As the Cannabis Growth Fund made its debut in the public market last Tuesday (February 26), the Investing News Network (INN) caught up with its portfolio manager Korey Bauer, a managing director with Foothill Capital Management.
For the fund, Bauer said it will focus on the long-term growth potential in a company, the branding abilities and the current market exposure.
The portfolio manager also highlighted taking a more critical look at the management team of a company, saying with the increasing costs these companies are incurring, it is “absolutely crucial” to study the leaders of a marijuana firm.
“In the next six-to-12 months, we’re going to start to see a breakaway between the leaders and the laggers,” Bauer said regarding Canadian firms.
In the Canadian cannabis market, 2019 will potentially mark the legalization and opening of the edibles and infused products space.
Recently, Bill Blair, Minister of the Cannabis Act, told Bloomberg the legalization in paper of edibles, doesn’t mean sales will start right away.
The Canadian government has until October 17, 2019 to legalize these products.
Bauer said the roll out of edibles will be “crucial” for the development of the market and to see the split between Canadian firms in control of the market, and those struggling to break through.
The Cannabis Growth Fund will not add any companies in the US dealing with the cannabis plant directly, according to Bauer, leaving the popular multi-state operators out of the investment picture.
“With some of these multi-state operators, no question they are taking up some quite a bit of market share pretty quickly,” he said. “I do think that’s going to make it a little bit more challenging for some of these Canadian companies to breach into the US.”
The initial holdings for the fund were not disclosed, but Bauer told INN the full list would be shared in a month or two.
According to the prospectus for the fund, Foothill Capital Management is expecting for “a large number” of the fund’s holdings to be Canadian companies.
Bauer said he expects to see pressure rise for Canadian companies focussed on pure producer plays in the market.
In terms of the upcoming cannabidiol (CBD) play in the US thanks to the legalization of hemp, Bauer told INN he expects the craze for this market to settle with sensible regulations from the US Food and Drug Administration in the near future.
Don’t forget to 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 contributed article. 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.
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).