Going public provides access to capital but requires navigating regulatory and public scrutiny.
Going public is a transformative experience that provides access to serious amounts of capital. To do it successfully, you may need to change the way your cannabis company does business. You’ll also endure public, investor, and regulatory scrutiny that creates a serious reporting and control burden.
With a surge in sales during the pandemic, new markets coming online throughout the US, and greater public acceptance of adult-use and medical cannabis, the
We tackle the long history of the SAFE Banking Act with David Abernathy, Principal at Arcview Consulting, This legislation, aimed at clearing the path to
On July 14th, Senate Majority Leader Chuck Schumer presented a newly revised proposal for a comprehensive cannabis reform bill in the United States. The Cannabis
The $2.1 billion Trulieve-Harvest acquisition is paving the way for a boom of M&A activity in the cannabis industry. 2021 may very well be remembered
The difficulty of turning a profit in today’s cannabis industry can sometimes feel insurmountable. Punishing federal and state tax regimes, the lack of intrastate commerce,
Every business is a talent business. Building a uniquely talented team is the performance driver that distinguishes leaders from the rest of the pack. The
Special Purpose Acquisition Companies (“SPAC” or Blank Check Companies) are emerging as major players in the cannabis industry. Watch our video or read the article
The Canada Stock Exchange (CSE) is an attractive option for mature cannabis companies looking to grow. With simplified reporting requirements, a progressive approach to the
Cannabis companies are experiencing extreme growth and with the latest IPO boom, now is the time to go public! In this webinar, our Audit Partner,
To enter the Canadian Stock Exchange, American cannabis operators must go through an audit in accordance with Canadian regulations. The audit requires that you prepare
A pre-initial public offering (IPO) placement is a private sale of large blocks of shares before a stock is listed on a public exchange. The buyers are typically private equity firms, hedge funds, and other institutions willing to buy large stakes in the firm. Due to the size of the investments being made and the risks involved, the buyers in a pre-IPO placement usually get a discount from the price stated in the prospective for the IPO.
In the cannabis industry, it is often difficult to raise money. The money will slowly diminish if the company only has private investors. There is a bigger pool of money when raising publicly because way more people become involved. Cannabis companies trade at a good multiples; for example, a company might have $10 million in revenues, but trade at a multiple that’s way higher, like $100 million. The value of a publicly traded company is divided by revenues. Once you complete a valuation, this gives more investors an opportunity to come in and see the financials. Public trading also allows shareholders to liquidate some of their stock. For instance, if you are an owner or investor of a privately traded company, your stock is not really liquid. There are lots of hoops to go through. If you’re publicly traded, you can easily trade the shares without jumping through these hoops. This also benefits employees if they have stock options. It allows them to liquidate their stock and get money from it.