Renewed Interest in U.S. Cannabis Investment and 17 Stories from New Cannabis Ventures

This is a copy of the April 22nd, Sunday edition of our weekly Newsletter which we have been publishing since October, 2015.


We think that we are on the cusp of a major shift in sentiment in the United States with respect to investing into the cannabis industry, driven by likely federal policy changes. As we discussed in last week’s newsletter, the deal between Senator Cory Gardner and Donald Trump paves the way for a permanent solution to what has always been a temporary answer to how the federal government will handle the many complicated issues with respect to state-legal cannabis. While we aren’t expecting that the federal government will fully legalize cannabis as Canada is doing, we believe it will address some key issues that make it hard for cannabis operators to do business and that greatly limit the pool of investors to fund their operations, like taxation, research and banking. We suggested that the Canadian election of Justin Trudeau and the ensuing progress the country has made over the past 30 months with respect to capital raising and wealth creation could serve as a model for how a move to rational federal policy will play out here.

While the process is going to take some time to evolve, we saw many signs this week of an immediate shift in the way companies and investors are approaching the future. We published a story on a Canadian LP, Indiva, which trades on the TSXV and is not burdened by the rules the TSX imposes, taking a stake in Bhang. In an interview yesterday, Dr. Anthony Holler, the Chairman of CSE-listed Sunniva, stated that his company, which is developing a massive production facility in California, will now be more aggressive in the United States following recent events. Kush Bottles announced a more aggressive strategy to build market share. CannaRoyalty decided to buy its strategic partner, FloraCal. These are just some of the immediate changes we observed, and it’s been only a week.

Cannabis-focused funds have been slow to develop, but they are gaining traction and hitting critical mass, something that we feel will expedite investment into the industry, as many investors would like to participate but don’t have the capability or desire to necessarily conduct due diligence at the company-level. Additionally, traditional funds are likely to be more willing to make bets on ancillary companies, as we saw this week with Tiger Global taking a stake in Green Bits.

Where is the immediate opportunity? There are several multi-state operators, some public, some private and some about to transition to the public markets, including several that we feature on New Cannabis Ventures. If we are truly on the cusp of a more rational federal policy with respect to cannabis, this seems like a great time for investors to be learning more about the multi-state operators who have proven themselves thus far.

The most influential, award-winning cannabis trade show in the U.S. comes to San Jose to celebrate five years of bringing together the industry’s best and brightest minds. Network and learn alongside 6,000+ cannabis professionals in five purposefully-created tracks. Use code NCV15 to save 15%. Register today!

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

Turnkey Cannabis Processing Services
From licensing to manufacturing, XABIS has you covered.

To get real-time updates download our free mobile app for Android or Appledevices, 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, including insights into Canadian, American, German and Australian opportunities.

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

Get Our Sunday Newsletter