Marijuana Business Magazine July 2019

Marijuana Business Magazine | July 2019 6 From the CEO | Cassandra Farrington T he world of financing within the cannabis space is in a position that’s light-years different from where it was even two years ago. After a down period imme- diately following President Donald Trump’s inauguration and then-U.S. Attorney General Jeff Sessions rescinding the Cole Memo, alcohol giant Constellation Brands’ first investment in Canopy Growth sparked a funding flame that is quickly turning into a bonfire. While the Constellation-Canopy deal was notable in part for its cash component, more and more deals are being struck that involve little to no money changing hands. As companies focus on scale as a strategic pathway to future success, we’ve seen our share of stock mergers, where two entities combine under the promise of forming a larger, healthier and market-dominant business. Public share offerings, mostly on the secondary Canadian exchanges, are another popular route to raise money. I hear from people who are taking their compa- nies public that it’s about “access to the capital markets” and “the lowest cost of capital available,” though it’s also fairly evident in certain cases that a get-rich-quick exit is in the back of the founder’s mind. Smart entrepreneurs and savvy investors in any industry know that not all capital is equal. It’s critical for the long-term success of a business to be smart about who’s involved in the investment team, where the money comes from and proceeding cautiously to not expose the company to undue risk, onerous future financial obligations or influence from third parties that might not have aligned goals and timelines. So, what’s a cannabis executive—or investor—to do? This month’s issue of Marijuana Business Magazine was conceived with this very question in mind. From best practices on term sheets, deal structures, due diligence, valuations and more, the cover story and sup- porting articles were crafted for anyone navigating this ever-evolving cannabis investment landscape. Whether you’re preparing your company to raise money, building relationships with investors or founders, looking to kick off your own cannabis investment activities or ready to move full steam ahead, read on to learn the latest about the investment landscape and best practices. Enjoy, A New World of Investment Opportunity Cassandra Farrington Co-Founder & CEO, MJBizDaily P.S. For investors focused on the cannabis industry, be sure to check out MJBizDaily ’s Investor Intelligence subscription service. The editorial team at MJBizDaily brings subscribers investing insights, exclusive webinars with top industry investors and company executives, immediate analysis of breaking investment news and more—delivered directly to your inbox. See sample issues and offerings at .