Marijuana Business Magazine January 2019

Marijuana Business Magazine | January 2019 12 BIG HITS Curaleaf Inks $400 Million Private Placement After a $400 million private placement, Massachusetts-based Curaleaf made its trading debut on the Canadian Securities Exchange in October. The multistate cannabis firm raised almost three times its initial target of $150 million, giving the company a valuation of $4 billion. Curaleaf has nearly 30 dispensaries, 12 cultivation facilities and nine processing plants across 12 states, including Florida, New York and Oregon. It also has pending licenses in California and Pennsylvania. Surterra Secures $54.6 Million Atlanta-based medical marijuana company Surterra Wellness raised $54.6 million in October, following a $65 million funding round in August that was led by chewing gum billionaire William “Beau” Wrigley Jr. The company has said it plans to use those proceeds to bolster its existing operations and expand into additional states. $50 Million: Metrc Gets $50M With Help From Snoop Dogg, Tiger Global Metrc, which operates cannabis seed-to-sale tracking systems in multiple states and Washington DC, raised $50 million to expand its operations with the help of two notable marijuana investors. The funding round was led by New York-based Tiger Global Management and California’s Casa Verde Capital. The latter was co-founded by rapper Snoop Dogg. 4Front Completes $31 Million Raise Multistate cannabis operator 4Front Holdings raised $31 million in a private placement of equity securities—more than double the initial offering of $15 million. Phoenix-based 4Front plans to use the proceeds to invest in “top- tier talent,” acquisitions and the expansion of its Mission-branded dispensaries and cultivation operations. The company has operations in Boston, Chicago, Phoenix and Washington DC. Number of Note: $2 Billion Cannabis firms raised more than $2.2 billion in October, as investors shifted their focus from Canada to ramp up activity in the United States—making it one of the most lucrative months in the industry’s history. the best predictor for future behavior. Ask yourself, “Have they executed thus far?” Get referrals on past businesses and jobs. Figure out from clients how they handle mistakes. If you get on board with a business that is truly going to make it, the valuations will take care of themselves. That being said, my question is usually to the founder: ... “If I want to make three, five, 10 to 50 times my return, how are you going to get me there with this valuation?” They need to show me a good answer. What products or sector are you most excited about? I nerd out on this. It’s a laundry list of names from Flrish, Harborside, Ebbu, Sea Hunter, MJ Freeway, Prohbtd to Jambo to Charlotte’s Web, oh my. I get excited about CBD and medicinal (companies) especially. It tickles me to walk into Erewhon in Venice (California) and see a latte with CBD in it—just as obvious to the locals as almond milk or an extra espresso shot. What will the future hold? What’s one of your top investment goals for 2019? My goal for this year is to put my money where my mouth is. To invest in the things that matter to us and the gener- ations that follow. I’m completely uninterested in the next mindless video game. I’m enthralled by the companies that will better our lives and our country. My goal is to fund more of them. Isn’t that what money is ultimately for—a tool for progress? This interview has been edited for length and clarity. Money Matters | Investing & Finance Insight