This is a question HighBridge hears frequently. Obviously, HighBridge is “bullish” on the Cannabis industry in general, and our company in particular!
Specific to HighBridge, the company is continually reviewing its progress, accomplishments and opportunities. This leads us to reconsider the overall valuation of the company, as well as what that looks like on a “per share” basis. With that in mind, HighBridge now considers itself to be out of the R&D phase and entering the Execution stage. This will soon be reflected in a higher per share valuation.*
As the industry moves closer to national legalization, it is clear that investment capital is being positioned to move into the cannabis arena. When that happens it will undoubtedly spur a huge growth in valuation for all cannabis and cannabis related companies.
Consider the following article from the March 5, 2020 Cannabis Investors Newsletter. Then ask yourself if the time is right for you to add HighBridge to your portfolio and investment strategy.
*For questions or more information, please contact HighBridge Investor Relations: firstname.lastname@example.org.
A New Surge of Cannabis Cash Is Ready to Be Spent
Institutional investors are ready to make their cannabis play…
Cannabis isn’t waiting for Wall Street. There is a wall of money building up, reaching billions of dollars. Corporations and private equity pros see the opportunity to mint incredible profits. And the last year made this opportunity five times bigger.
There are literally billions of dollars in cash sitting on balance sheets. Canopy Growth Corp. (NYSE: CGC) and Cronos Group Inc. (Nasdaq: CRON) alone have $4.4 billion in cash between them.
And another $2.8 billion sitting in newly formed companies specifically created to buy up cannabis companies. That $7.2 billion is enough to buy up almost every publicly traded cannabis company. In fact, it’ll cover the cost of about 80% of publicly-traded cannabis companies tracked in the NICILytics database.
So, the money is there – primed to buy up cannabis companies and assets.
As that wave scoops up cannabis stocks, anyone invested correctly in cannabis right now is perfectly positioned to ride this wave of capital to all-time highs, and beyond.
And at the Benzinga Cannabis Capital Conference in Miami last week, there was even more proof of players looking to make their move in cannabis…
New-Found Purchasing Power
For starters, the conference kicked off with a keynote address from former Canopy Growth CEO Bruce Linton. In his talk, he announced he’s launching a special purpose acquisition corporation (SPAC) called Collective Growth Corp. that’s already seeded with $150 million.
Now, SPACs are interesting vehicles. These are “blank check” companies, meaning they raise money with no real mandate.
They are mostly used for the specific purpose of funding acquisitions, and should the money not be invested usually within eighteen to twenty-four months, that money is returned to investors – sometimes with interest.
This latest SPAC from Bruce joins 11 other SPACs of which I’m aware.
Combined, these buy-up pools of money have $2.8 billion in purchasing power between them. And many of these SPACs are backed by venture capital funds, private equity firms, and investment banks.
Institutional Investors Look to Claim Their Stake
This was one of the first cannabis conferences where most of the investment bankers weren’t Canadian banks. Instead, traditional Wall Street bankers, some Americanbased boutique firms, and at least five other venture funds all looking for deals in private cannabis startups were there. And it’s no wonder – as our Cannabis Venture Syndicate members know, private investment deals have the potential to create life-changing profits.
This tells us that institutional investors in the United States are now looking hard at cannabis companies.
That means stock ownership will soon move into the hands of stronger, more strategically-oriented investors – and stock prices will make their way higher, properly reflecting a doubling of revenues and markedly-improved profitability.
U.S. Companies Plan to Expand Through Acquisition
Well-funded multi-state operators (MSOs), like Cresco Labs Inc. (OTC: CRLBF) with $200 million in credit lined up, are ready to take advantage of ground-floor stock prices and expand through careful acquisition.
In the cannabis industry, becoming a multi-state operator (MSO) is more important than ever.**
Another thing that struck me was how attendance was dominated by American multi-state operators rather than Canadian limited partnerships (LPs).
Companies like SLANG Worldwide Inc. (OTC: SLGWF) and privately-held Wana Brands seemed to have partnerships left and right, as everyone is looking to export their brand across the country.
Finally, the conference was twice as big as last year. That speaks to the fact that there is a lot of resilience among cannabis players and confidence in the year ahead.
** MSO is an integral part of the HighBridge Business Model. For additional information contact: email@example.com.