Q2 2024 Green Thumb Industries Inc Earnings Call

Speaker Change: ♪♪

Operator: Pardon me, this is the conference operator. Thank you for continuing to hold. We will begin the conference momentarily.

Unknown Executive: Pardon me, this is the conference operator. Thank you for continuing to hold. We will begin the conference momentarily. Thank you very much.

Speaker Change: Pardon me, this is the conference operator. Thank you for continuing to hold. We will begin the conference momentarily.

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Unknown Executive: Good day, and welcome to the Green Thumb Industries Second Quarter, 2024, earnings conference call and webcast. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Nick: Good day, and welcome to the Green Thumb Industries second quarter 2024 earnings conference call and webcast. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. On today's call, management will provide prepared remarks, and then we will open up the call to your questions. To ask a question, Analysts may press the star then 1 on their touch-tone phones.

Speaker Change: Good day, and welcome to the Green Thumb Industries second quarter 2024 earnings conference call and webcast. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Unknown Executive: On today's call, management will provide prepared remarks, and then we will open up the call for your questions. To ask questions, analysts may press star then one on their touchstone phones. If you are using a speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two.

Speaker Change: On today's call, management will provide prepared remarks, and then we will open up the call for your questions. To ask questions, analysts may press star then 1 on their touchtone phones. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then 2.

Nick: If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then 2. Please note, this event is being recorded. I would now like to turn the conference over to Shannon Weaver. Please go ahead, ma'am.

Unknown Executive: Please note this event is being recorded.

Shannon Weaver: I would now like to turn the conference over to Shannon Weaver. Please go ahead, ma'am.

Speaker Change: Please note, this event is being recorded.

Speaker Change: I would now like to turn the conference over to Shannon Weaver. Please go ahead, ma'am.

Shannon Weaver: Thanks, Nick. Good afternoon and welcome to Green Thumb's second quarter 2024 earnings call. I'm here today with founder and CEO, Ben Kovler, President, Anthony Georgiadis, and Chief Financial Officer, Matt Faulkner.

Shannon Weaver: Thanks, Nick. Good afternoon, and welcome to Green Thumb's second quarter 2024 earnings call. I'm here today with founder and CEO Ben Kovler, President Anthony Georgiadis, and Chief Financial Officer Matt Faulkner. Today's discussion and responses to questions may include forward-looking statements that are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. These risks and uncertainties are detailed in the earnings press release issued today, along with the reports filed with the United States Securities and Exchange Commission and Canadian securities regulators, including our most recent annual report filed on Form 10-K.

Shannon Weaver: Thanks Nick. Good afternoon and welcome to Green Thumb's second quarter 2024 earnings call. I'm here today with founder and CEO Ben Kovler, President Anthony Georgiadis, and Chief Financial Officer Matt Faulkner.

Shannon Weaver: Today's discussion and responses to questions may include forward-looking statements, which are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. These risks and uncertainties are detailed in an earnings press release issued today, along with the reports filed with the United States Securities and Exchange Commission and Canadian Securities Regulators, including our most recent annual reports filed on Form 10-K. This report, along with today's earnings release, can be found under the investor's section of our website.

Speaker Change: Today's discussion and responses to questions may include forward-looking statements which are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements.

Speaker Change: These risks and uncertainties are detailed in the earnings press release issued today along with the reports filed with the United States Securities and Exchange Commission and Canadian Securities Regulators, including our most recent annual report filed on Form 10-K .

Shannon Weaver: This report, along with today's earnings release, can be found in the Investors section of our website. Green Thumb has no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call. Throughout the discussion, Green Thumb will refer to non-GAAP financial measures, including EBITDA and adjusted interest rates. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is included in our earnings press release and SEC and CEDAW filings. Please note all financial information is provided in U.S. dollars unless otherwise indicated. Thanks everyone, and now you're set.

Speaker Change: This report along with today's earnings release can be found under the investors section of our website.

Shannon Weaver: Green Thumb extends no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call.

Speaker Change: Green Thumb assumes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call. Throughout the discussion, Green Thumb will refer to non-GAAP financial measures, including EBITDA and adjusted EBITDA.

Shannon Weaver: Throughout the discussion, Green Thumb will refer to non-GAAP financial measures, including seabedot and adjusted seabedot. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures included in our earnings press release and SDC and Cedar filings. Please note, all financial information is provided in U.S. dollars unless otherwise indicated.

Speaker Change: A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is included in our earnings press release and SEC and CEDAR filings. Please note all financial information is provided in U.S. dollars unless otherwise indicated.

Unknown Executive: Thanks, everyone, and now you're spent.

Benjamin Kovler: Thank you, Shannon. Good afternoon, everyone. Thank you for joining our second quarter, 24 conference call. I'm pleased to report that our team delivered another strong quarter, with revenue of 11 percent over the prior year to 280 million and over 90 million in EBITDA. Importantly, cash flow from operations was $20 million after paying almost $53 million in two tax installments this quarter. On June 28, the IRS issued a statement that made it clear that cannabis companies were obligated to pay taxes under 2.8, while cannabis remains a Schedule 1 controlled substance. Thus, the regulatory intention is squarely on the DEA and leader Ann Noverm, and whether or not she chooses to reschedule cannabis to Schedule 3, engage in an AOJ review process, or stay silent until the next administration.

Speaker Change: Thanks everyone and now here's Beth.

unknown: Thank you, Shannon. Good afternoon, everyone.

Beth: Thank you, Shannon. Good afternoon, everyone, and thank you for joining our second quarter 2024 conference call.

Benjamin Kovler: And thank you for joining our second quarter 2024 conference call. I'm pleased to report that our team delivered another strong quarter with revenue up 11% over the prior year to $280 million and over 90 million in EBITDA. Importantly, cash flow from operations was $20 million after paying almost $53 million in two tax installments this quarter. On June 28th, the IRS issued a statement that made it clear that cannabis companies were obligated to pay taxes under 280E while cannabis remained a Schedule I controlled substance.

Beth: I'm pleased to report that our team delivered another strong quarter with revenue up 11% over the prior year to $280 million.

Beth: and over 90 million in EBITDA.

Beth: Importantly, cash flow from operations was $20 million after paying almost $53 million in two tax installments this quarter.

Beth: On June 28th, the IRS issued a statement that made it clear that cannabis companies were obligated to pay taxes under 280E while cannabis remains a Schedule I controlled substance.

Benjamin Kovler: Thus, the regulatory attention is squarely on the DEA and Leader Ann Milgram and whether or not she chooses to reschedule cannabis to Schedule III, engage in an AOJ review process, or stay silent until the next administration. For the good of the country, we encourage Ann Milgrom to do her job and reschedule cannabis immediately. No more waiting.

Speaker Change: Thus, the regulatory intention is squarely on the DEA and Leader Ann Milgrom and whether or not she chooses to reschedule cannabis to Schedule III.

Speaker Change: engage in an ALJ review process or stay silent until the next administration.

Benjamin Kovler: For the good of the country, we encourage Ann Noverm to do her job and reschedule cannabis immediately; no more waiting. During the second quarter, we also repurchased $1.6 million shares for approximately $20 million, bringing the aggregate spend under the share repurchase program to $73 million for approximately $6.6 million shares. Under the current program, we still have the option to repurchase almost $27 million in shares. We believe in the value-creating nature of share buybacks at attractive prices. We ended the quarter with $196 million in cash; that's plenty of dry powder to execute our capital allocation plan for 2024 and jobs.

Speaker Change: For the good of the country, we encourage Ann Milgrom to do her job and reschedule cannabis immediately. No more waiting.

Benjamin Kovler: During the second quarter, we also repurchased 1.6 million shares for approximately $20 million, bringing the aggregate spend under the Share Repurchase Program to $73 million for approximately 6.6 million shares. Under the current program, we still have the option to repurchase almost $27 million. We believe in the value trading nature of share buybacks at attractive prices. We ended the quarter with $196 million in cash.

Speaker Change: During the second quarter, we also repurchased 1.6 million shares for approximately $20 million, bringing the aggregate spend under the Share Repurchase Program to $73 million for approximately 6.6 million shares.

Speaker Change: Under the current program, we still have the option to repurchase almost $27 million in shares.

Speaker Change: We believe in the value-creating nature of share buybacks at attractive prices.

Speaker Change: We ended the quarter with $196 million in cash. That's plenty of dry powder to execute our capital allocation plan for 2024 and beyond.

Benjamin Kovler: That's plenty of dry powder to execute our capital allocation plan for 2024 and beyond. From an industry perspective, there is still price compression in most markets, as well as inflationary pressure. Not to mention national anxiety around the upcoming election.

Benjamin Kovler: From an industry perspective, there's still price compression in most markets, as well as inflationary pressure. Not to mention national anxiety around the upcoming elections. Despite this uncertain uncertainty, we are focused on the product, our brands, and the relationship with the consumer. Green Thumb will continue following our same playbooks since day one, scaling our business through retail store expansion, building out our wholesale business, leveraging operational efficiencies, and carefully managing our balance sheet. Green Thumb has some of the top rated brands in the business: Rhythm, Dog Walkers, Incredible, and Vivo. And we're focusing a lot of energy this year on expanding brand awareness by creating meaningful experiences for consumers, authentic relationships, especially through the power of music.

Speaker Change: From an industry perspective, there is still price compression in most markets as well as inflationary pressure.

Benjamin Kovler: Despite this uncertainty, we are focused on the product, our brands, and the relationship with them. Green Thumb will continue following the same playbook since day one. Scaling our business to retail store expansion, building out our wholesale business, leveraging operational efficiency, and Carefully Managing Our Boundaries. Green Thumb has some of the top-rated brands in the U.S. Rhythm, Dogwalkers, Incredibles, and we're focusing a lot of energy this year on expanding brand awareness by creating meaningful experiences for consumers. Authentic relationships.

Speaker Change: Not to mention national anxiety around the upcoming elections.

Speaker Change: Despite this uncertainty, we are focused on the product, our brands, and the relationship with the consumer.

Speaker Change: Green Thumb will continue following our same playbook since day one.

Speaker Change: scaling our business to retail store expansion, building out our wholesale business, leveraging operational efficiencies, and carefully managing our balance sheet.

Speaker Change: Green Thumb has some of the top rated brands in the business.

Speaker Change: Rhythm, Dogwalkers, Incredibles, and Bebo.

Speaker Change: And we're focusing a lot of energy this year on expanding brand awareness by creating meaningful experiences for consumers, authentic relationships.

Benjamin Kovler: Especially through the power of, We recently announced that our Miracle of Mundelein two-day festival will be back this year with a highly anticipated lineup of musicians, including cannabis icon Wiz Khalifa. The Rhythm Artist Series features strains chosen and smoked by artists such as Multi-Platinum R&B Disruptor Tinashe. Tinashe's Green Peak has created a lot of great fun. Music is also at the core of Bud Ball, an annual concert we throw in-market, which we opened up to affiliate for the first time this year. We saw record turnouts at these events, and the Find Your Rhythm lifestyle was on full display.

Benjamin Kovler: We recently announced that our Miracle Among the Line two-day festival will be back this year with a highly anticipated lineup of musicians, including Canada's icon with Caliba. The rhythm artist series has rhythm artist series features strains chosen with smoke by artists such as Multiplatin, R&B disruptor, Tuna Shea. Tuna Shea's green tea has created a lot of great buds. Music is also at the core of Blood Wall. Annual concert we throw in-market, which we opened up to Billy for the first time this year. We saw record turn-off these events, and the Find Your Rhythm lifestyle was on full display.

Speaker Change: especially through the power of music.

Speaker Change: We recently announced that our Miracle of Mundelein two-day festival will be back this year with a highly anticipated lineup of musicians, including cannabis icon Wiz Khalifa.

Speaker Change: The Rhythm Artist Series features strings chosen and smoked by artists such as multi-platinum R&B disruptor Tinashe.

Tinashe: Tenacity's Green Peak has created a lot of great bugs.

Speaker Change: Music is also at the core of Bud Ball, an annual concert we throw in-market, which we opened up to Philly for the first time this year. We saw record turnout at these events and the Find Your Rhythm lifestyle was on full display.

Benjamin Kovler: We are also excited to bring more of our brands to new markets, with Vivo launching in New York just last month, and that's going well, and plans to expand New Jersey very soon. We like the progress in our brands, but believe this is just the beginning of how these lifestyle brands will live in America. We want our brands to become integral to the American experience, and we are intensely watching consumer trends. We believe alcohol is melting, and for folks under 35 years old, alcohol is a lot less appealing than it was for their parents.

Benjamin Kovler: We are also excited to bring more of our brands to new markets, with Bebo launching in New York just last month, and that's going well, with plans to expand to New Jersey very soon. We like the progress in our brands but believe this is just the beginning of how these lifestyle brands will live in America. We want our brands to become integral to the American experience, and we are intensely watching consumer trends. We believe alcohol is losing its appeal, and for folks under 35 years old, alcohol is a lot less appealing than it was for their parents.

Speaker Change: We are also excited to bring more of our brands to new markets, with Bebo launching in New York just last month, and that's going well, and plans to expand to New Jersey very soon.

Speaker Change: We like the progress in our brands, but believe this is just the beginning of how these lifestyle brands will live in America.

Speaker Change: We want our brands to become integral to the American experience, and we are intensely watching consumer trends.

Speaker Change: We believe alcohol is melting, and for folks under 35 years old, alcohol is a lot less appealing than it was for their parents.

Benjamin Kovler: This line of thinking led us to approach Boston Beer by a possible combination. Green Thumb has 50% more Ghibazade in Boston Beer, and we think consumer trends will force Boston Beer and others to diversify away from alcohol into products the future American consumer wants. I outline the benefits of combining our two businesses, including a potential U.S. listing for Great Thumb, in my letter to Boston Beer's check chairman and founder, and posted that on X. It often takes time for an incumbent industry to recognize and embrace change. In the meantime, Green Thumb will do what we have always done.

Benjamin Kovler: This line of thinking led us to approach Boston Beer about a possible combination of... Green Thumb has 50% more dividend than Boston Beer, and we think consumer trends will force Boston Beer and others to diversify away from alcohol into products the future American consumer wants. I outline the benefits of combining our two businesses, including a potential U.S. listing for Green Thumb, in my letter to Boston Beer's chairman and founder and posted that on the app.

Speaker Change: This line of thinking led us to approach Boston Beer about a possible combination.

Speaker Change: Green Thumb has 50% more GBADA than Boston Beer, and we think consumer trends will force Boston Beer and others.

Speaker Change: to diversify away from alcohol into products the future American consumer wants.

Speaker Change: I outlined the benefits of combining our two businesses, including a potential U.S. listing for Green Thumb, in my letter to Boston Beer's chairman and founder, and posted that on X.

Benjamin Kovler: It often takes time for an incumbent industry to recognize and embrace change. In the meantime, Green Thumb will do what we have always done, keep our head down and execute, focus on building shareholder value through prudent capital allocation, all the while using the consumer as our North Star. Stopping for a moment and looking around at where we are, we feel good.

Speaker Change: It often takes time for an incumbent industry to recognize and embrace change.

Benjamin Kovler: Keep our head down and execute. Focus on building shareholder value through prudent capital allocation, all the while using the consumer as our North Star. Stopping for a moment and looking around where we are, we feel good. Green Thumb is gaining market share in U.S. cannabis as our brand Still momentum. Furthermore, we are well positioned to be emerging cannabis markets like Ohio, where we will kick off adult youth sales at all five of our Rise of the Spend series tomorrow morning. Looking forward to seeing our incredible team in action on day one in the Buck Ice.

Speaker Change: In the meantime...

Green Thumb: Green Thumb will do what we have always done, keep our head down and execute.

Green Thumb: Focus on building shareholder value through prudent capital allocation.

Green Thumb: all the while using the consumer as our North Star.

Benjamin Kovler: Green Thumb is gaining market share in U.S. cannabis as our brands build momentum. Furthermore, we are well-positioned in emerging cannabis markets like Ohio, where we will kick off adult-use sales at all five of our RISE dispensaries tomorrow morning. I am looking forward to seeing our incredible team in action on day one in the Buckeye. We see a nice long runway for growth and are confident in our team's ability to strategically and profitably scale our business in Ohio. With that, I'll turn the call over to Anthony. Anthony?

Green Thumb: Stopping for a moment and looking around to where we are, we feel good.

Speaker Change: Green Thumb is gaining market share in U.S. cannabis as our brands build momentum.

Speaker Change: Furthermore, we are well-positioned in the emerging cannabis markets like Ohio, where we will kick off adult-use sales at all five of our RISE dispensaries tomorrow morning.

Benjamin Kovler: You see a nice, long, wrong-wafer growth in our confidence and our capabilities to strategically and properly scale our business in Ohio.

Speaker Change: Looking forward to seeing our incredible team in action on day one in the Buckeye State.

Speaker Change: We see a nice long runway for growth and are confident in our team's ability to strategically and profitably scale our business in Ohio.

Anthony Georgiadis: With that, I'll turn it all over to Anthony. Anthony?

Anthony Georgiadis: Thanks, Ben. As you just heard, despite continued consumer inflationary headwinds, our team achieved record second quarter results. The same will go into some of the highlights. First, we invested approximately $20 million in CapEx. We continue to expand our Florida retail footprint as well as our Connecticut wholesale business. Through June, we've opened three new stores and anticipate opening another seven to eight stores in the back half of the year. Year-to-date, we've invested approximately $35 million in CapEx, and they expect to invest an additional 50 to 60 million in CapEx throughout the remainder of the year.

Speaker Change: With that, I'll turn the call over to Anthony. Anthony?

Anthony Georgiadis: Thanks, Ben. I did just here despite continuing consumer inflationary headlines.

Anthony: Thanks, Ben. As you just heard, despite continued consumer inflationary headwinds, our team achieved record second-quarter results.

Anthony Georgiadis: Our team achieved record set and quarter results. Let's take a look at some of the highlights. First, we invested approximately 20,000,000 cat-backs as we continue to expand our floor to retail footprint as well as our Connecticut wholesale facility. Through June, we've opened three new stores and anticipated opening another 7-8 stores in the back half of the year. Year-to-date, we've invested approximately 35,000,000 cat-backs and expect to invest in an additional 50-60,000 cat-backs throughout the remainder of the year. Second, we continue to drive strong CPT performance across our fleet and increase our CPT revenue by over 15% compared to Q2 last year.

Anthony: Let's take a look at some of the highlights.

Anthony: First, we invested approximately $20 million in CapEx as we continue to expand our Florida retail footprint as well as our Connecticut wholesale facility.

Anthony: Through June we've opened three new stores and anticipate opening another seven to eight stores in the back half of the year.

Anthony: Year-to-date, we've invested approximately $35 million in CapEx and expect to invest an additional $50 to $60 million in CapEx throughout the remainder of the year.

Anthony Georgiadis: Second, we continue to drive strong CPG performance across our fleet and increased our CPG revenue by over 15% compared to Q2 of last year. As our retail business continues to absorb the impact of price erosion and greater competition, we plan to enhance our market positions by increasing both the depth and breadth of our product lines and their placement on third-party shelves. For those that saw it, Bebo recently launched in New York, and we are incredibly excited to introduce her to the Big Apple.

Anthony: Second, we continue to drive strong CPG performance across our fleet and increased our CPG revenue by over 15% compared to Q2 of last year.

Anthony Georgiadis: As our retail business continues to absorb the impact of price erosion and greater competition, we plan to enhance our market conditions by increasing both the depth and breadth of our product lines and their placement on third-party shelves.

Anthony: As our retail business continues to absorb the impact of price erosion and greater competition, we plan to enhance our market positions by increasing both the depth and breadth of our product lines and their placement on third-party shelves.

Anthony Georgiadis: For those that saw it, people recently launched in New York, and we are incredibly excited to introduce her to the Big Apple. Third, we've prepared for tomorrow's Ohio launch. We have the team hired, the stores ready, and our menus are stacked with something for everyone. Our recent adult use conversions in New Jersey, New York, and Maryland have prepared as well for tomorrow's historic event.

Bebo: For those that saw it, Bebo recently launched in New York, and we are incredibly excited to introduce her to the Big Apple.

Anthony Georgiadis: Third, be prepared for tomorrow's Ohio launch. We have the team hired, the store is ready, and our main users are staffed with something for everyone. Our recent adult news conversions in New Jersey, New York, and Maryland have prepared us well for tomorrow's historic event.

Bebo: Third, we're preparing for tomorrow's Ohio launch.

Speaker Change: We have the team hired, the store is ready, and our menus are stacked with something for everyone.

Speaker Change: Our recent adult news conversions in New Jersey, New York, and Maryland have prepared us well for tomorrow's historic event.

Anthony Georgiadis: As we look ahead in the bounce of the year, our team has focused on the following. First, optimizing our business. This means different things between the market dynamics and our position within each market. However, when you zoom out, it comes down to posting on a consumer, our team, and execution. Second, driving continued distribution of our CPT brand through a variety of retail stores as well as third-party stores. While we've made substantial progress on the strut, we have more work to do to continue to expand the reach of our industry-leading brand, including rhythm and dog walkers.

Anthony Georgiadis: As we look ahead to the balance of the year, our team is focused on the following. First, optimizing our business. Different things, depending on market dynamics and our position within each market. However, when you zoom out, it comes down to focusing on the consumer, our team, and execution. Second, driving continued distribution of our CPG brand through a variety of retail stores, as well as third-party stores. While we've made substantial progress on this front, we have more work to do to continue expanding the reach of our industry-leading brands, including Rhythm and Dogwalk.

Speaker Change: As we look ahead to the balance of the year, our team is focused on the following.

Speaker Change: First, optimizing our business.

Speaker Change: This means different things depending on market dynamics and our position within each market.

Speaker Change: However, when you zoom out it comes down to focusing on the consumer, our team, and execution.

Speaker Change: Second, driving continued distribution of our CPG brand through our variety of retail stores as well as third-party stores.

Speaker Change: While we've made substantial progress on this front, we have more work to do to continue expanding the reach of our industry-leading brands, including rhythm and dog walkers.

Anthony Georgiadis: Third, continue to invest our resources in capital and markets where we can underwrite strong returns. The balance of our 2020 work ethics plan has continued retail and wholesale investments in Florida, Nevada, Minnesota, Pennsylvania, and Virginia. It's no coincidence that four of these five markets have yet to establish an adult-use program.

Anthony Georgiadis: Third, continue to invest our resources and capital in markets where we can underwrite strong returns. The balance of our 2024 CapEx plan helps continue retail and wholesale investment. Florida, Nevada, Minnesota, Pennsylvania, and Virginia. It's no coincidence that four of these five markets have yet to establish an adult-use program.

Speaker Change: Third, continue to invest our resourcing capital in markets where we can underwrite strong returns.

Speaker Change: The balance of our 2024 CapEx plan helps continue retail and wholesale investments.

Speaker Change: Florida, Nevada, Minnesota, Pennsylvania, and Virginia.

Speaker Change: It's no coincidence that four of these five markets have yet to establish an adult-use program.

Anthony Georgiadis: Last, preparing for our momentum-second miracle of Monday line on September 7th and 8th, that our flagship Illinois store of Monday line. For those unfamiliar, this two-day festival for a 10-to-20-year-old over allows for legal cannabis consumption. This year's event showcased its ways to reap a slightly stupid and revolution. We hope you see there.

Anthony Georgiadis: Last but not least, preparing for our momentous second Miracle of Mundelein on September 7th and 8th at our flagship Illinois store, Mundelein. For those unfamiliar, this two-day festival for attendees 21 and over allows for legal cannabis consumption. This year's event features Winsor & Newton, Slightly Stupid, and Revolution.

Speaker Change: Last, preparing for our momentous second Miracle of Mundelein on September 7th and 8th at our flagship Illinois store, Mundelein.

Speaker Change: For those unfamiliar, this two-day festival for attendees 21 and over allows for legal cannabis consumption.

Speaker Change: This year's event showcases Boise, Caribbean, Slightly Stupid, and Revolution. We hope to see you there.

Anthony Georgiadis: We hope to see you there. In conclusion, we didn't want to call out him because we've received a lot of questions on this topic. As previously disclosed, we entered the hemp market via a license agreement with our Incredibles. Through that relationship, we are studying the consumer, the players, the product, the risks, and other facets of the market, including overall potential. Since we are in the early days of our exploration, it would be premature for us to comment more than that. However, our North Star always has been and always will be the consumer. With that, we'll turn the call over to Matt to review our managed results.

Anthony Georgiadis: In conclusion, we did want to call on hemp, as we've received a lot of questions on this topic. As previously disclosed, we entered the hemp market via a license agreement with our incredible brand. Through that relationship, we are studying the consumer, the players, the product, the risks, and other facets of the market, including overall potential. In theory, in the early days of our exploration, it would be premature for us to comment more than that. However, our North Star always has been and always will be the consumer.

Speaker Change: In conclusion, we didn't want to call out him because we've received a lot of questions on this topic.

Speaker Change: As previously disclosed, we entered the hemp market via a license agreement with our Incredibles brand.

Speaker Change: Through that relationship we are studying the consumer, the players, the product, the risks, and other facets of the market, including overall potential.

Speaker Change: Since we are in the early days of our exploration, it would be premature for us to comment more than that.

Speaker Change: However, our North Star always has been and always will be the consumer.

Anthony Georgiadis: With that, we'll turn the color right back to review our financial results. That?

Speaker Change: With that, we'll turn the call over to Matt to review our finished results.

Matt Faulkner: Thanks, Anthony, and hello, everyone. We're pleased with the strong results and record cash flow generated. In the second quarter, we delivered over $280 million in revenue, an 11% increase compared to the prior year. Revenue during the quarter benefited from 11 additional retail stores and the legalization of adult use sales. While pricing year-over-year continued its downward slide, the sequential impact took a turn for the worse in Q2 compared to Q1.

Matt Faulkner: Thank you, Anthony, and all of everyone. For the pleas of the strong results and record cash flow generation. In the second quarter, we delivered over 280 million in revenue, and 11% increased compared to the prior year period. Prevented during the quarter benefited from 11 incremental retail stores and legalization of the Delphi sales model. While pricing year over year continued in downward slide, the sequential impact took a turn for the worst and Q2 compared to Q1's improvement. Overall, retail revenue increased 9% versus the prior year period. Second quarter, comfortable sales increased 2.3% compared to the second quarter last year, not based on 76 stores.

Matt: Thank you.

Matt: Thanks, Anthony, and hello, everyone.

Matt: We're pleased with the strong results and record cash flow generation. In the second quarter, we delivered over $280 million in revenue, an 11% increase compared to the prior year period.

Matt: Revenue during the quarter benefited from 11 incremental retail stores and the legalization of adult-use sales in Maryland.

Matt: While pricing year-over-year continued its downward slide, the sequential impact took a turn for the worse in Q2 compared to Q1's improvement.

Matt Faulkner: Overall, retail revenue increased 9% versus the prior year. Second quarter comparable sales increased 2.3% compared to the second quarter last year on a base of 76%. Consumer packaged goods gross revenue increased 15% versus the prior year. Looking forward, we expect to see third-quarter sequential revenue to be flat as we watch macro-consumer spending pull back, with some expected benefit from Ohio Adult Use Funds. Gross profit for the second quarter was $151 million, or 53.7% of revenue, compared to $125 million, or 49.6% of revenue, for the second quarter last year.

Matt: Overall, retail revenue increased 9% versus the prior year period.

Matt: Second quarter comparable sales increased 2.3% compared to the second quarter last year on a base of 76 stores.

Matt Faulkner: Consumer package goods growth revenue increased 15% versus the prior year period. Looking forward, we expect to see third quarter sequential revenue to be flat as we watch macro consumer spending pullback, with some expected benefit from a high old Delphi response. Growth product for the second quarter was 151 million and 53.7% per revenue, compared to 125 million or 4 to 9.6% per revenue for the second quarter last year. The increase in growth margin was primarily driven by improved CPG utilization and retail acquisition costs. Turning to off-ax, selling general administrative expenses for the second quarter were 9.7 million or 34% of revenue, compared to 84 million or 33% of revenue last year, with compensation costs driving the increase.

Matt: Consumer packaged goods gross revenue increased 15% versus the prior year quarter.

Matt: Looking forward, we expect to see third-quarter sequential revenue to be flat as we watch macro consumer spending pull back with some expected benefit from Ohio Adult Use Watch.

Matt: Gross profit for the second quarter was $151 million or 53.7% of revenue, compared to $125 million or 49.6% of revenue for the second quarter last year.

Matt Faulkner: The increase in gross margins was primarily driven by improved CPG utilization and retail acquisition costs. Turning to OPEX, selling general administrative expenses for the second quarter were $97 million, or 34% of revenue, compared to $84 million, or 33% of revenue, last year, with compensation costs driving. SG&A excluding depreciation, amortization, one-time transaction costs, and stock basic comp, which we refer to as normalized operating costs, approximated $67 million compared to $57 million in the second quarter flash.

Matt: The increase in gross margin was primarily driven by improved CPG utilization and retail acquisition costs.

Matt: Turning to OPEX, selling general administrative expenses for the second quarter were $97 million, or 34% of revenue, compared to $84 million, or 33% of revenue last year, with compensation costs driving the increase.

Matt Faulkner: That's unique; excluding depreciation, amortization, one-time transaction costs, and stock-based income, which we refer to as normalized operating costs, approximated 67 million compared to 57 million in the second quarter last year. The increase year over year mainly attributed to the 11 incremental retail stores. Second quarter net income was 21 million or 9 cents per basic and diluted share during the quarter. This compares net income to 13.9 or 5 cents per basic and diluted share of reported last year. It doesn't even up, which excludes nine-cast stock-based compensation and other non-operated costs, was 94 million or 33.5% of revenue to the quarter, as compared to 76 million or 30% of revenue for the second quarter last year, with the increase driven by margin improvement.

Matt: SG&A excluding depreciation, amortization, one-time transaction costs, and stock basic comp, which we refer to as normalized operating costs, approximated at $67 million compared to $57 million in the second quarter of last year.

Matt Faulkner: The increase year-over-year is mainly attributed to the 11 incremental retail. Second quarter net income was $21 million, or $0.09 per basic and delivered share during the quarter. This compares net income to $13.05 per basic in the literature report class. [inaudible] End of the second quarter with a strong balance sheet, including cash for $196 million and cash flow from operations of $104 million compared to $93 million last year. All while paying 53 million in income taxes so far.

Matt: The increase year-over-year is mainly attributed to the 11 incremental retail stores.

Matt: Second quarter net income is $21 million, or $0.09 per basic and diluted share during the quarter.

Matt: This compares the net income to $13 million or $0.05 per basic in the literature reported last year.

Speaker Change: Adjustment EBITDA, which excludes non-cast stock-based compensation and other non-operated costs, was $94 million, or 33.5% of revenue for the quarter, as compared to $76 million, or 30% of revenue, for the second quarter of last year, with the increased turbine-by-margin improvement.

Matt Faulkner: We know the second quarter with the strong balance sheet, including cash for $196 million, it cash flows from operations of $104 million, compared to 93 million last year, all along paying 53 million in income taxes so far this year. Equalizing, I'm very proud of our team for all their hard work and execution of the second quarter.

Speaker Change: The end of the second quarter was a strong balance sheet including cash for $196 million and cash flow for operations of $104 million compared to $93 million last year, all while paying $53 million in income taxes so far this year.

Matt Faulkner: In closing, I'm very proud of our team for all their hard work and execution in the second quarter. I'm confident in our ability to continue to execute our strategic plan to deliver high-quality cannabis to our patients and customers, all while generating strong returns for us. With that, I'll open the call to your questions.

Speaker Change: In closing, I'm very proud of our team for all their hard work and execution in the second quarter.

Matt Faulkner: I'm confident in our ability to continue to execute and press strategic plans so they're high-quality handouts to our patients and customers, all along generating strong returns for our shareholders.

Speaker Change: I'm confident in our ability to continue to execute our strategic plan to deliver high-quality cannabis to our patients and customers, all while generating strong returns for our shareholders.

Unknown Executive: With that, it's a little bit of a call for your questions, operators. Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one, on your touch-tone phone. If you're using a speaker phone, please pick up your handset before pressing the key.

Speaker Change: With that, I'll open the call to your questions, operators.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

Speaker Change: Thank you.

Speaker Change: We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed, and you would like to withdraw your question, please press star, then 2.

Matt Bottomley: If at any time your question has been addressed and you would like to withdraw your question, please press star then two. In the interest of time, we ask that you please limit yourself to one question only. At this time, we will pause momentarily to assemble our roster. The first question comes from Matt Bottomley with Canna-Core Genuity, please go ahead. Evening everyone, thanks for the question. Ben, just wondering if I can get a little more color from you with respect to your anticipation of Ohio. Not in terms of specific monetary guidance or anything like that, but if you relate it to maybe what we saw in Maryland where that was almost effectively a doubling of the market within months. Given that you're already at the state level max of five, I'm just wondering if you can give us an idea of what the back half of the year might suggest considering that market's turning online tomorrow. Yeah, hey Matt, thanks. Ben, you're right, I mean just a little step for everybody on Friday we learned that Ohio would start adult use tomorrow, so Tuesday of this week which is tomorrow. For a ride, that means all five stores will convert to 21 and over folks can come in and buy for the first time. And this is not new for us, right?

Speaker Change: In the interest of time, we ask that you please limit yourself to one question only.

Matt Bottomley: If at any time your question has been addressed, and you would like to withdraw your question, please press star then 2. In the interest of time, we ask that you please limit yourself to one question only. At this time, we will pause momentarily to assemble our roster. The first question comes from Matt Bottomley with Canaccord Genuity. Please go ahead.

Speaker Change: At this time, we will pause momentarily to assemble our roster.

Speaker Change: The first question comes from Matt Bottomley with Canaccord Genuity. Please go ahead.

Benjamin Kovler: Good evening, everyone. Thanks for the question. Ben, just wondering if I can get a little more color from you with respect to your anticipation in Ohio, not in terms of specific monetary guidance or anything like that, but if you relate it to maybe what we saw in Maryland, where that was almost effectively a doubling of the market within months, given that you're already at the state level max of five, I'm just wondering if you can give us an idea of what the back half of these

Matt Bottomley: Good evening, everyone. Thanks for the question. Ben, just wondering if I can get a little more color from you with respect to your anticipation in Ohio, not in terms of specific, you know, monetary guidance or anything like that, but if you relate it to maybe what we saw in Maryland where that was almost, you know, effectively a doubling of the market within months, given that you're already at the state level max of five, I'm just wondering if you can give us an idea of what the back half of the year might suggest considering that market turning online tomorrow.

Benjamin Kovler: Yeah, hey, Matt. Thanks, Ben.

Matt Bottomley: Yeah, hey Matt, thanks, Ben. Yeah, you're right, I mean, just a level set for everybody. On Friday we learned that Ohio would start adult use tomorrow, so Tuesday of this week.

Benjamin Kovler: Yeah, you're right. I mean, just a level set for everybody on Friday. We learned that Ohio would start adult use tomorrow. So Tuesday is For RISE, that means all five stores will be open to 21 and over, and folks can come in and buy for the first time. And this is not new for us, right? Like you said, Matt, we led the charge in New Jersey, we led the charge in Maryland, we led the charge in Illinois, we've been around for Nevada, Massachusetts, New York, and several others.

Speaker Change: which is tomorrow.

Speaker Change: For RISE, that means all five stores will convert to 21 and over, folks can come in and buy for the first time, and this is not new for us, right? Like you said, Matt, we led the charge in New Jersey, we led the charge in Maryland, we led the charge in Illinois, we've been around for Nevada, Massachusetts, New York, and several others. So... So... So...

Benjamin Kovler: Like you said, Matt, we've read the charge in New Jersey, we've read the charge in Maryland, we've read the charge in Illinois, we've been around for Nevada, Massachusetts, New York, and several others. So, you know, we're optimistic, I'm not sure what else to tell you except numbers, so the numbers I would tell you were, yeah, we think it's easily a double as a market. You know, holistically it should be bigger, you know Ohio has been hampered for several different reasons, product branding, sizing, you know, we're optimistic about the new regulator in the future, and we're excited about tomorrow. So, you know, we don't see a gangbuster, boulder, and a pond start, we see crawl, walk, run, making sure this thing gets off to a good start. Everybody's on the same page and we're excited for tomorrow, I'll be out there, everybody's welcome, 21 over, bring your ID. And we'll see you arrive throughout Ohio. And sorry, any capacity constraints in that market just to slip another coconut there?

Benjamin Kovler: So... You know, we're optimistic. I'm not sure what else to tell you except numbers. So the numbers I would tell you are, yeah, we think it's easily doubled as a market. Holistically, it should be bigger. Ohio's been hampered for several different reasons, product, branding, sizing.

Speaker Change: You know we're optimistic. I'm not sure what else to tell you except numbers so the numbers I would tell you where yeah, we think it's easily a double as a market, you know

Matt Bottomley: Holistically, it should be bigger. You know, Ohio's been hampered for several different reasons. Product, branding, sizing.

Benjamin Kovler: You know, we're optimistic about the new regulator in the future, and we're excited about tomorrow. So, you know, we don't see a gangbuster boulder-in-a-pond start; we see Krawalk run, making sure this thing gets off to a good start, everybody's on the same page, and we're excited for tomorrow. I'll be out there; everybody's welcome.

Matt Bottomley: You know, we're optimistic about the new regulator in the future, and we're excited about tomorrow. So, you know, we don't see a gangbuster boulder-in-a-pond start. We see Krawalk run, making sure this thing gets off to a good start. Everybody's on the same page, and we're excited for tomorrow. I'll be out there. Everybody's welcome. 21 over, bring your ID.

unknown: And sorry, any capacity constraints in that market, just to slip another quick one in there? Yeah, Pat, I can take that question.

Matt Bottomley: and we'll see you at RISE throughout Ohio.

Speaker Change: And sorry, any capacity constraints in that market, just to slip another quick one in there?

Anthony Georgiadis: Yeah, and I can take that question, so, you know, we are fully built out, so for everyone's benefit, the store, or the state has it, at least before, don't even start it, had a statutory limit of five stores per operator, and then had a canopy chat. So, we were at the max on both of those limits, now with the don't use the canopy cap increases, as well as the store count goes for five days, that the moment we're fully locked and loaded, and then obviously when the adult use rates go into effect on early September, that's when we'll take a closer look at the canopy expansion, along with we already have a path to open up the additional stores for five days. Okay, thanks all, that's fine. Again, in the interest of time, we ask that you please let me yourself do one question. The next question comes from Eric DeLaurier with Craig Hallum Capital Group, please go ahead. Great, thanks for taking my questions and congrats on another impressive quarter here. So, your ability to continue getting a market share and realizing operating efficiencies continues to be impressive. You talk about where you see opportunities to continue that momentum and how that plays into your CAFX plans for the second half, and then just kind of higher levels. Should we be thinking about your efficiency gains and ability to kind of offset price compression as more a function of CAFX projects or operating cost leverage?

unknown: You know, we are fully built out, so for everyone's benefit, the store or the state has, at least before adult use started, had a statutory limit of five stores per operator and then had a canopy cap. So we were at the max on both of those limits. Now with adult use, the canopy cap increases, as well as the store count; it goes from five to eight. At the moment, we're fully locked and loaded, and then obviously, when the adult use rates go into effect in early September, that's when we'll take a closer look at the canopy expansion, along with We already have a path to open up the additional stores from five to eight.

Speaker Change: Yeah, Matt, I can take that question.

Speaker Change: You know, we are fully built out, so for everyone's benefit, the store, or the state, has at least before Adobe started, had a statutory limit.

Speaker Change: of five stores per operator, and then at a canopy cap.

Speaker Change: So, we're at the max on both of those limits. Now, with adult use, the canopy cap increases, as well as the store count, it goes from five to eight. At the moment, we're fully locked and loaded, and then, obviously, when the adult-use regs go into effect in early September , that's when we'll take a closer look at...

Speaker Change: At the canopy expansion, along with, we already have a path to open up the additional storage from 5 to 8.

Speaker Change: Okay, thanks all.

Speaker Change: That's about it.

Eric DeLaurier: Again, in the interest of time, we ask that you please limit yourself to one question. The next question comes from Eric DeLaurier with Craig Hallam Capital Group. Please go ahead.

Speaker Change: Again, in the interest of time, we ask that you please limit yourself to one question.

Speaker Change: The next question comes from Eric DeLaurier with Craig Hallam Capital Group. Please go ahead.

Eric DeLaurier: Great, thanks for taking my questions and congrats on another impressive quarter here. Your ability to continue to gain market share and realizing operating efficiencies continues to be impressive. Can you talk about where you see opportunities to continue that momentum and how that plays into your CapEx plans for the second half? And then, at a higher level, should we be thinking about your efficiency gains and ability to kind of offset price compression as more a function of CapEx projects or operating cost leverage?

Eric DeLaurier: Great, thanks for taking my questions and congrats on another impressive quarter here.

Eric DeLaurier: So your ability to continue gaining market share and realizing operating efficiencies continues to be impressive.

Eric DeLaurier: Can you talk about where you see opportunities to continue that momentum and how that plays into your CapEx plans for the second half? And then just kind of higher level, should we be thinking about your efficiency gains and ability to kind of offset price compression as more a function of CapEx projects or operating cost leverage? Thank you.

Unknown Executive: Thank you.

Benjamin Kovler: Thank you.

Benjamin Kovler: Yeah, I can start, Eric, and maybe Anthony will come in on the second part. I think the first part is, where's the growth, where are we often just going forward? I think, you know, we think you have an edge on the vision of what's happening in cannabis in the country. So it's sort of like, have the pieces in place ahead of time, which means small morning, open five stores for non-medical sales in Ohio. And what that means in the next year or two, or places like Virginia, Minnesota, and a few other states on the market.

Anthony Georgiadis: Yeah, I can start, Eric, and maybe Anthony will come in on the second part. So I think the first part is, where's the growth? Where are we optimistic going forward? And I think, you know, we think you have an edge on the vision of what's happening with cannabis in the country. So it's sort of like having the pieces in place ahead of time, which means tomorrow morning opening five stores for non-medical sales in Ohio. And what that means in the next year or two are places like Virginia, Minnesota, and a few other states on the market. And then it's even thinking outside the box and being ahead of that.

Eric DeLaurier: Yeah, I can start, Eric, and maybe Anthony will come in on the second part. So, I think the first part is, where's the growth? Where are we optimistic going forward? And I think, you know...

Speaker Change: We think you have an edge on the vision of what's happening in cannabis in the country so it's sort of like have the pieces in place ahead of time which means tomorrow morning open five stores for non-medical sales in Ohio.

Anthony: And what that means in the next year or two are places like Virginia, Minnesota and a few other states on the market. And then it's even thinking outside the box and being ahead of that.

Anthony Georgiadis: And then it's even thinking outside the box and being ahead of that. So, you know, and we have a balance sheet to do it, and we have the ability and the power to, you know, to make a few mistakes, too, and not sip over the boat. So we see our ability to play offense and really accelerate on the gas and press, press big time. You know, that's what we're doing for the advanced shareholders.

Eric DeLaurier: And we have the balance sheet to do it, and we have the ability and the power, you know, to make a few mistakes, too, and not tip over the boat. So we see our ability to play offense and really accelerate on the gas and press, and press big time, and, you know, that's what we're doing for the advantage of shareholders. So it's a pretty good situation where we are in terms of the actual details, the operating efficiencies, and price.

Anthony: And we have the balance sheet to do it, and we have the ability and the power to, you know, to make a few mistakes, too, and not tip over the boat. So we see our ability to play offense and really accelerate on the gas.

Anthony Georgiadis: So it's a pretty good situation where we are there in terms of the actual details, the operating official season price. Yeah, look, I think just we look ahead. You know, I think we're showing it in terms of kind of where we're allocating capital, right? And the fact that we continue allocating capital, we've been one of the bigger kind of, you know, investors into our business than any other operator. And as we look ahead, you know, we've had to continue to sharpen the pencil and just make sure that the returns continue to pencil out for the shareholders.

Anthony: [inaudible]

Eric DeLaurier: Yeah, look, I think just as we look ahead, you know, I think we're showing it in terms of kind of where we're allocating capital, right, and the fact that we continue to allocate capital. We've been one of the bigger kind of investors in our business than any other operator, and as we look ahead, we know we have had to continue to sharpen the pencil and just make sure that the returns continue to pay out the shareholders.

Anthony: You know, I think we're showing it in terms of kind of where we're allocating capital. Right? And the fact that we continue to allocate capital. We've been one of the bigger kind of, you know, investors into our business than any other operator. And as we look ahead, you know, we've had to continue to sharpen the pencil and just make sure that the returns continue to pencil out the shareholders.

Eric DeLaurier: And so, you know, now, I think in my prepared remarks, I mentioned it, where we're allocating the dollars really is Florida, Nevada, Minnesota, Pennsylvania, and Virginia, and how that evolves over time, we'll see. But we see opportunities within those markets to deploy capital as returns that make sense for shareholders. You know, and then in terms of our performance and ability to continue to kind of, you know, drive strong operating performance, it's on the heels of capital spend.

Anthony Georgiadis: And so, you know, now, I think you might compare to marks I've mentioned, but we're allocating the dollars, really explored into that in Minnesota, Pennsylvania, and Virginia. Now, how that evolves over time? We'll see, but we see opportunities within those markets to deploy capital as returns that make sense for shareholders. You know, and then in terms of our performance and ability to continue to kind of drive strong operating performance, it's on the heels of the capital spend. So, you know, as we enter in these markets, we stay up at the facilities, we continue to optimize kind of our presence within those facilities, and we grow into them.

Anthony: And so, you know, now, I think in my prepared remarks, I've mentioned it, where we're allocating the dollars, really, is Florida, Nevada, Minnesota, Pennsylvania, and Virginia. How that evolves over time, we'll see. But we see opportunities within those markets to deploy capital as returns that make sense for shareholders.

Anthony: You know, and then in terms of our performance and ability to continue to kind of, you know, drive strong operating performance.

Eric DeLaurier: So, you know, as we enter these markets, we stand up the facilities, we continue to optimize kind of our presence within those facilities, and we grow into them, and that's how we've been able to continue to effectively show strong kinds of market performance. On top of that, you know, it's all supported by the strength of our brand and the quality of our products, and that's going to continue to be kind of, you know, two pillars that we're going to have to continue to lean on as these markets, you know, just continue to become more competitive and more challenging.

Anthony: It's on the heels of the capital spend, so, you know, as we enter in these markets, we stand up the facilities, we continue to optimize kind of our presence within those facilities, and we grow into them, and that's how we've been able to continue to, you know, effectively show strong kind of, you know, market performance.

Anthony Georgiadis: And that's how we've been able to continue to, you know, effectively show strong kind of, you know, margin performance. On top of that, you know, it's all supported by the strength of our brand and the quality of our products.

Anthony: On top of that, you know, it's all supported by the strength of our brand and the quality of our products. And that's going to continue to be kind of, you know, two pillars that we're going to have to continue to lean on as these markets, you know, just continue to become more competitive and more challenging.

Anthony Georgiadis: And that's going to continue to be kind of, you know, two pillars that we're going to have to continue to lean on as these markets, you know, just continue to become more competitive and more challenging.

Unknown Executive: So, very helpful.

Eric DeLaurier: It's all very helpful. Thank you for taking the time to answer my question.

Unknown Executive: Thank you for taking my question.

Speaker Change: It's all very helpful. Thank you for taking my question.

Pablo Zuanic: The next question comes from Pablo Zuannick with Zuannick and Associates. Please go ahead. Thank you.

Pablo Zuanic: The next questioner comes from Pablo Zuanic with Zuanic and Associates. Please go ahead. Thank you.

Speaker Change: The next question comes from Pablo Zuanic with Zuanic & Associates. Please go ahead.

Pablo Zuanic: Thank you. Ben, could you maybe give more context regarding your letter to Jim Cook regarding the merger with Boston Beer? I mean, obviously, I know it's something that you guys thought through very carefully, and it's not a publicity stunt for sure. But, you know, they are low-growth companies, right? Why dilute your story with a low-growth company? The idea of a U.S. listing, I mean... There's no Boston BR could lose its NASDAQ listing if it were to merge with a band-touching company, right? At least that's what we've seen from other cases, even the ones that are trying to have a re-infent structure.

Benjamin Kovler: Ben, can you maybe give more context regarding your later to Jim Cook regarding the merger with Boston Beer? I mean, obviously, I know it's something that you guys have thought through very carefully, and it's not a publicity stand for sure. But, you know, they are low growth, right?

Pablo Zuanic: Thank you. Ben, can you maybe give more context regarding your letter to Jim Cook regarding the merger with Boston Beer? I mean, obviously, I know it's something that you guys thought through very carefully and it's not a publicity stunt for sure.

Benjamin Kovler: Why do they lead your story with a low growth company? The idea of a U.S. listing? I mean, there's no, the Boston Beer could lose their NASDAQ listing in the world to merge with a bandtouching company, right? At least that's what we've seen from other cases, even the ones that are trying to have reenphant structures.

Pablo Zuanic: but you know they are low growth, right? Why dilute your story with a low growth company? The idea of a U.S. listing, I mean...

Speaker Change: There's no... Boston BR could lose their NASDAQ listing if they were to merge with a band-touching company, right? At least that's what we've seen.

Benjamin Kovler: So maybe just some context about what you tried to do there. And then, number two, if I can, I know you haven't made a lot of comments on hemp. From my perspective, there are good players out there in hemp that are following the rules, and their products are tested, and they go through labs in the various states. And that's probably why you chose LFTD Partners as a partner there. But maybe give a bit more context if you can. Because I find that when I read out there, it sounds like everything that's a hemp derivative is bad. And obviously, there are products that are properly produced and tested.

Anthony Georgiadis: So, maybe just some context about what you try to do there. And then number two, if I can, I know you said not a lot of comments on hemp. From my perspective, there are good players out there in hemp that are, you know, following the rules, and their products are tested and they go through a lab in the various states. And that's why probably you chose LFTD Partners as a partner there. But maybe give you a bit more context if you can, because I find that when I read out there, it turns like everything that's hemp there, you have to be as bad.

Speaker Change: from other cases, even the ones that are trying to have re-infent structure. So, so maybe just some context about what you tried to do there. And then, and then number two, if I can, I know you said not a lot of comments on hemp.

Speaker Change: From my perspective, there are good players out there in hemp that are, you know, following the rules and their products are tested and they go through labs in the various states.

Speaker Change: Thank you.

Anthony Georgiadis: And obviously, there are products that are properly produced.

Unknown Executive: I'm interested in thank you.

Benjamin Kovler: Thanks, Pablo, it's been.

Benjamin Kovler: All right. Yeah, thanks, Pablo. It's been... A real happy home.

Speaker Change: [inaudible]

Anthony Georgiadis: I mean, I honestly don't have much more to say than the letter. I think we've been pretty forthcoming while thinking this, so I'm not going to re-articulate a year. I think just for the record, there are listed companies on US exchanges that don't like this operate marijuana and regulated markets. They're taking in revenue, and they're listed. So we think a US listing is just a matter of time, the right lawyers, the right conversations, the right sort of blow of the wind from people to feel the right cover. But again, for the US American citizens to not be able to buy stock, and the American company that rolls the joints that they smoke doesn't make any sense.

Speaker Change: Yeah, thanks, Pablo. It's been...

Benjamin Kovler: I honestly don't have much more to say than the letter. I think we've been pretty forthcoming in what our thinking is. So I'm not going to re-articulate it here. But, just for the record, there are listed companies on U.S. exchanges that don't like to operate marijuana in regulated markets for taking in revenue, and they're listening. So we think a U.S. listing is just a matter of time and the right lawyers and the right conversations and the right sort of blow of the wind for people to feel the right cover.

Speaker Change: Happy on!

Speaker Change: I honestly don't have much more to say than the letter. I think we've been pretty forthcoming in what our thinking is, so I'm not going to re-articulate it here. I think just for the record, there are listed companies on U.S. exchanges that own licenses to operate marijuana in regulated markets. They're taking in revenue, and they're listed.

Speaker Change: So we, you know, we think a U.S. listing is just a matter of time, the right lawyers, the right conversations, and the right sort of blow of the wind.

Benjamin Kovler: But again, for U.S. American citizens to not be able to buy stock in the American company that rolls the joints that they smoke doesn't make any sense. So, eventually, we know that that's going to be a fact. And you know, buy what you own. Peter Lynch-style investing should take over for this sector because American consumers, and especially young, new, interested consumers, want to have access to this sector. And so far, it's been blocked out.

Speaker Change: for people to feel the right cover. But again, for a U.S. American citizen to not be able to buy stock in the American company that rolls the joints that they smoke doesn't make any sense.

Benjamin Kovler: So eventually we know that that's going to be a fact. And you know, buy what you own, Peter Lynch style investing should take over for this sector because American consumers and especially young new interested consumers want to have access to this sector. And so far, it's been blocked out. It doesn't make sense. Again, there's 428,000 Americans that work in cannabis, and they're all breaking federal law right now. And you know, everything DC seems distracted and not quite able to get around to it. So it's quite frustrating.

Speaker Change: So eventually we know that that's going to be a fact, and you know, buy what you own. Peter Lynch-style investing should take over for this sector because American consumers, and especially young, new, interested consumers, want to have access to this sector, and so far it's been blocked out. Doesn't make sense. Again, there's 428,000 Americans that work in cannabis.

Benjamin Kovler: Doesn't make sense. Again, there are 428,000 Americans that work in cannabis, and they're all breaking federal law right now. Green Thumb is a listing on the U.S. Exchange here, eventually. I can't tell you when, but obviously, we can follow the quick list of the other big companies that are listed on the New York Stock Exchange or NASDAQ, they're in the marijuana business.

Speaker Change: And they're all breaking federal law right now.

Speaker Change: And, you know, everybody in D.C. seems distracted and not quite able to get around to it. So, it's quite frustrating, but we view Green Thumb as a listing on the U.S. exchange here eventually. I can't tell you when, but obviously we would follow the footsteps of the other big companies that are listed on the New York Stock Exchange or NASDAQ that are in the marijuana business.

Benjamin Kovler: But Weaver, Green Thumb is a listing on the US exchange here eventually. I can't tell you when, but obviously we can follow the footsteps of the other big companies that are listed on the New York Stock Exchange and that they're in the marijuana business. From them.

Benjamin Kovler: Yeah, good call out and good comments on hemp. You know, again, I think my preparatory remarks kind of said it best. We're at the very early stages of our exploration here, you know, and one of the things I said is that we're studying the players. So, absolutely, there are some operators that we've come across that seem to be doing a nice job. Unfortunately, not everyone seems to be kind of falling within those same guidelines.

Anthony Georgiadis: Yeah, I think I know well; good call out and good comments on how much you know. Again, I think I prepared a margin, kind of set it best worth a period of early stages of our exploration here. You know, one of the things I said, we're studying the players. So absolutely, there are some operators that we've come across that seem to be doing a nice job. Unfortunately, not everyone seems to be kind of born within those same guidelines. But we're at the early stages, and my guess is over time, you know, we'll start to kind of.

Speaker Change: Yeah, and I think, you know, Pablo, good call-out and good comments on hemp. You know, again, I think my prepared remarks kind of said it best.

Pablo: We're at the very early stages of our exploration here, you know, and one of the things I said, we're studying the players, so absolutely, there are some operators that we've come across that seem to be doing a nice job.

Benjamin Kovler: But we're at the early stages, and my guess is, over time, you know, we'll start to kind of really peel back the onion here and understand how and if we play in this market. You know, we also said that the consumer is really what our main focus is. So, at the end of the day, we're going to be focused on that. And so, you know, we have to keep our eyes wide open as this game continues to evolve.

Pablo: Unfortunately, not everyone seems to be kind of falling within that those same guidelines.

Pablo: But, we're at the early stages, and my guess is over time, you know, we'll start to kind of really peel back the onion here and understand how and if we play in this market. You know, we also said that the consumer is really what our main focus on.

Anthony Georgiadis: We really feel back in here and understand how and if we play in this market. You know, we also said the consumer is really what our main focus on. So that at the end of the day, we're going to be focused on that. And so, you know, we have to keep our eyes wide open and just can't continue to evolve.

Pablo: That, at the end of the day, we're going to be focused on that, and so, you know, we have to keep our eyes wide open as this game continues to evolve.

Unknown Executive: Thank you.

Aaron Gray: The next question comes from Aaron Gray with Alliance Global Partners. Please go ahead. Hi, good evening. And thank you for the question. Nice question. Nice execution on the CPG side of the business. You know, both the year, but also on a made single digit basis, taking away the Maryland adult use impact.

Speaker Change: Thank you.

Aaron Grey: The next question comes from Aaron Grey with Alliance Global Partners. Please go ahead. Hi, good evening, and thank you for joining us.

Speaker Change: The next question comes from Aaron Grey with Alliance Global Partners. Please go ahead.

Aaron Grey: Hi, good evening, and thank you for the question. Nice question, nice execution on the CPG side of the business, both year-over-year but also on a mid-single-digit basis, taking away the Maryland adult use impact. So could you provide some color in terms of, you know, standouts in terms of formats or brands where you have seen the most success in the first half of the year for that? And then, you've spoken about pricing pressure in this sector, can you speak to your current comfortability in terms of the price gaps within respective price segments and whether or not that's changed and driven some of the success that you've seen?

Aaron Grey: Hi, good evening and thank you for the question. Nice execution on the CPG side of the business.

Aaron Grey: You know, both year over year, but also on a mid-single-digit basis, taking away the Maryland adult use impact. So, could you provide some color in terms of, you know, standouts in terms of formats or brands, where you have seen the most success in the first half of the year for that? And then, you know, you've spoken about pricing pressure in this sector, you know, can you speak to your current comfortability in terms of the price gaps within respective price segments and whether or not that's changed and driven some success that you've seen? Thank you.

Anthony Georgiadis: So could provide some color in terms of, you know, standouts in terms of formats or brands or yours had seen the most success in the first half of the year for that. And then, you know, you spoke about pricing pressures in the sector. You know, can you speak to your current comfortability in terms of the price gas within respective price segments and whether or not that's changed and driven some success that you've seen. Thank you.

Anthony Georgiadis: Stand up for that. All right, there's a lot of you are coming through a little. The moment there, but your first question related to specific to Maryland in terms of the products and the brands that are having a lot of traction in the market, was that it?

unknown: Alright Aaron, there's a lot of, you were coming through a little mumbled there, but your first question related to, specific to Maryland, in terms of the products and the brands that are having a lot of traction in the market, is that it? Did we catch that right?

Aaron Grey: [inaudible]

Speaker Change: All right, Aaron, there's a lot of, you were coming through a little mumbled there, but your first question related to, specific to Maryland in terms of the products and the brands that are having a lot of traction in the market, is that it? Did we catch that right? No, first question was just overall CPG success and what formats or brands have been standouts.

Anthony Georgiadis: No, no, no, first question was just overall CPG success and what formats or brands have been standout. Okay, so, yeah, let's answer that first. So, in terms of the products that we look, it's, you know, rhythm and dog walkers, along with strength, within Incredibles and V-Bo, depending on the market where they're launched, right? But overall, we're pretty pleased. You know, we look at the same data as everyone else; we take a look at VDS and test data, and, you know, in many markets, we're making strong progress. There's some markets where maybe we're not making the progress that we'd like to make, and I can tell you we're going to look at the card on those.

Aaron Grey: No, the first question was just overall CPG success and what formats or brands have been standouts.

unknown: Okay, so yeah, let's answer that first. So in terms of the brains' product, we look, it's, you know, Rhythm and Dog Walkers, along with Strength, Within, Incredibles, and Bebo, depending on the market and where they're launched, right? But overall, we're pretty pleased. We look at the same data as everyone else. We take a look at BDS and Headset data, and you know, in many markets, we're making strong progress.

Speaker Change: Okay, so, yeah, let's answer that first. So, in terms of the product of the brains, we look, it's, you know, Rhythm and Dog Walkers, along with Strength, Within, Incredibles, and Bebo, depending on the market and where they're launched.

Speaker Change: Right, but overall, we're pretty pleased that, you know, we look at the same data as everyone else. We take a look at BDS and HIPAA data and, you know, in many markets, we're making strong progress. There's some markets where maybe we're not making the progress that we'd like to be making, and I can tell you we're going to be working hard on those.

unknown: There are some markets where maybe we're not making the progress that we'd like to be making, and I can tell you we're going to be working hard on those. But taking a step back, we feel really good about the progress we've made thus far, and again, it comes back to high-quality products, right? We've got Strength within the flower category, given how we kind of built this business, with, you know, highly automated indoor facilities that can achieve, you know, just exceptional kinds of humidity and temperature levels and whatnot.

Anthony Georgiadis: But taking a step back, which we're really good at, the progress that we've made thus far, and again, it comes back to high quality products, right? We've got strength within the flower category, given how we kind of build this business, with highly automated indoor facilities that can achieve, you know, just exceptional kind of, you know, humidity and temperature levels and whatnot. So, we can, we have the ability to produce the high quality flower. That helps us on the rhythm side as well as the dog walkers side of the business. And then it's really continuing to meet the consumer, with where the demand is, you know, within the category. It's a pre-roll that, you know, that has nice growth associated with it.

Speaker Change: But taking a step back and feel really good about the progress we've made thus far and again it comes back to

Speaker Change: High-quality product, right? We've got strength within the flower category given how we kind of built this business.

Speaker Change: with, you know, highly automated indoor facilities that can achieve, you know, just exceptional kind of, you know, humidity and temperature levels and what not. So we can, we have the ability to produce the high quality flour.

unknown: So we can, we have the ability to produce high-quality flower. That helps us on the Rhythm side, as well as the Dog Walker side of the business, and then it's really just continuing to meet the consumer where the demand is, you know, within a category such as pre-roll that, you know, that has nice growth associated with it. So that's really where we've been focused, and so far, we've had some nice success that has shown up in the numbers during the first half of the year.

Speaker Change: That helps us on the rhythm side as well as the dog walker side of the business. And then it's really just continuing to meet the consumer with where the demand is, you know, within a category such as pre-roll that, you know, that has nice growth associated with it.

Unknown Executive: So that's really where we've been focusing so far. We've got some nice success that you showed us in the numbers within the first half of the year. Okay, great, thanks.

Speaker Change: So that's really where we've been focused, and so far we've had some nice success, as you showed us in the numbers within the first half of the year.

unknown: Okay, great. Thanks, guys. Yeah, the second part of that was just your comfortability in terms of price gaps within respective price segments for your brand.

Unknown Executive: Yeah, the second part, that was just your comfortability in terms of price gaps within all respective price segments for your brands.

Shannon Weaver: Okay, great. Thanks, guys.

Speaker Change: Yeah, the second part of that was just your comfortability in terms of price gaps within all respective price segments for your brands.

unknown: Look, here the data is much more murky, and the real challenging factor is life-for-life. Particularly right now, we're seeing, you know, with the consumer, you know, just on the retail side, you know, the store visits are there, the traffic is there, but there's an essential kind of just trading down and bulk purchasing that's happening that effectively is driving down, you know, the overall revenue per gram, and that' So it's hard to really look at apples to apples compared against kind of, you know, other categories, like for like. It's just incredibly challenging.

Anthony Georgiadis: But here's the data as much as much more murky, and then the real challenges factor is life for life's use. Particularly right now, when we're seeing, you know, with the consumer, you know, just on the retail time, you know, the store visits are there, the traffic is there, but there's an essential kind of just training down in bulk purchasing that's happening. And respectively, it's riding down, you know, the overall revenue per gram, and that's a better thing to track, which frustrates.

Speaker Change: Look, here the data is much more murky, and the real challenging factor is life-for-life skews.

Speaker Change: And particularly right now, what we're seeing, you know, with the consumer.

Speaker Change: You know, just on the retail side, you know, the store visits are there, the traffic is there.

Speaker Change: But there's an essential kind of just trading down.

Speaker Change: in bulk purchasing that's happening that effectively is driving down, you know, the overall, you know, revenue per gram, and that's a metric that you track, which for us it is.

Anthony Georgiadis: So it's hard to really look at apples to apples compared against kind of, you know, other brands, other categories like for life; it's just incredible challenges. So for us, you know, the way that we're looking at it is, you know, we look at how the prices are on products within our own retail stores relative to third party products. And if we can get a sense for value, and we feel good about the value that, that effect we are trying to carry on the shelf, that's, that's really the first step and that's what gives us a confidence in the price of our product correctly.

Speaker Change: So, it's hard to really look at apples-to-apples compared against kind of, you know, other brands, other categories, likes-or-likes. It's just incredibly challenging. So, for us, you know, the way that we're looking at it is, you know,

unknown: So for us, you know, the way that we're looking at it is, we look at how we price our own products within our own retail stores relative to third-party products, and if we can get a sense of value, and we feel good about the value that our products are carrying on the shelf, that's really the first step, and that's what gives us the confidence that we're pricing our products correctly.

Speaker Change: We look at how to price our own products within our own retail stores relative to third-party products, and if we can get a sense for value, and we feel good about the value that effectively our products are carrying on the shelf, that's really the first step, and that's what gives us the confidence that we're pricing our product correctly.

Unknown Executive: Okay, great.

unknown: Okay, great. Thanks for that. I'll jump back into the queue.

Unknown Executive: Thanks for that. Jump back in the queue.

Speaker Change: Okay, great. Thanks for that. I'll jump back into the queue.

Fredrick Smith: The next question comes from Fredrick Smith with ATB Capital. Please go ahead. Hi, thanks for taking my question. Congrats on the quarter. Just on New York, could you just comment on what you're seeing there in the adult use market? Especially, you know, with the crack down, the received on the listed stores side.

Frederick Smith: The next question comes from Frederick Smith with ATB Capital. Please go ahead.

Speaker Change: The next question comes from Frederick Smith with ATB Capital. Please go ahead.

Frederick Smith: Hi, thanks for taking my question. Congratulations on the quarter. Just on New York. Comment on what you're seeing there in the adult use market, especially, you know, with the crackdown that we're seeing on the illicit store side. Are you seeing any meaningful benefits from that enforcement against the illicit market? And do you think that, you know, New York's got to a point where you could see that market thriving finally? Thanks. Sure.

Frederick Smith: Hi, thanks for taking my question, and congrats on the quarter.

Frederick Smith: Could you just comment on what you're seeing there in the adult use market, especially with the crackdown that we're seeing?

Anthony Georgiadis: Are you seeing any meaningful benefits from that enforcement against a listed market and these things that, you know, New York starts with points where you could see that market driving finally. Thanks.

Speaker Change: on the illicit store side. Are you seeing any meaningful benefits from that enforcement against the illicit market? And do you think that New York's got to a point where you could see that market thriving finally? Thanks.

Anthony Georgiadis: Sure, Anthony here. I know everyone has heard from me quite a bit already, but I'll take that one. So, on New York, let's zoom out. As of today, we have five stores in New York. We opened up our latest store in Syracuse late last week. And, you know, look.

Anthony Georgiadis: Sure, Anthony here. I know in terms of the collect they already, but I'll take that one. So, on New York, with zoom out, as of today, we have five stores in New York. We opened up our latest store in Syracuse late last week. And, you know, look.

Speaker Change: Sure, Anthony here. I know everyone's here for quite a bit already, but I'll take that one. So, on New York, let's zoom out. As of today, we have five stores in New York. We opened up our latest store in Syracuse late last week. And, you know, look.

Anthony Georgiadis: I'll tell you that the market overall has received kind of an injection of life ever since we started seeing the state crack down on these stores. And we're seeing it because we're feeling the demand on the wholesale side of the business, pulling through particularly at the retail stores that are within that within kind of the city limits. We're finally started to see life within a market with over 20 million people that we all kind of anticipated would be there or call it five, 10 years ago. So, you know, the early stages seems like it's working, but there's more, you know, there's more work to do.

Anthony Georgiadis: I'll tell you that the market overall has received kind of an injection of life ever since we started seeing the state crack down on these stores. And we're seeing it because we're feeling the demand on the wholesale side of the business, pulling through, particularly at the retail stores that are within that, within the city limits. And so we can already tell it's starting to have an impact. I mean, obviously, you know, we think they're at the early stages of this, and there's a lot more room to grow.

Speaker Change: I'll tell you that the market overall has received kind of an injection of life ever since we started seeing the state crack down on these stores.

Speaker Change: And we're seeing it because we're feeling the demand on the wholesale side of the business pulling through, particularly at the retail stores that are within that, within kind of the city limits.

Speaker Change: And so we can already tell it's starting to have an impact. I mean, obviously, you know, we think they're at the early stages of this, and there's a lot more room to grow.

Anthony Georgiadis: But just given the size of the state, we're finally starting to see life within a market with over 20 million people that we all kind of anticipated would be there, call it, you know, 5, 10 years ago. So, you know, at the early stage, it seems like it's working, but there's more, you know, there's more work to do. We'll continue to monitor it, but definitely, it's having an impact. If anything, it seems like, you know, the morality industry within New York is a lot more positive now that, you know, it seems like, you know, it's just one less front we inevitably have to fight.

Speaker Change: But just given the size of state, we're finally starting to see life within a market with over 20 million people that we all kind of anticipated would be there, call it, you know, 5, 10 years ago. So...

Speaker Change: The early stages seems like it's working, but there's more work to do. We'll continue to monitor it, but definitely it's having an impact. If anything, it's just...

Anthony Georgiadis: We'll continue to monitor it, but definitely it's having an impact. If anything, it's just, you know, the morale industry within New York is a lot more positive now that, you know, it seems like, you know, it's just one less, you know, one less kind of front we have to, we inevitably have to fight.

Speaker Change: You know, the morality industry within New York is a lot more positive now that, you know, it seems like, you know, it's just one less, you know, one less kind of front we have to, inevitably have to fight.

Unknown Executive: Thank you.

Speaker Change: Thank you.

Mike Regan: The next question comes from Mike Regan with Excel for your equities. Please go ahead. Hi, everyone. Thanks for question. I guess it's turning to sort of the spending in Florida. Is that more just to build out the existing medical market, is adult use doesn't pass in November or sort of an anticipation of adult use passing in November. Sort of on that. I guess any thoughts on I guess the Yes on Three campaign and additional contributions, especially now that Can Grip and donating 12 million to fight it. Thanks.

Mike Regan: The next question comes from Mike Regan with Excelsior Equities. Please go ahead.

Speaker Change: The next question comes from Mike Regan with Excelsior Equities. Please go ahead.

Mike Regan: Hi everyone, thanks for the question. I guess, turning to sort of the spending in Florida, is that more just to build out the existing medical market if adult use doesn't pass in November, or is it sort of an anticipation of adult use passing in November? So, sort of on that, any thoughts on the Yes on 3 campaign and additional contributions, especially now that Ken Griffin is donating $12 million to fight it? Thanks.

Mike Regan: Hi everyone, thanks for the question. I guess turning to sort of the spending in Florida, is that more just to build out the existing medical market if adult use doesn't pass in November , or is it sort of an anticipation of adult use passing in November ?

Speaker Change: Sort of on that, I guess, any thoughts on, I guess, the Yes on 3 campaign and additional contributions, especially now that Ken Griffin is donating $12 million to fight it? Thanks.

Anthony Georgiadis: Yeah, Anthony here, Mike, I'll take that one as well. You know, look, we're investing in Florida irrespective of the vote in November, right? So the vote in November is just essentially more optionality on the business. You know, look, given the vertically integrated nature of that market, you have to invest essentially within wholesale before retail. We've done that.

Anthony Georgiadis: Yeah, so Anthony here, Mike. I'll take that one as well. You know what we're investing into Florida, irrespective of the vote in November, right? So the vote of November is just essentially more optionality on the business. You know, look, given the vertically integrated nature of that market, you have to invest essentially within wholesale before retail. We've done that. We're going to continue to make additional wholesale investments. We're going to continue to make additional retail investments. Now, the investment we're making today is not a bet on a going use. Now, if and when the vote goes our way of issues way in November, that will probably force us to revisit our capital plant in the state of Florida and revisit it then in terms of how, you know, how about initiative is looking at this moment.

Speaker Change: Yeah, so Anthony's here, Mike, I'll take that one as well.

Speaker Change: You know, look, we're investing into Florida irrespective of the vote in November .

Speaker Change: Right, so the vote of November is just essentially more optionality on the business.

Speaker Change: You know, look, given the vertically integrated nature of that market, you have to invest essentially within wholesale before retail, we've done that, we're going to continue to make additional wholesale investments, and we're going to continue to make additional retail investments.

Anthony Georgiadis: We're going to continue to make additional wholesale investments. We're going to continue to make additional retail investments. Now, the investments we're making today is not a bet on a vote. Now, if and when the vote goes our way, the industry's way in November, that will probably force us to revisit our capital plan for the state of Florida and revisit it then. In terms of how, you know, how the ballot initiative is looking at this moment, I mean, look, we're a number of months away, pretty premature at this point to really comment on it because again there's a lot of games to be played there's more dollars and donations are going to be coming in on both sides and the reality is that you know ask in a couple of months and we'll have a better sense for where this thing is really trapping, But here at Green Thumb, we're investing in the market irrespective of the vote.

Speaker Change: Now, the investments we're making today is not a bet on adult use.

Mike Regan: Great, thanks a lot.

Speaker Change: Now, if and when the vote goes our way, the industry's way in November , that will probably force us to revisit our capital plan for the state of Florida and revisit it then. In terms of how the ballot initiative is looking at this moment, I mean, look, we're a number of months away.

Anthony Georgiadis: I mean, look, we're a number of months away. It's pretty premature at this point to really comment on it, because again, there's a lot of games to be played. There's more dollars and donations that are going to be coming in on those sides. The reality is that, you know, asking a couple of months in one of the better sense of what this thing is really trapping. But here at Greensville, we're investing in the market irrespective of the vote of November. Yeah, great.

Speaker Change: It's pretty premature at this point to really comment on it, because again, there's a lot of games to be played. There's more dollars and donations that are going to be coming in on both sides. And the reality is that, you know, ask in a couple of months and we'll have a better sense for where this thing is really trapping. But here at Green Thumb, we're investing in the market irrespective of the vote of November .

Unknown Executive: Thanks a lot.

Speaker Change: Great, thanks a lot.

Scott Fortune: The next question comes from Scott Fortune with Roth Capital Partners. Please go ahead. Good afternoon. Thanks for the questions. Just want to call out. We've talked a little bit about the consumer, but just want to provide a little more color on the overall consumer strength here. You guys called out their state indicating itself from macro consumer spending. You guys called that out, but how is volume transactions holding up and your thoughts of where that's coming from from that side of the things on the consumer side as pricing coming down or we seen more consumers kind of converting from the listed market or substitution effect way from alcohol.

Scott Fortune: The next question comes from Scott Fortune with Roth Capital Partners. Please go ahead.

Speaker Change: The next question comes from Scott Fortune with Roth Capital Partners. Please go ahead.

Scott Fortune: Good afternoon. Thanks for the questions. We've talked a little bit about the consumer, but I just want to provide a little more color on the overall consumer strength here. You guys pointed out that there's data indicating a tougher macro consumer spending.

Scott Fortune: Good afternoon. Thanks for the questions. I just want to call out, we've talked a little bit about the consumer, but I just want to provide a little more color on the overall consumer strength here. You guys called out there's data indicating a tougher macro consumer spending. You guys called that out. But how is volume transactions holding up and your thoughts of where that's coming from, from that side of the things on the consumer side? Is pricing coming down? Are we seeing more consumers kind of converting from the illicit market or a substitution effect away from alcohol? Just kind of your overall sense on the consumer and how you guys are positioned to benefit from those trends as you see it going forward here.

Scott Fortune: But how is volume transactions holding up and your thoughts of where that's coming from, from that side of things on the consumer side? As pricing comes down, are we seeing more consumers converting from the illicit market or a substitution effect away from alcohol? Just kind of your overall sense of the consumer and how you guys are positioned to benefit from those trends as you see them going forward here. Hey, Scott, yeah, it's Ben.

Benjamin Kovler: Just kind of your overall sense on the consumer and how you guys are positioned to benefit from those trends as you take on for your Hey Scott, yes Ben, I can take that. I would say overall we see the impact; we don't think the consumers as far as they were, but we see demand in cannabis not letting up, so transactions are not, you know, tickets are not suffering; they can transaction volume. You know, how to define the demand pie in cannabis remains pretty interesting, remains expansive, and more things. What happens to rules, what's the legal market, and what's happened, and what's at the paper store, and all that sort of thing.

Benjamin Kovler: Okay, Scott, yes, Ben, I can take that. You know, I would say overall, we see the impact. We don't think the consumer is as strong as they were, but we see demand for cannabis not letting up. So transactions are not, you know, tickets are not suffering in transaction volume.

Scott Fortune: I think Scott, yes, Ben, I can take that.

Scott Fortune: Yeah, I would say overall we see the impact, we don't think the consumer is as strong as they were, but we see demand in cannabis not letting up. So transactions are not, you know, tickets are not suffering in transaction volume.

Benjamin Kovler: You know, how to define the demand pie in cannabis remains pretty interesting and remains expansive and morphing, depending on what happens to the rules and what's going on with the illegal market and what is hemp and what's at the paper store and all that sort of thing. So if we continue to try to cater to that consumer, we think the consumer is price sensitive. People care about how many dollars are in their pocket.

Speaker Change: Thank you. Thank you. Thank you.

Speaker Change: How to define the demand pie in cannabis remains pretty interesting and remains expansive and morphing what happens to the rules What's going on with the illegal market? What's happened? What's at the paper store?

Benjamin Kovler: So we continue to try to cater towards that consumer; we think the consumer is price sensitive. People care about how many dollars are in their pocket. You only have to look to like the major retailers of the countries, see major signs of weakness, and even today's market, et cetera, et cetera. So we don't think cannabis is totally immune, but the demand is there. The demand remains strong; demand remains coming up. So, you know, headline numbers that the industry is annualizing over 30 billion dollars. That's the first time that happens; this thing is strong and getting stronger.

Speaker Change: All that sort of thing. So we continue to try to cater towards that consumer. We think the consumer is price sensitive. People care about how many dollars are in their pocket. You only have to look to like the major retailers of the country to see major signs of weakness and even today's market, etc., etc.

Benjamin Kovler: You only have to look at the major retailers in the country to see major signs of weakness and even today's market, et cetera, et cetera. We don't think Canada is just totally immune, but the demand is there, the demand remains strong, the demand remains strong, even when things get bad, you know. We think we'll see that with the election and with other things coming up. So, you know, headline numbers that the industry is annualizing at over $30 billion; that's the first time that that happened.

Speaker Change: We don't think Canada is just totally immune, but the demand is there, the demand remains strong, the demand remains strong even when things get bad.

Benjamin Kovler: This thing is strong and getting stronger. So that's why I said we're confident in the future of cannabis for the American consumer. We're very confident in Green Thumb.

Speaker Change: We think we'll see that with the election and with other things coming up. So headline numbers, the industry is annualizing at over $30 billion, that's the first time that's happened. This thing is strong and getting stronger.

Benjamin Kovler: So that's why I said, we're confident the future of cannabis, the American consumer. We're very confident in Green Thumb; we've got to buy back the link. We're bullish on what we're doing here; it's a very complicated environment. And just as we conclude here, what's going on in the regulatory environment is pretty unique. We've been running the business for 10 years, and you know, we never quite seen anything like this. Nobody really knows what's going on. Nobody knows what's going on in Macrily, but nobody really knows what's going on in Canada. So we're focused on how great the product is; we believe in our brands, we believe in the future.

Speaker Change: So that's why I said we're confident in the future of cannabis for the American consumer. We're very confident in Green Thumb. We've got the buyback going. We're bullish on what we're doing here. It's a very complicated environment.

Benjamin Kovler: We've got the buyback going. We're bullish on what we're doing here. It's a very complicated environment, and just as we conclude here, what's going on in the regulatory environment is pretty unique. We've been running the business for 10 years, and, you know, we've never quite seen anything like this, and nobody really knows what's going on. Nobody knows what's going on macroeconomically, but nobody really knows what's going on in cannabis.

Speaker Change: And just as we conclude here, what's going on in the regulatory environment is pretty unique. We've been running the business for 10 years, and we've never quite seen anything like this, and nobody really knows what's going on.

Benjamin Kovler: So we're focused on how great the product is. We believe in our brands, and we believe in the future. So, you know, we hope those of you that are analyzing the industry that aren't yet invested take a real look. There's a unique opportunity. We come to work excited every day, and, you know, look forward to talking to you again in 90 days. Thanks, Scott. Thanks, everybody.

Speaker Change: Nobody knows what's going on macrolytically, but nobody really knows what's going on in cannabis. So we're focused on how great the product is. We believe in our brands. We believe in the future. So, you know, we hope those of you that are analyzing the industry that aren't yet invested take a real look.

Benjamin Kovler: So, you know, we hope those of you that are analyzed in the industry that aren't getting invested, take a real look. There's a unique opportunity. We're coming to work excited every day, and you know, look forward to talking to you again in 90 days. Thanks God, thanks everybody.

Speaker Change: There's a unique opportunity. We're coming to work excited every day, and look forward to talking to you again in 90 days. Thanks, Scott. Thanks, everybody.

Unknown Executive: This concludes our question and answer session.

Benjamin Kovler: This concludes our question-and-answer session. I would like to turn the conference back over to Ben Kovler for any closing remarks.

Benjamin Kovler: I would like to turn the conference back over to Ben Kovler for any closing remarks. That'll do it. Talk to you guys in 90 days.

Speaker Change: This concludes our question and answer session. I would like to turn the conference back over to Ben Kovler for any closing remarks.

Benjamin Kovler: That'll do it. Talk to you guys in 90 days.

Ben Kovler: That'll do it. Talk to you guys in 90 days.

Unknown Executive: The conference is now concluded. Thank you for attending today's presentation.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker Change: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Unknown Executive: You may now.