Todd Fromer, Managing Partner, KCSA Strategic Communications, a fully-integrated communications agency specializing in public relations, investor relations and social media, moderated a panel at last week’s Cannabis World Congress & Business Expo (CWCBExpo) at the Javits Center in New York City.
CWCBExpo is one of the largest business-to-business trade show events for the cannabis industry, with cannapreneurs, investors, media and other stakeholders from all over the country in attendance. The panel, “Cannabis and the Capital Markets”, was in the Banking & Finance track of the conference and featured industry leading executives: Nick Kovacevich, CEO of Kush Bottles, George Allen, President of Acreage Holdings and Todd Harrison, Chief Investment Officer of CB1 Capital Management.
“Cannabis is one of the fastest growing industries in the United States and the lack of access to traditional capital is a hurdle that even the savviest of executives find challenging,” said Mr. Fromer. “Our goal with this discussion was to understand how real-world cannabis companies are not only surviving in today’s highly-regulated environment, but are actually accessing the capital markets and thriving.”
The panel highlighted several key takeaways when it comes to investing in cannabis:
— As with any investment strategy, it’s important to diversify your holdings in cannabis
— To that end, investors should take note that cannabis is now a global market and investors should also consider emerging markets like Australia and Canada as well as the U.S. in order to create a broader cannabis portfolio.
— When it comes to cannabis, the healthcare implication is paramount. States start out with medicinal use and extend into adult use, but investors should educate themselves about the science of cannabis and consider its broader impact on the healthcare marketplace.
— U.S. valuations remain very attractive in part because of the federal schedule 1 status of cannabis.
“The prevailing opinion of the panel was that governance matters,” continued Mr. Fromer. “Looking at this era is similar to the beginning of the dotcom era and the telecommunications boom. There will be a lot more failures than there are successes, and it’ll be critical for investors to do their due diligence and understand who and what they’re investing in.”
About KCSA Strategic CommunicationsKCSA Strategic Communications is a fully-integrated communications agency specializing in public relations, investor relations, social media and marketing with expertise in financial and professional services, technology, healthcare, media, energy, cannabis and public services companies. Since 1969, the firm has demonstrated strategic thinking and program execution that drives results for its clients in the ever-changing communications and digital landscape. The firm’s clients are its best references. For more information on the KCSA Cannabis Practice or “The Green Rush,” the company’s 30-minute weekly podcast on the business of cannabis, please visit our website. Or find us on the following social channels:
Twitter: @KCSA_CannabisInstagram: @KCSA_Cannabis
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SOURCE KCSA Strategic Communications