Matt Hawkins, founder and managing principal of Entourage Effect Capital, sat down with INN to discuss the health of the cannabis market in 2022.
Cannabis Market Still Tough, Time to Position Before Regulatory Changeswww.youtube.com
The going has been tough for cannabis investments in 2022, and one prominent investor is warning market participants not to get their hopes up just yet for policy changes in the US.
Matt Hawkins, founder and managing principal of Entourage Effect Capital, told the Investing News Network he is eagerly awaiting much-needed US policy changes that will help the industry flourish beyond its promising start.
But Hawkins is not expecting anything this year.
Expert outlines cannabis sector sentiment
When asked about potential cannabis market catalysts before the end of 2022, Hawkins was direct.
“I don’t see anything unless we get lucky and the SAFE Banking Act passes before the midterm elections,” he said.
That said, the fund manager emphasized that despite the challenges, it’s not all doom and gloom in the cannabis sector. For one thing, politicians will ultimately have to listen to their constituents, Hawkins said — in his opinion, that means support for cannabis policy will only grow stronger.
For now, investors will have to be ready for the current period of status quo to continue. Hawkins noted that his firm is trying to use this time to be ready for eventual regulatory changes.
“We’re just trying to position ourselves to benefit from that in two to four or five years from now,” he said.
Watch the entirety of the conversation with Hawkins above to hear his perspective on the potential of Canadian operators and what his day-to-day looks like.
Don’t forget to follow us @INN_Cannabis for real-time 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.