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CHRISTINE: AT A TIME WHEN THE MARKETS ARE NOT EXACTLY LOOKING PRETTY THESE DAYS, I WANT TO START BY ASKING -- >> WELL FOR CANNABIS STOCKS. >> YES. COWEN WAS ONE OF THE FIRST TO BUILD OUT FOR CANNABIS. TELL ME A BIT ABOUT WHY YOU ARE SUCH A PIONEER. >> A LOT OF IT STARTED WITH THE RESEARCH TEAM THAT WE HAVE HERE AND THE GREAT PARTNERSHIP THAT THE RESEARCH TEAM DEVELOPED WITH OUR BANKING TEAM AND DISTRIBUTION TEAM. WE FELT THERE WAS AN OPPORTUNITY TO ARTICULATE A BUSINESS CASE FOR THE ENTIRE INDUSTRY AND I THINK IN THE UNITED STATES, I THINK WE GET CONFLATED BETWEEN THE REGULATORY FIREMEN TEAR AND THE CANNABIS GLOBALLY. -- REVELATORY ENVIRONMENT AND THE CANNABIS -- REGULATORY ENVIRONMENT AND THE CANNABIS GLOBALLY. OUR GOAL IS TO BE PARTICULARLY IN A CASE WITH CONSUMER, MEDICAL -- IT IS GOING TO BE A HUGE DRIVER FOR ESG, AND ALREADY IS. WE NEED TO BE IN A POSITION WHERE WE CAN ARTICULATE THAT TO THAT ARE INVESTORS CAN FIGURE OUT HOW TO MAKE MONEY ON IT. KRISTINE: A LOT OF OTHER BANKS HAVE SAID WE ARE NOT GOING TO TOUCH THE SPACE UNTIL SOMETHING CHANGES WITH LEGISLATION WHETHER THE SAFE BANKING ACT OR FULL, FEDERAL LEGALIZATION. HOW DO YOU BALANCE YOUR WORK WITH IN THIS SPACE WITH THE FACT THAT IT IS A DRUG WOULD STILL ULTIMATELY ILLEGAL IN THE FEDERAL LEVEL? JEFF: WE ARE LIMITED WITH WHAT WE CAN DO ANY NEW UNITED STATES, BUT WE OPERATE IN CANADA, ISRAEL, MEXICO, COLOMBIA, PORTUGAL -- AND THERE IS REAL OPPORTUNITY. THESE ARE GOING TO BE GLOBAL BRANDS. IT IS TOUGH TO SAY THAT OR SEE THAT WHEN YOU ARE IN THE MIDDLE OF A DOWNDRAFT, BUT THE COMPANIES THAT ARE BEING BUILT TODAY, MANY OF THEM WILL BE NOT ONLY PIONEERS, BUT STALWARTS IN THE AGRO INDUSTRIAL COMPLEX IN IN SOME CASES, THE MEDICAL COMPLEX, AND THE CONSUMER COMPLEX FOR YEARS TO COME. WE ARE AT THE GROUND FLOOR OF THAT AND WE ARE HAPPY. KRISTINE: WILL IT EVER BE LEGALIZED FULLY AT THE FEDERAL LEVEL? JEFF: I THINK SO. AT THE END OF THE DAY, PEOPLE RECOGNIZE -- A LOT OF LEGISLATORS RECOGNIZE CANNABIS AS A THERAPEUTIC IN PARTICULAR AND A WONDERFUL ALTERNATIVE FOR PAIN MANAGEMENT, ANXIETY MANAGEMENT. HOW THAT TRANSLATES IN THE WORK THAT HAS TO BE DONE FOR PEOPLE TO UNDERSTAND THE CLINICAL EFFICACY OF CANNABIS, THAT IS TAKING SOME TIME AND IT WILL GET THERE EVENTUALLY. LET'S FACE IT, THERE ARE OTHER DRUGS OF CHOICE THAT ARE FAR MORE DISRUPTIVE AND WE NEED AN ALTERNATIVE, SO CANNABIS IN MANY RESPECTS, BOTH FROM A MEDICAL OR RECREATIONAL STANDPOINT PROVIDES AN ALTERNATIVE, IS WELL TOLERATED AND GENERALLY SAFE. KRISTINE: INVESTORS ARE HAVING A TOUGH TIME SEEING THE OPPORTUNITIES, SO HOW HAS THAT AFFECTED YOUR BUSINESSES? JEFF: WE HAVE TO STAY TRUE TO WHO WE ARE. THIS IS A LITTLE BIT LIKE SOME OF THE INTERNET STOCKS AND THE TECH BUBBLE THING AND THE -- IN THE 1990'S. THERE WAS A LIMITED SUPPLY OF COMPANIES. IF YOU WANTED TO BE INVESTED AND CAMPUS, YOU HAD A HANDFUL AND NOW YOU HAVE A BUNCH MORE. IT IS THE AGE OLD SUPPLY AND DEMAND, AND THERE HAS BEEN A REEVALUATION. BUT THERE IS ALSO BEEN MORE REGULATORY CHALLENGES AND ICY COMMERCIALIZATION CHALLENGES. THIS IS A BUSINESS FOR ALL OF ITS OPPORTUNITY THAT IS STILL IN ITS INFANCY. WHEN YOU ARE TALKING ABOUT BEING AND REALLY STARTING IN MANY INSTANCES WHEN YOU TALK ABOUT THE SUPPLY CHAIN FROM GROWING TO CONSUMPTION, THERE IS A LOT THAT CAN GO WRONG IN THAT AND A LOT OF PEOPLE'S BUSINESS MODELS WERE REALLY AGGRESSIVE EARLY ON, BUT WE HAVE SEEN THIS MOVIE BEFORE AND OTHER INDUSTRIES. WE HAVE TO TAKE A LONG VIEW WHICH WE DO. THE OTHER THING I WOULD SAY IS I THINK AT THIS CONFERENCE, I USE THESE AS TOUCHSTONES. THE CALIBER OF INVESTOR AND THE DEPTHS OF INVESTOR MEANING BIG CAPITAL PLAYERS ARE HERE. I THINK IN SOME INSTANCES, THEY ARE STILL CANNABIS CURIOUS IN THE UNITED STATES AS PEOPLE TRY TO FIGURE OUT HOW TO GET AROUND IT, BUT THAT WILL BE A CHANGE IN THE NEXT COUPLE OF YEARS. THE FIRST DECISION ON CANNABIS FOR INVESTORS IS SHOULD I BE IN IT OR NOT. NOT IS IT CHEAP. AND IN EVERY OTHER INDUSTRY, THEY CAN MAKE RELATIVE VALUE JUDGMENTS BUT IN THIS INDUSTRY, IT IS LIKE IT IS NOT REALLY A MATTER OF PRICE, BUT A MATTER OF WHETHER I SHOULD GET INVOLVED FOR YOU AS INVESTORS BECOME MORE COMFORTABLE WITH THE INDUSTRY AND THAT CHANGES, YOU WILL SEE FAR LESS VOLATILITY AND FAR MORE OPPORTUNITY FOR COMPANIES TO EMERGE. KRISTINE: THANK YOU, JEFF.