Category Archive for: Journal

WHY INVEST IN HEMP NOW? WHAT ARE SOME OF THE USES OF HEMP?

As you saw in our videos hemp has been around possibly since the dinosaurs, used for over 10,000 years, has 50,000 uses and industrial hemp is produced in over 30 countries today.  Many analysts agree that hemp will become a better investment then marijuana.  You can’t get high from hemp.  It has less then 0.3%…

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Cannabis: Corporate Valuation Methodologies

What is Valuation? Quite simply, valuation is the outcome of a process and set of procedures that is used to determine what a business is worth.  Business values can be affected by the perspectives of owners, investors, economic conditions, industry circumstances, the regulatory environment and many other factors deemed important by the business’s various constituents.…

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Cannabis: Commodity Price Decline Impact

Given approximately appropriate climatic conditions, cannabis grows like many other plants.  An experienced cultivator can grow fields of cannabis much like they would spinach or kale with one key difference in outcome – a pound of spinach retails at $3.83 while a pound of cannabis retails at over $5,100.  A hop farm can fetch $25,000/acre, while the…

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Cannabis: An Alternative Asset Class

Diversification is known as the only ‘free lunch’ on Wall Street.  While risk and return typically walk arm in arm, portfolio diversification allows for risk reduction without a corresponding decline in expected return.  Diversification into a non-correlated asset class can further dampen volatility while boosting expected portfolio return.  The cannabis industry is experiencing a blistering…

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Cannabis: Rich History In Civilization

There was a time in American history when hemp was such an important resource that is was illegal to NOT grow it.  While those laws date back to 1619, over 41,000 acres of hemp were still being harvested in the United States as recently as 1917.  The laws of supply and demand were effectively eliminated starting…

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Deconstructed: Cannabis Due Diligence

Evaluating cannabis companies can be a complex endeavor.  Most companies point to graphs illustrating a massive acceleration in growth as legalization spreads across the country.  Considering that half of all cannabis companies are less than 24 months old, it is difficult to correlate the broader growth of the industry with individual company growth .  There…

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Capital: Funding Your Cannabis Startup

One of the primary reasons startups fail is that they run out of money.  Cash is the fuel that allows a business to grow.  Growth is challenged by too little cash and, ironically, also by too much cash.   Effective cash management is thus crucial to a startup’s growth and success. Access to capital can…

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