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HC continued: I personally do not think that there is much of a significant impact to the industry when it comes to the rescinding of the memo. I think that Mr Sessions announcement created more white noise in the industry.
When it comes to the federal level something that is noteworthy of mentioning is that in this legislative cycle there has been, more than ever, approximately two dozen bills introduced in Washington. One bill comes from California Congresswoman Rep. Barbara Lee that would protect state-legal cannabis from “excessive federal enforcement.” The significance of this act is that it would create a permanent protection similar to the Rohrabacher-Blumenauer amendment, that needs to be periodically renewed, which prohibits the Department of Justice from arresting and prosecuting medical marijuana patients and providers in legal states. The bill known as the REFER Act (The Restraining Excessive Federal Enforcement & Regulations of Cannabis) takes it a step further to include recreational users.
One thing that I can say is that I am very optimistic that, in 2018, we can expect more discussion at the federal level than ever before. However, I sees no major changes to the legal framework anytime soon but the conversations have started which indicates that the federal government is interested in addressing the issue that challenges the cannabis industry. When it come to enforcement I believe that the DOJ will conduct enforcements but primarily against bad operators. I think that we can expect the status quo for now on both sides.
CCIM: Let’s change gears a bit as the worry has always been that cannabis will be a commodity and being a plant found in nature severely impedes just how far one can go with patents for processing and so forth. Is this a concern for High Hampton’s shareholders because many see California as a race to the bottom or is the risk of commoditization reduced in the medical space?
HC: I think that IP is very important and should be preserved whenever possible for the interest of the company. However as for the plant our focus is Medicinal while recreational might become a race to the bottom I believe that medical will demand a certain level of quality and specificity thus demanding a higher pricing point. Eventually cannabis will become a commodity just like gold and silver.
Q& A