All right. Good morning, everybody. Thank you for coming and joining us here today. Welcome to our Cannasouth Investor Call. My name is Mark Lucas. I'm the CEO of Cannasouth. This is the first time that we've hosted an investor call in this format. The purpose of today's call is to provide a bit of a general business update on Cannasouth, with a focus on our company strategy to drive sales of our recently verified products and to meet revenue and operating cash flow targets as we move into the commercialization phase of the business. For today's format, we expect the session to run for about 30 or 40 minutes, depending on how many questions we receive at the end. I'll start by giving a short presentation about the company and our recent business activity and current capital raising initiatives or offers that we have underway. Then I'm gonna introduce Stuart Roberts. He's the Managing Director and Research Analyst specializing in healthcare and biotechnology sectors. He's from Pitt Street Research, and he'll provide a review of the global medicinal cannabis industry and their view or his view of Cannasouth position within that. Stuart's then gonna ask me a series of questions, and then we're going to hop over to questions from guests online today. So I encourage you, please, to send your question through as soon as possible, using the chat function at the bottom of your screen, and this will allow us to group questions together and try and sort of answer them in a logical series. So I'll do my best to answer these questions as best I can. I'm only gonna talk about things that are in the public arena already. We are a listed company. There are also topics that I can't discuss because of various restrictions. For example, I can't talk specifically about our products that seen as promotion is prohibited under Section 29 of the Medicines Act. And also there are a range of topics that this is a highly competitive industry, and so there'll be some subjects that I won't... or topics that I won't be able to answer for commercial sensitivity reasons. So I'll now start with my presentation. So, Cannasouth is the first and largest, New Zealand, NZX-listed medicinal cannabis company. We listed in June 2019. We've been fortunate to have the support. I believe we have well over 20,000 shareholders. We operate a fully integrated biopharmaceutical operation, and our goal is to become a global biopharmaceutical business, with aspirations to reach a billion-dollar market cap. We operate now end-to-end GMP manufacturing facilities and capabilities, which give us the ability to manufacture a broad range of medicinal cannabis products from API, which are pharmaceutical ingredients, finished oil solution, so the actual oils and tinctures, and also the dried flower, GMP dried flower. So we're a fully vertical integration from seed to sale. So we operate, we have capabilities right through from broad acre outdoor growing of biomass for extraction, again, right through to dried flower, dried flower for use as a finished product, and we operate right through to a specialist online telehealth clinic. That clinic has a clinically independent team, so operates separately from us in that aspect, but it is part of our seed to sale, fully vertical integration strategy. So, it's one thing to enter the medicinal cannabis industry. There's been, over the development of this industry, there's been dozens of different companies that have entered the sector. Many have fallen away now due to the complexity of entering. Our strategy has always been, it's not only about entering the market, it's about finding a competitive advantage in what is a highly competitive space. But we've always had a view that you need to develop intellectual property to compete in this industry. And we've done that, and through the merger with Eqalis that we recently completed, we've added to our portfolio of technology so that we can actually be competitive in this industry. So we've got a series of innovative technology that we're utilizing now or are in continued development. We've got world-class people. The knowledge that's required to enter the sector is significant, and the facilities as well. This is a pharmaceutical industry with pharmaceutical operating standards. So we've collectively got world-class facilities right through from our manufacturer of finished products, through to our cultivation and dried flower cannabis manufacturing facility. We've got a comprehensive pipeline, so we've recently had our product verified and now on the market in New Zealand, and we have a product pipeline that we are now in the process of commercializing to make sure that we can maximize the opportunity that we've created with our position in the market. And for us, it's very important we've developed phased revenue horizons from the current products, which are sort of more in your generic me too category, right through to our next generation product, and then behind that, technologies that support the wider industry that we believe have global potential. So, for Cannasouth's journey to get to this position in the market has required significant investment, as I mentioned, in facilities. Developing GMP licensed facilities is a very expensive, complex, and time-consuming process. In New Zealand, once you have your GMP license to manufacture medicine, the next part of that process is actually to have your products verified with the Medicinal Cannabis Agency before they can be sold here in New Zealand. So recently, we've had our first CBD oral solution and dried cannabis flower products verified. They are now on market. We are the first company in New Zealand to commercialise fully end-to-end grown, dried New Zealand flower that's GMP processed here in New Zealand without requiring export and re-import. That puts us, we believe, at a competitive advantage. We're fully licensed through all of our facilities by the Medicinal Cannabis Agency, and as I say, we have those GMP licenses to manufacture medicines in place. So those GMP standards are global standards. They enable us to enter markets, rapidly growing markets like Australia and further afield into Europe, and Germany is a particular market of interest. So we find ourselves with quite a significant market opportunity ahead of us. When Cannasouth embarked on our journey, a lot of the focus was initially on the European markets. In the time that it's taken to us to develop our business, our capabilities, the Australasian markets have been growing significantly. New Zealand now is growing rapidly. Australia, it's estimated, is worth about AUD 260-odd million per annum at the moment, but they're seeing rapid growth over there. And in New Zealand, we're likewise seeing that rapid growth. Now, in New Zealand, it's very difficult to get metrics to actually accurately measure the size of the market. So Cannasouth has needed to assess the market through a range of sources, through industry contact, through pharmacies, through clinics, and through other suppliers into the market. But what we're seeing is a fairly consistent story that the growth is rapid, and we expect there is the potential for the current market size to grow to double over the next 12 months. Now, I think one of the things that's important to understand is that medicinal cannabis has been used widely for a long period of time, and the drive to actually have a legal medicinal cannabis scheme was patient-driven, and that's largely by patient that had been accessing these products from the black market. So it's estimated in New Zealand that there is that the cannabis market being illicit and legal sources is around NZD 1.5 billion per annum. There's different estimates on how much of that use is therapeutic. Some estimate range that at around 40% of people say that they use cannabis for therapeutic purposes. So if you use that as a rough guide to look at the inherent demand of even a small market like New Zealand, that's about NZD 600 million worth of market opportunity, with only a very, very small percentage of that coming from legal sources at the moment. The main barriers for legal access have been prescriber resistance and pricing. So specialist clinics now are making that prescriber access pathway more accessible for patients. Cannasouth has had a view that we need to ensure that the products can be as affordable as possible, and ultimately, in terms of price and quality, they need to better the black market to really get that market growing and to have patients then moving from illegal sources with limited or no quality control through to legal sources with clinical oversight and full pharmaceutical quality controls. So we have had a mission to reduce the cost, which we're doing by applying innovative technologies. We're doing that now. We also believe in the introduction of Generation Two products, so we're moving through a pipeline of products that look to improve the patient's experience. And Cannasouth is now, we believe, positioned to become the largest supplier of product to the New Zealand market because of our end-to-end capabilities and our cost of manufacturing technologies that underpin the business. So, moving from that, in terms of the financial outlook, how did that impact the business? So Cannasouth has recently put some revenue projections into the market. It's the first time that we have done that. So we have used a range of tools to put those estimates into the market. Bearing in mind, a lot of these sales will come from the Australasian market. Now, they're not necessarily fixed contract. These are actually selling direct into market using customers that we're engaged with and selling to now. Behind that, there are other sales for pharmaceutical ingredients and other products through into the Australasian market. So we've got a range of. And one of the benefits of merging with Eqalis was to increase our portfolio of products. That diversifies our revenue opportunities. It also diversifies the markets that we can enter into. So we've got a mix now of revenue streams that will make up those revenue projections. Again, our primary focus at the moment is maximizing our market opportunity in Australasia. And so New Zealand and Australia are a key focus. Beyond that, we'll be able to leverage that foundation to move through into wider markets such as Europe, with some of the contacts that we've already developed. Importantly, if we can reach these revenue targets, that that will position the business to be in a cash flow positive, operational cash flow positive position towards the end of 2024, and into early 2025, which is significant for the business. So to reach this goal, we need to make sure the business is fully funded. We need to make sure that we can maximize the opportunities that we've created. So we've currently got a couple of initiatives that are underway. We've got a rights issue that's open at the moment, and we've also got some convertible notes that are open to wholesale investors, and we can talk about some of the specifics of those, later on if there's any particular questions. We do have the rights issue of the document that's available on the NZX MAP platform at the moment, so I'd encourage you to read that. That will go into a lot more detail of some of the points that I've talked to here so far. But again, we need to really make sure that we can capitalize on our market position and drive these new products and revenue opportunities over the horizons that we've created. So ultimately, beyond our initial revenue products that are in market, again, we're looking at, you know, what is the future? What is the blue sky opportunity? So again, expanding into Australian and European markets with current and next-generation products. We've got an ASX dual listing plan for 2024. We want to advance some more of our IP portfolio, including some of the extraction technologies that we have in development. And we also want to continue to develop our Restore Me prescribing clinic as well. So that's a very high-level overview of some of our activities, and I think often in these sorts of sessions some of the questions probably provide as much value or interest for you all joining online today. So as far as I'm concerned, I just wanted to obviously acknowledge the shareholder support that we've had in the years of development, while it's taken us to get through this capability-building phase and into the commercialization phase. It's been significant support and it appreciated. We've definitely got ourselves in a, we believe, in a strong position now with the right strategy to maximize that position. That's our, a bit of our vision and, some of the potential I've touched on as well. So, we're going to have, as I say, some further conversation and some questions later. So I'd now like to introduce, Stuart Roberts from, Pitt Street Research. Stuart is the Managing Director of Pitt Street Research. His specialization in equity research in healthcare and biotechnology sectors. In September this year, Board of Cannasouth commissioned an issuer-sponsored research report, on the company from Pitt Street Research. This report is available on the website of Pitt Street Research, Cannasouth, and, on NZX.com under Cannasouth's announcements. I do need to state clearly that the views contained within this report are those of a third party and not Cannasouth. While Cannasouth has provided assistance and information to Pitt Street Research, the valuation, views, conclusions, and other opinions are those of the research analyst. So Stuart, if I can introduce you now, and I'll step back and look forward to hearing your thoughts. Wonderful. I'm, I'm online, right? Yes, you are. Right, you can hear me, great. Okay, thanks, Mark. Ladies and gentlemen, you have invested, or you're thinking about investing in a company that I think is equivalent to... I'll draw three parallels. The first is with the development of the hop venture kind of industry up in Motueka, in the top end of the South Island in New Zealand. Time was when New Zealand was only good for sheep. Then people discovered all sorts of things you could produce in New Zealand. One of them was hops up there. It's like investing in the Marlborough wine industry back in its formative years in the 1970s. And there are parallels as well to a2 Milk. No one believed that A2 Milk was a thing until suddenly in Australia people discovered what popularity that kind of product would generate, and the rest, as they say, is history. So with Cannasouth right now, you're investing in, I think, a pretty strong growth opportunity at a point where the market generally is not giving it much life. You wanna see what's happened to the global cannabis industry over the last decade or so? Google up the New Cannabis Ventures Global Cannabis Stock Index. It's a bit of a mouthful, but if you need more information, just get in touch. So this is an index of the cannabis industry for publicly traded companies tracked back to early in the 2000s. If you look at that, it's been a bear market for cannabis for the last, roughly three years. There's been four booms. One was in 2013, another in 2016, another in 2020. And we're in the bust that followed the 2020 boom at the moment. I predict another boom is coming, and I call it Cannabis 4.0. And what Cannabis 4.0 is all about is the rewriting of serious, generally integrated cannabis companies that are heavy on clinical data, product differentiation, and ultimately getting regulatory approvals for products. What's gonna drive Cannabis 4.0 is what you're seeing in New Zealand and Australia, a robust regulatory regime that doesn't put barriers in the way of patients accessing product, and where there's a good reimbursement mechanism. I'll illustrate the opportunity by talking about Australia. I'm from Sydney. I've got my New Zealand flag here, so think of me as one of you, but I'm based over here in Australia. I know this market reasonably well. Medicinal cannabis in Australia right now is a AUD 500 million market, and that's roughly around 500,000 patients who've accessed product in the last few years. The most surprising aspect of the cannabis industry in Australia is the speed with which patients are accessing product. We're talking double-digit growth every month, basically, in terms of new patients signing up through the special access schemes that we've had in place for several years over here. A recent study by the Lambert Institute of the University of Sydney showed that patients on average paid about AUD 80 a week to access their therapy. None of this stuff is reimbursed, but there's an adequate private pay market to foster a pretty robust opportunity here. And that's an environment where two-thirds of patients still choose to source their cannabis illicitly along the black market, in part because of problems they feel they have had in the past with patient access. Well, that's changing now because all the companies involved in the space are making access much, much easier through telehealth initiatives like what Cannasouth is doing with Restore Me, for example. And through other mechanisms, so patients can go to an authorized professional, explain what their symptoms are, and then get prescribed. Probably the biggest step forward was in 2020. The state of Queensland changed the regulations in that state, so any general practitioner was authorized to prescribe medicinal cannabis products. No surprises then, Queensland's leading the way in terms of patient access. I'm expecting the other jurisdictions around the country to follow suit. So that's the Australian scene. Australia is following a similar path to just about everyone around the world. The biggest disappointment in the cannabis game in the last few years is there's been no federal legislation that then legitimizes the medicinal cannabis industry. Cannabis is regulated on a state, state-by-state basis, but the industry has been constrained in the U.S. by federal regulations regarding narcotics, to the point where cannabis clinics actually have to get paid in cash, as... because they won't get banked by the regular banking system. Now, people have been looking for the Biden administration to provide some sort of arch or overarching regulation and then concomitant legislation that would then legitimizes cannabis at the federal level, the same way as you've had Canada federally legitimate for medicinal cannabis since about 2013. That hasn't happened. It might not be a top priority for the Biden administration. When it comes, I think that's a key catalyst for for Cannabis 4.0. Bring it back to Cannasouth, this great company. I've got to pay tribute to Mark Lucas. He's done an excellent job in terms of entrepreneuring this company up from startup, bringing it together with Eqalis, and now you're in an overwhelmingly dominant position in an emerging cannabis province, where everything is in place. You had the Ardern government work out the appropriate regulatory environment. I hear that you Kiwis are a little bit critical of the Ardern government these days. You've chosen to change government, but one of the achievements of the Ardern government was to actually put in place an arrangement where products could be legitimised, and there was a regulatory pathway. What you now benefit from is global supply and demand for actual product coming back into balance. Since the first boom, you've always had either too much product or too little, and we're moving into an environment where there's too little, which is actually good for Cannasouth in a double perspective. Not only is there supply and demand more in balance, but to import cannabis product into New Zealand, you've got to comply with New Zealand regulations, which are now quite strict. So the fruits of that is you've got a dominant product in an emerging market where the patients are knocking down themselves to get access to the product, and Cannasouth is there with their clinics to make it available. So you've got everything in place. The one thing we're waiting for is the turnaround in market sentiment. That index that I was talking about, the New Cannabis Ventures Index, was 14 points at the start of this year. It had dropped to seven by September. Briefly rallied in September when there was talk that possibly the Biden administration, at least at the regulatory front, would loosen up regulation of cannabis at a federal level. It's now gone back to seven again, so we're at a... We're still in the bear market phase for the stocks in the sector. But the reason for the opportunity being so good now is business has never been better. You talk to Mark Lucas, every aspect of his company, Cannasouth, is going great. It's just sentiment has been away from the sector. Keep in mind, markets generally have been down on small caps pretty much for two years. We're probably in the worst small cap bear market since 2002. But that all tells me that 2024 is gonna be a good year for this sector, you know, given these booms come around every few years, given that small caps are set to come back, and this valuable guidance that Cannasouth has been able to give about where they can expect to land, reasonably expect to land. You want some more background on that, take a look at our research. As Mark said, it's independent of anything he or his colleagues have shared with us. This was our work and our assumptions. We're bullish on the medicinal cannabis sector, but I think we applied some fairly conservative assumptions into our modeling of this company. So we recommend that to you. As I say, it's available on Cannasouth's website, as well as at NZX and our website, Pitt Street Research.com. Mark, I'll pause it there, but presumably you and I are on the hook for question time sooner rather than later. Yeah, that's right, Stuart. So, if you've got any questions that you'd like to ask, I think with your industry insight, it would be worthwhile, and then we can cross over to see what questions that we've got from online participants. All right. Well, so my first question is this, Chris Luxon is now the Prime Minister of New Zealand. Did he and the Nationals campaign on any cannabis-related issues in the election you've just had? And what kind of regulatory environment changes possibly are you expecting in the next parliamentary term? Yeah, that's a very good question. Obviously, it's a coalition, so they'll all have various, you know, different views on the sector. I think fundamentally, medicinal cannabis has enjoyed widespread public support for a very long time. The incoming Minister of Health is well-versed on this particular subject and I think broadly supports access to medicinal cannabis. So at this point in time, we haven't had any indications of any fundamental changes, but we're not sort of expecting anything too severe in terms of regulatory changes at this point in time. But as I say, it is at least comforting that the new Minister of Health or incoming Minister of Health is reasonably okay with this particular subject. Right. Now, the second question relates to cost. As I talked about before, a lot of patients complain they can't access cannabis cheaply, cannabis medicines cheaply. Now, you've got a lot of technology in the back end of your powerhouse. How are you applying that to be able to lower your overall cost of production for goods that you supply in New Zealand? Yeah, it's interesting, you know, although I can't go into specifics of price because of, you know, Section 29, you know, fundamentally, and this is again, one of the benefits or one of the reasons we merged with Eqalis, was a mindset there that they had understanding where we needed to get to one, be able to compete, but also, two, be able to reduce the cost. You know, I think we have to recognize that these products are not funded, so they're out-of-pocket, patients are having to pay the whole cost. And, you know, in a country where a lot of prescriptions are funded, you know, it does provide, you know, financial strain for people to afford these products. There is a limit with which we can go, of course, without funding support from the likes of PHARMAC, which is probably a wee way away. So we do our best to get the price, prices down as low as we can. Yeah, again, smart processing technologies, facility design. So with our cultivation facility for our dried flower, we spent a lot of time in the early phases looking at what types of facility would be able to produce the kind of quality that we need to operate in a pharmaceutical standard, but not necessarily doing the full indoor cultivation facility that, you know, are quite prevalent overseas. So, we believe we've got an advantage there, and in the processing technologies and the way that we approach processing and, extracting and producing the raw ingredients, which then fundamentally, affect the price of the finished product. So yeah, we're applying those now. You know, again, patients that are accessing these products in the New Zealand market will understand the pricing that we have in the market. Can't talk about that specifically, but, you know, we're still working on that. We still think that there is, you know, improvements to be made and, you know, we're really focused on patient access for sure. Right. Now, my third question relates to clinical data. Time was when the only thing that cannabis was good for, at least in the public's mind, was as a heavy-duty painkiller. Now, we all know that the uses of medicinal cannabis are legion in terms of where you could potentially apply them. And I've postulated in our research that the winners of Cannabis 4.0, this new boom I think we're going into, will be those with the most sophisticated data in serious medical conditions. What indications would you like to pursue with the products that you're bringing on the market, particularly the next generation ones you're working on? Yeah, that's a really good question, actually. So, you know, it's easy to sort of talk about clinical trials. They're very expensive. You've got to have an endpoint that has a reasonable chance of success, and you're competing with other pharmaceuticals that are existing in the market. So it's a minefield, that you need to head into very, very carefully. So, an area that we're quite interested in is the OTC, CBD space, or low-dose CBD products. In Australia, there is a bit of potential there. So the background of that, we believe, is having a product that has better bioavailability and then therefore, and then choosing the right clinical indication. But these are big programs, and so we... Starting with the drug delivery technology, we have a gel technology that we've got in development. Once that comes through the GMP pathway and we've got that commercialized, we will be looking for partners to take that into some specific areas that we believe there is potential in this OTC space. I'd be giving away too much if I started talking about what those clinical indications are. But yeah, it's something that we are focused on, but at the moment, for Cannasouth, it is getting revenue. It's making sure that we're in business, that the business is able to fund itself, and then we move into some of these blue sky areas. But, you know, we're very fortunate to have one of New Zealand's leading pharmaceutical development scientists on our team. He's led the development of our gel technology, and he has identified this pathway through. So. But again, in this industry, you know, even the GMP capability, every company talks about they're gonna be GMP, they're gonna be GMP, you know, and, you know, only a small number, relatively small in the global scheme of things, you know, get across that line. So you have to basically earn the right of entry. So for us, we've sort of, we're in the game now. Now, it's about taking some of these technologies and moving them through into some of that sort of. I, I agree with you. The real potential in this area is in some of this full clinical pathway, but easier said than done. Right. So one last question from me. We've talked about going after overseas markets, particularly in Europe, and you've cited Germany as a valuable market opportunity. Feels to me like you've made that less of a priority now than it might have been a couple of years ago. What's shaping your thinking on some of those overseas markets? Yeah, I mean, they're obviously all of these markets are highly competitive, and the regulatory barriers for export are significant, and each jurisdictions has its own nuances. And so as I mentioned earlier in my presentation, the growth of the Australasian market, and the similarities in particular of Australia and New Zealand, albeit some differences in how products are, you know, verified or who's responsible for maintaining or standing behind the quality. So the Australasian market is growing so quickly, and for us now, New Zealand, as I said before, is growing so significantly. And so when we can produce product that's verified by the Medicinal Cannabis Agency, essentially not requiring import/export certificates and, you know, additional time and money investment, we can put them straight to market. That's significant for us, that puts us at an advantage over importers. And then Australasia, again, both of these markets are dominated by imports currently, and there is a race, of course, from local manufacturers to get stood up and be operational and be competitive. So that process is still you know, happening in front of us. So now. And it's interesting in Australia, you know, the TGA is looking to enforce the GMP standards a lot more. In Australia, the importer or the sponsor is responsible for making sure that the products that they are distributing meet those GMP standards. So the TGA is sort of actively going around at the moment and trying to make sure that sponsors are in fact doing that, and, you know, there are fines being issued for various discretions at the moment. So that's an evolving landscape. So what we're seeing is customers in Australia now are really starting to look and understand who their suppliers are and trying to give themselves more comfort that those suppliers, in fact, are meeting the TGA's requirements, but it's complex. In New Zealand, of course, we've got the New Zealand Minimum Quality Standards, which means the agency themselves verify and look at that data. And so we've gone through that now. We understand that pathway. We've got a highly experienced regulatory and quality team, so that means as we bring new products to market, we know, you know, how to bring those products through in the fastest possible method. Right. Well, let's go to questions from everyone else, Mark, what do you say? But I just want to say, hats off to you and your team for what you've achieved. I'm reminded of McCashin, the man who created the brewery, down at Nelson. When he opened that brewery, I think I told you the story, Sir Robert Muldoon came down to open the product, and they offered him a McCashin's beer. And Sir Robert said, "Can I have a gin and tonic, please?" So, well, yeah, once you get this capital, raise a gin and tonic in honor of the next New Zealand success story, Cannasouth. Yeah, well, look, Stuart, it's obviously a team effort, and again, the shareholders have been a significant part in this. It's required a, you know, ongoing investment to get here. I think I touched on it again in my presentation. You know, people can see the opportunity of the sector, they can see what benefit these products are bringing to patients. And so, you know, the challenges from a manufacturer like us in getting to the patients is, you know, the regulators and prescribers, and those problems are starting to be sort of worked through now. But, you know, getting established has taken, you know, I guess, longer than you know, we would have hoped, but it's a process that you-- there's no shortcuts, there's no quick way through. You've got to do it properly. The regulators have their view of the world, and so it's been a mammoth effort. We talk about, you know, sprinting a marathon, and it really feels like that, but you have to sort of celebrate the milestones. And so for us, it's a true inflection point. You know, getting GMP was a massive milestone to reach, but the true milestone is actually having the products verified and in the market, and that's why it's such an important inflection point for this business as we move forward now. We're in the true commercialization phase. So yeah, thanks, Stuart. I appreciate that comment. All right, so, we've got, Nikki Mills here, our Head of Shared Services, and so she has got some questions on the screen, which she'll read out. Nikki? We do, Mark. We've had quite a few questions come through the chat function. Thanks, everybody online. It's a bit tricky for me to organize these. They're real big range of questions. Let's start with some of the ones maybe top of mind of people. In terms of the capital raise initiatives that we've got underway at the moment, the rights issue and for eligible investors, an equity offer, and also the convertible note, a specialized product offering that's open to wholesale investors. Is there a dollar target for the investment that Cannasouth is looking for at this time to support the business? ... And so, obviously both of those offers have maximum caps, and so it's unlikely that we'll reach the maximum of those combined. So I think between the two offers, we're confident that we will, you know, if we get shareholder support, that we will achieve the working capital that we need to fund the next phase of growth for the business. So we really just have to see how those offers play out. The convertible note offer itself can stay open for a period of time, but that's why it's important we have a range of initiatives or offers open now, so that we've got that ability to get the capital that we need to, you know, work through this next phase. Because, of course, at the same time now we're commercializing products, we've got revenue coming in the door. So, you know, all of those three things combined will, you know, need to provide us that working capital to help us commercialize the next phase of products and, yeah, maximize our market opportunity. Great. And, just to remind people of some of the principal terms of the convertible note, the term of 24 months, a drawdown fee of 3% and an interest rate of 15% per annum. One of the questions relates to the convertible note. Perhaps how did the company come up with that interest rate and, you know, how does that... Is it fair compared to the rights offer? Sure. Why did the company choose that? Sure. So the board had to consider what the key terms would be relative to what the market is at the moment. I think everybody's aware that we're in a high inflationary environment. Interest rates are up, and markets generally are reasonably subdued at the moment. So, the board sourced data points from a range of sources to make sure that we got an offer that we could actually attract the level of participation that's required. So yeah, the board took a view on that and, as I say, there's various factors at the moment which played into, you know, what that and why that interest rate was set as it is. Great. We have a question here relating to Cannasouth's share price, which has dropped significantly, particularly since the merger on the 1st of June. When do we expect to see an improvement in the overall share price? I'll answer that, Mark, if you don't mind. The global equities markets have been in terrible shape now since late 2021. And the big victims of that bear market have been small caps. We haven't seen a bearish environment like the one we're going through now since about 2002. And you're seeing it across a range of industries that I look at, particularly on ASX. So if there's been a decline since the Eqalis merger, that's just because global markets, from which New Zealand is not immune, have been suffering. We talked about interest rates a moment ago. We've been flagging that once interest rates have peaked in terms of the current tightening cycle and then begun to loosen a bit, and it's fair to say inflation is going down in most parts of the world at the moment, even in a God-forsaken place like Australia. Once that tightening loosens, then equities get to make a comeback, particularly small caps. So I think that's where we're coming from in terms of why the share price is down. But there's your opportunity. Cannabis has been in a bear market phase since 2020. I'm predicting Cannabis 4.0 is coming. The boom, that is. Yeah. Thanks, Stuart. Yeah, I mean, we're obviously disappointed with the share price. All we can do as a company, we can't directly control it. All we can do is say what we're going to do, and then do what we've said we're going to do, and hopefully that demonstrates to the market that we're delivering on, you know, those plans. And that's exactly what we're doing right now. And the purpose of these types of calls, et cetera, is to help people aware of what we are doing. You know, the level of... I mean, a lot of sunrise industries see the typical sort of development curve, where you get the, you know, the height of expectations and investment and companies getting established, and then there's a sort of a trough of disillusionment, I guess, as the actual commercialization phase takes longer than many people had hoped for. And then ultimately, the, you know, the winners start to emerge, the ones with the right strategies, the right capabilities. And I think you're starting to see that in Australia now. We're starting to see some of the Australian companies reporting some large revenue targets, and many of these companies are going from very, very low bases to large revenue amounts in a relatively short period of time. Now, that is not in isolation. Behind that, of course, was the significant investment to get them into that position. So, you know, all sunrise industries have these curves, and we believe that, yeah, again, the sector itself, there's been a lot of fatigue. And as Stuart points out, behind that is just the general investor sentiment out there. So there's a range of factors, but for us, it's focusing on saying what we're gonna do and then doing exactly that, and that's what we're focused on. Thanks, Mark. I have another question. For the mum and dad investor, retail investor, what will the planned ASX listing do for the value of our shares in the short term, in your view? So I can't sort of necessarily comment on what it's gonna do for the value of the shares. For us, especially being with ambitions to play a, you know, significant part in the Australasian industry, having access to the ASX provides the option for greater liquidity. And also, you know, the Australian markets, whether we like it or not, are more understanding of early-stage businesses and high-growth businesses. And so for Cannasouth, as I said before, we've got ambitions to be a billion-dollar company. So the question is, how are we gonna do that? So obviously, we need to have the right strategy, the right people, the right processes and technologies. But then ultimately, as we grow the business, you know, we are in the capital markets, and the ASX just gives us another opportunity to continue to grow the business with a broader shareholder base and increased liquidity. There's only one downside to coming to ASX. It means Mark Lucas coming over here and telling us how good the All Blacks are, which is gonna drive me mad. Yeah, well, let's keep my fingers crossed on that one, Stuart. Got a new coach next year, so looking forward to that. Okay, so a technical question here: Are the rights sellable on the share market? This renounceable rights offer, the rights will not be quoted on the NZX Main Board. So there's no established market for the rights. You may sell them privately, and if you find a buyer, you should contact Link Market Services and request a security renunciation form. So coming back, there's a couple of questions that are of a similar vein. Why keep relying on investor capital and not revenue generation? Why do you need so much cash to conduct sales activities, Mark? Yeah, so obviously, to stand these businesses up, is expensive. You have to stand them up and operate them, before the revenue starts. So we're in that revenue generation phase now, and as we've indicated, there, you know, there is, you know, good revenue ahead of us, but we're in that very, early phase. Our products have only just launched. So we have had to rely on shareholder support to make sure the business is funded. Obviously, the convertible note is not an equity instrument. As such, it's more of a debt instrument. But we need to explore a range of options to make sure the business is funded. But you know, it is a very... This is the pharmaceutical business. It is an expensive industry to enter, but, you know, on the flip side, we think the opportunities are significant as well. Okay, so getting into a few more specific questions here around areas of the business. One is about our online Restore Me clinic that we purchased as part of, well, as part of the merger with Eqalis in the middle of the year. Could you please provide more information around the online doctor clinic and product offering? This person feels that if there was more information, it could support the share price. And why is Restore Me tenth when Googled online? Well, you'd need to ask our, the SEO experts on why it's tenth when Googled online. I think the reality is, with a lot of those types of businesses, they require investment as well, which is, you know, I guess relates to the previous question. You know, each of these business units requires investment to perform at their best. So, in terms of where it sits on the Google rankings, et cetera... Now, what was the other part of that question? Sorry, Nikki, it was, the first part was- Yeah, just about the level of information provided around the online doctor and product offering. I guess there's limits on talking about our products, so we actually can't promote them. No, we can't talk about the product. I mean, Restore Me, I mean, if you go to restoreme.co.nz, you can find out about the platform itself. Again, it's clinically independent, so you'll need to go through a proper process. Doctors assess whether people fit and, you know, whether medicinal cannabis is suitable for them. So yeah, I'd encourage you to go and have a look at Restore Me, at the website. We try and make people aware that we've got Restore Me. You know, maybe we can probably do a little bit better at doing that as well. Okay, here's a question about product strategy. Is there an opportunity for Cannasouth licensing and selling products in New Zealand that have been accepted in the likes of Australia as a short-term revenue generation, and then replacing them with Cannasouth manufactured products down the line? Yeah, that's a really good question. So, our first products in the market were, in fact, imported products, Gen One products. We always had a view that we would transition to our own manufactured products, utilizing the next generation of technology. So we actively do consider those opportunities. The reality is, when importing product, you know, you will be operating at relatively low margins. So we have to, again, weigh up the use of capital. Is that the best use of our capital, or is it continuing to develop our own products? But it's always a bit of a balancing act. Got to recognize also that bringing products into New Zealand requires a full verification to New Zealand minimum quality standards, reasonably expensive process. So yeah, it is a balancing act, but it's something we definitely are considering and do consider. Okay, we're having a few more new questions come through. Here's a question around clinical trials and the like. What are the best sources of clinical data, and data in general, regarding all areas behind Cannasouth and patients and providers? Can you just- Um- ... repeat that question, Nikki? That- Yeah. I guess, for someone interested in clinical data behind our products that are available, is there any clinical data specific to our products, or where can they start researching? I guess that's quite a technical question. I'd encourage you, please, to just fire an email through to enquiries@cannasouth.co.nz, and we'll see what we can, what we can provide you on that one, but that is quite technical. ... Okay, I'm just, looking down at the most recent questions that have come in, Mark. Can Stuart please comment on the position of Cannasouth relative to or versus cannabis stocks listed on the ASX? Yeah. What I would say with that one is Cannasouth is in a great position because it's the dominant player in an important emerging market with 4 million people in it, namely New Zealand. So, it gets the chance to build its name as the best supplier of differentiated high-quality products in the New Zealand market, where the regulations were pioneered. I joked to you before about Sir Robert Muldoon opening the brewery in Nelson. The backstory there is that when McCashin decided to open his brewery, no new breweries had opened in New Zealand in 30 years. This was New Zealand was underperforming economically at the time. So, so some bureaucrat in Wellington had to figure out how you'd license a new brewery. The parallel here is that, Cannasouth has worked actively with the, regulators in New Zealand to work out the current, scheme whereby patients can access medicine. So they've shaped the regulations. They, well, they've played their part, along with others, in shaping the regulations, and therefore are in a position to really grow strongly in that market. So the answer to the question is, it's got a very strong, position in its, in its home market. In terms of other stocks on ASX, I draw your attention to a company based in Victoria called ECS Botanics, ASX ECS. So that company is now, a cash flow positive and growing quite strongly, and is therefore, attracting a lot of investor attention. Once, Mark Lucas and his colleagues have guided Cannasouth through this period where they're not cash positive yet, and we're getting close, as the company flagged in the presentation, it can benefit from the same sort of investor interest that ECS is enjoying. Yeah, that's a good summary, too. And I guess just while you were talking through that, Stuart, one thing I haven't mentioned in the presentation is that there are currently a series of regulatory changes that have been proposed that just need to pass through the political process and get fully implemented. And when they are implemented, they are going to make quite a positive impact on a business like Cannasouth. And there are other medicinal cannabis companies in New Zealand, of course, established, which is great. We need a strong industry here in New Zealand. But you know, fundamentally aimed at easing the export pathway for us as well, and so you know, that's come at the perfect time for us. I know it's not specifically related to that question, but I think it is an important, you know, an important process that's going on behind the scenes in regards to the actual regulations that support this industry. There you go. All right, anything else there, Nikki? Just finish up here with two last questions. How many shares are going to be issued for the rights issue offer? So the terms of the offer is 1 new share for every eight existing shares held on the record date. So that translates to just a little bit over 40 million shares if everybody was to take up their rights offer exercise their rights offer. There's maybe here a question you might not be able to answer, Mark: What is the standard market value for an ounce of flower? Do you want to comment at all generally about market prices, or is it- Yeah, it is difficult to comment without sort of branching into territory that we shouldn't go into. We're not allowed to go into. I mean, I think there's a lot of data out there in regards to... I think there's reports recently written on the black market and what pricing... If somebody wants to email us, we can probably find a link to that report that talks about black market pricing throughout New Zealand. I think if you've got access to a particular clinic or pharmacy, you can get details of the current pricing. Just on products, obviously, we're not allowed to mention our products, but the Medicinal Cannabis Agency themselves do list all the products that have been verified as meeting the New Zealand minimum quality standards, or at least the ones that suppliers have allowed them to list. So that's a good place to see what products are available. Talking to a prescriber or a pharmacist about pricing, and that's where you need to start there. But as I say, for us, it's really understanding where that inflection point is, what the black market pricing is, and making sure, you know, ultimately, that patients can access, you know, quality controlled product that is equal or better to quality at that inflection point. And we believe we're doing that right now, without going into specifics. Okay. Thank you, Mark. That's all the questions that have come in. Excellent. Well, look, I'd like to thank Stuart for joining us today. Thank you, Stuart, for your informative overview and analysis that you've completed on Cannasouth. I'd like to thank everybody that's chosen to join us here today, particularly shareholders that have joined us on this journey as we build Cannasouth into the future. Your support is greatly appreciated. We couldn't have built this business without our shareholders' support. Now we're in the commercialization phase. We'll be looking to update the market as often as we can with key metrics to enable you to understand our growth trajectory, and we look forward to sharing this next part of our journey with you all. So, thanks again. Enjoy your afternoon, and we look forward to sharing more news with you soon. Thank you. Thanks, Stuart. Thanks, everybody.