MJBulls 0011 Baker Technologies
Dan Humiston: [00:00:00] Support for this show and the following message come from Trevett Hill, overseeing a cannabis investment can be time consuming and expensive. Travis Hill provides cannabis investors with an external turnaround team to help management reignite growth, for a free confidential review Go to Trevett Hill.com.
Roger Obando: [00:00:19] There's A lot of consolidation happening and we're you know we ourselves have entered into a consolidation deal. Yeah we are entering into a four way merger that will allow us to be listed on the Canadian Securities Exchange so we are going public. Yeah so we are taking the company public.
Dan Humiston: [00:00:42] From Buminit media it's the MJ bulls podcast a show about raising cannabis capital. I'm Dan Humiston and on today's show how Baker technologies and three other companies are joining forces and going public
Dan Humiston: [00:01:07] Hi Roger.
Roger Obando: [00:01:07] Hi Dan
Dan Humiston: [00:01:08] So we're here with Roger Obando at the Cannabis World Congress and business exposition and Roger is one of the founding partners from Baker Technologies which is like I said one of the rising stars in the cannabis industry their company. While most people know that already but I'm going to let Roger tell you this story started from pretty humble beginnings. They identified a need and they went from there. Roger lets jump right in and tell us what the void was that you guys saw.
Roger Obando: [00:01:33] Sure absolutely. This is back in 2014. What we identified was that in these legal markets there was an overabundance of demand and a lack of supply. And so we looked at that problem and did a little research found out about 80 percent of the revenue comes from 20 percent subset of the consumer consumer base right. So we took a look at these lines and realized that two out of 10 people in that line it was sitting there with a few hundred dollars in their pocket waiting to buy an ounce of product and they were being forced to wait in line and a ton of tourists are going to take an our smelling jars of marijuana to walk out of there by maybe a joint so we identify that customers are trapped in these long lines up and they're just frustrated and they're frustrated. So we were all very familiar with GrubHub and GrubHub is a system for those who aren't familiar. That allows you to order food from local restaurants and most crucially to what we were doing doesn't actually process a transaction. And I was something that was really important for us at the time because obviously it was right there in Cannabis where we decided to do was build an online ordering and reservation tool when it came time to decide what technology we were going to use to build our platform we decided to do a web based.
Roger Obando: [00:02:41] That allowed us to build a single code base that would work on any platform Android iPhone whatever. And more importantly we wouldn't have to deal with fighting the Apple store to let us put our app onto the store. So this is a decision that was made for very practical reasons. One problem that came out of that was the really nice benefit that you get when you do native applications as you get pushed notifications. So we weren't able to do that because of the fact that we didn't do a native application. So we built a two way communication system. Once our customers realized that we could send the messages once they put two and two together and said you're sending us the messages about this could we send us a message. Customers. And so we built our targeted marketing tools that we know and we leverage all the data that we have. From the online ordering from the visit frequency from the spend all that and not just your store but this person exists in our ecosystem throughout other stores. So we even are we we are able to gather information even if they haven't shopped that your store that off we're able to tell you this person buys flowers this person buys concentrates and that way you can be very effective with your marketing that is great.
Dan Humiston: [00:03:46] That's just good stuff.
Dan Humiston: [00:03:50] So along the path here you stopped bootstrapping at some point you had to start taking some money from from outside. Give us a breakdown of where you are with sure.
Roger Obando: [00:04:01] No absolutely. To date we've raised in the neighborhood of eleven point five million Yeah it puts us pretty high up there as far as well funded cannabis companies. You know I gave my co-founder and partner Joel Nelson all the credit. He works tirelessly to go and find investors and make these deals happen. But it's partly because you guys have a really really good product. And not only that from the investor community perspective our offering was very attractive because it's not touching. Yes totally and completely ancillary. We sell software. We don't take any royalties off any sales we don't do and we sell software as a service and that is true pick and shovel company.
Dan Humiston: [00:04:43] Yeah yeah. So that's so true. Investors love tech and they are super excited about cannabis but they are not all of them want to touch the plan. So you guys at the right you're hitting in both place.
Roger Obando: [00:04:53] Yeah. So you know all things came together and we've been very fortunate also. I was mentioning earlier to you we were fortunate enough to get invited to join batch 14 of 500 Startups which is an accelerator program in San Francisco. For those of us who don't know what an accelerator is basically they invest some money in you. But more importantly they mentor it provides a certain amount of confidence in the investment world to say okay well they've already been vetted by a very exclusive accelerator and they got in there and then you have the alumni association.
Roger Obando: [00:05:22] Exactly.
[00:05:23] I mean you got to be invaluable when the companies as large as Tullio came in after iPhone or startups just pick up the phone and say Hey when we talk I have a question about that exactly right. Added just like. So it's so good. Well we managed to raise one point six million coming out of 500 Startups. Then we closed another 1.7 and another months later and that became our our seed round. And then at the end of last year we closed an eight million dollar a round and it's gotten us to this point but you know you know as well as anybody the startup game is you know profitability or growth but you got us like you mentioned before.
Dan Humiston: [00:05:55] It's a land grab right now in the cannabis industry and you guys are off to the races and you know that which kind of brings me to my next point I think you said before that you have a pretty large market share but you don't have it all right. Right now you're at. How big.
Roger Obando: [00:06:07] Somewhere on 33 or 35 percent of the entire legal market which is huge one out of every three stores is Baker moving forward.
Dan Humiston: [00:06:19] What's the next plan. What's the next step for Baker.
Roger Obando: [00:06:21] There's a lot of consolidation happening and we're you know we ourselves have entered into a cost consolidation deal really. Yeah we tell us about it. Yeah. Okay. We are entering into a four way merger that will allow us to be listed on the Canadian Securities Exchange so we are going public now. We are taking the company public schools. Can you talk about other companies. Absolutely. So bigger obviously you know what we do our LP in Canada which is a company that we will be able to do on our on and actually go public with a cultivator see license producer in Canada and then we have c hunter out of Boston and cHunter does a lot of license acquisition and development. So they will acquire licenses and basically act as a firm and them fast and get them all the services they need to get up and running off the ground. Yeah. And then we the last entity that we included as a company called brightside to bend Oregon and Brightside does infrastructure for cultivation. So modular grow units.
Dan Humiston: [00:07:14] I'm sure there's a lot of people are a lot of our listeners right now are saying while this is one of those ones those early ones that I'd like to get in early on this is going to happen in 2018.
Roger Obando: [00:07:25] We should be listed under tilts on the Canadian Securities Exchange before the end of the year. Okay hopefully much sooner than the end of the year but we'll see how these things go.
Dan Humiston: [00:07:34] So people will be able to buy it on the Canadian Stock Exchange.
Roger Obando: [00:07:37] So you had that I'll be going up before the end of the year for actually raising a private placement around now.
Dan Humiston: [00:07:42] Well for anyone who is looking to get involved with that that's an opportunity and if they wanted your Web site is to trybaker.com will have a lot of this information on the MJ bulls website MJbulls.com.
Roger Obando: [00:07:55] But if somebody were interested in getting more information you can reach out to me directly. I hope I don't regret saying that. You do it I do a lot of interest. Roger@tryBaker.com it's one of the benefits of being a founder you always get that first name. I'm happy to pass that along to our finance team and all the appropriate parties if anyone's interested in being along South said Roger.
Dan Humiston: [00:08:16] Perfect Roger. This has been a really informative and I had a feeling that a lot of people are looking for something like this an opportunity like this to invest because let's face it this is the right time to buy and to get into this industry and a company like yours that you know this is a really exciting deal that you're about to venture into going public good for you going public congratulations setting you check that one off the bucket list.
Dan Humiston: [00:08:40] Well thanks again.
Roger Obando: [00:08:40] Thank you so much for having me. Bad luck.
Dan Humiston: [00:08:42] Thank you.
Dan Humiston: [00:08:50] Thanks for listening to the MJBULLS podcast to learn more about today's guest or to apply to be a guest. Visit our Web site at Mjbull.com and if you like our show give us a preview on iTunes. Today's show was produced by Buminit media I'm Dan Humiston. And you've been listening to the mjbulls podcast.
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