Broadcasting live to New York, Bloomberg eleven Glo to Washington, d C, Bloomberg to Boston, BLUEMBERG twelve hundreds to San Francisco, Bloomberg nine to the country. See when he set jam General one nine team and around the globe the Bloomberg Radio plus Zapp and Bloomberg got gone. This is taking stock. Coming up on taking stock. We're going to take stock of the legal marijuana industry, estimated to be worth about seven billion dollars, growing between twenty and twenty five percent
a year. We're gonna be speaking with the co founder managing director of Cannabase. This is an online whostsale marijuana marketplace. We've got details right now. Let's get details about business news from Catherine Cowdery in the Bloomberg newsroom. Thank you, Pam. The stock market retreating from an all time highs as a new report showed weak retail spending and producer prices. That report showed sales at US retailers were little change in July's Americans flock to auto dealers at the expense
of other merchants. Ken Perkins, president of Retail Metrics, calls the report disappointing. Especially for brick and mortar stores, as more sales go online, and there's clearly a structural shift in the way people shop, how they're shopping, when they're shopping, and I think that's gonna unfold here and more so
than ever in the back to school shopping season. You know, there isn't gonna be this rush that we've seen in previous years and decades as a built up you know, I think you can shop mobile on your phone at any time, any place and have it delivered same day, within an hour in some instances. I think there's a lot more by now where now hype purchases. We check
the markets every fifteen minutes throughout the trading day. Dow Industrial leverage is currently down fifty five points at third over percent trading at eighteen thousand, five hundred fifty eight. Smp F I foundered down four points to tents of a percent one then AzaC is down three points at
tenth of a percent at fifty two twenty four. West Texas Intermedy accrude oil of ninety four cents of barrel to point two percent to forty four forty two speckled down seven dollar sixty cents announced to thirteen four D two forty tenure treasury of fifteen thirty seconds with the yield of one point five zero percent. Among today's top business stories, Fox News is unveiling a new senior leadership
team and management structure. It's name Fox Television Station CEO Jack Abernathy and Senior Executive Vice president Bill Shrine to serve as co president's effective immediately. In addition, Chief financial Officer Mark Rans will be retiring. Well, Steve Win got fewer tables than he wanted for his Macau casino. He'll be getting one hundred fifty gaming tables for his new four point to billion dollar resort in Macau. It's another
signal that Macau is serious about limiting gambling growth. It's two thirty two on Wall Street. Let's get an update of some of the other stories were following today on Bloomberg Radio. Thank you Catherine from the Bloomberg Newsroom. I Nancy lyons the Seka virus continues to spread in Miami. The Florida Department of Health says it has confirmed three more locally acquired cases. Governor Rick Scott says the state
is still though a big tourist destination despite Zica. We're gonna announce record tourism members for the second quarter of this afternoon, so um have to keep that up there. We have over one point two main jobs tours. Meanwhile, Puerto Rico says there have been more than nineteen hundred new cases there over the past week and more than ten thousand, six hundred today. Donald Trump's presidential campaign is apparently pulling out of New Jersey. Nathan Hagar reports from
our Bloomberg newsroom in Washington. The Republican nominee has reportedly closed his campaign headquarters in New Jersey, home to Governor Chris Christie. Federal election filing show he last paid rent there only about a week after the office opened in May.
Several staffers reportedly haven't been paid since June. A New Jersey state senator who supports Trump tells Politico it was the campaign's plan all along to close after New Jersey's June seventh primary, but the office opened after Trump's eventual nomination was a foregone conclusion. Nathan Hagar Bloomberg Radio, Washington, and the New York Army National Guard unit known as the Harlem Hell Fighters, has started two weeks of training
ahead of its deployment to Kuwait. About two hundred and fifty soldiers left Westchester County to head to a training facility in Pennsylvania. They'll be deployed to the Persian Gulf this fall after more training in Texas. Global News twenty four hours a day, powered by more than twenty six hundred journalists and analysts and more than a hundred and twenty countries. Nancy Lions, this is Bloomberg. Back to you, Catherine,
Thank you. Now, let's get a quick check at the benchmark Stowe Industrial leverage down fifty four points at eighteen thousand, five hundred fifty eight SMP five fundered down four points one, then has to act down three points at fifty two five. And that's a Bloomberg business flash the whole pat and I guess he brings his own music with him wherever he goes. Matt Miller, my co host, filling in for
Kathleen Hayes. This is taking stock. I'm pim Fox. The legal marijuana industry is estimated to be worth about seven billion dollars, growing between twenty five percent a year. This despite the current action by the Drug Enforcement Administration rejecting petitions to remove marijuana from its most highly restricted classification of drugs. Here to tell us more about the marijuana industry is Jennifer Beck, the co founder and the managing
director of Cannabase. Jennifer, thanks for being with us. Thank you so much for having me. What is Cannabase? How do you describe it to people that are not familiar with the industry? Great, So, Cannabase is the largest and oldest online exchange platform for licensed cannabis businesses. So we're
the oldest and largest wholesale platform. UM. The core is our wholesale market where we represent sevent of marijuana licenses in Colorado, and we're a one stop shop for retailers to stock their shelves and allow cultivators to flower or trim to either retailers or extractors. So I can understand. We all know where you can get cannabis legally now, but I wonder where you can grow it. Can you grow it in all the same states that it's legal
to buy it? Absolutely so, because interstate commerce actually isn't allowed. You have to grow it in the state that you're going to sell it. Um, and then it's a matter of whether or not that state is vertically integrated. So Colorado's market, our medical market is still vertically integrated, which means that if you have a retail center, you actually have to grow sev of your own products. But hang on, you can't get Does that mean if I go to
Colorado to buy marijuana, I can't get anything from Humble County. No? Absolutely not. All of the product has to be grown within Colorado. So our wholesale exchange is a state by state exchange. Now the state by state exchange, tell us how it would actually work. Give us an example. So how it would work is you that either have a cultivation license, a retail license, or an infused product manufacturer
license which would allow you make edibles. And then some people have both, um, you know, a combination of the two or the three. Um. Then you go on Cannabase as a cultivator retailer and you would list the product you have available flower trim, extract, oil, candy bars, whatever you're looking to sell. Or as a retailer, you can log on and you can shop products and you can buy it. Help me figure out the margins at these dispensaries. Um. When I was a kid, I mean, we always thought
about an eighth as like a thirty dollar purchase. Uh, I guess fifty dollars if you're in New York City. What are we looking at as far as wholesale levels. Wholesale wise, UM, we're seeing that we have two types of markets, medical and recreational. The medical market has actually
helped steady. The medical market is still vertically integrated, so you have to have both licenses UM, and you have to be a Red card holder to buy Red card holders buying metal product are going to see around those prices like you're saying thirty bucks, UM, taxes are going to be a bit lower. On the medical side. Recreational vertical integration expired, so now we have stand alone cultivations and stand alone retail centers, which means there's been a
real supply gut. We've had a lot of products coming into the market from large standalone grows. So on the recreational side, product has actually become way cheaper. Where says we were seeing about two thousand dollars a pound since recreational came into the market, now it's selling about thousand dollars a pound, So those prices are beginning to impact the consumer. It's becoming cheaper for consumers to buy recreational product.
Since taxes on recreational product is slightly higher than medical, that two are starting to even out on the consumer side, Jennifer, how does cannabase make money? So, because we are really not allowed to be too involved and we aren't allowed to buy the product and market up and sell it because it isn't a three cheered system here in Colorado.
So Cannabase utilizes an online marketing model where we fell gus on bringing in the most clients, the most engagement, and then we make money off the data that we're aggregating from those users and from marketing tools. We have the most targeted platform for ancillary businesses to come in and actually reach cannabis business decision makers, and we have a full suite of online marketing tools available for them to do so. So, how is the banking end of
this working out? I know that for a long time it was very difficult for cannas cannabis businesses um to do banking because banks, even in legal states weren't willing to form those relationships. Has that changed a little bit, Um,
It's still very very difficult to get traditional banking. I'd say most dispensaries, UM and cultivators at this point are able to get a checking account, but mostly it's because they'll use an LLC name that isn't related to their cannabis name that they're doing business as UM, so that allow them to get a basic checking account and you have checks, but getting credit cards, loans, traditional financing is still completely out of the question. Now. Can of As
was acquired by Helix TCS in July. What is Helix TCS. Helix TCS is a provider of integrated operating environment solutions for cannabis businesses, So the TCS stands for Technology, Compliance and Security. Helix came into the market as a security provider and has grown into the largest security provider in the state UM in the last year, so absolutely explosive growth. And Cannabase has come on board to not only use Helix logistical infrastructure to make our marketplace more powerful, but
also to accelerate our own growth. So since we've been here with Helix, we've solidified major partnerships with see the deal, tracking companies and data companies. All right, Jennifer, thanks very much. Jennifer Beck There, co founder and managing director of Cannabase fought by Helix uh In earlier in the summer. You can find out h l i X on the Bloomberg. This Hampton's Commuter Minute is brought to you by land Rover.
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