Risk & Reward: Strategic Cannabis Investments in a Tight Capital Market

Описание: Recorded October 14, 2024

Panel 5 – Risk & Reward: Strategic Cannabis Investments in a Tight Capital Market

Brett Finkelstein, Founder, Skyvest Partners
Adam Grossman, Founder, Grossman Capital
Peter Rosenberg, Investment Banker
S. Kyle Shenfeld, CEO, Rainbow Realty Group
Ari Galperin, Vice President of Business Development, Salt Cash Finance

Can each of you talk about your fund, strategy, sub-sectors invested in etc
• Cannabis stocks have been beaten down – have private valuations (your respective fund portfolios) been marked down commensurate with the public markets? What is the basis/methodology?
• Are any of your portfolio companies at or near a funding gap? How have you dealt with additional funding requirements – has it been across the capital structure?
• In what businesses (plant touching or ancillary) would you put new money to work?
• What is the single most important criteria that you look for when evaluating an investment opportunity?
• In the early days , the number one concern among investors was that the fed would shut down the industry. Clearly, that’s not going happen so today what would you consider the most significant risk factor for investing in U.S. Cannabis?
• Europe is about 5 years behind the U.S. in terms of cannabis reform. Are there any lessons learned from your experience investing in the U.S. that will enable you to make a better informed decision as you contemplate investing overseas?
• What will the industry look like once prohibition ends?
• There have been a number of restatements of quarterly and annual results by some of the MSOs. How then are you able to gain comfort in the financial results reported by your portfolio companies given the companies are mostly private with unaudited financials?
• What would 2014 "you" advise 2024 "you" about investing in cannabis? What has caught you off guard and what has have you welcomed unexpectedly?
• All eyes on Florida. Please add to the conversation on who is the big winners & where opportunities lie.
• Let’s hit on S3, Safe Banking, 280E—what does the industry look like if these things happen.
•While some investors prefer to be hands-off, others seek an active role. What is your expected level of involvement after you invest?
Cannabis is still in the infancy. Investors should offer more than just funds.
•What value do they bring beyond capital?
•What is the typical check size of their investments?
•Would they lead a round of investment?
•What is your investment timeline and exit strategy preferences?
•How do you handle potential conflicts with founders?
•What are your expectations regarding returns timescales?
•Do you have specific expectations on board representation?
•How do you approach valuation and deal terms?
•Are you open to follow-on investments?