists are rightly so they're saying look handling cash is is gonna is can increase infection you know so let's let's let's allow for this merchant banking and financial products electronic and digital to to occur so that you don't have so much actual handling of physical cash right is it isn't that ironic that's what it takes absolutely absolutely and then uh you know the last two points i'll make here is as it says in the bottom which is a little bit encouraging maybe not so much at the higher level as you can see some of the major cannabis companies have had to cut staff but 63 expect their staffing to increase the stay the same which is encouraging you know from a human perspective right currently um you know talking their book a bit but uh the signals seem to be showing this 75 expect consumer demand to increase in 2020. oh i i believe it um especially when there is an increase in the discretionary discretionary the the more subtle forms of as far as edibles drinkables consumables once those really really come in and it will tie into uh the cbd and having those those types of things i can see that 75 number being accurate excellent well that's all good news i mean like with any industry any any market you need participants you need financiers you need corporations need consumers and hopefully uh you know we'll see that in the years to come so this slide pretty much wraps up um the webinar for today you know barrington is absolutely great you know working with you and speaking today i would love to oh this was this was all you this was all you man this was uh this was great and you know what it the majority of our companies on the canadian securities exchange are in the mining and mineral exploration uh or in the cannabis sector so this is well-timed it covers a lot of our of our foundation and we definitely appreciate you taking the time and the rest of the thriving routes collective um for speaking to us and giving us an education my pleasure barrington and uh hopefully i'll see up in toronto soon maybe we'll get uh go out to a hockey game if it ever starts well it'll you'll be on one side of the arena and i'll be on the other keeping our social distance uh for our listeners um because i think this is going to be made in a podcast form james tell them how they can reach you sure sure so um i'm available um on several websites uh gavin commodities of course is my principal site and that's at www.gavelandcommodities.com thriving roots collective of which i'm one of the four founding partners we're available on www.thrivingrootscollective.com my emails are are also listed there but for gablin commodities it's uh jay gavilan gavilance.com presentation is available on requests as well and for our listeners this will be available on our blog at www.thecsc.com um this might be available on youtube under csc underscore tv i'll have to double check and as far as a podcast it'll be available on soundcloud buzz sprout um itunes apple play and spotify so i'm famous famous well thank you for taking the time uh james and thank you to our listeners and our watchers this has been a an episode of hashtag finance and we'll see you soon thank you see you soon