Aaron Hecht: Yeah.
John Mazarakis: We would like to see isolated transition from medical to recreational sales, adult use in certain markets. And the faster that happens, obviously, the better our position, the longer it takes, the more the concern and the risk. And those states would be Ohio, PA, the states are medical. They’re very conservative, very limited in license number, number of licenses. So that would be probably something we would like to see change. The SAFE Banking Act is a secondary concern for us. And then I would say a tertiary concern is how much higher the interest rates will rise. If the interest rates rise another 200 basis points, obviously we got — we’ve got a broader sort of bearish environment beyond cannabis that we’re going to have to deal with. Disposable income will crash, that’s just going to reverberate throughout the economies. So, we’re just trying to prepare and balance all these outcomes.
Aaron Hecht: Gotcha. Appreciate the responses, John.
John Mazarakis: Anytime. Thank you, Aaron.
Operator: Thank you. Our next question comes from Gaurav Mehta with EF Hutton. You may proceed.
Gaurav Mehta: Yeah. Thanks. Good morning. I wanted to maybe ask you about some of the headwinds that you talked about. And in that context, how should we think about loan deployment volume that you guys might see in 2023?
Phil Silveran: So, right now, in terms of the next quarter or quarter one and Q2, we’re planning between $20 million and $30 million. And again, I think the key for us from a capital perspective is to continue to work on building to grow the revolver. And that’s really where we expect the incremental growth to come from.
Gaurav Mehta: So $20 million to $30 million in gross or net originations?
Phil Silveran: $20 million to $30 million, that’s right.
Gaurav Mehta: Okay. And I guess, in terms of expanding credit line, how’s your conversation going with your lending partners, and do you expect any expansion this year?
Anthony Cappell: Hey, Gaurav. Yes. I mean, we’re continually out there in the market. We’re speaking with banks on a regular basis and we expect to be able to exercise the full accordion up to $125 million by the end of this year.
Gaurav Mehta: Okay. Thank you. That’s all I had.
Operator: Thank you. We’ll go to Mark Smith of Lake Street. You may proceed.
Mark Smith: Hi, guys. First off, just wanted to talk a little bit about geographies. You talked about some of the states that you’re more optimistic about. Maybe any call outs on states that currently maybe give you a little more stress than others where you’re currently operating?
John Mazarakis: I was actually — when I referred to PA, it was actually the main state that we are concerned with. In terms of states that we’re optimistic that I haven’t mentioned, Maryland. We’re extremely optimistic. We were actually growing our presence in Maryland and Missouri. Missouri has exceeded every expectation.
Mark Smith: Okay.
