TRTC - Earnings call transcript Q3 2019

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Philip Carlson

Good afternoon and welcome to Terra Tech's Second Quarter 2019 Financial Results Conference Call. A replay of this call will be available at www.smallcapvoice.com and it will be archived on the Investors Relations section of the Terra Tech website.

Before we begin, please let me remind you that during the course of this conference call, Terra Tech's management may make forward-looking statements. These forward-looking statements are based on current expectations that are subject to a number of risks and uncertainties that may cause actual results to differ materially from expectations.

These risks are outlined in the risk factors section of our SEC filings. be light should these statements forward-looking considered of in factors. Any obligation Harbor, note, management we any forward-looking as also future. any in does revise the statements a undertake today, Please of Safe outlook any as present not to is

today the and Tech's Officer, Mr. Derek Mike James, Chief With Chairman call Peterson, Chief and me are on Executive Mr. Terra Financial Officer.

go would like to Derek, please over to Derek it With ahead. hand now that, I Peterson.

Derek Peterson

time to Hey, everybody the Phil. Thank for to call you And us to again join cover you. thank quarter. today's on taking our

Terra an path It's Today's day. a important big juncture for Tech's forward.

We the quick today's call. run Q&A section. a some I My a the to of spend do but quarter, to have cover through want lot on intent time on to is serious

of path learn kind trajectory and what announced. and is us most for the what the go basis. specifically you model make a want light with, that decent we've upside come OneQor's forward have a walks everybody pivoting recently kind in around understanding a sure forward a the of understanding at business A, but more kind of to in begin looks like as do I deep think more away granular a just of I level, about got quarter, complete we of enough of shareholder questions dive the a of good potential there that to to on where we that amount merger in

value. primary We're to market our as been to significant focus in which company's adapting to has what our the we it's XXXX, objective. shareholder historically that, order look is our to changing maximize With been build growth. committed to forward That's

of Pharmaceuticals, product players cannabinoid will the we're entering innovative goals our most of OneQor into position in entering in phase development. these a of research the immediately which and us With one merger with development, as new a by mind, field

business and the to the of around everybody get dive into understanding bit do moats path barriers built the going their a good of to their deeper model what model entry has so kind for deeper little defensibility business a the call. I'm we as in a the they've OneQor, market, to

I there's over itself little a of reporting bit want in that First the quarter to just off, go a and anomaly took place. because of

going You're language some press to the release. see in

to end towards a you If breakdown gross of to handful press revenue profit and and want the operation. both I there's for you go of discontinuing one. release, the kind of tables. That's direct continuing

three looks know, as the many retail funky a of our had three out location, are Inn you location. little because, and Desert we our So, our we Street quarter currently Reno of location – marketplace sale. our assets Decatur Nevada bit have assets for the that Those

buyer waiting are standpoint facilities the to the possession person Nevada currently those condition left facilities. closing that's group State sell. a acquiring to And all of is and/or full the All from of us transfer to from and taking We're on or the contract entity under over really that those the above the that's license. of the license

discontinued revenue waiting GAAP though Even companies, operations. In process we're the are had to the continuing operate operate for the those interim, we're actually from the standards, operations continuing while transfer, the under to companies. the remove to we to we state accounting to

technicality want concerned. are accounting kind I far as So, us, everybody But understands that. rules bit as of of it's make for sure a a to a

those cultivation stores. the the on Oakland, continuing numbers So, three be exception with extraction, Leandro, the company's retail of quarter, look at operations the remainder of the San will – Ana, the company's you when business Santa everything

to look top if line million compared of XXXX. revenue a $X.XXX as did So, we $X.X you this quarter, performance million at the in

if those as for comparison same apples-to-apples same three last have didn't the year. Now, dispensaries that's quarter we an

If $XX.X GAAP which them, under are revenue dispensaries, still operated the in terms those recording at if the we standards, comparison operating an revenue still total however, apples-to-apples the we we of we look are not over would've to in had or million about for the the or for comparison prior period we a XX% million the little $X million the that same $X year. quarter been increase a bit

possession end but When replace the those but a little to we're we track future, not-too-distant going we'll or those, that a So, business capital tracking from total when talk our the assets an about in of ideology those we leave consolidated here where basis. to At on finally of million. segments, treatment. we're those of wanted quarter in accounting with we bit still have sell day, a to will the obviously, get of about assets the the $XX.X go-forward

So, wanted the to everybody understood I discontinuing sure operations. between continuing just and make difference

the We license. transfers until are still state that dispensaries operating those

he of, the Nevada headed Bringing apparently wasn't around Taxation. will, one some us state some of looking Ukrainian noise, attention dispensaries, potentially a well there now space in politics of that had I in Department the to issues go amount the the the involved you up state, that for and They're disclosed. that and the been that some there's if into media, tremendous those the to some who of Jorge as there, groups which of won into guess, the there's investment is came some with let Department of litigation meeting pay Taxation that with the

frozen of said, now have the right the noise around being They a again, there's marketplace. department levels. That Nevada at all transfers lot

the going to figure they So, we're what's just have on there. for waiting literally the down them some tighten departments to in of inner workings, and out

those at up now processes doing transfer. along and for will, and their of if sure are their SOPs waiting look in is to a the everybody right everything crosshairs of at I they're just licenses we're taking taking procedures with think purgatory, make to a kind we and Unfortunately, what and par. look you caught kind else in is

and on we that do the But if a conducting Tech and comes another the operating revenue this that So, entity interim, those quarter, day. that though from in dispensaries. still we're we're won't at for we Terra flow likelihood in the entities all we're possession is to end those the back even of day-to-day. the of operating retail cash We're business entity, profitability report

So, you on see that can contribution a [ph]. [stamp] below-the-line

So, I just everybody that. wanted understood to make sure

have got some for We've in. assets are the those coming looking additional sales again, non-core in of as to dispensaries million $XX well. we that are we three marketplace monetize And in the

delineation this as operations. well wants of down read the the again, discontinued as you'll to press ending after So, take these between some if operations everybody continuing the to that break of the call, find time release tables

international markets you're to the that, care with of or an what's as I last, a quarters the happened has mentality a the say, from regional scale everybody's pertains to two pretty And lot whether So, player, at large jump I'd prices. over think hit standpoint. kind big everybody I attention let's cap MSO into taken market pivot. behind paying it of don't the capital been player, stock a the

And the that's in resulted into a capital tightening markets.

challenging operators a that of We of lower capital space. to thrilled a So, right there's the in now. feel lot companies lot are during starved the bit size time little of this got maintain that we've for a for a

a the has right industry now. got of headwinds But lot

from to of aren't space. the acquisitions headwinds are So, stock for big always little the which institutional solved downward capital in investors for a today, well access people as kind as we headwinds, and cause swing still bit looking the prices have capital a the traditional markets banking that in of that concern

it. timing right sense trajectory. frankly, a sell from were we is It as at that lot different were us, side cannabis more that was assets we to with you of had on when looking lot associated this and for So, for our non-core of of under found corridor pressure look – fulfill thought to to a more now. more we sense all a purchase reinvest other kind made of the and upside start some these business and the a trajectory year, favorable, some THC the made just more which kind headwinds a And over business assets lot

So, the OneQor on merger with that X we November announced Pharmaceutical. was

additional positions You immediately their look the development this a in product leader some and operations. oneqor.com, acquisition for This and as website, information market. Tech merger at research about and Terra cannabinoid the business

multiple up a to This setting ongoing they're everything covering deeper studies slew got dive of case market. cannabinoid studies pain, they're company has more, bringing is of blends also and from a into efficacy clinical some which of anxiety, the and a sleep of the bit little

agriculture-related for existing obviously, is to to going Pharmaceutical principally THC assets patent development going combined the the on emerging pharmaceutical build we're with continue patent company OneQor, an out comes portfolio short portfolio of And and but in pipeline. a the the OneQor focus also, term. to opportunities and

has little about model everybody talk business OneQor's me a good a Let so understanding. bit,

questions into into I probably we'll think the and deeper that answers. little dip a bit

But pharmaceutical with the OneQor to pertains be stock not packaged that's to the market This confused on is a is as is it market. market. OTC over-the-counter The OTC consumer focused company market the goods. OTC

I a the walk issues, one the day-to-day cold which anti-inflammatories, it. the that you remedies, care is pain from you So, in-front-of-the-counter and prescription-based analgesics, when focused your the name is That's you pharmacy, standpoint. OneQor which into don't market have is, on behind-the-counter have ultimately a sinus is it products which you relievers, product

looking to They're not consumer get develop consumer competitive far race looking are not they as But player. into BXB are They're to brands brands. a concerned. as

major an market. market of label of for their has of the I box coming Every a particularly the a to lot one coming to products cannabinoid, brand to CBD in retailers with Every a celebrity of appetite label tremendous now. big white think based, amount adjunct private ideology tremendous there a explore stores. There's is Most athlete to coming THC CBD amount market. brands of everybody are seen brand, a is the have is brand. that

the is plug building that put chain could together out essentially for model supply into a So, a BXB positioning it. anybody where OneQor

So, the of cGMP is cultivators team growers, themselves those big it. extractors to spectrums, in and will that ability significant the align and are and the product associated have we has FDA regulation QC. broad SKUs box been the highest QA the OneQor full and the the of most quantities amount meet with component, important monetization, variable, to the see to it hemp associated down the tier monitoring manufacturing, standards to growers that significant comes and the the spectrum with right isolates, SKUs produce which adherence then with producing They of manufacturing able the when has sale

the And a right I big gap now. think market in that's

factor facilities. that the meet of to – box need QA to OneQor got a defining pop retailers. adds You've will amount a big that are that's bring tremendous the quasi QC somewhat have of the to and of manufactured mom we these scalability, from value the one to in really perspective. going They're brands and And ability the for table

is of But more importantly business pharmaceutical the end the than day. crux at the that, active ingredient, targeted API, of real the OneQor

you've they modalities in There is there. any the of of not it's bringing So, are products enough whether be. happens lot got people these that for, pain, the real whatever to evidence out it's to market or without problems sleep, a which solve whether it research

reason wanted what different put a they to to going days scientific be coming and quantify treating XX really that So, over they're world-class to modalities. the that they've blends to able to more solving team together XX are the be additions cannabinoid and is

be. on they that formula, think that a then based sleep provider happens all so this. for through place CBN be discovery sleep, real a OneQor of modalities, they to has are combination most for impactful looking in to good it today, these of brands blends clinical major formula, working the is behind combination can the whatever an for APIs certain handful the of modalities, API mentality today. be for certain Instead are CBD production spitball, that's anecdotal the on and with for So, certain pain for taking society that with cessation in but dart driver BXB trials formula, to bad CBG, dartboard got opiate example, anti-appetite They're to

pharmaceutical over-the-counter it to as FDA well market. a as extraction marketing BXB cultivation it's amount fulfill So, on the as player aligning of company It's focused support. a manufacturing tremendous that's QA a regulated as supporting and QC and other cGMP scalable well

component brands with their table or these label to private So, their most of consumer-facing important science bring business themselves being aligning be their of but is also to producer, white model. or in focus primary label the backbone the the lot aspect

large-scale corridor. close going exciting of pharmaceutical on when the findings partners alignments that of but they You're our see the those a box importantly tremendous than PR They're to behind-the-counter XX a going growth days. want opportunities. to next this of retail were lot Board to how of were was particular most over to one that, on independent amount of to that working with tape There's vetting XX research kind things big that significant some opportunity they more for activities, Directors was securing will

scale, by limited ability municipality work going at banking Dr. kind cannabinoid to a like we're standpoint, to cannabis are basically not want looking Joseph standpoint So, Fortunak looking from to a for ability world-class leaders the banking, a municipality. a with in the all opportunity, regulated the products blends ultimately in in the to the did the that's the us, scientific building capital this under standpoint, state-by-state, of at environment a consumers farm open cost-benefit competitive we space and corridor, analysis and ability in that headwinds global develop have market and with an have

So, for a amount us, tremendous was it just upside. of

little a looked going go-forward we're I basis to Q&A, the into dig ultimate OneQor make a had like. of everybody deeper what model to wanted but So, the on a in understanding good business Pharmaceutical sure bit

amount legacy pertains monetizing market the with tremendous couple as way business the of Terra our is right of weighing we're at it to assets. So, looking now, a options. Tech We're segments, a

under Santa multitude this the of right be markets those. permits Ana. when coming in looking capital in time crunch better some now. to have to monetize capital The We couldn't timing We're of have a are

work we're happy the not with to in. ultimately. the concerns we'll those us has Nevada position We're thrilled So, put timing but that that issues be through we're and in, in

we're sheet, cultivation to the a San in Santa cultivation our a to from to retail our spinoff options Hegenberger Dyer, For it buildout of off current other to get on to from plethora asset special a base, operating retail alignment opportunities sales, of Oakland's amount at so THC dividend companies dispensary tremendous our there's balance Leandro of to at other lot for lot a public. our site our to Ana there looking different of potential in asset the a opportunity the a activity, the continuing or in headwinds of private of put motion companies the looking us go were day. side to public strategic of the These have with shareholders, equation that space. end into and There's on

go-forward will well. for the as excited bring opportunities we're So, about that that a us on basis

New is far with facility again, distribution sustainable to facility. concerned, a have tech national the We we as we next-generation had build As retailers. Garden ag segment zero-waste be big that a Edible the We've facility Jersey. their at box converted existing Belvedere, basically

right So, We're as alternative of today. is that within from doors and we're in that it for and the retailers meets standards strategic in our big-box looking expand the now. amount to We're Midwest. another key of for lot the retailers, hearing we're a continuing major well as business Northeast a Walmart footprint other

special for principally And acquisition makes spin plus it how accretive create off accretive a spinoff, a cap at of from ideology shareholders. the the and one market business That how sense itself sale, our lost at us, could just type to looking in juncture. or shareholders. in equals and for dividend to gets three either business scenario through overall that really of our shareholders, this an We're standpoint off his a could one be

it's that's you hard again, it's banking tremendous THC platform is And consolidation, a to when and there consolidation assets tied space restrictions. have together opportunity a for where a to but get

business of at capped end poured these restrictions growth their of a given So, the and has some headwinds just the the that over to lot and day. other THC really the segments affiliation of

streamline segregating the value entities off and and provide segregation to in spinning a shareholders, for capital short these only is ideology of accretive run some separating well. to not markets the as from but for issue a So, potentially additional operations standpoint also

have I'll of lined to we a as deeper and bit I of get we're have dig a that that. be see in able into kind going up do So, this. lot that Q&A little to a deeper dive the into we come

over turn detailed quarter. our call for to the CFO, to some overview James. to Mike He's interim, the the going more in financial I provide But want

you, I So, hand will to that, Mike. with it over

Michael James

everyone. now the quarter XXXX financial third Good you, you summary Thank afternoon, of with Derek. provide I'll a results.

earlier please that the detailed refer which Commission. website XX-Q issued is our which For and more Securities results, we to today Exchange release the has filed posted press been on the Form with with

expenses. US including that note under In financials non-operating compile we GAAP addition, please our

For XX, $X.XX the $X.XX XXX%. September an to generated of XX, XXXX, million three operations million $X.XX for the continuing ended XXXX, million ended increase revenues months we months three September compared or from of

and was increased operational standards and dispensary to enhanced million the the our accounted production to product due increase revenues $X.XX growth customer increase store traffic, $X.XX prior Increased of the driving over cannabis an or in The assortment. of year-over-year development improvements additional Also opening store XXXX. cultivation due for in primarily is year to increase. due early million operations, which XXX.X% of

or operations and of of Including generated XXXX, from for ended the $XX.XX million total revenue September discontinued increase an September XX, continued we XXXX, months three ended compared to million the the XX, XX%. $X.XX $X.XX three revenue for months million

Our million the September increase XX, million for to was $X.XX a three months of gross million from profit operations an months XXX%. three gross the September of profit for XXXX ended compared or XX, ended continued $X.XX $X.XX XXXX,

or margin months September increase XXXX. attributable three margin XX, the XXXX margin was XX.X% and segment, Cannabis the Our three compared $X.XX and which was gross months the months ended gross percentage for three profit, XXXX XX, $X.XX had percentage September XX.X% million September for XX, the The million ended in to gross XX.X% for to ended gross XX.X% and XXXX.

private cost from of lower to price sales, due items. improvements The goods on Cannabis optimization margin segment margin of and higher selling gross label vendor negotiations increase an were sold top

XXXX, operations $X.XX Including million $X.XX ended $X.XX September compared three million to for XXX.X%. or the the for profit discontinued ended XX, September XX, of an was three increase million months XXXX, months gross the

for offset various $XXX,XXX primarily were or to $X.XX in the a XX, expense by expense, XXXX XX, due administrative $XX and increase The $X.XX legal general a three ended the a a and Selling, XXXX, expense in compared three expenses activities, $XXX,XXX for $XXX,XXX months million September months amortization in depreciation an related increase of September was million ended to increase to slightly XX.X%. million $XXX,XXX increase increase expense decreases. litigation

We million September incurred per three a XXXX net to loss months loss of for the compared $X.XX net for $XX.XX ended XX, XXXX. XX, $XX.XX the or months three or ended share million a $X.XX September of

of Now compared of On $XX.X as to to debt $XXX,XXX of sheet. balance XXXX XX, the December of XX, XX, the liabilities XXXX. December turning to XXXX. billion compared short-term XXXX, as September Long-term were September $XX.XX XX, had as million company zero

Stockholders' million, period ended approximately of approximately to December equity XX, amounted $XX.X a $XX.X to XXXX. million for XX, the as million of approximately September decrease compared XXXX $X.X

to like I'd turn session. to back Phil over for question-and-answer the Now, the call

Philip Carlson

is first what that to have OneQor? be we Okay. question going Derek, business is the main of

Derek Peterson

I the They're place just a area counter, carry of they're that went player. same the the kind the a they [indiscernible], pharmaceutical focused through missed That's again, focusing on. BXB model. anybody OTC But, it, company it. on the or it's the name ibuprofen, of you for business front

and brand care cannabinoid And one-stop of in out products, a all the essentially, supply take to and shop. are through care you through based chain, sale cultivation who they're can you're alignment traceability extraction. seed they of developing don't everything right? those big-box topicals, a ability way So, if I the tracking, SKUs, retailers from a there, lotions, manufacture meet They everything from in will exist cetera, for quantities today. a facility, name the to So, forth. then, creams, creams, manufacturing so of eye that et at have different cGMP you it, QA/QC that face handful most

API, of you focus OneQor real at will. their end the day of their Inside, the company if the The is

that's what Intel ultimately what cannabinoid-based of Gore-Tex think of developing corridor approach. or to So, to the in jackets, is they're pharmaceutical computers is

They've studies. They've they're got got they they've around of putting clinicals a have portfolio pipeline that's team handful a world-renowned together got a of so, patent case a coming And cannabinoid that science up. studies. and

going you manufacturers production. producing of what their so, them the for at off that of it, are if API gallon drums, own it, And be filled will, ultimately to end – into XX they're to with incorporate gets we to think with shipped

drinks, ingestibles, a So, that's producing able that they are be the as etc. – that they beverages forth – whatever and will as to on research. ship soon API on group based so opines scientific FDA

putting or to plant they're in for their everything. what care on have blends not And of their products a They're when take scientific it's botanical products, modalities, now. cannabinoids in other people, they're right putting again it, research. approach is you targeted whether sleep cannabinoids certain the to pain based cannabinoid just blends name solve that's industry or targeted So, and putting they'll lacking really

on are they FDA million, on pharmacological, full market. pipeline and a in to So, the from else of a advertising, to brands the with defensibility counter not to get to millions million nor crowding crowding the drug doing standpoint, the is having decade $XXX $XXX dollars what a million everybody that and space a and consumer half $XXX product costs is spend marketing the they're behind facing focusing

are API, the services the value-added of months. to be will downstream, will business developing they'll their ultimately that development the So, traceability, These the with but model be the platforms the kind these that the over produce IND marketing next sale and products studies. capabilities of all seed API collaborations the digital of pharma capability, is manufacturing ultimately the around extraction to be big XX onus

receive results specifically big-box to retailers You'll close see products. white label as a news potential as more both being but file these well come the of with products, from as with as up picking tremendous bioclinicals and of some amount label studies they studies, private out they accounts

there. opportunities the about excited we're So,

we'll And corridor there, life understand they more running operations that team as So, a people couple as business well I opportunity over model, familiar think growth you'll with people the come lot the see tremendous the as begin especially a for kind the to next in the shape quarters. get over and of to begin of ops. amount the and of as

Philip Carlson

Great.

question Next have, Peterson forward? going what will we play role Derek

Derek Peterson

So, be the is marketplace. maverick as cannabis Interestingly time. in long to brands if release, press is marketplace. adopters, Matt enough, of Matt the entrepreneur known the were taking We you see going in Nevada Matt a competitors CEO. in over I've is for the a California Nevada in marketplace, one the great He the marketplace, in some built Arizona the in early space. the

Ultimately, overpopulated Matt long ago the I was pivot early have. and that OneQor corridor that this made me on saw Approached industry develop raise capital getting to about him the a with with time relationships helping competitors that model. some a in potentially

has but not So, amount the obviously operating operations, on of only to experience be he over a going side of the the of got He's OneQor the continuing in operations. taking business, the business. THC tremendous side

come a future. The of scientists, over box, the team a big team announced an at the team strategic team world not-too-distant see some of a people OneQor, beauty and that done together alignments great that you'll a tremendous he's unbelievable putting operators, job from of is CBG

excited early partners is But flow what He's was experience about really we're with great a collaboration his Again, cash standpoint and hands value THC a at add, for work operational It's tremendous a the real to from getting addition have of we've we that an done accretive in amount potential already adopter. potential for get the businesses. he his significant and but there also They helm. additional produce operations, refining business. just somebody bringing with the retail M&A. built the Matt him an like further on side,

running got going taken to say side said time markets, is sometimes spent companies. company care of this of, Most that got prior need out. calls, – two I'd running PR, my always mergers needs basically IR, most public public in. in time the coming got public accounting going a on company running the – that equation. assets of We've I've closed, capitalization, the be is We've be be We've of to assets to

the have and You the company public company. operating running

on which competency that in focus My is, side the be and focus will is is competency what is, core will on Matt be And my equation. of their core his team's operation. which what

So, blends significant out to significant the well market. that the our and that the we specifically big with we're partnerships expectation efficacy then, bringing of side of on is improvement THC And of pertains the retail. growth box to corridor side as ultimately, of the corridor, see research, with as partnerships as OneQor products, pharma, it big

what the So, public be us side regulatory time but of be in will my running vehicle. equation that's of doing, the will spent of basically markets run both short with the most of

Philip Carlson

Okay. How different you companies? are from CBD other

Derek Peterson

source Well, we're it today. not a marketplace. frustration, kind three just but are in is a also of CBD anything the huge around little passed initials are education of that getting company. Those there's like And a opportunity for

of two Europe a of they're cannabinoids in and that and So, efficacy of a and place when see you them. And and CBD America taking lot THC research finding Israel just that. of the there's that's lot exist. and XXX-plus lot are like other South places cannabinoids a

company very And haven't dives there's of on to opportunity the there so chemical data to if are two start just these do focused been you to the plants. a to really right pharmaceutical studied. day, – huge of And OTC. It cannabis the at there's the happens limited no within hemp plant-based terpenes component, on historical just the down and end deeper the we're just focused not CBD. or plant that will, be the a plants We're plant one so, that plant, or

just And so, for CBD us, not company. a we're

to issues we're putting blends terpenes and solve by other a of us, cannabinoid and For and plant-based targeted together company medical that's solving on people's cannabinoids plant botanicals these focused issues. health

be the to of marketing most product are the there that that CBD tool the are so, hope end differentiation and out cog at today fight, consumer we fight, fighting facing day. a And brands that the of you in see the players

traceability, chain, I with Intel a brings Inside an the used again, a will brand manufacturing sale brand. be as on, their further the as day. supply our So, the of able and value-add that We're example We're brand promote ingredient rely ingredient well QA/QC end it to of differentiate an great of at these or that of cGMP to seed lot along brands Gore-Tex. research research and to facilities

So, the Pharmaceutical. has Matt to OneQor the built moats that that's really and around barriers entry

Philip Carlson

Okay.

the Next happen? to of the question. is merger supposed When closing

Derek Peterson

some happen between and accomplish signed of December. a should things sheets pre-signing of and where deals the see closing. of we've made some definitives term that conditions put to amount the in in of definitives. lot signed now done we've prior closing Most was work tremendous We We and and mistakes added

of So, a it's of done, with exception things. of most the handful

So, a first see inform to the internally. of than going if couple longer you're date think weeks We'll that's it's targeted shareholders going us certainly closing of December. the closing But that. I in for to be

Philip Carlson

is happen This happen Tech going going three-part to in to happen Gardens? the And question. What going Vegas? Terra the to to to the Okay. Edible [indiscernible] is of What a store to business? what is is Las CBD

Derek Peterson

Good question.

they reading been are those I include so and private can combinations they in and public swiftly in players, options, everything out assets, understand days the they've last think to sale been other the of of dividends continue non-core operations We're shareholders. moved looking the but strategic some on. what's options, that, that So, going everybody has to again, reiterate to The yes, with the what market special over XX same existing I have. going said an strategic outright operate earlier, company kind THC from manner for

in ago, So, months this had environment we just it work five ago, months that four anymore. plan the doesn't

as cannabis his And us, table. longevity on got Matt, the so, we've fortunately for and his the optionality reach of lot industry well reputation there, potential a with with our as into

And end shareholders just accretive to so, day. the at now through digest most of for we're what's trying the our

information continuing on. some give we'll goes So, as this

But to whole wake might strategy we might basis. what the up not the the go industry out. we're on at going now, the two the for in run, to end sell non-core asset be necessity our tomorrow might best forward figure day, or of may the right another We is We a trying they're short out the to sit umbrella. have and two companies under but separate legalized and

of but everything day. for it it is regulatory. figure what's transactions the we've whole got Part and part our end capital is the So, out, the for accretive shareholders, at to best of of markets

off to really in on institutional to a list pharmaceutical that, side do access company large-scale this little either. major to build business. to to aspect have the back capital gets get holding bigger an from of and we have the would – to to is We the OTC And the THC a as that intention scale kind the on exchange. want addition be you ability That's certainly and and bit have us a where able ability

could reasons why that We up for So, be we're today. federal look decisions little we'll But, that there tomorrow will on agenda we legalization there have technical a be based wake the trajectory bit. the information some a changes separation. again, could making and a

the healthy. are But businesses

asset assets, on standpoint, I go we'll think with an basis, Matt's as operational things of influence touch but and both well. an value on able extract of from additional standpoint kind those from forward also out a be to

Philip Carlson

What look OneQor closes? once like management will the the team merger

Derek Peterson

that I'm sorry, Phil. more one Say time.

Philip Carlson

look management the like closes? once the will What merger OneQor team Sorry.

Derek Peterson

startup. has a a built not world-class They're Matt organization.

goods So, on a that from salespeople, full they've a is marketing do What public stuff they've package people. big-box, team a company our we got and they've don't of the they've marketing consumer got reps, some side. all they got accounting, of CFO, got CEO, have account companies, people,

integration it's the end perfect of much So, the kind overlap a without at day. of

the to be to deal be we any run can on with in, we'll outgoing sure that public acquisitions continuing the We'll standpoint. absorb that that sure are any any can are of that we make continuing come an mergers made, continuing continue sale filings done. in, come to assets the be audits make to the So, company. We'll

So, management. some it's a Board really to in management of the of a you're from strong see blend kind of additions to going real The Directors. growth standpoint

to Terry the it saw as Lierman announcement You pertained OneQor.

announcement You Labs saw the Fortunak Abbott to Joe OneQor. from it as pertained

running in in they've an management flow from to operations the see additional world-class But potentially downstream Matt's to well. operating We've to as and looking at again to the very additional operating provide in end well. cash some good of influence also our some our is operating company kind each one the come accretive where be a a these now, level. of squeeze internal level, stores and out. a able and some you'll value good phenomenal that changes of got of at some day. make is the team for going So, top the of add stores, real we're entities team value got monetize stores assets team But the running ramp-up a the are right We've public – got built

which that's in think taking is we've blended helm strong a excited we've great about. over aligned got core from the team. So, got to here, operator a their real a I we're mostly standpoint, competencies and Anybody going be

Philip Carlson

the spending Okay. on THC Will business? of time the side Morgan be Matt any

Derek Peterson

The days. called now last and was headwinds to to that's and have months that funny months that ago over here was which is fruition thing the he come interesting the hear the to Yeah. going really XX market months

while that XXX cannabinoids our the focused those and the that there standpoint so, population potential area. time large. sector. to spent a the And value end still We may really he's attributable pivoted in the are lot of – all health that other at has in on a cannabis be He's We've out and from something at of the heart a do. day

costs the put collaborations the and some going certain operation same looking we both Arizona prior top-level, great in Nevada world-class all he he is view, the built sure in disciplines building out bringing partners, and his marketplace. that areas, so, mitigating brands foot our And spending XX,XXX time in he be some operations, teams streamline again to from things a at making and

the the really business, excited of day. surrounded the the the want said himself, I has his chance the the the several involvement of of a world-class end team the this that at to OneQor ball best he's side think line I've So, and across pull by certainly him don't detract but growth we're to his we side about from on on THC business. But times,

to And next months. announcements a see tremendous so, couple again, over amount of of we're the going

standpoint, from business at value the Matt strategic of current that our other out look THC options is And shape, we You really prior the much that we're is operational the with towards. plethora going taking a from start again, path model to didn't team. looks have out figure ultimately the him as to All on and with extracting business a have to assets a THC what inherited we we've standpoint understand how of like. the having relationship OneQor

Philip Carlson

of is entity? combined the What trajectory revenue the

Derek Peterson

point. cusp some out early are guidance got too at some are at retail. this label white major other some major deals. the brand other of of it's to us doing deals put They've into cusp for private at they're small Phil, penetration now. They that big-box the They label

for online. for be So, ramping this cultivation coming We're out We would at at irresponsible juncture. it at saw Hegenberger put the guidance that today construction will us, to doing side. still still the juncture. us Dyer We're be this THC

relationships. his So, and on be the table through factor to additional there's notwithstanding that bring accretive any business, to of going the some experience upside can side revenue THC the Matt

going out and out to abuse area going as putting and on equation, seeing all We're the corridors own a as measured we so today study on. progress going in efficacy of much our that as products We're as future. the pertain great with side be the that in they energy we're this we're of putting our and far But they different of be tremendous these to studies considering cessation not-too-distant on in come the is to results in our amount our issues. opiate what's OneQor have world the of clinical studies opiate different the focusing

really engineering. really, about we're excited the So,

and majority spent are energy forward basis. to great going our is standpoint, from formulations different be on around, Some a go a that's product of health modalities a that people plaguing really where

for side right stage guidance of out to So, put now at the this early business early. is too us, that on

the mid-next on right amount side, white got on look now, the type contracts, or both private-label Come that. standpoint a their both we've solutions brand out grabbing the for and there a But, CBD the brands, just a provider year marketplace standpoint label even do for well. decent pop other providing to focusing from really with go-to might for and in launching when we cottage aligning large-scale we're anybody that's as ourselves of players business us, being BXB and really mom

Philip Carlson

Okay. something else? be What entity called? Tech, combined will OneQor or Terra the

Derek Peterson

We are to the changing name OneQor.

if our gave preferences. change to three we symbol. in symbol name will ticker So, the company Pharmaceuticals the them upon be will We closing, as as OneQor both the parent know preferences. ticker don't well We put what

well. the learn all as we'll So, shareholders change to as close we the be of transaction, able the symbol

But, growth least the us, resistance. upside. on That's the That's path for biggest metrics basis. a the that's core of go forward

brand in to a by packaging, source. clinical identity for that so, only is products by stand on the own. cGMP decades. that been us, sense traceability, that product have other pharma research getting to they're people full its just When to manufactured want veterans backed it made means done not for people's the with the that industry-leading on regulation that seed so And change will OneQor over. were that it they they the facility that know in look sale We the were under and insignia trusted FDA industry the at We ingredient really to become to the want start

that ultimately, so, for we're why on the for the integrity, that's names – And go switching people forward focus is this understand brand a to basis.

Philip Carlson

sales What happening asset with Nevada? is the in

Derek Peterson

THC, of Well, are mercy like environment. political we the everything at the

So, license environment. or it's the whether we're taxation whether it's transfers, the it's permitting, regulatory anything, burden whether at of

at closing for there's of end couple us buyer. the and press for would state from And then, in the We're our That's shareholders that from things to the informing so, and permit to a the literally waiting all then, the need transfer day. an we it. do the other the literally we're contract to X-K sales. obviously, And

now. right So, we're waiting in mode

hoping the pass to the and we're on get for to shareholders go longer. information, not much lockdown But on state this that going we'll so, that at freeze And as is too our as well. we level

properly out the at model spending obviously we're So, of then, jurisdictional in under ones Nevada same everything at gets we're assets monetizing of at and most Southern juncture making and sure the that the day. And are interim, effort under. looking in time our the of some OneQor the regulatory the energy and building then that are issues integrated this at end the California

Philip Carlson

$XX Last sales from that in question. Nevada, market With you standpoint? million cap in other trading asset below how a assets, Okay. are plus

Derek Peterson

We've got That's those. operating in coming all the a come we that is sold. going us than have stuff greater guises. drives our as crazy, we million. that entities. We've million the We've a got capital think something for some of a books of on markets right, far consideration real assets got $XX on We've of, equity is market of $XX call We've investment million that got out bunch permits cap it, put being well. that $XX a dormant million that. of $X We've to hydro bunch we other farm value got made that got in estate

big say, challenging. we are of ridiculous raising is made So, down pull facing think extremely very now, capital but chunk that, there's dislocation. which has I as And public in dislocation capital everybody's just To the companies not of the a extreme facing I most public a dilutive. markets as, similar think a are,

out And or is going exactly spending additional potential be spending money to asset other energy the not at strategic of that alternatives ridiculous looking and going market of out why building amount we're at there the But cap some acquiring footprint OneQor of a on that this juncture. we're dislocation We're model. so, to bases. effort

If market that's accretive own? Garden, Edible justify spinoff will it that does, we of an its shareholders. on transaction for for our cap a example, X If

break shareholders starting those our special a the we're than worth and a pieces down more in to dividend. stuff out. decision make that's are If migrate So, of up individual that look we'll the the form to pieces whole, the to

taking changes at lot further. So, his a trying regulatory We're coming has then, and to broader with evaluate those are standpoint. reach decisions federal we're now. broader place a gotten and the making issues, deeper team lot the our obviously, of marketplace, Matt that a macro And internal aboard, some the

lot a right for to variables there's So, entertain now. of us other

on cap, today, we're, but of has OneQor the runway we with pharmaceutical without the market we've as sit THC equation obviously, happy opened the headwinds the So, here side that the of had business. not side

have upward the here, we monetize additional they we about And trajectory the our growth more the – THC assets. the obviously, just to have of going off then, excited we're to embedded side of that that ability some on potentially some going business, are organic we're incur. the assets but have So, side to

will we easy to continue of the capital markets help All access that while in us the short take ramp it while our on necessity to business.

Philip Carlson

closing Thank the you Okay. turn call you, Derek. your for I'll remarks. to over back

Derek Peterson

that's the profitable growth for to capital it? best strong cannabis that and confident it. The regulatory as a in order both Yeah, use sheet and extremely That headwinds so achieve industry, I We Okay. shareholders. said, standpoint. from is feel returns of company's this is facing the balance

the well the runway and We'll here OneQor on is We side open I that's side strategic month development, we of as to establish consumer so. the update path go-forward changes continue and growth in a several developments as team excited business We're this the assembled on It's thing basis. as excited a the they've or merge of us. this delivery for least return. think earlier, optimize We the continue suppliers up on has to as scientists well. of manufacturing direction THC create brands. as the closed really this We're with and next of business, products resistance chosen get in to have us. to on is shareholders to focused a OTC, world-class over-the-counter, shareholder to said of pivot will OneQor, that a got believe proprietary times

said, that model. strengthen as additional we With our come around and some out we'll have strengthen again, business and team, the build more our defensibility that being press will current moats corridor

auditing line. for Global, again as get capital I'd putting like finish to thank our it to Alliance well thank partners, our auditing Marcum, like took to hours across as this team Q in our I'd partners. the the

care. of and thank Directors looking from listen C-suite to On behalf the taking Board Take in the time forward call. of and employees, chatting you the future. the for of We're our all to to today's

Unrivaled Brands (UNRVD) 13 Nov 192019 Q3 Earnings call transcript