Eric Des Lauriers: Yeah, absolutely. No, that all makes sense to me. I appreciate that color. And last topic from me here, just on the CREAM and FIRE strategy. It’s great to see the continued progress here. It’s been really impressive over the past year plus for you guys. I’m wondering — and this is a difficult question to answer, so apologies ahead of time here. But wondering — how much room you have for continued progress on some of these CREAM and FIRE KPIs without major CapEx improvement? I’m just wondering how much room you have to run. And obviously, we’re dealing with a handful of KPIs here. So again, a bit of a difficult question to answer. But I’m essentially just wondering how much room you have for continued improvement without major CapEx, as discussed.
And then obviously, factoring in these potential substantial legal proceeds, I’m just wondering how that may change or how your overall CapEx plans could change for your preparation for adult-use sales in Minnesota? Thanks.
Josh Rosen: Yeah, you started with the premise with, it’s going to be a challenging question. So I immediately think that I need to hand this one over to Amber. But before I do that, I think, stepping back to the — you had a comment there about the legal process that we’re through. And I will tell you, from a planning standpoint, we don’t plan anything from the legal side. We’re managing it in a scrappy fashion from a spending standpoint, but we could see that taking a very unpredictable amount of time. And so it’s not — we’re not calibrated to that relative to how we’re planning our CapEx, for instance. I think broadly speaking — and I’ll open it up to Amber if she has anything else to add. I think it is just a nuanced question.
Where I still see the most room for the infrastructure we have today is on the manufacturing side, a little — even more so than the flower side. I think we’ve got a lot of room for throughput improvements, particularly as we look to [indiscernible] in Minnesota for adult use, where those productivity enhancement is one of the things that we saw worked really well in their own productivity enhancements. increased capacity at a time when the market’s supply-constrained. And so we are not — we’ve been putting effort into it. But if you think about how the Minnesota market works in a relatively, I’ll call it, somewhat constrained medical environment, we can produce more than we can tell today with what we have. And so as we look at optimizing those dynamics ahead of adult use, I think there’s room.
Not to say there’s not more room on flower as well, but I just — it’s one of the places that we immediately put a lot of focus. And I think there’s additional room there, which would translate really well to — there’s really meaningful incremental margins attached to being more productive. Amber, any color that you want to add to that?
Amber Shimpa: Yeah. Thanks, Josh. So in addition to incremental improvements we’ve been making in cultivation over the last year-plus in our year of CREAM and FIRE, we still have a bit to do there. We have seasonality in our growth in Minnesota and Maryland, in particular, always looking to get better. And we have been there. I think we’ve got a bit of room there. As Josh mentioned, a nod towards, though, on the manufacturing side continuing to optimize, whether it’s leaning into optimizing our people resourcing or through CapEx improvements in equipment. Minnesota is a market that’s been highly medical. There aren’t concentrates available in the state today. So there are improvements in optimization we want to do on the manufacturing side of the business, which will not only increase throughput, but also bring new products to market if and when available.
Eric Des Lauriers: Very helpful. Appreciate you taking my questions. Thanks.
Operator: Your next question comes from the line of Howard Penney of Hedgeye.
Howard Penney: Hi. Thanks very much for the question. Two questions, if you don’t mind. First, the thoughts on the rollout of adult use in Minnesota and the timing of that. And then second, I assume if the Canadian analysts haven’t reached out to you, then representatives of Verano haven’t reached out for settlement talks either. Thank you.
Josh Rosen: Yeah, I mean, fair comment at this juncture. Very, very early on the second point of that. The first piece — at this point, that we have nothing incremental. Sessions — legislative session’s still ongoing in Minnesota. And so at this juncture, we’re still anticipating a — we refer to it as a March 2025 launch and have no indication otherwise.
Operator: Your next question comes from the line of Mike Regan of Excelsior.
Mike Regan: Hey, everyone. Thanks for asking — letting me ask a question, although Eric asked pretty much all my questions exactly. Quickly, it sounded like in the comments that the — with Verano, it could go to trial. But it may not be — at least in your ideal mind, I guess, how do you see this potentially playing out, either you go to trial or potentially there’s a settlement with Verano?
Josh Rosen: I mean, ultimately — I mean, I think for those — and I’ve been around this industry for a while. For those that know me, I’m wired to find win-win solutions. This is not one of those situations that I’m cheerleading for a win-win solution. But ultimately, yeah, we would engage in conversations at the right time. But I think that at this juncture, we’re expecting that we’ve got to take this to trial. We’re hopeful — we’re hoping that it happened in some reform. We think the evidence, the facts that we put forward largely speak for themselves. They entirely speak for themselves. And so we’re, I call it, optimistic on that front, but by no means expecting that. And if we have to take it to full trial, we’ll take it to a full trial.
