Raising Cannabis Capital 0130: Compassionate Cultivation

Compassionate Cultivation is one of three cannabis companies licensed in the state of Texas.  Morris Denton speak to Dan Humiston about how their vertically integrated facilities has gained an 80% market share.   Their transparent business practices played a large part in the Texas legislature's recent cannabis law expansion.   Morris talks about expanding to keep up with the new demand and their current capital raise.

MJBulls Media | Cannabis Podcast Network

RC0130 Compassionate Cultivation D.mp3 transcript powered by Sonix—the best audio to text transcription service

RC0130 Compassionate Cultivation D.mp3 was automatically transcribed by Sonix with the latest audio-to-text algorithms. This transcript may contain errors. Sonix is the best way to convert your audio to text in 2019.

Dan Humiston:
Today's show is brought to you by a former guest, the Hemp Marketplace, which is the first to market most active Hemp community on Raising Cannabis Capital Episode 124. Jolene Lowe and Zeff Pace talking about their work to expand the Hemp marketplace beyond connecting buyers and sellers. But all parties, from farmers processors to end users, enabling the parties to connect, trade and transact to Hemp community with an integrated Hemp platform will provide higher visibility and transparency to make the marketplace more efficient and secure. To learn more about Hemp marketplace and how to invest in their expansion. Go to Hemp dot raw market dot place or listen to Raising Cannabis Capital episode 124.

Morris Denton:
We've got plans to expand. We're looking to increase the size or cultivation operations, we're going out to raise a little bit of capital. We'll make that happen. And the plan is for us to stay ahead of the growth curve. We currently have more than 80 percent of the overall market share. The state of Texas.

Dan Humiston:
From MJBulls Media, it's the Raising Cannabis Capital show. I'm Dan Humiston. And on today's show, how, through transparency, this Lone Star State Cannabis company is leading Texas towards legalization.

Dan Humiston:
Today, Raising Cannabis Capital, we are joined by Maurice Denton from Compassionate Cultivation. Morris, welcome to the show.

Morris Denton:
Thank you, Dan. Good to be with you.

Dan Humiston:
Compassionate Cultivation is a vertically integrated Cannabis company located in the state of Texas. So congratulations. Morris, you are officially our first guest from Texas. And then as our first guest, you need to give us the Lone Star Cannabis Industry Report.

Morris Denton:
Well, first of all, thank you for having me. And it's always good to be the first plowing new ground for you guys.

Dan Humiston:
Now just with us. But I think with the whole state of Texas.

Morris Denton:
Yeah, it's been a real fascinating journey. Dan, I mean, you know, just a quick little overview. Texas passed Senate Bill three thirty nine back in 2015. The Texas legislature is the lawmaking body for the state of Texas.

Morris Denton:
There are not very many referendums or ballot initiatives that come onto the ballots as a means to enact laws or to create legislation in Texas. And so the legislature is really the only way to get things done. And our legislature meets every other year or so in 2015. The Texas legislature passed Senate Bill three thirty nine, which became known as the Compassionate Use Act. Compassionate Use Program was the sort of outcome of the compassionate side. In the compassionate use program, it basically created an opportunity for a business like ours to exist. The original legislation was a very narrowly crafted, very tight, very restrictive program. There were 43 entrants into the application process and the Texas Department of Public Safety, which is the regulator, gave out three licenses. So it's us plus two other licenses. We're the only ones from Texas. But it allows us to produce a form of low THC, high CBD medicine for people with intractable epilepsy. That was the only qualifying condition that came out of the 2015 legislative session. Intractable epilepsy is a subset of epilepsy. And fortunately, there are not a lot of people that have intractable epilepsy. And so therefore, that market was and is a very small market. And so when myself and my business partners decided that we wanted to pursue a license in the state of Texas, we didn't do it because we thought that the business opportunity was going to be so overwhelmingly huge straight out of the gate. We did it because we thought that there was an opportunity if we ran our business well and if we produced the highest quality medicine that changed people's lives, that we could transform the state of Texas through the power and the truth of medical cannabis. Once we got our license, we just put our heads down and we got to work and we service the entire state of Texas.

Dan Humiston:
There's a really well done video on your website that almost walks you through the door all the way out the back door of the dispensary, and you do everything in between. In addition to growing, extracting packaging, you have a testing lab there and it's all under one roof.

Morris Denton:
We didn't set out to build the Taj de marijuana when we built out the facility, but we knew that the only way that the state of Texas would allow expansion to occur, we had to be the beacon for the state of Texas. When you have a legislature like ours, which is in a very conservative state with a conservative governor, with a very conservative lieutenant governor, you're not going to change people's opinions just by telling them things. You have to show them. And so we show people every single day how we produce the medicine and what that means for our patients. And all we're trying to do is connect the dots between these great, wonderful people of the state of Texas with our legislators and say, look, here's the impact that this plan is having on these people. Here's how we're running this business, which is completely transparent, 100 percent accurate every single time. And now we need we need to see expansion occur in the state in the 2019 session. We were fortunate enough to get expansion. We went from one condition of intractable epilepsy to all forms of epilepsy and other seizure disorders, plus illness, spasticity, autism, terminal cancer and incurable neurodegenerative conditions like all sinus Parkinson's, Huntington's, etc.. Oh, my gosh. That's a big change. It's a big chance. A great positive step forward. So unfortunate when you see people that are left behind. But our job within this company is to service the market that the legislature allows and to do it in such a way where it becomes impossible for the legislature to say no the next time around, which will be 20, 21 by virtue of where you guys are located, your responsibility for the whole state.

Dan Humiston:
Because if anyone's going to check on the industry, it's going to be at your location because you're at the state capital.

Dan Humiston:
I want to take a quick break to think all of our Raising Cannabis Capital listeners and to remind you that you can support the show by subscribing to MJBulls premium. It's only four dollars and ninety nine cents per month and you gain access to all previous Raising Cannabis Capital episodes as well as all other MJ bills produced podcast and exclusive content, including companies investor pitch decks. Go to MJBulls.com and enter promo code raising to get your first month free.

Dan Humiston:
Give us an idea now that you added all the other conditions. How much more output will you need to produce in order to supply that need? It's a factor of 10 to 20 X. Oh, my gosh. Okay. So that means that you have to do some major expansion.

Morris Denton:
Yeah. We've got plans to expand. We're looking to increase the size or cultivation operations. We're going out to raise a little bit of capital. You'll make that happen. And the plan is for us to stay ahead of the growth curve. We currently have more than 80 percent of the overall market share.

Dan Humiston:
The state of Texas is so second largest state in the country. You have 80 percent market share.

Morris Denton:
Yeah, you know, you got to understand that. That's so the small market that exists. Right. But we took it very seriously from day one because we're the only Texas based licensees. I mean, it is our duty. It is our responsibility to represent the state of Texas. We view this as possibility that we have to service our neighbors and to represent the state in a manner that makes them extremely proud. And so we've leaned into the market as opposed to sitting back and watch the market. We believe that as leaders, we have an ability to pace the market, to define the market, to create the market, and ultimately to continue to lead that market.

Dan Humiston:
Well, I think I mean, I think everyone would applaud your effort. And from a national standpoint, we need people like you to push this, because if we could make a difference in Texas that bring us one step closer to making a difference in the entire country. So while your efforts may seem local, I think they're going to have national implications. Jumping forward. You mentioned that you are raising some money. Are there opportunities for investors to participate in your growth?

Morris Denton:
Sure. We've retained Veridian Capital Advisors, which is a New York based investment banker, to assist us in the round. Anyone that's interested in learning more about that can contact Veridian Capital Advisors and Scott Graper and his team. We'll be happy to send out our nondisclosure agreement and then we'll go from there.

Dan Humiston:
Have all your contact information at all. Scott Verde and information on the website. And man, Morris, this is so exciting stuff. And I give you a lot of credit for everything you've done so far. And I give you encouragement to keep it going because like I said, you're making a difference in people's lives and you're making a difference in the entire industry. So thank you for everything you've done.

Morris Denton:
We appreciate that. Dan, we appreciate your time and your interests. And I think that it's really important for people to understand that Texas is common. We may be a little bit behind right now, but once this state makes a decision that it wants to participate in an industry, it doesn't take long for that state to become a leader in that industry. Don't go to sleep on Texas.

Dan Humiston:
Yeah, I don't think anyone could ever go to sleep in Texas. But thanks again for being here. Maybe the Cowboys will have a have a great vacation. And I look forward to hearing more about this all.

Thanks, dan. Appreciate you. Good luck.

Dan Humiston:
Thanks for listening to Raising Cannabis Capital to learn more about today's guest. Or to become a guest. Visit our Web site at MJBulls.com. Today's show is produced by MJBulls Media with original music produced in part by Jamie Humiston. I'm Dan Humiston and you've been listening to the Raising Cannabis Capital podcast.

Quickly and accurately convert audio to text with Sonix.

Sonix uses cutting-edge artificial intelligence to convert your mp3 files to text.

Thousands of researchers and podcasters use Sonix to automatically transcribe their audio files (*.mp3). Easily convert your mp3 file to text or docx to make your media content more accessible to listeners.

Sonix is the best online audio transcription software in 2019—it's fast, easy, and affordable.

If you are looking for a great way to convert your mp3 to text, try Sonix today.

Cannabis Podcast Network

rc5, most recentDan HumistonRC