MJBizDaily Investor Intelligence

1 MJBiz Daily | Investor Intelligence mjbizdaily.com/investing • Top cannabis fund managers, investors and operators offer insight on how they’re focusing their strategies ahead of U.S. federal reforms. • Leading analysts offer key considerations for public and soon-to-be public U.S. multistate operators. • Weighing the upside and risks of getting in ahead of the big institutions that are still sitting on the sidelines. Road to Legalization Key Investor Considerations Ahead of U.S. Federal Cannabis Reform By Lisa Bernard-Kuhn F rom K Street to Wall Street, support for federal U.S. cannabis reform is building rapidly. Advancement of key legislative measures in recent weeks and signals of support for reform from U.S. Attorney General William Barr are boosting investor sentiment and fueling interest fromWall Street banks and major institutions that—until recently—have watched the industry from the sidelines. “As the federal government inches toward full legalization, we are already seeing non-cannabis-fo- cused institutional capital coming into the market as (investors) get more comfortable with the positive regulatory momentum,” Jeff Howard, managing partner at Illinois-based, marijuana-focused private equity fund Salveo Capital, told Investor Intelligence. For investors, federal cannabis reform ushers in a host of considerations—depending on your position. Here’s a look at the evolving landscape, the big players getting in and a deeper dive into the key consid- erations for investors as federal reform draws near. TIMES THEY ARE A-CHANGING In just the past month, two key legislative pro- posals advanced through Congress that industry experts believe could pave the way for cannabis reforms within the next year: The Secure And Fair Enforcement (SAFE) Banking Act, which had been shelved for more than half a decade, passed the House Financial Service Committee with a 45-15 vote. It could receive a full House vote in June. The STATES Act, which aims to give states the ability to enact their own marijuana policies and resolve banking and taxation issues, was reintro- duced in both chambers with bipartisan support. Additionally, AG Barr noted that federal cannabis reform is preferable to what he called an “intolerable” landscape today. continued on page 2 May 1, 2019 IN THIS ISSUE Earnings Roundup Viridian Insights Insider's Guide Investor Watch Senators Elizabeth Warren and Cory Gardner introduce bipartisan legislation on marijuana. CourtesyPhoto