Dear Clients & Colleagues,
In 2020, new capital has been hard to come by for cannabis operators of all shapes and sizes. For going-concern or start-up equity applicants and companies, the right partner who understands the nuances of local requirements and aligns with your values can seem like a unicorn. In any case, whether your company is seeking a strategic partner to either expand or monetize your holdings, this can be a particularly challenging period.
In an effort to help our clients in search of the right mergers & acquisitions deals, we’ve partnered with a group of attorneys, accountants and investment bankers in a new initiative called the “ CA Cannabis Partnership Marketplace ” (More details below.) The focus of this project is to help you source, engage, communicate, and hopefully transact with similarly situated or interested cannabis operators, subject to strict confidentiality agreements executed between the parties.
CA Cannabis Partnership Marketplace
Licensed California cannabis companies are finding it difficult to grow. Raising capital (debt or equity) or selling to a Canadian PubCo, two common paths to achieving scale, are currently non-existent for all but a few operators. While these doors may be closed, there are alternatives to the increasingly difficult path of “going it alone”. These options include:
To assist companies consider these and other opportunities, a coalition of lawyers, investment bankers and CPAs have established the CA Cannabis Partnership Marketplace. This ecosystem is designed to match the strategic needs of cannabis companies with others who are interested in combining forces as a path to scalable growth. The objective is to solidify and strengthen CA cannabis through the formation of partnerships that will be highly desirable when the capital markets open up.
How to Participate
Phase 1: Opt-in (May & June)
Phase 2: Relationship building (Q3 July-Sept)
Phase 3: Transaction (Q4 Oct-Dec)
“Silence is consent. And silence where life and liberty is at stake, where by a timely protest we could stay the destroyers hand, and do not do so, is as criminal as giving actual aid to the oppressor, for it answers his purpose…”
– Ernestine Rose
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If you have any questions about how the above or would like to discuss how it could impact your business, please contact your attorney directly or call our main line at 877-257-2442.