As the Cannabis Growth Fund made its debut in the public market last Tuesday (February 26), the Investing News Network (INN) caught up with its portfolio manager Korey Bauer, a managing director with Foothill Capital Management.
For the fund, Bauer said it will focus on the long-term growth potential in a company, the branding abilities and the current market exposure.
The portfolio manager also highlighted taking a more critical look at the management team of a company, saying with the increasing costs these companies are incurring, it is “absolutely crucial” to study the leaders of a marijuana firm.
“In the next six-to-12 months, we’re going to start to see a breakaway between the leaders and the laggers,” Bauer said regarding Canadian firms.
In the Canadian cannabis market, 2019 will potentially mark the legalization and opening of the edibles and infused products space.
Recently, Bill Blair, Minister of the Cannabis Act, told Bloomberg the legalization in paper of edibles, doesn’t mean sales will start right away.
The Canadian government has until October 17, 2019 to legalize these products.
Bauer said the roll out of edibles will be “crucial” for the development of the market and to see the split between Canadian firms in control of the market, and those struggling to break through.
The Cannabis Growth Fund will not add any companies in the US dealing with the cannabis plant directly, according to Bauer, leaving the popular multi-state operators out of the investment picture.
“With some of these multi-state operators, no question they are taking up some quite a bit of market share pretty quickly,” he said. “I do think that’s going to make it a little bit more challenging for some of these Canadian companies to breach into the US.”
The initial holdings for the fund were not disclosed, but Bauer told INN the full list would be shared in a month or two.
According to the prospectus for the fund, Foothill Capital Management is expecting for “a large number” of the fund’s holdings to be Canadian companies.
Bauer said he expects to see pressure rise for Canadian companies focussed on pure producer plays in the market.
In terms of the upcoming cannabidiol (CBD) play in the US thanks to the legalization of hemp, Bauer told INN he expects the craze for this market to settle with sensible regulations from the US Food and Drug Administration in the near future.
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.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in contributed article. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
CanBud Distribution Corporation Closes 2M Second and Final Tranche of its Oversubscribed Private Placement Offering
CanBud Distribution Corporation (CSE: CBDX) (FSE: CD0) (“CanBud” or the “Corporation”) is pleased to announce that it has closed the final tranche of its oversubscribed non-brokered private placement for aggregate gross proceeds of approximately $4,730,000 (the “Offering”).
The Corporation issued a combined total of 39,409,346 units (each a “Unit“) at price of $0.12 per Unit, with each Unit comprised of one common share in the capital of the Corporation (each a “Common Share“) and one common share purchase warrant (each a “Warrant“). Each Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.22 within 24 months of the closing of the Offering (the “Warrant Term“), provided, however that if the closing price of the Common Shares on the Canadian Securities Exchange (the “CSE“) (or any such other stock exchange in Canada as the Common Shares may trade at the applicable time) is $0.25 or greater per Common Share for a period of five (5) consecutive trading days at any time after the closing date of the Offering, the Corporation may accelerate the Warrant Term such that the Warrants shall expire on the date which is 30 days following the date a press release is issued by the Corporation announcing the reduced warrant terms.
Thoughtful Brands Inc. (CSE:TBI)(FSE:1WZ1)(OTCQB:PEMTF) (the “Company” or “Thoughtful Brands) announces that the letter of intent with Franchise Cannabis Corp. (“FCC”), previously announced in January, has been terminated. The previously announced European joint venture with FCC will continue and allow the Company to launch and tailor its products to European consumer demands
In connection with termination of the merger transaction with FCC, the Company has agreed to pay FCC $100,000 in cash and to issue FCC 5,000,000 common shares of the Company at a deemed value of $0.05 per share. The common shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.
Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value
Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).
Seattle Area Grocery Chain Metropolitan Market to Begin Carrying KOIOS and Fit Soda on March 22, 2021
Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.
Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.