As the cannabis industry continues its growth path, a new question about the type of investor for the marketplace has appeared.
The marijuana public sector has been lifted thanks in part to the bets from retail investors who are sure their exposure would pay off in the long or short term.
The promise of institutional money coming into the sector has executives and observers of the industry excited for the size of investors looking to enter this area.
Institutional investors are categorized as associations representing a larger group of investors to gain exposure and place bets in more secure industries that will guarantee returns for investors.
The idea of institutional investors entering the cannabis space has been discussed in the past but, as the industry seems to be reaching new heights of legitimacy, the potential for this is becoming reality.
“A big indication of the marijuana stocks two years ago and a year ago was it was all retail and now we are at a quarter or more institutional,” Linton said.
Richard Carleton, CEO of the Canadian Securities Exchange (CSE), told the Investing News Network (INN) more companies are reaching higher type of listing deals requiring investors with deeper pockets.
“If we’re talking about the upper reaches of the US market, that’s still maybe not an enormous number but it’s hard to raise C$520 million dollars from a retail audience,” Carleton said.
Curaleaf made its debut on the CSE in October after closing its deal with financial institutions adept in cannabis investing.
Carleton said the CSE was informed Curaleaf’s offering involved over 100 institutions in the financing.
“If I had to hazard a guess the investment performance of course, of the sector over the last couple of years has probably been a big factor in changing people’s minds,” Carleton said.
Some experts disagree with the imminent arrival of these bigger investors into the cannabis scene.
When asked if more institutional money will be moving into the marijuana scene as a whole Troy Dayton, CEO of the Arcview Investor Group, said calling the current sizeable investor-base of the sector institutional is a bit of a stretch.
“The big pension funds and big multi-billion dollar funds are not getting into the space yet,” Dayton told INN during the Arcview Investor Forum in Las Vegas, a retreat for cannabis investors.
The executive admitted there has been an increase in the size of the people getting in and “size of the cheques that they are writing.” But, he warned the industry has seen nothing yet.
Following her panel at the MJBizCon in Las Vegas Codie Sanchez an investor and partner with CS Ventures, told INN she has a hard time understanding why institutional investors haven’t fully entered the space yet.
Sanchez has a background of working with institutions on investment decisions and the overall market approach.
She said private players, such as venture capital and private equity firms, might make more of a move on the US focussed cannabis space within the next two to three years.
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.
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).