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Investment Landscape

Opportunities for Investment

Publicly Traded Stocks
Because cannabis is federally illegal, “plant touching” companies are precluded from listing on major US exchanges (NYSE and NASDAQ). Alternatively, the U.S. Multistate Operators (MSOs) have been able to access the public markets by listing on the Canadian Stock Exchange (CSE), which is much less restrictive than the NYSE, NASDAQ and Toronto Stock Exchange (TSE) but has a fraction of the trading volume.

U.S. based companies that list on the CSE are subject to International Financial Reporting Standards (IFRS), not U.S. Generally Accepted Accounting Principles (GAAP) which are the standards required by the Securities and Exchange Commission (SEC) for companies listed on the NYSE and NASDAQ.  In anticipation of the inevitable end to cannabis prohibition in the U.S., more US-based investors continue to deploy capital into many of the U.S. MSOs.  The SEC requires filing of audited financial statements, in accordance with GAAP, if more than 50% of the stakeholders are U.S.-based.  As such, many of the U.S. MSOs have made the conversion from IFRS to GAAP.

Please see the COMP TABLE for a listing of individual stocks.

Privately Held Companies
In our view, the main verticals of the cannabis ecosystem are 1) Research and Development 2) Cultivation 3) Processing/Manufacturing and 4) Distribution (These businesses require state issued licenses and requirements vary by state).  Ancillary businesses that support each of these verticals are indicated below.

RESEARCH AND DEVELOPMENT

CULTIVATION

  • AG Tech
  • Software and Technology
  • Real Estate

PROCESSING/MANUFACTURING

  • Software and Technology
  • Real Estate
  • Lab Testing
  • Product Development/Formulation

DISTRIBUTION (RETAIL/WHOLESALE) 

  • Consumption Devices
  • Software and Technology
  • Real Estate
  • Branding
  • Media/Marketing/Advertising

For further information contact us at info@greenwaveadvisors.com.

Venture Capital and Private Equity Funds
There are several, well established, Cannabis VC and PE Funds and others continue to emerge.

For further information contact us at info@greenwaveadvisors.com.

Cannabis ETFs
Cannabis ETFS provide investors with exposure to companies that engage in the cannabis eco- system that includes cultivation, processing/manufacturing and distribution.
 

Cannabis Licenses
Investing in a cannabis license can occur either by either winning approval for an initial license application or procurement in the secondary market. Each state’s licensing requirements differ.

For more information, contact us at info@greenwaveadvisors.com 

Contact Us

info@greenwaveadvisors.com