Raising Cannabis Capital 0049: Adherence Compliance Corp

Cannabis regulations are necessary to protect the public, to ensure a level playing field for businesses and to provide a sound data & measuring metrics for government & financial institutions.   Adherence Compliance Corp products and services to provide industry stake holders with the tools they need to navigate the regulatory complexities.   Dan Humiston speaks with their CEO Steve Owens about their app in the Apple App Store and their expansion plans.

Produced By MJBulls Media

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Dan Humiston:
Today's show in the following message are brought to you by a former guest cliintel Capital Management Group is a cannabis investment firm with diverse investments throughout all sectors of the cannabis industry. Listen to MJ bulls Episode 24 or go to client tell cliintelcapital dot com.

Steve Owens:
To learn more the software is on the Apple App Store. So if anybody is interested you just have to go out go to the Apple App Store. Keep on search and type in and share it score and come up and you could look at screenshot and things like that at the software. I think there's about 10 out there. We've been on the Apple store since 2016 and so we're vetted in that distribution model.

Dan Humiston:
From Buminit media it's the MJ Bell's podcast a show about Raising Cannabis Capital.

Dan Humiston:
I'm Dan Humiston. And on today's show supporting the industry's regulatory stakeholders needs was the driving force behind this company's digital solution.

Dan Humiston:
Today we continue our Raising Cannabis Capital series with Steve Owens CEO of adherence compliance Corp.. Steve thanks for being on the MJBulls Podcast.

Steve Owens:
Thank you.

Dan Humiston:
We'll see this as we transition from the black market cannabis world to the legal cannabis world. One of the obvious benefits is going to be the quality and safety of the products and regulations will ensure that what we buy is safe and compliant when it's properly enforced it creates a level playing field for businesses and the industries that depend on those metrics outside of the industry. I suspect that one of the challenges with the cannabis industry is just that it's happening so fast and there's so many overlapping interwoven agencies. They are all creating regulations that it makes it really difficult for businesses to comply exactly right.

Steve Owens:
What we're seeing in the industry just for California is an example. You got a list of regulatory agencies that cannabis business as much this year to their regulatory code and so we have the Bureau of cannabis control called cannabis which is run by CFA. We have a manufacturer cannabis safety branch which is dealing with edibles manufacturer products P.H. pesticide regulations involved OSHA California Department of Labor or other labor Enforcement Task Force. Yep. Cal EPA you have industrial relations you have California water board medical board etcetera. And so the cannabis owner in California has to deal with thousands of pages of regulatory code. And so we look at California as an example. It's an emerging market as you know got 58 counties and 400 pages to municipalities 18 of those are offering cannabis and the county level of 140 or so. Or I'll be at the municipal level. California's going to be a really big market by itself. It'll be as large as Canada as large as the rest of your state's combined.

Steve Owens:
And so as we look at cannabis compliance How do you solve that regulatory problem the only way you can really do it is through automation of software and then you know distinct data model that can basically help us go through the regulatory code all the way down to the license location to the jurisdictional level and be able to adhere or basically inspect those businesses unless you can inspect the business in Long Beach California city county state and federal compliance regulations applicable to that license cape. They really don't know what they're doing. And so at the end of the day they have plants inspection by somebody like us that's doing automated inspections. They really don't understand if they're complying or not. And at these levels. And so it's a risk for everybody from investors to regulators to public safety is to the owners themselves.

Dan Humiston:
You have products and services for each of these stakeholders but that the compliance software in the app. When do we start with that.

Steve Owens:
Sure we absolutely develop the inherent score out which is on the Apple App Store in 2014 we were I started knocking on doors here in Denver Colorado. We had some 30 400 licenses here in Colorado. So as an example we have three or four dispensary or stores for every Starbucks that we haven't said Colorado. So that'll give you an idea of how many we have and California's going down a similar road to their house 7000 licenses have been put out there with our automated software. We're going into Boulder Colorado more fully in Boulder City code probably in the county code probably in state code and then any relevant federal code that has to do with our license. So is it a dispensary is it a cultivator manufacturer or a testing center etc.. And so we're able to pull that up in our software quickly efficiently and then go in with a trained expert and within 2 4 hours we can fully evaluate cannabis operation by license plate and then provide a detailed compliance report or report card that gives them a score from zero to 100 right. If you score in the 90s that's good to great compliance. There might be a few violations that we have to deal with but overall fairly strong organization is score the 80s. That's a loaded medium closure risk. We have some problems. And so we give out a yellow light. Called the 70s or lower that's a red light. It's immediate closure risk. So if you think about that from a financial institution from an investor from an owner from a regulator what is their score.

Steve Owens:
Where are they. And so in essence it's a lot of some of our clients and folks that we talked to call us kind of the first credit score of the cannabis industry. But when you're looking at one of these businesses how do you evaluate it so we can evaluate both on a regulatory basis and a financial basis with our software because we do financial compliance inspections as well. The software is on the Apple App Store. So if anybody's interested you just have to go out go to the Apple App Store type on cap on search and type in and share its score and it'll come up and you can look at screenshots and things like that of the software. I think there's about 10 out there. We've been on the Apple store since 2016. And so we're vetted in that distribution model we use Amazon and Apple as our partners exclusively just for distribution of our software for Amazon. We're on the Gold cloud. And so we're very secure network and we deal with our city when our county and our state and our banking partners want to make sure that we're on a secure stable encrypted network. And so we're really not competing with. Business works can check in rate check in candidates but we don't really have any cannabis competition while we compete out there. We're really competing with best seller and IBM. Other companies like those are really our position in government services and then in financial services.

Steve Owens:
There's a few programs out there but very few have been better to the extent that ours has to.

Dan Humiston:
Do a quick thank you to one of our former guests blaze which is a cannabis technology company with software for dispensaries distributors. And coming soon manufacturers and cultivators listen MJBulls episode 33 recorded blaze.me to learn how you can be part of their expansion. And now back to the show.

Dan Humiston:
There's so much to do. You have a lot of expansion to do and a lot of time to keep their first mover stake especially if your competitors are IBM.

Steve Owens:
You've got to get on this point about it if you look at our potential acquirers would be data companies regulatory companies benchmark rate tax. And so those are the companies that obviously we interface with to learn more about industry things like that. And that's where just a lot of activity is for us a lot of folks want to know what we're doing. Send us data. All right. And so it doesn't work that way. Ed cannabis you have to be completely guarded in this industry. It's not an industry where intellectual property is very protected. It's an industry that's kind of the Wild Wild West right now. So as a new Delaware corporation you know we were formed in September of 2018. We have immediate revenue producing assets government services financial and banking partners so banking banks use our software to monitor candidates compliance businesses and to ensure that they're compliant with regulatory and financial code and so we have it is for Maryland as an example. Three different banks in Maryland use our program to them are using our software their BSA Banking Secrecy Act analysts are going in with our software and doing inspections on these institutions to make sure that it's part of their enhanced due diligence. And so we really are the SAP software as a service fintech and rate tech leader for the candidates industry and in our major issue right now is expansion can't handle the current demand coming in. We need to quadruple our size as fast as possible we can establish a couple of different beachheads in a couple of key markets. And so in working with that you know we're talking to different groups and all this stuff about our expansion needs if you will. You know again this is not a solicitation like that but so our expansion needs are interesting and we're we're looking at fintech regulations financial services technology how does it work with the right tech world when the various candidates go. What will the future of cannabis compliance be. And it has to be automated. Right. And so we feel we're ready to go.

Dan Humiston:
We've been speaking with Steve Owens CEO of adherence compliance. And I'm going to have all your information on the MJBulls Web site your companies information and everything that's been really interesting and I as we dive into it. It's just so apparent how complicated this is. You may be underestimating when you're seeing your ask but your piece of this big puzzle is LA is a billion dollars. I think it may even be greater as you talk about the whole world.

Steve Owens:
But that's just focusing on the United States and Canada. It's at minimum a billion dollar market and we're positioned very very well.

Dan Humiston:
Well Steve we really appreciate you taking the time to explain all this to us and thanks for being on the show.

Steve Owens:
All right. Thank you sir. Beautiful day.

Dan Humiston:
Yeah you too Good luck. Just a quick reminder that you can become an MJ MJBulls member for just four dollars and ninety nine cents per month and enjoy exclusive access to companies pet stocks and the MJBulls cannabis capital directory. Joined today at MJBulls.com.

Dan Humiston:
Thanks for listening to the MJBulls Podcast. To learn more about today's guest or to become a guest. Visit our website at MJBulls.com. Today's show is produced by prominent media with original music composed by Jamie Humiston. I'm Dan Humiston and you've been listening to the MJBulls Podcast.

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