Greencare Capital, which to date has focused solely on investments in medical cannabis, CBD and related areas, has announced it will be exiting the industry and changing its investment strategy due the lack of performance in the sector.
Greencare Capital’s board of directors has stated that the CBD sector had not been performing well. This, alongside developments in the UK related to Novel Foods, would likely cause short to medium-term turbulence in the market.
Additionally, the board advised that, within Europe, novel foods legislation is still to be agreed and that reaching such agreement has been much slower than initially anticipated, and as a result, cannabis and CBD investments within Europe have proven difficult.
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With continued lack of performance, the company has now concluded that it is in the best interests of all shareholders to withdraw from the medical cannabis, CBD and related wellness markets.
The company will be adopting a new investment strategy based on private equity style investing in technology-driven businesses, and will now be named MaxRS Ventures plc to reflect its change in investment strategy.
Four sectors of initial focus have been identified, including life sciences, crypto businesses and assets that use crypto technology, impact investing, such as environmental and renewables, and retail.
If shareholders approve, Greencare will be implementing a growth incubator/pre-IPO investment philosophy as its investment strategy, whereby it will seek out early-stage or undervalued later-stage businesses with strong upside potential, with the objective of acquiring, funding, growing and selling on the investments through the public markets at enhanced valuations.
The board will not restrict the jurisdiction of investments since the application of technology is not constrained by geographic borders, however, it would expect that it will consider more investments in Europe.
The board of Greencare has a wide experience in venture, pre-IPO and Private Equity investing, having grown a number of businesses through to sale and to listing on public markets in sectors that include technology, retail, real estate, and life sciences. The intention is to add an advisory board to the company to enhance knowledge in other areas as appropriate based on the opportunities being considered.