Are Investors Ready For Legal Cannabis? (Podcast)

May 26, 2021 7:45 AM ETMJ, TCNNF, HRVSF, YOLO, POTX, THCX, MAPS, CNBS, SHWZ, GRAMF, TOKE, VICE, GLASF, MJO, MSOS, HMLSD, HMMJ:CA4 Comments

Summary

  • Are investors ready for the next leg of cannabis legalization and what it does to cannabis companies?
  • That's a question asked by Mike Regan and Colin Ferrian who run MJResearchCo, which provides rigorous investment analysis of the legal cannabis industry.
  • We also discuss the Trulieve/Harvest deal, various players set on dominating California, and what makes a strong operator.

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Mike Regan, who came on the podcast last year when he was writing for MJBizDaily, joins us again today with his partner Colin Ferrian. Colin began in investment banking, started on the buyside and then moved into the operations side of cannabis to develop more empathy for his analysis. He heard Mike's episode last year on the Cannabis Investing Podcast (!!) and together they started MJResearchCo. Today we discuss the developing US cannabis landscape and what legalization means for the industry, we also get into the Trulieve (OTCQX:TCNNF)-Harvest (OTCQX:HRVSF) deal and the state of California cannabis.

Photo by Kindel Media from Pexels

Topics include:

  • Origin story of MJResearchCo.
  • Analyzing cannabis companies - things they've learned from each other's experiences and points of focus.
  • Trulieve/Harvest deal. Share swaps. Good deal for the companies involved, not sure it affects the industry at large.
  • Continuation of consolidation in the industry as US legalization evolves and develops. We'll see similar dynamics to limited license markets. More assets allow for more fragmentation. IL will become more valuable due to their social equity program.
  • Mature market like Colorado and a player like OTCQX:SHWZ capturing big market share. What makes an efficient operator? Thinking about brands and their importance in the sector.
  • California cannabis - sussing out tax audit issues, general fragmentation. Mercer Park (MRCQF), The Parent Company (OTCQX:GRAMF), and Glass House and the pursuit of dominating the state. Scale and operations.
  • Employee turnover in cannabis industry - why it happens and ripple effects. Companies are growing quickly - asset base quicker than infrastructure.
  • The ridiculous 280E tax and the future of cannabis investing. How do we value cannabis companies?

This article was written by

On The Cannabis Investing Podcast, host Rena Sherbill provides actionable investment insight and the context with which to understand the burgeoning cannabis industry. Interviews with C-level executives, analysts and sector experts give you investment ideas to consider, help you think through your investing approach and give you a new lens with which to understand this ever-growing sector.

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