Ask Me Anything 6/13/2018 With Bryan Eden of White Eden

Great conversation! Thanks Bryan!

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Im sorry Nick, but due to the infancy of our company that information is proprietary at the moment.

But what I can say is this, you guys are going to love it! Once we have funding and start construction we will then be able to start posting pictures and give more specific details them.

I will start a thread much like @Farmer_Dan has done for his farm and I would encourage anybody who is able to, to do the same. Itā€™s such a great way to learn! Iā€™m very much looking forward to be able to share that information once I am able to.

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What is the #1 piece of advice that you most often recommend to newly licensed grow operations?

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Hello:

Iā€™m an American, who had a cultivation license in Rhode Island before moving to BC to join the cannabis field out here.

I have been working at a LP in Canada since early January.

It takes a lot longer than a year to get a sales license. Probably more like 3. And thus, 3-years + without any revenue. Plus, judging from the US, there will be a glut of supply (despite forecasts otherwise) and the prices will drop. Some of the big LPs (Aurora, Canopy Aphria) are starting to look like colonizers in the sense that they keep acquiring more (too big to fail) and more globally.

The other issue from my perspective is that you have a government organization (Health Canada) managing cannabis, but very skeptically and not really supporting it as medicine. So as we move towards legalization, cannabis is considered similar to tobacco and alcohol, with a lot of the stigma still firmly in place. Donā€™t get me wrong; all this is unbelievably historic and I am pleased to be a part of it, especially working for a LP with good management and ethics (which is key).

But I must also admit that despite being passionately involved in cannabis since the 90ā€™s, it does feel a bit like a transfer of resources and capital from one group to another though. The majority of LP licenses are in Ontario, regardless of the long history of BC bud. And a 7-billion grey market industry already exists. So it will be really interesting to see how it all plays out.

If the government doesnā€™t manage to allow small micro cultivators (and others) to easily participate, it will fail to eradicate the grey market. IMHO. Decriminalizing before legalizing would have helped.

Anyway, some random thoughts. Greater involvement has shifted my thinking to one that is much more pragmatic and not quite as idealistic.

Thanks for providing this great resource!

Ann

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To answer the question about prices, itā€™s hard to say. In developing my model tried to look at the market south of the border (not mexico) to see what happened there. And I found the market to depend completely on the State framework that has been put into place.

I think a great example is OR. While we have heard on happy ears that the Cannabis Black Market is all but gone now thanks to the legal framework. Luckily they were able to produce enough to outstock them and they were able to do it cheaper as well. But at what cost? Now we hear of the lowest wholesale prices ever. Pros and Cons to that story I think.

That being said I am hoping that here we will be able to not undersell the illicit market exactly, but rather gain the trust of the public so that it doesnā€™t come down to price, but quality, consistency and accessibility. Why would I go to my neighbour to buy his home made liquor when thereā€™s a 12 year old bottle of Canadian Whiskey at the store for just a little more money? Im going to the store personally, although Iā€™m sure some of you Americans would argue different when moonshine is brought into the mix. :slight_smile:

If we are able to achieve that level of trust then I expect retail prices to stay at the federally predicted ranged of $10/g for at least the next five years. After that its hard to say with the volatile prices of operating expenses like electricity, but I think it would be safe to say that there wonā€™t be a huge diminish in price like OR.

As for the future as a whole @nick, I think itā€™s all about growth from here. In two years from now I would say that the market should be settled by then. Most of the key players will be up and operating by then, ourselves included, networking and compliance issue should be smoothed out and the market should be established as a whole. In that time edibles should be approved and that market will take off like wildfire, like we see in CO and NV.
In five years, I think there will be the next big cultural change and the next stage in the Cannabis revolution. By then the market would have been established by some time. Stigmas will be on the downfall (hopefully) and society should be more accepting of Cannabis use as a whole. All of our points should be proven by them and there will be a need for the laws to change once again. This will allow businesses that are operating to hoping be able to market their product in a way much like we see liquor advertisements now.
In 10 years I think that there will be so many untold technological advances that the industry wont be anything like we see it today. There will be a more scientific approach taken and more research will be done on the Cannabis and Hemp plants. This will open the industry to many different sub-indutries that will all support each other in a web of businesses. A ā€œspecialistā€ type of approach if you will.

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In short, do your research, donā€™t cut corners and play nice with the government. Weā€™ve got this far so itā€™s not the time to complain.

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When suplament Co2 you can increase the ppm in you nutrient solution and raise your room temps about 5 degrees because your plant are able to matabalize at a greater rate.

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Hey everyone here at GNET really appreciates @bryan.eden for taking the time to answer our questions and keep us all apprised of the growing scene in The Great White North! @bryan.eden has generously agreed to continue to make himself available to answer questions in spite of us being out of time. Please feel free to reach out to Bryan!

I have more question, if I may:

How do you think recent legalization reforms in Canada will affect American and Canadian relations?

Personally, I think legalization will only improve our relationship with Canada. I think this AMA is just another example of cannabis bringing people together!

Thanks again, Bryan!

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Ann,

You bring up a lot of good points and many of these I have considered myself.

I spent a lot of time myself looking at numbers from the U.S. And I will admit they are disheartening at first. However I believe it to be important to remember that we have two completely different markets and they should be planned for differently. One of the problems with the US model is that is restricts growers to their state of operation. We have the advantage in that we have a federal market. Much like we see with many other industries in the country there will be the key main players, but there will also be players who will work towards key markets.

I think that Kia is a great example of that. An automaker who came into Canada and marketed themselves to middle class families as an affordable car. They were affordable because they were built cheap and everybody knew it and didnā€™t expect anything more. How did they compete with Ford, Chevy, Honda and the like? They found a market they could get into. They spent many years developing trust with their consumers. Now they are considered a very high quality vehicle and are on par with other automakers price wise and are very successful. It was not easy and it took time, but they did it.

Bill C-45 gives people like me the opportunity to compete with the big guys who have had the privilege to operate under past legislations. You are absolutely right that this is a risky business to get into, but with great risk comes great reward and I invite anybody who is able to get into the market to do so.

I share your concern towards the governments view towards the mico cultivators. They have made it difficult for them to get into this business. But the opportunity is there and that is all they need to get the process started. We as a country can only improve on the system from here and I would love to hear how you think the government could accommodate the micro cultivators.

The stigma is a huge challenge for us all for sure. I remember listening to the senate speeches last week and I remember listening to almost 30 conservative naysayers talk about how this is going to be dangerous to children. First, last I checked the whole reason for Bill C-45 was for the protection of kids, not the endangerment and I believe the frame work is there for that. Second, every single speech was the same, they had no data to back it up and they were all very spiteful (save the Senator from Nunavut but thatā€™s a conversation for another day). But now the bill has thankfully passed and now we as an industry have an obligation to prove that we are willing to work with compliance in mind and that this plant is a lot safer than they think. The announcement from WHO I had mentioned before is a good example of that.

There are 10,000 different ways that this process could have happened. I also bevelive that the law was passed to quickly. I believe that another year should have been taken to do research and to educate the required parties. But it is what it is and voices bigger than mine have spoken.

I know this process is hard, but I am ready for it. I know I am. I know we are as a company and I know my farm is designed to succeed.

In the name of friendly competitive banterā€¦tell your boss Iā€™m coming. :wink:
But in all seriousness, Iā€™m excited to work along side companies like the one you work for. I have a lot of respect for the groundwork they have done. Perhaps pass along this message as well - thank you.

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This was fun Nick and I am excited to answer any follow up questions at any time.

Once again you bring up a great question and I concur with your point. I think it will only strengthen our relationship on a business and trading level, on a governmental level and on a friendship level.

With legalisation comes freedom and freedom permits businesses to grow and thrive. Research will be freely done and and endless number of cultivars and procedures will be created. Just like we see with liquor now, I believe that Cannabis will eventually be traded across the border regularly as a normal part of business. I know that a lot of the conversation here tends to lean towards a future international market.

As we already deal with on a regular basis, there will be resistance and thatā€™s fine. I respect those thoughts. But, and I say this at risk of sounding clicheā€¦but once more people smoke weed the world is just going to be better! I think this is a great way to improve on many social and government problems. And this is a way to make that happen. I imagine a day where our world leaders celebrate new alliances and agreements over and dank joint rather than a glass of wine. A day I can drive across the border to purchase Cannabis and only have to worry about pay duties.

Only great things can come of this.

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I look forward to our improving international relations and budding friendship :wink:

I love your attitude and approach! I too await the great day we can put one in the air together with zero fear of reprisal. Thanks again!

Great things indeed!

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