Andrew Semple: Congrats on the Q3 results. I’ll also join the parade and say the state level data is much appreciated by us and I’m sure investors as well. Maybe turning attention first to Connecticut and the wholesale activity we’re seeing in that state. Could you maybe talk to the level of third-party stores that we’ve seen open this quarter and year-to-date and what your expectations are for maybe the next 6 to 12 months, a number of third-party stores you see coming down the pipeline there?
Darren Weiss: Yes. Thanks so much for the question, Andrew. This is Darren speaking. We’ve been really pleased with the progress of the social equity joint ventures opening up. We’ve had the opportunity to open 2 stores and have plans, as we’ve mentioned before, to open 4 more over the ensuing months and into next year. The pace has been relatively — I would say, relatively stable. We’re adding 5 or so doors on a monthly basis. Thus far, we expect that to accelerate into next year just as folks have been tied up in zoning, et cetera, it remains a very, very strong wholesale market for us. But as Brett mentioned, given capacities in the state. And given our store opening schedule, we intend to be putting more product onto our own shelves to make sure that we can the customers coming to our Zen Leaf stores, the best products in the market.
So it’s been a success story. We — it’s really an example of the power of bringing legacy operators and multistate operators into conjunction with one another. And we hope that other states like Maryland follow suit.
Andrew Semple: Great. That’s helpful. And maybe just expanding on launching products and brands. I hope I have these stats right. You launched over 100 new products this year, now representing over 40% of revenues. Given the success that you’re seeing with newly launched products and brands, do you think the consumer is looking for more variety and more innovation from cannabis companies such as yourselves? And are you planning to continue with new product launches, given the success you’ve seen with recent product and brand portfolio additions?
George Archos: Thanks for the question. I mean the consumer is always looking for new products, right? I mean, it’s an important part of the business. This is another business. So everyone likes variety. We’ve done a great job here at the company. The team has done an amazing job actually over the last couple of years of launching a variety of new products at different pricing categories, and they’ve done extremely well for us. Although the pace might slow down, we will continue to launch new products in various markets as we see fit. We’re following the data of what sells where, what sells best, and we’ll continue to have these launches and it’s an opportunity for us to continue to grow the business on the wholesale side. And the other part of that is the R&D. I mean we’ve done a significant amount of work on the R&D as far as growing new genetics, developing new items, and that will continue to ramp up over the next few years as well.
Brett Summerer: Yes, Andrew, the other thing I would add is it’s very much in line with our desire to maximize our vertical sell-through or vertical mix. And so to be able to compete not only on various price points, but on various categories and to be able to produce best-in-class products in each category. And of course, the gold standard category definition creating new categories enables us to continue to drive vertical mix and maintain price points in margin. So that’s very much part of the strategy. It’s one of the things that’s been — has enabled us to grow that vertical mix number so substantially over the course of the last year without sacrificing the top line.
Operator: Our next question comes from the line of Frederico Gomes with ATB CM.
Frederico Gomes: Just on your wholesale penetration in Illinois and New Jersey, the states, the new doors opening. Any color on how many doors you’re selling into and how much room you have there to sell more?
Brett Summerer: So we wouldn’t necessarily disclose exactly those numbers. But what I can say is in Illinois, we had a good lift in terms of sales as these stores are opening up and we’re seeing the wholesale increase, at least quarter-over-quarter, and I think that continues to evolve as we see how many more stores are continuing to open, but we also see that in New Jersey and the other markets as well. I think your guess is as good as mine in terms of what does that mean for New Jersey and Illinois and the other markets that we have there that are having those new store openings. But overall, we’re pretty happy with the increases, we are seeing it come through, and hopefully, it continues for a while now.
George Archos: And I would just add just to put a finer point on it, Frederico. We do sell into the overwhelming majority of doors in each of the markets that you’ve mentioned. And again, this is part of the benefit of having a wide variety of categories and a wide variety of price points, just given the spends for new stores as well as taking into account the demographics and being able to meet the consumers where they are. And so we continue, of course, to build and maintain relationships with social equity store owners prior to and of course, after opening and that’s very much part of the growth strategy.
Frederico Gomes: Then on your CBOE Canada listing, I know you mentioned some of the potential advantages there, and I know that the listing is very recent, but have you seen any increased investor interest based on that or some other — I guess, some other tangible advantages already playing out given Europe listing?
Aaron Miles: It’s still early, right, in the move. I think there’s kind of a combination of things with the HHS announcement and the move to the CBOE. We’ve definitely had more interest in communicating the story and talking about the industry in general. Again, as a reminder, the big part of this move or one of the biggest aspects of this move is the MSCI and FTSE eligibility. And we’re still kind of pointing towards that, which will really increase a lot of the touch points from larger institutions but it’s still early and still getting settled in. But so far, it’s been an extremely strong and powerful move for us, and we’re happy with where we’re at.
Operator: Our next question comes from the line of Matt Bottomley with Canaccord Genuity.
Matt Bottomley: Congrats on the strong quarter, particularly on the margin side of things. Just going through the new disclosures you put in on a state-by-state basis, no surprise that Florida, Illinois and New Jersey are leading positions for you guys. And you gave some forward-looking commentary, particularly for Q4 on New Jersey. I’m just wondering if you could share a little more color on your near-term expectations or maybe going into 2024 on Florida and Illinois, particularly on the retail pricing side. It’s a question I get inbounds on quite a bit with respect to what the dynamic is in Florida relative to volume growth in contrast to what you guys are seeing at the retail level on the pricing side of things?
Brett Summerer: Yes. So big picture, pricing stabilization to stable — continues to flatline, right? So we saw a significantly different pricing movements last year as the industry as a whole is starting to hemorrhage money on some instances, they’re starting to be a little more rational with their pricing, and that’s what’s driving the overall slowdown. We are continuing to see it in different markets. Obviously, Florida is a little bit unique in that Florida has higher margins than all the other states. Therefore, they have more room to fall before we get to the point where the other competitors in the state really need to dial back and be more rational on pricing. So what I would say is you should continue to see an overall slowdown and there’s more room in Florida than there is another states. So the likelihood is that they will see more price declines than anybody else, but I think that, again, applies to all the people in the space.
Matt Bottomley: Got it. Appreciate it. And then just more of a housekeeping item on my end we’re looking at sort of the adjusted EBITDA reconciliation, just given the magnitude of the increase, I’m just wondering if you can give us just a couple of points on. I think there’s a $6 million add back on other income. Is that just adding back an investment loss that I saw on the P&L in an associate? Or what’s the nature of that nugget? I think it’s the last line item in the reconciliation.
