How a medicinal cannabis company choked | nzherald.co.nz

Cannasouth ($CBD) claimed to be New Zealand’s biggest medicinal cannabis company. Now, it’s in voluntary administration.
Videography / Editing | Carson Bluck
00:00 - Intro
00:54 - Medicinal cannabis market
02:44 - Interview with ex-CEO Mark Lucas
03:19 - Cash constraints
05:51 - Can it continue?
08:06 - Revenue ramp
09:43 - Regulation
13:38 - Prescriber resistance
14:36 - Demand
19:05 - IPO hype?
20:20 - Stigma
21:21 - "I am very frustrated"
23:41 - Outro
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[@murrayclarke2171]

The irony is that it’s so expensive that anyone with a brain or budget would buy the illegal stuff. The dealers must be stoked.

[@tarawaukeri8928]

It's cheap to grow. It's not cheap to buy...illegal or not.

[@notbeefyproductions7109]

@@tarawaukeri8928 Its NOT Cheap to Grow when your sacrificing Freedom for jail when the Cops decide to raid you. Decriminalise cannabis and expunge those in jail for cannabis crimes.

[@bozoboi7990]

It's actually cheaper than street price per gram

[@Kurrency-ArenaBreakout]

Nz is 15 years behind the world and our government only cares for it self not it's people just look at what they give lids for lunch at school and u will understand what nz is really bout

[@lijah275s9]

@@tarawaukeri8928 naw you just aint connected g

[@markgaia1266]

A heart felt compassion to Mark and Cannasouth trying to bring light upon a heavily regulated medicinal market , those manipulative few back in the beginning that made cannabis illegal should be addressed as they are backed by the greed of a few and have taken one of our many rights as humans to be able to medicate ourselves and troubled loves ones , god bless you Mark you are a champion amongst us all xx

[@Alucard6921]

As a day one share holder it's a shame it came to this.

[@davidarnall3332]

Who gives a stuff, this beneficial plant should be cheap or even free. Just grow it at home for pitys sake 😮😮

[@Stephen-dd7up]

agreed, provided its for personal use, no drama,

[@user-ky9sr4bm1f]

Veru dangous and people die​@@Stephen-dd7up

[@ns2304]

Apparently germany allows people to grow one plant at home. I wonder when NZ will take a page from the europeans book instead of the americans.

[@notbeefyproductions7109]

and risk going to jail and being fined. Sucks but laws need to change,Decriminalise cannabis New Zealand.

[@AdamDylanFoley]

@@ns2304 its legal is most U.S states so not sure what you mean?

[@bradc3381]

I've only watched this and the interview with Adrian Orr, but Madison is fronting some of the best journalism in NZ.

[@michaeloxlarge4345]

single handily restoring our faith in kiwi journalists

[@nzheraldtv]

Comments like this make it all worth it. Thank you Brad! M

[@David-tt1rb]

When is the liquidation sale?

[@sanbe729]

I saw its on at the moment or has past.

[@brianoliver521]

I know a person whom their doctor is willing to prescribe. However their is difficult getting product. And the cost is substantially higher than the black market. The problems are clearly recognised but until the cost is addressed, and a simple system of distribution is achieved patients whom will benefit from the product will remain limited.

[@trishab6220]

This is not true, mis info is a bad look!

[@markgaia1266]

Your comment is incorrect , same price as black market if not cheaper and a better product all round , please refrain from spreading under educated info

[@crazykiwican]

@@markgaia1266you are talking from your shady area. Facts are non govt product is considerably cheaper. Plus offer more options.

[@monda111111]

I think brian is correct. Feel free to correct me where I'm wrong. There is 2 options. Option 1: have sessions with a medical specialist. Hopefully qualify for medicinal cannabis. Pay ~$400 /oz. Option 2: visit a guy you know is selling and pay ~$300 /oz with no hassle. Its very clear why people aren't going the legal route. Just look at the carrots and the sticks

[@k0mm4nd3r_k3n]

NZ politics must be further right than I thought, considering I thought the left wing party had just been in power for a while. Absolutely bonkers not to expand legalisation - but all too classic.

[@mercurymoyes4018]

I tried both flower products cumulus & b52 I really wanted to like them. Didn't re order cumulus and won't use the b52 the b52 went from $375 down to $330 at my clinic sadly was the worst I've tried at the clinic ,cumulus was better just average

[@David-tt1rb]

Are you aware that the black market stuff sells for $250?

[@notbeefyproductions7109]

@@David-tt1rb we could have decriminalised and legalised cannabis cheaper than 250$ and still be taxed

[@ianamandahema6050]

Great interview... the transparency was refreshing. A challenging position to be in for Cannasouth.

[@mtbers]

I've got a chronic pain condition and use daily for pain relief (it's not a fun existence). When medicinal use was allowed it was comparable in cost, but dealers have started undercutting and street prices have become cheaper. Three years ago an OZ was $350-$400, now its $250. The companies cannot compete with the black market due to the massive differences in overheads. Decimalization and allowing home growing is only way to remove this revenue stream from the ganga while at the same time provide access to those who need this medicine.

[@user-gu5mg9fb8u]

We have an opportunity to use our clean green reputation to put out products globally

[@DOCTRJ]

The crown ruins everything like how mini bikes are banned from council land just because someone got hurt once somewhere in the country. Britain made NZ soft we dont want to be like England we want to be the unique country we are under the surface, we are Kiwis!

[@tc6817]

How did England make NZ soft? We have been independent since 1947. This is all our own making.

[@user-gu5mg9fb8u]

​@tc6817 he is referencing the crown bro, don't be so smart you don't understand your fellow kiwis chir

[@tah6243]

I support the product and market development. I have personally experienced blocking by a GP. Not fair

[@selwyndyer8357]

What they planned on was the that the weed would passed into law for recreational use,what was passed in law was medicinal use only,iam, sceptical the law may have been manipulated.

[@eoinc9511]

NZ police will always tell you (off the record) that they don’t care about weed and only bust people to fill quotas. The only reason to bust operations is to deny gangs income, home growers are overwhelmingly left alone. But big business wants to make profits , just like the beer barons. So it’s still illegal unless you wear a suit and make big bank off it.

[@notbeefyproductions7109]

Homegrowers are not left alone and exempt,laws need to change

[@eoinc9511]

@@notbeefyproductions7109 they bust hardly any small home growers, and usually only those that are also dealing. They will bust them to fill quotas (a terrible practice) but talk to any of them and most will say they don’t consider home growing to be a problem.

[@sanbe729]

the key is specialist clinics.

[@vvwalker7261]

Too many puns! This is a sad story, hopefully the company makes it

[@D.Cooper420]

They've shut out the local market, trying to reinvent the wheel. They employ uni students instead of industry leaders. They're well known in the legacy market as a failure. That's what happens when you have all the gear but no idea.

[@22ony]

People want legal Gov is keeping market alive by pricing to high

[@jazminsky420]

Quality & strain is what was lacking price being cheaper wasn't because it was local or helping kiwis it was because it wasn't as good as medleaf Canadian options

[@markgaia1266]

Grow up Jazz

[@jazminsky420]

Grow up or grow op? 🤔

[@BigBoyGames-ke1hq]

The individual in question appears to have entered a market with which he is relatively unfamiliar. As we delve deeper into his approach, it becomes evident that he has encountered multiple challenges. His surprise at the duration of regulatory approval processes, coupled with difficulties in gaining prescription endorsements from doctors, suggests a lack of adequate preparation and risk management. Furthermore, his repeated references to Australia as a leading example indicate a reactive rather than proactive strategy. The fact that the business is only now starting to generate revenue-not profit-in what is already a mature CBD market is concerning. This interview was intended to portray the venture as a potentially viable investment. However, it is crucial to remember that the role of administrators is not to operate a business but to maximize the sell-on value to satisfy creditors and facilitate exits for those seeking them. This context raises serious questions about the long-term viability and strategic direction of the enterprise.

[@courtadbobtail600]

AI bot.

[@adamcooper553]

Definitely ai

[@gardenwaster]

Hope they find the help they need to turn the Company around.

[@e1ectroniKa]

He's well spoken. He shoulda gone on the marketing offensive to get more bit part investors, as he said very eloquently all the infrastructure took time, momey and gathered experience. Would be a shame to see it fizzle out, they would be in charge when we get this legalised. It only just wasnt, but every election or referedum more boomers cant vote

[@wayneblair3679]

Greed, pure greed, undercut the black-market, problem solved. The idiocrasy thinks nobody can see through the greed dribble

[@emmittrock]

Unfortunately these legal growers pay tens of thousands of dollars to be able to grow legally and get through all the red tape.

[@AMDG316]

Love and light to all involved ❤❤❤

[@michaelferguson651]

I had 5k in rua and canna. HAD!!!!

[@leangreenadventuresofasout7281]

Do you mean you invested 5k and now you get nothing back I'm young and don't really understand if in honest wouldn't mind some info so I understand from the people's view rather then googeing

[@michaelferguson651]

@leangreenadventuresofasout7281 if I was to invest again in near future it wouldn't be in the nzsx, i would back nz company's listed globally.

[@leangreenadventuresofasout7281]

So you lost money I'm guessing?

[@m1013828]

Very ouch

[@f8levo]

@@michaelferguson651 i have an opportunity for you - cash positive cannabis cultivator

[@myresponsesarelimited7895]

Tough break bro, boomer attitudes will be gone soon enough, hope you make it after putting in the hard yard's. Someone will swoop in.

[@AiriniSamuels]

Hi judgement on all boomers as lot of elderly have to deal with a orthodox medicine and side effects, they happy to use Medical medicine but costs are a problem so suggest next time You look at what you posting. One day You be a boomer

[@myresponsesarelimited7895]

@@AiriniSamuels you don't understand our economic history if you're arguing its not the bloomers who have indebted many generations to come, I suggest you do your homework so you won't come across as a boomer being a boomer apologist for boomer politicians. ...and no - I will always be a gen x, you should study how that works too, sorry for insulting your knowledge but it's bs and you started it, this could have been a cordial discussion 🤷‍♂️

[@AiriniSamuels]

@@myresponsesarelimited7895 Hi, my post was not about me arguing its not the boomer who have indebting generations to come. It was about grouping a section of people together in your comment " boomer attitudes will be gone soon enough" so clarify what were you meaning by that ? I think You and I coming from different perspectives. By the way i don't apologize for other people, they have to be accountable for their actions. And by the way i'm always open to a cordial discussion 👩‍🚀

[@myresponsesarelimited7895]

@@AiriniSamuels Boomer attitudes will definitely be gone, we all die, given the underlying economics behind Madisons podcast, the attitudes I was referring to are hard to post but I'll try...

[@myresponsesarelimited7895]

@@AiriniSamuels neolibralism

[@AndrewStokes-sk4oe]

It would be very different if you could buy cbd oil over the counter. you can only get on a prescription to the tune of $500 a bottle. you used to be able to buy it on line for a fraction of the price.

[@sanbe729]

laws changed recently making it a pharmacy medicine, meaning no need for prescription . but they are yet to approve the products or something, needs more framework.

[@matiu8451]

This is what happens when the legal cannabis is more expensive than the street cannabis.

[@notbeefyproductions7109]

Please New Zealand Decriminalise Cannabis!

[@notbeefyproductions7109]

The 2020 cannabis referendum narrowly failed, with 50.7% of voting New Zealanders voting against proposed legislation for the legalisation of recreational cannabis and 48.4% voting in favour. 0.9% of votes were unclear or incomplete.

[@notbeefyproductions7109]

Dangerous Drugs Act 1927 Needs to be Changed.

[@notbeefyproductions7109]

In a 2007/8 survey of those aged 16-64, Māori were the highest users (over a quarter), significantly higher than Europeans, twice as high as Pacific people and more than seven times as high as Asians (of whom less than 4% used cannabis).

[@julieharris8562]

Why should I buy your expensive product for my pain when I or people around me can grow it for free? This is NZ mate full of weed, more than you’ll ever make

[@AuthentikallyMe]

Says my imaginary White Widow Auto 😉😏

[@jameshammond2757]

Great interview.

[@neiljoy8465]

From the "Black Market" to the "Tax Market"

[@notbeefyproductions7109]

Decriminalise cannabis

[@Billabong42]

Grow Your Own Cannabis at home, we're a gardening nation! Legalise homegrown and gifting!

[@notbeefyproductions7109]

This I can get behind,Decriminalise Cannabis in New Zealand

[@kevinansley7353]

Match the street price, if its cheaper elsewhere guess who gets the customer.

[@michaelferguson651]

I read somewhere once that the U.s market alone had combined recreational and medicinal oversupply of in excess of 5000 pounds annually. If true its likely hard to compete in that kind of market and maintain price point to be profitable.

[@yota8325]

It's cheaper but also more dodgy

[@kevinansley7353]

@@yota8325 whats not dodgy about government supply of illegal drugs, its still illegal here, we had a referendum, remember.

[@TheAldawg77]

Tax probably makes that impossible

[@MissCook22]

The best things in life are free

[@1t0eknee]

oh dear! I am invested as well. Better go check lol

[@nightnursetaiaotoi]

Edibles is where its at

[@cameronlabone6050]

What a smart chat

[@bidbadgray]

Ever considered Ireland?

[@Kurrency-ArenaBreakout]

U use bitcoin to back it as it's not that it's illegal in a legal world it's simply cuts red tape and u own the asset

[@MissCook22]

Its not as expensive if you prioritise

[@AuthentikallyMe]

There's more than he's telling.

[@Johanna-iu6ly]

The govt would rather legalise meth

[@hearmenow909]

How can they be loss making? It's a license to print money.

[@m1013828]

oh my sweet summer child

[@yota8325]

It's not as simple as planting plants in your backyard

[@sanbe729]

they have to compete against global companies growing the best cannabis in the world. cannasouths products where not as good, so no one really wanted them because they could get better for the same price.

[@vinaty3354]

New? Minimum 2500 years old. And evidence to suggest 3 times that. Pandas eat bamboo........ Humans eat ....... Humans would still be in caves if it wasn't for this herb.

[@mandoleenebando429]

NZ chocking in every department 🤦🏿‍♂️🤦🏿‍♂️

[@karlmckinnell2635]

Grow your own 😊

[@notbeefyproductions7109]

and risk going to jail and being fined. Sucks but laws need to change,Decriminalise cannabis New Zealand.

[@MissCook22]

😊

[@Kalfie-yv2ni]

good!

[@courtadbobtail600]

Because?

[@2jzdemon]

Cause tools like him have flooded the market

[@bondithehun]

speculative scammers at its best, weed aint hard to grow

[@rugidrugs3673]

Great thanks 🙏🏽

[@ccgrowercpnz2993]

Grow your own folks

[@notbeefyproductions7109]

and risk going to jail and being fined. Sucks but laws need to change,Decriminalise cannabis New Zealand.

[@ccgrowercpnz2993]

@@notbeefyproductions7109 yes

[@user-ky9sr4bm1f]

Very good very dangous to your health !