Codie Sanchez: Public Valuations Impact the Private Sector

Codie Sanchez, managing director at private equity investment firm Cresco Capital Partners, shared her criticism in a recent interview with the Investing News Network (INN) about the over estimation done for the public cannabis market as a private investor of the space.

Sanchez told INN there’s been a wide margin of volatility coming from the public markets when it comes to the estimations of value for cannabis companies. Sanchez was a featured speaker at the MJBizConINT’L event in Toronto.

“The public (market valuations are) nuts,” Sanchez told INN. “Why would I invest in somebody that’s trading at a valuation or multiple that is almost impossible for them to hit?”

Cannabis Free Report Cover

Find out what experts say about profiting from the cannabis market in 2021!

  
Read our FREE 2021 cannabis outlook report!
 

As a private investor, Sanchez said the volatility seen in the public markets has created a variety of reactions to the private side of the industry.

“We haven’t necessarily seen very many down rounds or haircuts on the total amount that they can go and raise at but we certainly have seen companies have a harder time raising, which is good for us as investors and a pullback on some of the more ridiculous valuations we saw on the market,” Sanchez said.

The executive joined Cresco Capital Partners earlier this year. In June, the firm raised US$60 million in its oversubscribed cannabis private equity fund, the second fund for cannabis investment.

Matthew Hawkins, managing principal of the firm said, they are now planning a third cannabis fund with the goal to raise US$200 million. “This fund will continue to target investments in value-add opportunities in the legalized cannabis space both plant touching and non-plant touching,” he said.

Watch the interview above for more on what Sanchez had to say.

Don’t forget to look for the rest of our coverage of MJBizConINT’L, with exclusive interviews and more insights from the show. You can also follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Cannabis Free Report Cover

Find out what experts say about profiting from the cannabis market in 2021!

  
Read our FREE 2021 cannabis outlook report!
 

Aurora Cannabis Inc. Announces US$125 Million Bought Deal Financing

NYSE | TSX: ACB

Aurora Cannabis Inc. (“Aurora” or the “Company”) (NYSE: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, today has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and ATB Capital Markets, under which the underwriters have agreed to buy on bought deal basis 12,000,000 units of the Company (the “Units”), at a price of US$10.45 per Unit for gross proceeds of approximately US$125 million (the “Offering”). Each Unit will be comprised of one common share of the Company (a “Common Share”) and one half of one common share purchase warrant of the Company (each full common share purchase warrant, a “Warrant”). Each Warrant will be exercisable to acquire one common share of the Company (a “Warrant Share”) for a period of 36 months following the closing date of the Offering at an exercise price of US$12.60 per Warrant Share, subject to adjustment in certain events.

Keep reading... Show less

IIROC Trade Resumption – RVV

Trading resumes in:

Company: Revive Therapeutics Ltd.

Keep reading... Show less

Revive Therapeutics Announces Upsize to Previously Announced Bought Deal Offering

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES /

Revive Therapeutics Ltd. (” Revive ” or the ” Company “) (CSE:RVV) ( USA : RVVTF), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, is pleased to announce that it has entered into an amended agreement with Canaccord Genuity Corp. and Leede Jones Gable Inc. as the co-lead underwriters (collectively, the ” Underwriters “), to increase the size of its previously announced offering of units (the ” Equity Units “) at a price of $0.50 per Equity Unit. Under the amended terms, the Underwriters have agreed to purchase, on a bought deal basis, 40,000,000 Equity Units for gross proceeds to the Company of $20,000,000 (the ” Offering “). The over-allotment option granted to the Underwriters will proportionately increase to 15% of the Offering.

Keep reading... Show less

Trulieve Opens Location in Summerfield

The new dispensary brings expanded access for patients in the growing communities of Central Florida

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today the opening of a brand-new Florida dispensary, the Company’s 77th nationwide. The new, 5,100 sq. ft. location marks the Company’s first in Summerfield expanding patient access to Florida’s largest and broadest assortment of high-quality medical cannabis products.

Keep reading... Show less

BioHarvest Sciences Inc. Announces Private Placement

BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”).

The Company announced today that its board of directors have approved a private placement of up to 15,000,000 units at a price of $.40 per unit for gross proceeds of up to $6,000,000. Each unit will consist of one common share of the Company and one share purchase warrant. Each share purchase warrant will be exercisable to purchase an additional common share at a fixed price of $.45 per share for a period of one year from closing.

Keep reading... Show less