Cannabis companies are having trouble winning over institutional investors
Writing for Bloomberg, Peyton Forte explores the cannabis industry’s ongoing difficulties in winning over institutional investors – an issue that will be coming up more frequently as the market grows and more states legalize cannabis use.
Forte takes a look at:
- Exchange-traded funds that target investments meeting environmental, social and governance standards needing to consider the legal status of cannabis.
- The lack of timeline for federal legalization and its impact on fund prices.
“Wall Street isn’t completely shying away from cannabis,” writes Forte. “EQM Indexes introduced its Global Cannabis Index in 2019. It includes companies such as Canopy Growth, Curaleaf Holdings and Tilray Brands.
“The firm is in the process of building an index to cope with more stringent ESG guidelines in the European market, according to co-founder Jane Edmondson.”
NEW JERSEY FUNDING
NJ introduces cannabis equity grant program with $250,000 in funding for start-ups
The New Jersey Economic Development Authority (NJEDA) announced the launch of a new eligibility assessment tool that integrates the first phase of its Cannabis Equity Grant Program, reports Benzinga.
The first phase of the $10 million pilot program, which will have two phases, will see the introduction of a $250,000 Joint Venture Grant, the largest of its kind in the nation.
A total of 40% of Phase I funds will be reserved for qualified social equity applicants, which is those with prior cannabis convictions or who live in economically disadvantaged areas. Additionally, 5% of the total funds from the program will be reserved for businesses located in impact zones (areas targeted based on previous levels of cannabis arrests, population, unemployment rates, and additional socioeconomic factors).
These cannabis companies are doubling down on California
MJ Biz Daily reports that while some cannabis companies are exiting California’s difficult, regulated market others are staying focused on the state and have plans to grow in 2023.
The publication explores a number of companies looking to double down on the state despite some of the challenges that remain, including Gold Flora Corp., Leef Brands, Jetty Extracts and Catalyst Cannabis Co..
These companies will be facing hurdles such as declining sales, high taxes and price compression, however, citing California’s reputation as the world’s largest regulated cannabis market, Catalyst CEO Elliot Lewis told MJBizDaily he believes the future is bright for cannabis in California.
Expanding into Europe in 2023?
This month, Prohibition Partners will be launching Edition 8 of The European Cannabis Report, our flagship industry report and the most widely-read resource in the European cannabis industry.
Later in May, Cannabis Europa 2023 takes place in London which will see over 1,500 delegates inside the iconic Barbican Centre to share learnings, network, and move the industry forward. After last year’s success, we will once be holding a small, curated expo alongside the conference.
Talk to our sales team about positioning your company as an authority in the European market.
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