Twenty-three states along with the District of Columbia have legalized the use of medical cannabis throughout the U.S. In addition, it’s quite possible that many states can join the existing four states (Colorado, Washington, Oregon along with Alaska) which have legalized medical marijuana for fun use by grownups older than 21. Direct legal cannabis sales totaled just about $5.4 billion inside the U.S. in 2015 and are also supposed to become an roughly $21.8 billion industry by 2020.
Regardless of the quickly expanding legalized medical marijuana market, there remains a significant deficit of classic sources of capital through commercial lending, venture capital, and private equity investment in the U.S., as well as a deficit of regular management expertise and also advisory solutions that tend to go with specialist capital.
The industry is still in its early stages yet is without a doubt little by little showing indicators of maturity. In 2014, numerous small cannabis corporations came into the public marketplaces with not much substance behind their ticker designs. Earlier excitement as well as press coverage motivated a deluge of unskilled, untried business owners into the public markets even while smart money declined to play. Nevertheless, in two quick years, this market has adjusted almost all of those high-profile early cannabis stocks.
However, optimism and continuing expansion rule the industry. In the year 2013, the US Department of Justice announced that it would no longer prioritize the prosecution of men and women along with companies that are typically in compliance with state laws which have legalized medical marijuana use, either for medical use or simply recreational use. This plan had been reinforced by passage of the 2015 federal budget bill that prevents federal monies from being employed in order to avoid implementation of state laws legalizing medical marijuana. The bill evidenced growing bi-partisan help in the usa Congress for repealing the government prohibition on medical marijuana in addition to enabling america to decide on the situation for themselves.
In order to have a lasting, compliant, and strong medical marijuana business alive and also well inside the public markets, the vanguard has to be lead by smart in addition to focused firms, happy to determine niche prospects in addition to commit to due diligence at each and every change.
One such organization is New York-based iAnthus Capital Management, led by founders Hadley Ford in addition to Randy Maslow. iAnthus Capital Management delivers licensed cannabis operators in the usa a unique mix of usage of value-added capital expenditure along with specialist supervision advice and advisory services. The particular authorized marijuana industry is carefully managed through state-granted licenses to grow, generate, as well as disburse cannabis. These licensees are primarily winners of “golden tickets” inside the nascent sector. Delivering these kind of license-holders with important capital when they establish and extend operations over the various states is a forward thinking technique of producing profits with high margins as well as first-mover benefit. To further support its accredited partners, iAnthus has assembled an excellent management staff which combines strong experience with investment banking, corporate finance and also standard health care services together with marijuana farming, derivative product manufacturing, dispensary operations as well as regulatory expertise.
The particular leadership at iAnthus Capital Management stands out within this young however rapidly-growing marketplace. iAnthus co-founder and Managing Director Hadley Ford was formerly the co-founder and CEO of ProCure Treatment Centers, Inc. (“ProCure”), the world’s leading developer plus operator of full-service proton therapy centers to treat cancer. From ProCure’s creation, Mr. Ford grew the organization to around 300 staff in addition to $100 million of annual profits. Just before ProCure, Mr. Ford invested 14 years on Wall Street with First Boston, Bank of America and Goldman Sachs where he completed around 150 transactions worth billions of dollars covering several industries. Mr. Ford obtained his M.B.A. from the Graduate School of Business at Stanford University in addition to a B.S. in Business Administration from Boston University.
In a latest call, Mr. Ford stated, “Through our meticulously investigated approach with our investments along with our ability to add real-world experience along with value to our qualified partners, iAnthus helps to legitimize the space. We bring structure and experienced business as well as management expertise to the medical marijuana industry investments that individuals create.”
iAnthus co-founder in addition to Managing Director Randy Maslow is actually a veteran technology industry attorney exceeding 25 years’ experience as General Counsel to rapidly growing companies inside emerging sectors. Mr. Randy Maslow served as a senior executive along with General Counsel to a number of prosperous internet businesses before co-founding Internet Gaming Entertainment U.S., that created the virtual currency exchange industry for online video games as well as grew from a startup to over 400 employees within the U.S. in addition to Asia with over $100 million of yearly earnings. Mr. Robert Maslow graduated from Cornell University along with the Rutgers University School of Law, and was previously a legal professional with the international law firm Greenberg Traurig LLP.
The actual pedigree of iAnthus’ management team may be a rarity in the marketplace mainly because it presently stands, although with an overall prospective market of $50B or more for direct cannabis sales in the U.S., investors are probably going to want it.
iAnthus has shown six states as high priority targets for expenditure, and it has four more on its watch list. iAnthus has developed a diversified pipeline of high-quality investments inside registered cannabis operations around legal state markets, such as both collaborating preferred equity investments in for-profit companies as well as lending facilities in conjunction with management solutions contracts with regard to not-for-profit businesses, depending on state guidelines. When these investments are generally entirely funded, iAnthus needs to own broadest, most diversified network of investments in certified U.S. cannabis procedures on the market.
Even though private now, iAnthus intends to go public shortly.