Big money is on the move, and they’re ready to pay a premium for what you have…
“Big Money” is on the move in cannabis.
A fund controlling a massive pool of capital just bid $500 million in one transaction to wrap 4 California companies into one big firm.
The new company will be the largest cannabis operator by revenues in California once the transaction gets shareholder approval.
And in one fell swoop, this deal will have created a company with expected combined revenues reaching $185 million for 2020, likely making it the fifth-largest publicly traded cannabis company in the United States.
Now, you’ve heard me state time and again that Big Money is working to find its way into cannabis.
As money starts pouring in, an honest to god bidding war will get underway.
The Big Money players will start fighting to own your shares.
And today, we’re going to show you how to put that money right back into your pockets…
$2.7 Billion in New Capital Is a Drop in the Bucket
That massive fund I mentioned is Subversive Capital Acquisition Corp. (OTC: SBVCF), a Cannabis Venture Trust that proposed to combine three cannabis companies – Caliva, Left Coast Ventures, and Roc Nation, plus Shawn “Jay-Z” Carter‘s marketing empire (which he runs under the banner of Monogram) – into one, big vertically integrated cannabis company called TPCO Holding Corp.
Subversive will be the biggest Cannabis Venture Trust formed to date. I’ve been tracking a total of eleven of these Cannabis Venture Trusts, each formed explicitly to make significant acquisitions like this.
All told, they control $2.7 billion. But that’s just one source of the massive amounts of capital ready to be deployed in cannabis.
Across publicly traded cannabis companies themselves, there’s at least another $3.8 billion in excess cash. Much of the capital has been earmarked by cannabis company executives for acquisitions to capitalize on the massive growth that is just getting underway in U.S. cannabis markets.
Just look at Jushi Holdings Inc. (OTC: JUSHF).
Over the last few months, this up-and-coming cannabis player made nearly $45 million in Pennsylvania and Virginia acquisitions to solidify its position in these two valuable cannabis markets.
Or Curaleaf Holdings Inc. (OTC: CURLF), which extended its reach in Massachusetts through an Alternative Therapies Group acquisition on November 5.
Or privately held Verano Holdings, which expanded its footprint into Arizona and Florida by merging with AltMed for an undisclosed sum.
This surge in merger and acquisition (M&A) activity makes for as clear a sign as any that the “Cannabis Bust” phase has ended. Big Money knows that the Boom comes next.
They don’t want to miss out. And neither do you…
Cashing in on the Coming Cannabis Boom
The Big Money players like Subversive, the ten other Cannabis Venture Trusts, incumbent industry players, and the Wall Street firms waiting to get off the sidelines and into the cannabis game know that the Cannabis Boom phase will generate far higher returns for cannabis stocks than any other sector in the U.S. economy.
Sales are surging. Profits are soaring. And the stars have aligned for Congress to clear the path for federally legal cannabis sales across the U.S.
As the Boom plays out over the coming year, cannabis stock prices for the industry’s top players will shoot 10 to 20 times higher.
I’m talking about Jushi trading from $4 to over $40. Or Curaleaf’s stock surging from $10 to $100 – maybe even $200.
Across the industry, the best cannabis companies will mint millionaires over the coming years.
Now, you could get in on part of the action by buying a cannabis exchange-traded fund (ETF) like AdvisorShares Pure US Cannabis ETF (NYSE: MSOS). It owns many good multistate operators (MSOs) and should perform well through the Boom phase. Certainly, better than what you’ll be able to capture in any other sector.
But capitalizing on all the wealth-building potential the cannabis sector has in store requires picking your spots. You need to avoid the losers and focus your hard-earned money on the winners.
That doesn’t just mean owning those companies that dominate cannabis sales on the top-line. You need the insight to find the management teams that know how to turn those revenues into bottom-line profits.
After all, those surging profits are what Big Money is on the hunt for. And they’ll be ready to pay you a big premium to get it.
When you become a NICI Membership subscriber, we give you that insight. We cut through the noise for you so you can secure as much of this rare cannabis windfall for yourself.
Click here to learn how you can join us today.
That way, you’ll be perfectly positioned to profit as the Big Money wave furiously makes its move into cannabis.
Executive Director, National Institute for Cannabis Investors
3 responses to “$2.7 Billion Is Just the Start of the Epic Bidding War Coming to Cannabis”
December 03 2020