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PRIVATE EQUITY INVESTING
In Cannabis Industry Companies
Tue, Mar 31 @ 8:00 am - 5:00 pm
Savvy Cannabis Investors Predict
A Buying Window Is Arriving in 2020
Private Equity Investing in Cannabis Industry Companies
It’s easy to focus on not-so-good news – for example, in the cannabis industry, valuations have suffered in recent months.
But savvy cannabis investors point out that the good news about cannabis is pretty powerful. For example, their consensus is that the industry’s long-term prospects aren’t merely compelling but increasingly compelling.
What these investors say is that the rightsizing of the cannabis market is trending toward a buying window in 2020. Put differently, they argue that lower valuations have created an environment that favors value investors –
- Asset prices are low
- Competition for deal flow has slowed
- The industry’s maturity makes it easier to recognize market leaders
As a result, what value investors are thinking is that this new combination of variables is creating a near-perfect climate for investors who feel comfortable about assessing risks and identifying winners.
For those who sat out the first several innings due to cannabis euphoria, this may be the moment you’ve been waiting for to get involved in one of America’s fastest growing industries —
- Look at the size of the cannabis market. The legal cannabis industry’s economic impact in the U.S. was estimated at $20-to-23 billion last year. That impact could reach as high as $77 billion by 2022. In fact, 28% of alternative investment professionals in a recent poll cited cannabis as the industry with the best growth prospects!
- The complexity of the current patchwork of state, national, and international regulations, leaves plenty of mismatches where capital is needed. For instance, in states where legalization seems most likely, quick moving investors can buy agricultural real estate ahead of new zoning laws. And in states where cannabis is already legal, there are opportunities to buy distressed companies as the market consolidates or regulation becomes more stringent.
- Opportunities to do multi-state roll-ups for better exit multiples as more states legalize cannabis, e.g., SOL Global’s combination of cannabis operations in Michigan and Florida, with involvement from Merida Capital.
- Barriers such as “vice clauses” in fund documents that prevent generalist PE funds with pension fund backing from moving into this asset class.
Robert E. Hunt
Tuesday, March 31, 2020
8:00am – 5:00pm
Midtown Manhattan, NY
Register now to gain valuable insights as 20-plus speakers
assess the rapidly evolving outlook for private equity investing in cannabis industry companies
at The Capital Roundtable’s all-day conference
on Tuesday, March 31, in Midtown New York City.
Three Key Reasons Why You Should Join Us
1. Weigh your risk tolerance and time horizon to understand which cannabis-related sectors (“plant-touching” versus ancillary) are right for you.
2. Learn about the current status of international, national, and state-level regulation, and about where next opportunities are likely to come from.
3. Learn about the unique challenges of recruiting and managing talent in the industry.
- Valuation — what metrics to use and where to find comparables
- What to know about how federal bankruptcy laws may impact cannabis companies
- Buying minority stakes versus buyout
- Small and nimble versus market leader
- U.S. deals versus Canadian deals versus deals in the rest of the world
- Medicinal versus adult-use M&A
- Plant-touching versus ancillary investing
- Opportunities for roll-ups and PIPEs
- Most likely exit routes, from strategic bidder to buyout to Canadian IPO
- Using options and other M&A structures to lock in deals at a later date, contingent on U.S. federal legalization
- What to expect during DOJ antitrust review
- What lessons Canadian legalization offers, including for bankers
- Next opportunities in Europe and Latin America
- State-by-state analysis of the opportunity in the U.S.
- Characteristics of a solid management team in the regulated cannabis industry
- New technologies, such as online marketplaces like Leaflink so dispensaries can find product
- The likeliest LPs and lenders …
Recent Middle-Market Cannabis Deals
- Trivergance Investments bought a controlling interest in The Arcview Group, a famous cannabis industry investor network.
- Curaleaf Holdings agreed to buy Grassroots Holdings, a multi-state cannabis grower that had raised $90 million from undisclosed investors, for about $875 million in cash and stock.
- Jane Technologies, creator of an online cannabis marketplace, raised $21 million in Series B funding from Gotham Green Partners and Delta Emerald Ventures.
- Merida Capital became a significant investor in Gabriella’s Kitchen, a U.S.-focused consumer packaged goods company operating brands in the cannabis industry and in the mainstream grocery channel.
- Northern Swan Holdings, an investment firm focused on deals in the international cannabis industry, completed a $58 million Series D financing led by undisclosed global institutional investors.
- Demetrix, a biotechnology company focused on the production of cannabinoids, secured $50 million in Series A funding led by Tuatara Capital with participation from existing investor Horizons Ventures.
- Jushi Holdings accepted from Dalitso.$16 million in cash, stock, and convertible promissory notes
Rob Hunt is a founder of Linnaea Holdings, a private equity firm focused on rolling up California-based cannabis assets. Previously he was the founder of Shingle Hill, a boutique consultancy and market intelligence firm for the cannabis industry. He has more than 14 years of experience in cannabis as an attorney, consultant, operator, and investor. He has also launched other companies such as Tuatara Capital, the largest PE investor in Cannabis & Evergreen Garden Centers, which sold grow equipment to commercial cultivators. To date, Rob has exited seven cannabis-based investments.
This Capital Roundtable conference in midtown, New York City, is all-business, all-targeted, all-designed to be a completely focused day of practical information and revealing insights about cannabis industry companies. You’ll gain valuable insights from —
- Three informative panel discussions
- Two revealing keynote presentations
- Real-world perspectives from company investors
- Industry outlooks from noted sector experts
- War stories and lessons learned from experienced hands
- Robert E. Hunt, Principal, Linnaea Holdings
- Burt Alimansky, Chairman & CEO, The Capital Roundtable
Preliminary Speaker List
- Kaiya Bercow, Co-founder & Chief Executive Officer, Utopia Cannabis
- Nial DeMena, CEO, Manna Molecular Science LLC
- Harry DeMott, CEO, Proper
- Lincoln W. Eckhardt, Managing Director, FTI Consulting
- Christian Hageseth, Chairman & CEO, ONE Cannabis
- Matt Hawkins, Managing Partner, Entourage Effect Capital LLC
- Nanette Heide, Partner, Duane Morris LLP
- Matthew Karnes, Founder & Managing Partner, GreenWave Advisors LLC
- Shanel Lindsay, Founder & President, Ardent Cannabis
- Heather Quinn Molloy, Chief Strategy Officer, TerrAscend Corp.
- Jack Nichols, General Counsel & CCO, Harborside
- Evan Nison, Founder, NisonCo
- A. Clayton Perfall, Operating Executive, Tailwind Capital Group LLC
- Cavan Pohlschroeder, Principal, LB Equity
- Tahira Rehmatullah, President, T3 Ventures
- Michael D. Schwamm, Partner, Duane Morris LLP
- Jonathan Sherman, Partner & Chair–Cannabis Industry Group, Cassels
- Jeanne M. Sullivan, General Partner, The Arcview Group
- Tamara Totah, Managing Member, Flatiron Venture Partners
7:30am – 8:30am
Networking & Registration & Breakfast
8:30am – 9:00am
Welcoming Remarks & Audience Self-Introductions
9:00am – 9:30am
Conference Chair’s Introduction —
- Robert Hunt, Linnaea Holdings
9:30am – 10:00am
Interview Conversation (facilitated by Nanette Heide, Duane Morris)
10:00am – 10:45pm
Networking & Coffee
10:45am – 11:45pm
First Panel —
Due Diligence & Deal Structuring — Unique Challenges Cannabis Faces on the Road to Legality
11:45am – 12:30pm
Morning Conversation —
From Seed to Stalk — Growth of a Cannabis Company
12:30pm – 1:30pm
Networking & Luncheon
1:30pm – 2:15pm
Afternoon Conversation —
What’s Next for Investing in the Cannabis Industry? Expansion by Geography, By Market, & By Application?
2:15pm – 3:15pm
Second Panel —
Licensed Cannabis Businesses — From Agribusiness to Branding, What Investors Need to Know
3:15pm – 3:30pm
Networking & Dessert
3:30pm – 4:30pm
Third Panel —
Ancillary Cannabis Business Opportunities & Sectors — Where to Invest with Mitigated Risk
Networking & Adjournment
Space at this conference is limited, so register as soon as possible to assure yourself a seat. To avoid disappointment, please contact Chris Agar today to confirm your attendance at 212-832-7300 ext. 0 or email@example.com.
Please note that Capital Roundtable limits the number of registrants from a single firm to three.
Best Rate – Early Registration
Save $300 off the standard fee of $1,495 when you register by Friday, February 14. Just $1,195.
Save $200 of the standard fee! Register by Friday, March 6, and the fee for the conference is $1,295.
$1,495 increasing to $1,595 day of conference, space permitting.
$1095 each until Friday, March 6, when you register two or more people to attend from the same company. This rate increases to $1295 each after Friday, March 6.
You can pay by credit card (using the links above or below) or by check. Mail your check and business card to: New York Business Roundtable Inc., 747 Third Avenue, Suite 200, New York, NY 10017.
Can’t attend but want to hear the program? You can buy the audio package along with the handounts.
This event is sponsored by:
4 Front Holdings
ARCO Murray National Construction
Bespoke Capital Partners
Bessemer Trust Co.
Butzel Long PC
Caldwell Partners International
Cannabis Law Digest
Carter Morse & Goodrich
Corbin Capital Partners
Credit Suisse Group
Deloitte Corporate Finance
Flatiron Venture Partners
KCSA Strategic Communications
Kramer Levin Naftalis & Frankel
Leading Edge Expositions
Mana Supply Holdings
Marijuana Policy Project
Millstone Capital Advisors
National Cannabis Bar Association
National Cannabis Industry Association
New Maple Holdings
ONE Cannabis Group
Pernod Ricard USA
Pfizer Consumer Healthcare
PurpleRock Cannabis Partners
Seymour Asset Management
Software Guidance & Assistance
Surterra Holdings Inc.
Townhall Investment Research
TresVista Financial Services
TwinFocus Capital Partners
Universal Brand Ventures
Valuation Research Corporation
Viridian Capital Advisors