Large Check-Writers Emerge and 10 Stories from New Cannabis Ventures

This is a copy of the July 8th edition of our weekly Newsletter, which we have been publishing since October, 2015.


It has taken quite some time, but we are finally starting to see capital flow more efficiently into the private U.S. cannabis sector. This week, we learned that California-based Flow Kana, which is executing on a unique business model that helps the state’s craft cultivators distribute their product and deal with the intense regulatory burden they now face, raised $22 million. The lead investor, Gotham Green Partners, which invested $15 million, has been taking a more prominent role in the sector, having also recently invested $50 million into multi-state operator iAnthus (CSE: IAN) (OTC: ITHUF) after participating in a $10 million raise from GrowGeneration (OTC: GRWG). The firm, based in NYC, recapitalized Cronos Group in 2016 (then PharmaCan Capital) but has turned its attention to the U.S. market. It is also an investor in MedMen (CSE: MMEN) (OTC: MMNFF).

The Flow Kana deal included other investors that we are seeing show up increasingly in news releases about capital raises and which we include on our Cannabis Investors page, like Poseidon Asset and Salveo Capital. We have also profiled Merida Capital, which has invested in public companies GrowGeneration and Kush Bottles (OTC: KSHB) as well as several private companies, including California premium cultivator Canndescent, compliance software company Simplifya, testing lab company Steep Hill and others.

The development of larger funds that are capitalizing the industry benefits both investors and the companies raising capital. For accredited investors, having financial intermediaries allows them diversification and the ability to invest without the burden of extensive due diligence on each individual company. For the companies raising capital, these larger investment funds allow them to streamline the capital raising while still allowing private investors to participate.

Those who are not accredited  and able to invest in private funds can still invest in private companies through publicly-traded vehicles, but what we have seen so far exists in Canada exclusively. We are following two publicly-traded investment companies,Cannabis Growth Opportunity Corp (CSE: CGOC) (OTC: CWWBF)  and Quinsam Capital (CSE: QCA) (OTC: QCAAF), both of which make investments in private and public U.S cannabis companies (as well as Canadian companies).

We are quite pleased to see these developments and look forward to helping our readers learn more about the fund managers who are helping to capitalize the cannabis industry.

From the creators of Leafly comes a powerful cannabis data analytics platform — providing market, business and operational intelligence.

Headset is a data & analytics service provider for the cannabis industry, helping growers, processors, distributors and retailers make data driven business decisions. Headset analytics is based on real-time transaction data from retailers, tracking hundreds of thousands of cannabis products across thousands of brands.

To learn more, visit the company’s page on New Cannabis Ventures and click the green Get More Info button.

New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most interesting business content from this week:

To get real-time updates download our free mobile app for Android or Apple devices, like our Facebook page, or follow Alan on Twitter. Share and discover industry news with like-minded people on the largest cannabis investor and entrepreneur group on LinkedIn.

Use the suite of professionally managed NCV Cannabis Stock Indices to monitor the performance of publicly-traded cannabis companies within the day or over longer time-frames. In addition to the comprehensive Global Cannabis Stock Index, we offer a family of indices to track Canadian licensed producers.

View the Public Cannabis Company Revenue Tracker, which ranks the top revenue producing cannabis stocks that generate industry sales of more than $2.5m per quarter.

Consider subscribing to 420 Investor, Alan’s comprehensive stock due diligence platform since 2013 for more in-depth information and market intelligence about the publicly traded cannabis sector.

Discover your place in the cannabis industry by visiting our Careers and Jobs Page and learn which companies are hiring aggressively.


Alan & Joel

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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