Keeping an eye on the legal cannabis market in terms of where capital is coming from for cannabis operators requires a constant eye on things.
Not too long ago, sale-leaseback financing opportunities was in the spotlight, as recent moves and transactions were swelling up enough to cause it to be a trend for operators looking to secure tens of millions of dollars in financing when traditional capital sources remain scarce given current federal regulations.
But as of last week, the tide is turning to the rash of debt funding deals popping up across the radar versus equity or other capital raising sources. And it’s happening right here in our own backyard of Massachusetts.
From Marijuana Business Daily:
“Multistate operators Curaleaf, headquartered in Massachusetts, and Cresco Labs, based in Chicago, have led the way by announcing debt raises of up to $300 million and $200 million, respectively, in recent weeks.
New York-based Acreage Holdings joined the bandwagon last Friday, announcing it secured up to $100 million through a credit facility with an unnamed institutional lender.
Acreage CEO Kevin Murphy said in a news release the debt funding comes at ‘a time of limited capital availability for our industry.'”
This is in line with recent predictions the role debt financing will play in the year ahead for capital raising and general observations from private capital placement investing in the legal cannabis space.
Late last month, New Cannabis Ventures ran a feature by a 20 year veteran of consulting, credit research, valuation, and financial planning and analysis focused on the importance of cannabis debt scoring for operators raising money during the current capital crunch. One of the observations highlighted the fact that since most banks and financial institutions are unable to lend to cannabis companies, private capital is increasingly stepping in to fill the void, “driven by the extremely attractive returns”. You can check out what he had to say here.
Tune into the upcoming webinar with Cannapreneur Partners and The Entrust Group, Wednesday February 19 to learn about how investors can use their Self-Directed IRA capital to diversify their portfolio’s with private capital placement into legal cannabis.
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If you’re an accredited investor looking for private placement opportunities in the legal cannabis space, visit www.cannpreneurpartners.com or email us today at invest@cannapreneurpartners.com to learn how you or your investing group and investor syndicates can access a stream of vetted cannabis investment opportunities from retail and cultivation, to tech, ancillary services, debt lending, real estate, and other deal flow opportunities through Cannapreneur Partners.
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