Compliance Reliance Inc. - Robert Carp
Dan Humiston: [00:00:00] Today's show is sponsored by a former guest fintech group and their solution for cannabis online companies and dispensaries to accept cashless payments. If you want a cannabis dispensary or a cannabis online business you know that banking laws make it impossible for you to accept any form of payment other than cash. The fintech group finally provides an option that was previously not available. To learn more go to fin tech merchant accounts dot com forward slash marijuana hyphen dispensaries or listen to Raising Cannabis Capital episode fifty five.
Robert Carp: [00:00:37] How do we sure that tech products is going to be district consumption. How to label it so at the end of the day the market is going to be you. It's going to be a question of which standards are adopted and how they're actually policed. So we're hoping to be in the Shawshank.
Dan Humiston: [00:01:00] From MJBulls Media it's the Raising Cannabis Capital show. Im Dan Humiston. And on today's show how this Harvard educated attorney is helping cannabis companies better understand compliance and giving them the tools so that they can confidently manage it.
Dan Humiston: [00:01:23] Today on the Raising Cannabis Capital podcast we are joined by Robert Carp from compliance reliance and corporate Robert. Welcome to the show.
Robert Carp: [00:01:34] Thank you for having me.
Dan Humiston: [00:01:36] Bob's resumé is yeah this is really impressive. So much so that I have to read it because we have been here all day artistic brief skim through it. You're Harvard educated attorney which is rare for the cannabis industry so thank you for coming over. You've spent the last 10 years in the cannabis industry. Not only are you an a lawyer but you're also considered an expert in cannabis tax law and cannabis tax issues. And then in his spare time he's written 8 cannabis books have a really busy guy. I've known Bob for a while. You've been a regular speaker at a lot of our shows and in fact you were on a panel at our show in New York in our seat the CBC explosion in New York a couple weeks ago and the title of the panel was compliance issues for cannabis licenses. How to remove our fear of regulators. I think that's a great place for us to start today. Can you give us an overview of some of the compliance issues that cannabis companies have to deal with. Sure.
Robert Carp: [00:02:36] One of the things that we've seen start to happen. A lot of the states are now very very serious about lab testing. Many states require you to have candidates tested before you released to the public. But some people we're doing are shopping around the the actual testing results because certain labs use different instruments with different tolerances so something might say OK you're within the federal limits for pesticides or others might say you're just outside which could mean the difference between storing a whole crop or putting it out for public consumption. That's one of the issues. Another is with recreational. There was a big issue in Denver where something called looping where people would come into this same dispensary multiple times when it's actually forbidden by state law because of course they just weren't star cop. Well one chain of 26 dispensaries got cut and closed and some of the principals actually got jail sentences. Use your imagination or what. Twenty six running dispensaries would be worse. At the height of the market. So that's a huge compliance for a lot of people is just mysterious. What happens is a regulator will come in and say OK your violation of this this and this.
Robert Carp: [00:03:49] You look at your operation you think it's clean well-run sessions where you don't realize is it does not necessarily conform to the state's regulatory framework which is incumbent upon you to be responsible for. So I've written a book and I explained compliance from start to finish. To help people who are currently the cannabis business offer to raise the profile. It allows people to take an examination become what's known as a certified compliance officer. The emphasis of the state cannabis is to show you how to take the regulatory framework no matter how difficult or how long it is and break it into bite sized chunks so you can create checklists create your own formulas ensuring that the company either you're working for is or is starting either as a practice compliance officer or as the coverage plays out. Sir Paul's once again within the correct regulatory framework tolerances for the different kinds of cannabis series are growing manufacturing processing or so that's the certification Compliance Officer Course certified compliance officer course correct. That's available right now. I think I saw that it is. It's available on Amazon. Also on our website I mean.
Dan Humiston: [00:05:02] I see this as a huge market because essentially every organization should have someone in their organization who certify they're hoping that suddenly becomes.
Robert Carp: [00:05:11] A huge market to mandatory market. You look at the restaurant industry and there's something called Search safe where most boys are required to take a stand alone course and pass it. We obtain the certificate before they're allowed to work in restaurants and bars helps them understand how can we ensure their store to serve properly a heated properly stored properly. We're hoping to gain the same kind of traction with cannabis that people understand dosage. That's how deep data that is required is captured. How do we ensure that the product is going to be district consumption. How to label it. So at the end of the day the market is going to be you it's going to be a question of what standards are adopted and how they're actually policed. OK so we're hoping to be in the forefront.
Dan Humiston: [00:06:00] Oh yeah. You seem like your first mover in this space.
Dan Humiston: [00:06:05] 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 MJ Bell's premium it's only four dollars and ninety nine cents per month and you gain access to all previous Raising Cannabis Capital at. Roads as well as all other MJ balls produce podcasts and exclusive content including companies investor pitch decks good MJBulls.com and enter promo code raising your first month free.
Robert Carp: [00:06:39] Let's jump ahead to really do everything that you need to do and get the word out because really. Again this is somewhat of a land grab you're going to need to get this out quickly. You're raising money. So tell us how much you're raising and what you're going to use the proceeds for.
Robert Carp: [00:06:53] Sure we can raise two million dollars not a large rakes but the beauty of it is this is our year already a very cash positive. I've moved all the intellectual assets into compliance for alliance which includes the revenue from the books all the different applications I write all the different consulting at the end of the day. The margins are tremendous. The money is only going to be used for advertising. It's sort of like you're buying into an idea or buying into a dream. It's a proven concept. The books sell very well the books are very high margin half the books I sell cost four hundred ninety five dollars retail like publisher thing myself. Most things cost anywhere from 15 to 20 per book. So the margins are enormous to the books lead the categories on Amazon the books obviously generate income but we'd be breaking the books down into components. For example I've written a book on a legal challenge for the candidates business. So instead of buying the whole book you'll just be able buy a single short kind of the Rocket Lawyer. That'd be helpful. So there's multiple sources of revenue going into it. We're already running we're already moving. This will just expedite hopefully the whole effort. Oh yeah. One or the other we can do it organically if we need to. This would be the fastest way to get hopefully a public offering off the ground.
Dan Humiston: [00:08:13] Just go back on public offering tell us a little bit more about that.
Robert Carp: [00:08:17] I'm from the Internet age. I'm not a youngster kind of gray here in this business. During the Internet age obviously there was tremendous amounts of public offerings. I was in a number of them when I was high tech entrepreneur of the year for business my brother and I started so the public offering is not something I'm familiar with as a matter of fact the offering is already rich. It's actually in my legal guide stock so it's not like we need to spend eight million dollars on lawyers during a public offering. I know how to do it. I've already completed all the paperwork but we're going to be doing this work so as a rate a Tier 2 reggae is something that came up in a fairly new bill several years ago. It makes me public a lot easier allows you to essentially test the waters also allows you to raise up to 15 million dollars per year so that is the avenue we're choosing and we're hoping to get listed probably start off on the bulletin boards or work our way up to the the counter.
Dan Humiston: [00:09:13] So you're raising the money the two million dollars to get the message out through the land grab so to speak but preparing for the public offerings are a lot of moving parts but it's like you said that the foundation is built infrastructures they're already generating revenue profits which is very rare. I got to tell you in this we don't have a lot of gas on our show who are making profits so that's great. I don't think this project will be available for very long. I have all of Bob Carr's contact information on the MJBulls website will have all of his investor information if anybody is interested.
Robert Carp: [00:09:51] All right Dan can't thank you enough for having me. Oh you did great. This is an interview. Thank you. You got it right.
Dan Humiston: [00:09:59] 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 was produced by M.J. MJBulls Media with original music produced by Jamie Humiston.
Dan Humiston: [00:10:12] I'm Dan Humiston and you've been listening to the Raising Cannabis Capital podcast.
THIS IS AN AUTOMATED TRANSCRIPT AND THERE MAY BE INACCURATE AND OR INCORRECT COMPUTER TRANSLATIONS. DO NOT RELY ON THIS OR ANY TRANSCRIPT ON THE MJBULLS MEDIA WEBSITE.