Investing in Cannabis

For Investors Seeking Info About a New Multibillion Dollar Industry by Rubsun Ho(CEO of CrowdMatrix); The article originally appeared here

Fundamentals of Investing in Cannabis Recap

On April 20, 2018 (aka 4/20 day) Crowdmatrix organized a breakfast event entitled “The Fundamentals of Investing in Cannabis”, graciously hosted at the offices of Bennett Jones LLP. Over 150 people registered (with 50 more on the waitlist) to hear an expert group of speakers give their insight into the opportunities and challenges for investors in the burgeoning Canadian cannabis sector.

In case you missed it, we have summarized the event and the speakers’ insights in a separate Medium post.

MATCO CANNABIS INVESTMENT FUND

At our breakfast, Everett Knight, the portfolio manager for the Matco Cannabis Investment Fund gave a very compelling overview of the cannabis industry and the opportunities that lay ahead. He also provided a summary of Matco’s investment thesis in the space and described how they intend to build a diversified portfolio for the benefit of its investors:

  • half of the portfolio will target investments in public companies and half in private companies, to take advantage of favourable valuations among privates
  • private company investments should be 2–3 years from liquidity event with strong management teams, existing revenues and product traction
  • though it will invest in cultivation, the preference will be for ancillary businesses such as IP, distribution and testing

Click below for a video recording of his presentation:

Everett Knight reviews the history of the Canadian cannabis industry, explains how the industry will grow to over $20B and provides some insight into the multitude of business opportunities that will present themselves

A NEW E-MAG FOR THE INDUSTRY

A Rolling Guide to the Business of Cannabis
The Business of Cannabis website just launched their new e-magazine “Papers: A Rolling Guide to the Business of Cannabis” which is full of interesting stories, profiles and interviews from across the industry.

MEGA MERGER

Aurora Cannabis to buy rival MedReleaf in $3.2B record breaking deal
The major news over the last few weeks involved the biggest M&A deal ever in the cannabis industry, as Aurora Cannabis announced a $3.2B all stock offer for MedReleaf.

NOT SO MEGA BUT STILL INTERESTING MERGER

Pot firms merge in bet bundled services beat volume
Lost in the shadow of the Aurora deal was the announcement of another merger — this time four different companies (three of which are ancillary businesses) combining into TILT Holdings, with a planned post deal market cap of $500M.

SCIENTISTS ARE SOOOOO SMART

Everything you need to know about what pot does to you
And finally, a story on “Everything you need to know about what pot does to you”. Spoiler alert: it makes everything hilarious, it makes you crave junk food, and it screws up your memory (“Stoners don’t make for good eyewitnesses”).

UPCOMING CANNABIS EVENTS
For any of our readers located in the Toronto area, check out the below upcoming events.

The Entrepreneurship Society
The Future of the Cannabis Industry: Innovation & Investment Opportunities

The Entrepreneurship Society presents “The Future of the Cannabis Industry: Innovation and Investment Opportunities” on May 24, with an impressive lineup of participants that includes represenatives from Hiku Brands, TerrAscend, 48 North, Green Acre Capital, Weedbox and Globalive Capital. Rubsun Ho from Crowdmatrix will be moderating one of the panels. Information and tickets can be found here.


 

Dana Kulia