On Monday (November 12), the first day of activities at the Arcview Investor Forum for cannabis investors kicked off in Las Vegas, and the Investing News Network (INN) was on the floor attending a variety of panel discussions.

In particular, one panel with Abner Kurtin, CEO of Ascend Wellness, gave a talk on where the real money is for investors. Kurtin, who joined the cannabis industry from a hedge fund background, said while investors are excited to capture the cannabis opportunity problems arise with such a specific focus.

“Historically when investors chase an industry opportunity, they lose all their money,” he said, pointing to investing failures such as online companies.

Kurtin explained no one really knows which companies today will become the next Google (NASDAQ:GOOGL).

Current market overview

When discussing Canadian licensed producers (LPs), which have dominated much of the conversation on public marijuana options, Kurtin said the valuations for these were “absurd.”

The executive compared Canadian LPs to disk drive manufacturers in the ‘80s, which he said got funded to obtain a 10 percent of the market share in the space.

“We’re going to fund infinite capital at a business and in a commodity agriculture product and it’s going to stay at $7 a gram and we’re all going to get rich. It does not work—ever.”

In a presenting slide on the Canadian market, Kurtin said it has too much capital and a population that can’t consume the amount of cannabis being produced.

Kurtin said the valuation seen for Tilray (NASDAQ:TLRY), while “crazy,” shows people want to be involved in the sector and will pay whatever price needed.

Alternatively, on US cannabis companies, the executive added he thinks they are fully valued.

Dangers of shorting

The executive went on to explain shorting cannabis stocks, a tactic that has become more popular with new research reports, is not the right answer at the moment.

In his view, US states legislation on cannabis will pass this year, which could cause a hit on short positions. Kurtin also said financial institutions such as Goldman Sachs are coming for the sector.

“This is a very dangerous time to be short,” he said.

Investor takeaway

Kurtin recommended integrated vertical business that operate on licenses and will be capable to have high volume retail.

The executive pointed investors to private US companies as the potential money makers to be driven into the public sector.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

 Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) announces that Philip Young, CEO and Director, and Maghsoud Dariani, Chief Science Officer will be presenting on Thursday, February 25th, 2021 at 5:45 pm EST at “The Gold Standard in Psychedelic Investment, Psychedelic Capital Virtual Investment Conference”, a platform showcasing the top companies, latest IPOs, newest opportunities, and deepest industry insights.

As a presenting sponsor, the Company will connect directly with some of the earliest moving investors in the psychedelic industry and reach an audience of 2,000+ investors. Presentations are 30 minutes in length, with 10 minutes allocated to a one-on-one Q&A session with the audience.

Keep reading... Show less

As Canadian operators race to strengthen their positions in the cannabis landscape, are international pursuits outside North America still top of mind?

The role that mergers and acquisitions (M&A) have played in the expansion of Canadian companies across the globe has been monumental for the growth of the cannabis industry. Now the space has reached a critical point as the demands of the US market increase.

Keep reading... Show less

It’s been just over a year since recreational cannabis was legalised in the Australian Capital Territory (ACT), home to the nation’s capital city of Canberra.

Announced on September 25, 2019, and brought into effect on January 31, 2020, the rules make it legal to possess and personally use small amounts of cannabis.

Keep reading... Show less

Pac Roots Cannabis Corp. (CSE: PACR) (“PacRoots” or the “Company”), announces the closing of its previously announced non-brokered private placement (see press release dated January 25, 2021).

Aggregate gross proceeds of $1,340,685.90 were raised through the issuance of 7,448,255 units (each a “Unit”). Each Unit consists of one common shares and one share purchase warrant. Each warrant is exercisable at a price of $0.30 per share until February 23, 2024.

Keep reading... Show less

 Trulieve Cannabis Corp. (“Trulieve” or the “Company”) (CSE: TRUL) (OTC: TCNNF), a leading and top-performing cannabis company in the United States will release its fourth quarter 2020 financial results on Tuesday, March 23, 2021 before markets open. Following the earnings release, management will host a conference call at 8:30 AM Eastern Time to review the financial results.

All interested parties can join the conference call by dialing 1-888-231-8191 or 1-647-427-7450, conference ID: 7066881. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until March 30, 2021 . To access the archived conference call, please dial 1-855-859-2056 and enter the encore code 7066881.

Keep reading... Show less