 I'm Marsha Joyner, and this is Cannabis Quantum, a 10,000-year audience. Today, we're not going all the way back 10,000 years, which is what we do sometimes. But today, we are going to Charlotte, North Carolina, which is a long way from Hawaii. And just to be honest about that, trying to find North Carolina from here is quite a boy. However, with the magic of digital everything, we will visit with Rick Rainbolt. Rainbolt? Rick? Yes. Rick Rainbolt? Is that correct? Correct. Thank you. Okay. Rick has an interesting, interesting venture, and that is Camp Geo Institute, where he grows and teaches and all of those things about industrial hemp, which is what we need to learn about. So, Rick, tell us all about Rick. We only have a few minutes, but I'll just give you a 30-second background. In January of 2017 is when I founded the Camp Geo Institute here in North Carolina. Prior to that, I was a small investor in the cannabis industry for a couple years, and that's kind of what I started getting my introduction into the cannabis industry, building a lot of relationships, networking. And then in 216 North Carolina, we passed the laws, and we knew that 217 would be the first year that after more than 80 years, North Carolina could once again start growing industrial hemp. And so, I founded Camp Geo Institute in January of 2017, and we began our business by putting on educational supposions. And one of the things that we did that was a good move is we brought a whole lot of smart people in from Oregon and Colorado from the relationships that I had built in the previous two years, and they were the educators and the teachers at our supposion. And since then, we've had nine educational training programs around the country. And then in June of 2017, about six months after we started the company, we started our faulting division. And what we did, we partnered with people interested in getting into the on-the-grow side. We partnered with them to help them build grow operations, to help them become very successful. And from that point, June of 2017 until today, we've built 22 grow operations, and we have five under construction as we speak right now. So that's just kind of a little 30-second background of where we started and where we're at. Wow. Now, what do you mean by a grow operation? What is a grow operation? Well, there's a lot of ways to get into this industry. A lot of people assume the best way is to get into the growing side, but that's one path. I chose the educational path. There's such a huge thirst and a huge demand for education, and the demand way far exceeds what's available. Really good, good consultants that have long histories of success in growing this incredible beautiful plant. And, you know, but there's a lot of ways you can get into it. We chose the educational path to help those people that decided to get in on the grow side of this industry. So, once we decided to be on the educational, we wanted to niche, become a niche within the industry. And when people get into this industry and we consult with them, there's two sides of the coin we tell them that you can begin by getting involved on the biomass side. And look, let's break this first one, two, three. Let me go through one, two, three. If you get into this industry, you can get in on the fiber side. You can get in on the seed side. And seeds are, there's two categories under seed. So one is fiber. The next is seeds. Under seeds, you can get into the food like the hemp hearts, okay, or you can get in on the genetic side. That's where you're growing seeds. You're selling seeds to farmers to plant in the greenhouses or out in the fields. So we have the fiber. We have the seed. There's food and genetics under seed. And the third category is the CBD or the cannon. You know, growing for the oil, growing for the medicinal side of this industry. Well, the reality is the majority of the money, probably 99% of the people are jumping in on the cannabinoid side because that's where the money is. Right, of course. Yes. So for us, it was easy to choose, you know, we're going to go, we're going to go for oil, go on the cannabinoid side. Now, when you look at the cannabinoid, growing for oil, CBD, CBG, there's ADA, you know, there's a ton of cannabinoids in this incredible plant. So what we chose to do, we believe there's two sides of that coin. You can go in on the biomass side, or you can go into what we call a craft, op cut, grow operation. And I like to add one more word, organic craft, op cut, grow operation. So it's kind of like craft beer, okay? It's a smaller type of operation. And the reason we like that side is that to compete on the biomass side, it's just really going to be difficult for the little guy, the small guy. And I put myself in that little guy category, the small guy, competing against companies and organizations that have a billion dollars. We were in Oregon two weeks ago, and we spent a week, and we visited more than a dozen grow operations. And one guy, and he wasn't even considered to be the biggest, he was pretty big, but he had already invested up to the time of harvest this year for just this year's grow over $10 million. He's a biomass producer. Oh, that's biomass. Yes. Yeah, that's the biomass side. How do you compete with somebody that has enough money to do that? $10 million. Yes. Yeah. And he's not even considered to be one of the big ones. Oh my. So the big industry is really going to take over the biomass side. Okay. So those are the people that produce or jet fuel and No, the biomass is just high productions, CBD oils and isolates and things like that. It's just done on just a mass scale. Oh, it's the scale. Is that what you're saying? It's done on a mass scale. The quality isn't there. It's 99% is not organic, not even close. It's just a different beast. Well, now one of the things we have here in Hawaii is that beginning this year is a bill before the legislature that requires that everybody that's selling CBD has a certificate of purity and authenticity and all of those beautiful things. So we need to grow that will fit that bill. So like you're saying, if it's organic, if it begins at that level, then the producers won't have an issue with having certified really good seed. Is that I hope that's what I'm here in the big biomass growers, the states, which I hope they do exactly what you just said, they're going to really have a have a tough time to grow organically on large scale. It's just really, really a lot tougher. Well, we chose the craft op grow operation. I like that phrase reduce. Yes. Yeah, amazingly high, high, high quality. It's clean. It's pure. It's beautiful. And you build up a clientele base that trust your growers that are growing the best, the best. That's what that's our specialty. That's what HGI, Hinfield Institute, that's what we specialize in. And we fill 22 of those operations. And we have 500 construction as we speak. We believe that's longevity. And we have no gray line when it comes to growing organically, you know, growing cure. Our facilities are hygienical facilities. They're very, very clean. And I mean, think about this, you know, this oil you're producing could end up in a mother's four-year-old daughter that has 30, 40 seizures a month. And the whole family's desperate for answers. In your oil, they're looking for solutions. They've heard about, you know, cannabinoids and CBD. Why would you want to have introduced chemicals into that oil? Right. In that scenario. And who knows, maybe the issues were caused by chemicals in the first place. I don't know. By the way, that's a real story from a real friend. It is. It is. It is an issue. But now her daughter only has maybe one seizure a month once she's gotten really good. This is not the THC. This is strictly the CBD. Oh, no. We're not in the THC. No, I meant for your patient, your patient, your friend. Correct. Our whole industry, our whole company, we focus on, I mean, legally, it has to be in North Carolina in most states around the country. It has to be 0.3 THC or less. So on the industrial site. So when we begin with the seed that we know is pure and it doesn't have the THC. So then we begin at a good level. Is that? Yeah, the genetics is a big deal. It's also a big issue in the industry and the industrial hemp. Because it takes years and years and years and years to produce stable genetic. And then the other issue, I don't know if there might be some experienced growers on listening, but you have what's called a genotype and a phenotype. In a phenotype, if people could, or genotype, genotype, gene as in, think of gene as in genetics. That's the genetic. And you've heard of all different names of genetics. That's the genetics. Now, what's the difference between a genotype and a phenotype? Well, a phenotype is the actual genetic plus environment. And that equals phenotype. So for example, if I brought you the phenotype genetics, the seed, that worked really well in North Carolina environment, they would probably be a disaster in your environment. And vice versa. Yeah. Well, listen, we need to take a break for 60 seconds. And then I want you to explain exactly where you started going with what works in North Carolina and what may or may not work in Hawaii. Okay. We'll be right back. Aloha. My name is Victoria and I'm a host at The Adventures in Small Business. This is a collaboration between U.S. Small Business Administration, Hawaii District Office and its partners where we showcase the stories of local entrepreneurs and small businesses, talk about how to start a business, talk about great tips for small business owners. Please join us every Thursday, 11 a.m. at Think Tech, Hawaii. See you soon. Mahalo. Hello, I'm Mufi Hanuman. I want to tell you about a great show that appears on Think Tech, Hawaii. It's all about tourism. In fact, we call it Tourism 101, where we talk about the issues and challenges that faces our number one industry throughout the state. We'll have some interesting guests, very informative dialogue and allow you an opportunity to maybe learn a little bit more about why this industry is so important for our state. It's been great for us in the past. We need it today and especially going forward. That's Tourism 101 on Think Tech, Hawaii. Mahalo. Aloha. I'm Marcia Joyner and we're back. And we're talking to my new best friend. Now, you know I only talk to best friends. My new best friend, Rick Rainbow. I love that name, Rainbow. Anyway, he is in Charlotte, North Carolina. And he has Camp Geo Institute and they grow craft, organic. Did I get that right? Yeah, we had organic craft, which, op-cut means the best of the best. The best of the best. Okay. Yeah, the best of the best. Now you were beginning to tell us about the different climates and what works and what may or may not work. Yeah, I mean everything begins with the genetics. You know, it's garbage in, garbage out. You know, good in, good out. So, you could be the best girl in the world, but if your genetics are not great, you're not going to have great outcomes. And so, it all begins with the genetics. And it takes, it's going to take a while for the industrial industry and the cannabinoid by the oil side, the CBD side, in order to get what we call the phenotypes, the genetics plus the environment. And it's just going to take a while. And I was mentioned before the break that something that works really well in Colorado, Oregon, wouldn't work well here in North Carolina with our environment. And the same with you, Marcia, you were saying that even the different islands have different climates. They do, yes. And so this industry is new. It's beautiful. There's a tremendous amount of opportunity, but it's just going to take a few years for it to mature. Speaking of mature, how long does it take for one plant to grow? One, if I planted this row of hemp today, from today until it's ready for harvesting, how long would that take? You know, this industry will drive people nuts because the last questions, and there's never a simple answer. Okay. And anybody that's been in it know exactly what I'm talking about. But it could be three months. We have genetics that you can grow and harvest within eight, nine weeks, or it could be five months. But on average, I think a good one is, let's just say, three and a half months. Yeah. Well, because we have a year-round growing season, we don't have frost. Right. That's beautiful. So that would be about three months, you think? It just depends on the genotype. Yeah, three to four months. Three to four months, yes. Because, like I said, now with climate change, there's no telling what we're going to get. Yeah. There's just different growing, philosophy. Some people will, it's just different. It's never, but four months is a pretty good number. Three and a half, four months is a pretty good number, on average. Well, now tell me about the rainfall in your period. Do you get a lot? Do you get cold? Do you get a frost? Anything like that? Well, yeah, in North Carolina, I mean, today it was in the 60s, so we're pretty happy about that, but the biggest challenge in North Carolina growing outdoors. Now, our model is a combination that we teach our grow operations is indoor, a small indoor genetics operation, a genetics facility with light depth greenhouses, and those two components are working in harmony. They're working together, and growing outdoors for our clients is an option. And we tell them that you don't want to depend on the revenue, that potential revenue you can make out outdoor. If you do make, you know, hit a good one, it's like bonus money, because you just never know based on the weather. We had one of our growers this year got hit by one tornado and two downbursts. He had 4,200 plants, about four acres, wiped out 100% of his plants, wiped them all out. 100%. That means he lost. He lost. But yes, you did have some pretty bad hurricanes this year. Yeah, we've had hurricanes, wipe out farmers and grow flood the fields, kill the plants. The biggest problem in North Carolina for outdoor growing is the humidity, the heat humidity. You know, once it gets into the 90s, I mean, we're living with 90s for four months with high humidity, tropical humidity. And so you get mold, a lot of mold outdoor. And that's why some of the best flower that's coming out of North Carolina is coming from our MGO Institute, what we call master growers, we have a master grow program. And because it's a combination of indoor, like that greenhouse, where we can control the environments 100%. And we believe we're growing for high quality, like what we're talking, high quality, beautiful flowers for industrial hemp, that a combination of genetics facility and light depth greenhouses seems to be the trend across the country. It sounds safe also from creditors. It's real safe. And the biomass people, because of the way that is extracted, that material is extracted. Most of the producers don't care if it has mold or not. But you know, the difference is, outdoor, right now, there's a glut of biomass on the market, pretty much everywhere, every state that grew it this year. The prices are probably, gosh, today I heard $20 a pound, $40 a pound. Now, when the glut is over, decent quality will go up around the 40, 50, maybe $60 a pound. But we are getting for our clients, for our top cut, real clean, beautiful top cut, we get anywhere from the worst case scenarios, 250 a pound up to 600 a pound for our growth. And not only that, it's the productivity of the yield, of the oil yield. For example, if you're growing outdoor, most on average, you're going to be looking somewhere between 15 and 30, 35 grams of oil per pound. Our growers growing with the genetic facility in the White Gap greenhouse, we are averaging around 80 grams, 80, 90 grams per pound of fruit oil. So, my question to you is, how do you, do you just sell the seed, or do you actually extract the oil from the seed? Well, the oil, now there's hemp seed oil. That's oil that comes from the seed. So when you see hemp oil, that's oil that comes from the seed. The cannabinoid oil, the medicinal oil, comes from the flower, the cola, the bud. Okay. So what I'm asking is, do you, as a grower, do you take the seed and do you process it? Is what, whatever, where I was going with that? No, we grow, we have our genetics grown, we grow beautiful flowers, beautiful, you know, buds or colas, whatever you want to call them. And we sell that flower as smokable flower. Oh, you sell it as it is, and then somebody else extracts the oil? Well, the biggest craze, when you look around the hundreds of dispensaries just in North Carolina alone, 60% of the sales is from smokable flower. They're selling this just like you'd go into a dispensary in Colorado to buy marijuana in, you know, little nuggets in a jar. Right. Well, people are buying industrial hemp, DHC 0.3 or less. They're not, they're not vaping or smoking this to get high. They're vaping or smoking to get healthy. And instead of having to process into a pinch or some kind of oil product, they're vaping or smoking it. They're just buying the raw flower. The raw thing. Oh, yeah. This is like they buy marijuana. And that's, that's representing 60, 65% of the dispensary cells is just flower. And the whole cell, to those dispensaries, that's some decent stuff is all day long at $600. If you have anything even decent quality, you're getting $600 all day long, 600 a pound. And now they retail it, this is the bill right here, they retail at anywhere from $10, $17 a gram. Oh my. So let's look at $10. Let's look at that number, $10 a gram, 454 grams in a pound, 4500 a pound. So they're paying sick. And they're, they're bringing back into their coffers, 4500, they're netting $3,900 per pound. That's, that's the dispensary's net. Do you sell to the dispensaries? So our growers, yeah, that's, we have a, a distribution network that our growers can sell the flower. And then some of the flowers are processed for oil. Well, who does the processing into the tincture? Yeah, who does the processing for tinctures? Well, there's multiple extraction facilities in, in North Carolina and around the country. Do you have extraction facilities right now? I don't, I don't know. I, I'm sure we do. I bet, I bet there is. I'm sure we do. Somebody's making, somebody, somebody's doing it. But I don't know. See here, the pharmacies have to grow their own PHC. That's, it is a single from growth to processing to sale. The pharmacy has to do it. So that's my question is. Yeah, a vertical operation. That's the trend. That's, that's, that is the ultimate for getting a return on getting into this industry. If you're a grower, you grow it, you process it, you bottle it, and you sell it. There's no better way to make more money in this industry than having a vertical integrated type of this. That's the bomb. That's the way the laws had the pharmacies set up. I'm at the dispensary set up. Oh, I like it. I love it. Yeah, that's, that's what they have to do. So consequently, they have to hire people that do, to do the growth, you know, and from what I understand that once it's grown, then it has to go to C-Pill, which is the lab, to make sure there's no heavy metals and no crap in it, you know. Oh, I like, I like that. And then it comes back and then they can go to the next step and bottle it and sell it. Yeah. Yeah, unfortunately, most states don't have those type of registered standards, but HGI, we're pushing in North Carolina to, I mean, I never thought ever in my life that I would actually be working with the government to help increase regulations, you know, but we are pushing for more regulations here in North Carolina and that's those type of regulations that you spoke about, beautiful thing. Well, we are just about out of time. However, there's so much more that I want to ask you and so much more to cover. So you will promise me that you'll come back after the first of the year. Oh, let's do it. Okay, great. We could talk for two or three hours. Yes, please do. There's so much to learn. There's so much to learn. Yes. Thank you so much. It's been a pleasure meeting you. Aloha. My pleasure. And we'll see you next time.