Katelyn Baker
Well-Known Member
What are some good ways for investors who are bullish on marijuana to invest? originally appeared on Quora: the knowledge sharing network where compelling questions are answered by people with unique insights.
Answer by Paul Cohn, Career VC, PE, Secondary and FOF Guy, on Quora:
A great way to learn about the emerging cannabis industry and invest in it would be to join the ArcView Investor Network [1].
ArcView is a national organization focused on research and investment in the cannabis industry. The investor network is an organized Angel group that explores investment opportunities in the industry.
I'm a fan, in general, of individuals investing through organized Angel groups, but I think that it is particularly important when making cannabis-related investments. You need to invest with an experienced group of investors that can help you not only with diligence and deal negotiations but with the legal complexities of the cannabis industry.
I would not recommend investing in public cannabis companies at this point. The cannabis companies that have gone public have done it through a back-door technique called a reverse merger into a public shell. They didn't go public through an IPO based on the merits of the company. They trade as penny stocks and are very speculative.
When investing in the industry it is important to remember that companies that are involved with the cannabis product itself are still illegal according to federal laws despite being legal in some states. This adds extra risk in these companies, which include growers, dispensaries, and makers of edibles and oils.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: The Smartest Way To Invest In Cannabis
Author: Paul Cohn/Quora
Contact: (800) 295-0893
Photo Credit: Shutterstock
Website: Forbes
Answer by Paul Cohn, Career VC, PE, Secondary and FOF Guy, on Quora:
A great way to learn about the emerging cannabis industry and invest in it would be to join the ArcView Investor Network [1].
ArcView is a national organization focused on research and investment in the cannabis industry. The investor network is an organized Angel group that explores investment opportunities in the industry.
I'm a fan, in general, of individuals investing through organized Angel groups, but I think that it is particularly important when making cannabis-related investments. You need to invest with an experienced group of investors that can help you not only with diligence and deal negotiations but with the legal complexities of the cannabis industry.
I would not recommend investing in public cannabis companies at this point. The cannabis companies that have gone public have done it through a back-door technique called a reverse merger into a public shell. They didn't go public through an IPO based on the merits of the company. They trade as penny stocks and are very speculative.
When investing in the industry it is important to remember that companies that are involved with the cannabis product itself are still illegal according to federal laws despite being legal in some states. This adds extra risk in these companies, which include growers, dispensaries, and makers of edibles and oils.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: The Smartest Way To Invest In Cannabis
Author: Paul Cohn/Quora
Contact: (800) 295-0893
Photo Credit: Shutterstock
Website: Forbes
