It didn’t take long for this former President of Cresco to get back into cannabis…
Joe Caltabiano co-founded Cresco Labs Inc. (OTC: CRLBF) in 2013 and turned it into one of the best cannabis stocks you can buy today.
It’s a company that operates in nine states with:
- 15 production facilities…
- 29 retail licenses…
- And 24 operating dispensaries.
That’s one of the biggest operations in the United States.
On top of that, Cresco has a portfolio of 350 products that are sold in more than 800 dispensaries…one product being an edibles line created by award-winning chef Mindy Segal.
This is a company that is building a portfolio of products that stand for quality while also strategically expanding to get those products into more people’s hands.
And over the last year, it’s made shareholders a lot of money. The CRLBF stock price was trading for $3.06 on March 24, 2020. On March 24, 2021, it was trading for $13.32 per share, a year-over-year (YoY) increase of 335%.
But on March 2, 2020, Joe decided to step away as the President of Cresco.
“My skills were very tied to the early success of the organization and building it and running into brick walls and overcoming obstacles. When you’re starting out in a start-up company, it is growth at all costs. You make a lot of decisions on how to drive growth within the organization, and as a company matures, it starts being less about growth and more about return on invested capital and how do you maximize dollars for your shareholders in the long-run. And those are very different skill sets and very different ideals that sometimes coincide but sometimes conflict,” Caltabiano told Cannabis Business Times.
When he announced his departure, he wasn’t specific about what his next move would be in cannabis, but he hinted at what it could be when he said in that same interview that he was excited about a new opportunity to acquire distressed assets or to be a part of a rebuilding distressed assets.
Well, it didn’t take long for Caltabiano to find his second act in cannabis.
He’s started something new – something where he can lend his experience in turning Cresco into one of the best stocks to own today.
Meet Choice Consolidation
In one of the last live Q&A sessions with Executive Director Don Yocham, one of our members asked about special-purpose acquisition companies (SPACs).
It was a great question because they’re rising in popularity, and I’ll give a quick overview of how they operate.
Former CEOs, CFOs, CTOs, successful lawyers, real estate barons, and entrepreneurs can get together, raise a bunch of money through an IPO, and buy a company or several companies.
The idea is that because the individuals forming the SPAC have had a history of working or creating a well-run business, they can buy a business and run it so that it makes even more money than it’s currently making.
The only catch is that you will not know what the SPAC plans to buy when it raises money, so that’s why the management team behind the SPAC is critical to its success.
This is becoming a massively popular way to go public; in 2020 alone, 237 SPACs launched, raising $79.87 billion.
In comparison, traditional IPOs raised $67 billion.
So remember when Caltabiano said that he was looking to buy distressed assets and rebuilding them?
That meant he wanted to buy a business or several businesses, see how he could improve their operations, and turn that into a moneymaking machine.
And he’s getting the opportunity to do that with the SPAC (we also refer to them as Cannabis Venture Trusts) that he formed: Choice Consolidation Corp.
For its potential acquisitions, Choice is targeting:
- Companies that operate in single states with high barriers to entry…
- Distressed businesses that will require a minimal to moderate amount of money to inject into the operations…
- And licenses in select states.
With Caltabiano’s track record of success at Cresco and his skill set of building brands and companies and turning them into something great, this could be another home run.
Because we’ve already seen the massive returns that the right leadership teams can generate when they make acquisitions.
Like with Silver Spike Acquisition Corp. (Nasdaq: SSPK).
Silver Spike launched in October 2019 as a SPAC and made a blockbuster deal in December 2020, acquiring the parent company of Weedmaps, which is an e-commerce platform that connects marijuana consumers and businesses.
Those who were able to get in around $10 per share have made an 89% return with the price at $18.90 as of this writing, and some folks have made even more if they sold their shares, as the SSPK price was near $30 in mid-February.
That’s one of the beauties about SPACs.
If the stock price climbs quickly after a deal is announced, you can sell your shares.
If you like the company that’s being acquired by the SPAC, you can hold on to generate an even bigger long-term return.
That’s why Don and I rounded up our Advisory Board, grabbed a camera crew, sat down, and recorded the ins and outs of how to start investing in SPACs right away.
Now, if you’re currently a NICI Membership subscriber, you already have access to all three of the SPAC recommendations we want to share with you today.
If you’re not a member, you can still access our video dossier on this exciting opportunity to make even more money.
Partner, RADD Capital
2 responses to “He Turned Cresco Into One of the Best Stocks to Own. Here’s What He’s Working on Now (And How You Can Profit)”
March 30 2021