Hey everyone! Wanted to post something that applied to the entire industry. This report does a good job of explaining how entrepreneurs are raising capital. It also provides a good general view of the different sectors involved. “Its a zoomed out perspective” There are some other reports on the links below.
2015 Cultivation & Retail Sector Top Gainer Up 167.4%, but Cannabis Index Down 32.4% for 2015 (VIRIDIAN Capital Advisors)
This line from the key investment trends is interesting:
Additionally, we are seeing portfolio managers at large,
non-cannabis-related funds beginning to make personal investments in the industry
Reduction of the stigma of investing in this industry?
It looks like the Index Return Analysis p.3 said the monitoring is for companies worth 5 million or more. The capital markets activity p. 6 said companies are fund raising through private equity firms, angel investors, and venture capital firms. $257.9 million total amount raised in 2015, and 48.4 million raised by the cultivation retail sector. Also page 9 has a section about gradual increase in institutional investor exposure to market which is pretty cool. Hope to see one of these companies in the Fortune 500 list sometime soon!
Also when we look at many of these companies via yahoo finance it shows many have negative P/E ratios. This is one of the first things a investor will look at because price and earnings are critical. Below is a link explaining negative P/E ratios and their significance.