For Your Consideration...

Canna World Expo State of the Industry address with Leslie Bocskor

Leslie Bocskor speaking on the State of the Industry at Canna World Expo in an online conference broadcast August 8, 2020 with topics ranging from the transition of humanity to biofuel infrastructure issues. Leslie asks that you take his virtual hand, and cross over into the future of the cannabis industry, and business in general and create the world we all want to live in. Co-hosts Denise Mahaffey and Jessica Chandler, and moderator Tasha Jackson join in for the discussion.

Partial list of topics discussed:

  • Transition of humanity and the evolution of business, social and cultural perspectives
  • Chaos and opportunity
  • Culture of intention
  • Pandemic increased opportunities
  • Potential industries
  • De-scheduling
  • Business opportunities
  • Biofuel infrastructure issues

Leslie Bocskor addresses the State of the Cannabis Industry at Canna World Expo

Leslie Bocskor addresses the State of the Cannabis Industry at Canna World Expo in an online conference broadcast April 11, 2020 with topics ranging from bi-partisan politics to product differentiation concerns. Co-hosts Denise Mahaffey and Jessica Chandler, MC Kron Burgundy and moderator Snowden Bishop join in for the discussion.

Partial list of topics in this talk:

  • Personal background
  • Starting in the industry in Nevada
  • International relationships
  • Bi-partisan politics and the industry
  • Impact of competing industry lobbies, changes to scheduling
  • The difference between cannabis, marijuana and hemp
  • Decriminalization
  • Movement to evidence-based regulatory system
  • Prohibition
  • Product differentiation issues

Las Vegas needs Social Consumption Lounges for Legal Cannabis ASAP!

Like many other cities that have legal adult use, the City of Las Vegas is struggling with the challenge of where people can publicly use cannabis products and is considering legalizing social consumption lounges. Currently, the State of Nevada only allows smoking cannabis in a private residence which includes a porch or patio. Smoking cannabis is prohibited in public spaces including the Strip in Las Vegas. For the percentage of 44 million tourists who visit Las Vegas annually that are interested in consuming flower, edibles, concentrates and more during their stay, there are no options to legally consume the product that they purchase. State policy makes getting caught consuming subject (up to) a $600 fine. Thankfully, the feedback I’ve heard is that the LVPD has been pretty tolerant and (thus far) have refrained from strict enforcement. However, there is nevertheless a glaring need for places where people can consume their purchased products in a safe environment.

Welcome to Las Vegas sign photo

This is not just a Nevada problem. With ten States having legalized adult use, only a handful of cities have begun to adopt progressive policies to meet the demand. California in particular has pockets of progressive policy including at least seven consumption lounges in San Francisco and West Hollywood in Los Angeles also recently approved cannabis cafes and consumption lounges. Europe provides historical perspective and a much larger sample size. The Netherlands have been operating successful cannabis cafes for decades and the Cannabis Social Clubs (CSC’s) in Spain are wildly popular destinations for both locals and tourists. Certainly, with its stellar track record of crafting progressive policy around adult use products and services, Nevada should be able to address this problem with a smart solution very soon.

Unfortunately, as each day passes, the pressure on state officials, local law enforcement and dispensaries will only grow. This catch-22 in regulatory policy is a bourgeoning public relations nightmare for a city that prides itself on great hospitality and world class customer service. For a tourism destination like Vegas, consumption lounges are more than a “nice to have”, they are desperately needed right now.
by Leslie Bocskor

About the Author
Leslie Bocskor is the Executive Chairman of Electrum Partners, a venture development company in the legal cannabis industry. Please direct inquiries to the Contact form on our website.

Follow Leslie on Twitter: @lesliebocskor
Follow Leslie on LinkedIn

Interview: Leslie Bocskor of Electrum Partners talks about the once in a lifetime opportunity in the cannabis industry

In this audio interview, Leslie speaks about the once in a lifetime industry in the cannabis industry.

Topics covered include:

Why Leslie and Electrum Partners are interested in the disruption of industries and businesses that will change the way we live and do business in a massive way.

The friction between State markets that allow for legalized cannabis and the federal illegality of the plant which creates a “ringed-fence” economic environment within each state offering cannabis. How wholesale pricing is insulated from larger competitors due to federal prohibition of cannabis and why some states have distinct advantages over others due to better regulatory frameworks.

How the experience of working with States such as Nevada and Pennsylvania allows Electrum Partners to offer invaluable insight to entrepreneurs seeking guidance on how to engage State and local jurisdictional matters as they prepare their business to enter the market.

Why businesses in the cannabis industry must have the agility to quickly adapt to changing regulatory environments.

Why it is critical to be able to sift through and correctly interpret the mixed messages that have been conveyed by the Trump administration. Why we want to avoid the same fate as the dot com/internet industry experienced when former Federal Reserve Chairman, Alan Greenspan declared that there was “irrational exuberance” in the marketplace.

Leslie also makes a point to express his appreciation for Senator Earl Blumenauer from Oregon who has worked tirelessly to end cannabis prohibition and who has championed the cause for citizens in need of medical marijuana.

His advice to startups raising capital is to build a great team with successful experience, make sure your value proposition is very well supported with evidence you can reference, you want to be extremely well read in the vertical you are in, make sure you have some type of defensible advantage over your competition and lastly to have a well thought out exit strategy.

Leslie Bocskor is the Founder and Chairman of Electrum Partners, a venture development company specializing in medical and adult use cannabis and ancillary businesses.

Follow Leslie on Twitter

Predictions for the Cannabis Industry in 2019

Electrum Partners humbly offers predictions by company staff for the hemp and cannabis industry in 2019.  We wish everyone around the world a fun and safe Holiday season and a prosperous 2019!

The States Act will pass in 2019, making cannabis essentially federally legal in the states that have chosen to regulate it. This will provide comfort to the states that have held off on creating any commercial cannabis market. The States Act also creates a potential mechanism for states to begin shipping products to other states, provided that state law allows for such shipments.  

CBD products will begin appearing on big box retail shelves. Well-established brands will begin incorporating CBD into their existing product lines, which will increase competitive pressure on newer, less mature brands entering the market.

Madison Avenue marketing agencies will pounce on this exciting new product category, further de-stigmatizing the plant. Consumer attitudes will continue shifting towards a mainstream acceptance of cannabinoids’ essential health benefits.

There will be a continued influx of capital from institutional investors, which will sustain intense M&A and IPO activity in the sector.

By the end of 2019, the cannabis industry will generate 100,000 new full-time jobs as the result of new hires in both plant-touching companies and the ancillary businesses that support them.

Hemp will become a cash crop for the US and boost the agrotech and equipment supplier industries. As the trade war between the US and China continues to worsen, farmers will look to hemp as a viable alternative to soybeans and other crops whose markets have been affected by the Trump administration’s aggressive trade policies.

Hemp will become a commodity crop and we will see the development of financial instruments—like crop insurance, futures, swaps—that are unavailable given its current legal status.

Asian countries will begin taking steps to legalize Cannabis. Thailand and to a lesser extent South Korea represent important pioneers in the region which includes massive markets of Indonesia, India and others. Leading Canadian cannabis companies will continue to leverage first mover advantage in terms of meeting export market demand, but countries like Thailand coming online signals that their advantage may be short lived.

Liquor and tobacco companies will continue their entry into the space. We will see several additional blockbuster acquisitions by blue chip companies looking to quickly establish brand equity and an operational footprint.

Cannabis will likely be reclassified from Schedule 1 to Schedule 3, which will open the floodgates on clinical research for universities and pharmaceutical companies looking to develop cannabinoid therapies for a broad range of indications.  

Cannabis research will emerge as a hotbed industry out of the federal actions, driven by the pursuit to develop opioid alternatives by large pharma players to avoid disruption by cannabis startups and the potential for extraordinary profits in the event a blockbuster cancer or Alzheimer’s drug is developed from derivatives of the plant.

Leading economists predict that the US is heading towards a slowdown. In the event of a recession,  cannabis companies will largely, but not completely, be insulated from the effects of an economic downturn. We may see:

    • A decrease in sales in highly regulated medical markets due to a combination of high prices and reduced purchasing power. Consumer preferences might shift to more concentrated products to make their dollar stretch farther, and move away from non-psychoactive products.
    • There will be overall decreased liquidity in public capital markets, which could slow the pace of IPOs and/or RTO’s.
  • In private capital markets, you’ll see a stronger preference for collateralized or asset-based lending, and a weaker preference for riskier seed or series A placements. If the recession is caused by or correlated with changes to monetary policy (i.e., an increase in the fed funds or prime rate), we will see an increased cost of capital generally.

If the unemployment rate rises, cannabis businesses will have their pick of highly qualified, displaced professionals looking for work.

Happy New Year!

The Electrum Partners Team