Welcome back to Cultivated, our weekly newsletter where we’re bringing you an inside take a look at the deals, patterns, and characters driving the multibillion-dollar international cannabis boom.
Welcome back to Cultivated, everybody!
For those of you who aren’t as online as me and most likely missed out on all of my social media posts, I spent the last two months covering New York state’s response to the coronavirus pandemic as it rapidly drew up all the oxygen in the media– and our day-to-day lives.
I have actually been playing lots of catch up with many of my sources this week and I’m sure there are lots of stories I have actually missed over the past two months.
I likewise participated in a Zoom panel with some top-tier cannabis press reporters and PRs about opening up a better line of interaction between publicists and the media.
Drop me a line if you have an idea of what I must be covering or who I need to be talking to. You can find my contact details below. We have great deals of excellent stories coming next week.
Here’s what we wrote about:
The vehicle DraftKings used to go public has caught the eye of marijuana investors, who have poured nearly $3 billion into ‘blank check’ money
Investors targeting the marijuana industry are relying on special purpose acquisition business, or SPACs, to ferret out marijuana offers.
Many standard investors, like pension-backed venture capital or private-equity companies, are reticent to invest the industry since cannabis is federally illegal in the US.
Investors have put $2.8 billion into cannabis-focused SPACs because the start of2019 The entire SPAC market over that time raised approximately $175 billion.
Fulfill the top 9 startups raising millions to utilize psychedelics to deal with depression, stress and anxiety, and more
Financial investment in psychedelics has ramped up over the last few years and companies state that interest from conventional biotech and pharma investors has actually picked up too.
Secret financiers, like former Canopy Growth CEO Bruce Linton, hail from the cannabis sector. Others, like PayPal co-founder Peter Thiel have actually been interested in the industry for several years now.
We identified the leading 9 business that are working to turn psychedelics into authorized medications, for conditions like depression and anxiety.
- California marijuana producer CannaCraft has included three brand-new board members: Leon Sharyon, Mason Garrity, and Gareth Clark. Sharyon, significantly, was the longtime CFO of Lagunitas Brewing.
- Champignon Brands, a startup developing ketamine and psychedelic treatments, revealed a $10 million private positioning with Canaccord Genuity and Eight Capital, two of the Canadian midsize investment banks that led cannabis capital markets from the start. View this space.
- 4Front Ventures, a marijuana business that has actually recently contended with executive churn and layoffs, found a lifeline: a $5.8 million private positioning from cannabis mutual fund Navy Capital, and a property sale to Ethos Capital. Earlier in May, 4Front sold off $18 million in possessions.
- Aurora Cannabis finally made its entryway into the US CBD market with the $40 million, all-stock purchase of Reliva LLC announced on Wednesday
- Materia Ventures gotten 100% of German medical cannabis business Cannaktiv GmbH.
This one comes from Cowen’s marijuana expert, Vivien Azer, in her US marijuana deep dive, citing information from the Center for Responsive Politics.
As you can see, cannabis business spend slightly more proportionally than their “vice industry” peers on lobbying state and federal governments. In overall, nevertheless, marijuana lobbying pales in contrast to alcohol and tobacco lobbying.
Cannabis business spent $5.3 million on lobbying in 2019, compared to near $30 million for tobacco and alcohol in2019