How much is your slice of the marijuana pie worth?

(This story is part of MJBizDaily’s premium subscription service, Investor Intelligence.)

Warrants can align stakeholder incentives with shareholder interests, but they complicate the share count at different valuations and can cloud what you really own.

There are two essential steps to valuing equity:

  1. Value the underlying business.
  2. Divide that by the stakeholders – first the debt holders, then the rest by the shares outstanding – to figure out what an equity holder gets.

In other words, first figure out the size of the pie and then how many slices there are.

To access the full story and in-depth cannabis investing analysis, click here.

2 comments on “How much is your slice of the marijuana pie worth?
    • Derrick Mooney on

      Well, that was less than helpful.
      Perhaps you could work up the energy to provide examples of opening values and sizes of recent corporate buy-outs through mergers and acquisitions.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *